HUBSPOT INC (HUBS): Results of Operations and Financial Condition
HUBSPOT INC (HUBS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 HubSpot Reports Q2 2026 Results Q2'26 revenue grew 20% on an as-reported basis and 17% in constant currency compared to Q2'25 CAMBRIDGE, MA (August 5, 2026) — HubSpot, Inc. (NYSE: HUBS), the agentic customer platform for scaling businesses, announced today its financ
How this was made
The 30-second read
Why it matters
The key tradable elements are the reported Q2 financials (revenue, operating income, net income, cash flow), the $1.0B incremental share repurchase authorization, and the explicit Q3 and FY 2026 guidance ranges for revenue, non-GAAP operating income, and non-GAAP EPS.
Market read
Guidance and profitability improvement are likely to be the primary drivers for near-term trading as analysts update models and expectations.
What to watch
The filing highlights large buybacks and AI transformation commentary; investors may scrutinize whether AI-related pricing and go-to-market changes sustain billings growth and customer monetization.
HubSpot Reports Q2 2026 Results
Revenue grew 20% on an as-reported basis, GAAP operating income turned positive, non-GAAP operating income grew 44%, and operating cash flow increased. Third-quarter revenue guidance calls for 14% year-over-year as-reported growth.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueother | $911.7 million | – | up 20% on an as-reported basis and 17% in constant currency |
| Subscription revenueother | $894.0 million | – | up 20% on an as-reported basis |
| Professional services and other revenueother | $17.7 million | – | up 8% on an as-reported basis |
| Operating incomeGAAP | $43.3 million | – | – |
| Operating incomenon-GAAP | $185.3 million | – | up 44% |
| Operating marginGAAP | 4.8% | – | – |
| Operating marginnon-GAAP | 20.3% | – | – |
| Net incomeGAAP | $43.3 million | – | – |
| Net income per basic and diluted shareGAAP | $0.86 per basic and diluted share | – | – |
| Net incomenon-GAAP | $164.8 million | – | up 40% |
| Net income per basic sharenon-GAAP | $3.26 per basic share | – | up 46% |
| Net income per diluted sharenon-GAAP | $3.26 per diluted share | – | up 49% |
| Weighted average basic and diluted shares outstanding used for GAAP net income per shareGAAP | 50.6 million | – | – |
| Weighted average basic and diluted shares outstanding used for non-GAAP net income per sharenon-GAAP | 50.6 million | – | – |
| Customersother | 306,446 as of June 30, 2026 | – | up 14% |
| Average Subscription Revenue Per Customerother | $11,800 during the second quarter of 2026 | – | up 4% on an as-reported basis |
| Calculated billingsother | $929.7 million in the second quarter of 2026 | – | up 14% on an as-reported basis and 17% in constant currency |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Subscription revenueNot reported | $894.0 million | – | up 20% on an as-reported basis |
| Professional services and other revenueNot reported | $17.7 million | – | up 8% on an as-reported basis |
Third Quarter 2026 and Full Year 2026 outlook
- NoteThird Quarter 2026 total revenue is expected to be in the range of $924.0 million to $925.0 million, up 14% year over year on an as-reported basis and 15% in constant currency.
- NoteThird Quarter 2026 non-GAAP operating income is expected to be in the range of $187.0 million to $188.0 million, representing a 20% operating income margin.
- NoteThird Quarter 2026 non-GAAP net income per common share is expected to be in the range of $3.25 to $3.27. This assumes approximately 49.3 million weighted average diluted shares outstanding.
- NoteFull Year 2026 total revenue is expected to be in the range of $3.678 billion to $3.686 billion, up 18% year over year on an as-reported basis and 16% in constant currency.
- NoteFull Year 2026 non-GAAP operating income is expected to be in the range of $762.0 million to $766.0 million, representing a 21% operating income margin.
- NoteFull Year 2026 non-GAAP net income per common share is expected to be in the range of $13.23 to $13.31. This assumes approximately 50.0 million weighted average diluted shares outstanding.
Capital returns
- During the second quarter, the company repurchased $531.9 million of its common stock.
- On August 3, 2026, the Board of Directors authorized an additional share repurchase program in an aggregate amount of up to $1.0 billion over a period of up to 24 months.
What drove it
- Total revenue grew 20% on an as-reported basis and 17% in constant currency.
- Subscription revenue grew 20% on an as-reported basis.
- Customers grew to 306,446 as of June 30, 2026, up 14%.
- Average Subscription Revenue Per Customer was $11,800 during the second quarter of 2026, up 4% on an as-reported basis.
- Calculated billings were $929.7 million in the second quarter of 2026, up 14% on an as-reported basis and 17% in constant currency.
- Management stated that it is evolving product, pricing, and go-to-market to meet customer needs related to AI adoption.
Concerns
- Professional services and other revenue grew 8% on an as-reported basis, below subscription revenue growth of 20%.
- Third Quarter 2026 guidance calls for total revenue growth of 14% year over year on an as-reported basis, compared with 20% revenue growth in the second quarter.
- Calculated billings grew 14% on an as-reported basis, compared with total revenue growth of 20% on an as-reported basis.
- The company cited risks related to customer retention and additions, competition including artificial intelligence and machine learning technologies, expense management, foreign currency movement, macroeconomic instability, and AI regulation.
What to watch
- Execution of product, pricing, and go-to-market changes described as part of the AI transformation.
- Third Quarter 2026 total revenue guidance of $924.0 million to $925.0 million.
- Third Quarter 2026 non-GAAP operating income guidance of $187.0 million to $188.0 million, representing a 20% operating income margin.
- Customer growth and Average Subscription Revenue Per Customer.
- Use and timing of the August 2026 Share Repurchase Program, which authorizes up to $1.0 billion over up to 24 months.
Balance sheet and cash flow
- Cash and cash equivalents, short-term, and long-term investments balance was $1.4 billion as of June 30, 2026.
- Cash and cash equivalents were $958,314 as of June 30, 2026, compared with $882,242 as of December 31, 2025.
- Short-term investments were $379,629 as of June 30, 2026, compared with $821,552 as of December 31, 2025.
- Long-term investments were $45,265 as of June 30, 2026, compared with $136,662 as of December 31, 2025.
- Total assets were $3,504,395 as of June 30, 2026, compared with $3,854,151 as of December 31, 2025.
- Deferred revenue was $1,056,353 as of June 30, 2026, compared with $1,004,945 as of December 31, 2025.
- During the second quarter, the company generated $222.8 million in operating cash flow, compared with $164.4 million.
- During the second quarter, the company generated $227.5 million of cash from non-GAAP operating cash flow and $167.9 million of non-GAAP free cash flow, compared to $167.7 million of cash from non-GAAP operating cash flow and $116.2 million of non-GAAP free cash flow.
Analysis
HubSpot reported $911.7 million of total revenue for the second quarter of 2026, up 20% on an as-reported basis and 17% in constant currency. Subscription revenue was $894.0 million and grew 20% on an as-reported basis, while professional services and other revenue was $17.7 million and grew 8%. Calculated billings were $929.7 million, up 14% on an as-reported basis and 17% in constant currency. Customers reached 306,446 as of June 30, 2026, up 14%, and Average Subscription Revenue Per Customer was $11,800, up 4% on an as-reported basis.
Profitability improved materially. GAAP operating income was $43.3 million, compared to a GAAP operating loss of ($24.6) million, and GAAP operating margin was 4.8%, compared to (3.2%). Non-GAAP operating income was $185.3 million, up 44%, with a non-GAAP operating margin of 20.3%, compared to 17.0%. GAAP net income was $43.3 million, compared to a GAAP net loss of ($3.3) million, while non-GAAP net income was $164.8 million, up 40% compared to $117.3 million.
Cash generation also strengthened. Operating cash flow was $222.8 million, compared with $164.4 million. Non-GAAP operating cash flow was $227.5 million and non-GAAP free cash flow was $167.9 million, compared to $167.7 million and $116.2 million, respectively. The company reported a $1.4 billion balance of cash and cash equivalents, short-term, and long-term investments as of June 30, 2026, and repurchased $531.9 million of common stock during the quarter.
Capital allocation remains active. On August 3, 2026, the Board authorized an additional share repurchase program of up to $1.0 billion over up to 24 months. The program does not obligate the company to acquire a specified number of shares and may be suspended, modified, or terminated at any time.
For the third quarter, HubSpot expects total revenue of $924.0 million to $925.0 million, up 14% year over year on an as-reported basis and 15% in constant currency. It expects non-GAAP operating income of $187.0 million to $188.0 million, representing a 20% operating income margin, and non-GAAP net income per common share of $3.25 to $3.27. Full-year guidance calls for $3.678 billion to $3.686 billion of total revenue, up 18% year over year on an as-reported basis and 16% in constant currency, with $762.0 million to $766.0 million of non-GAAP operating income and a 21% operating income margin.
Management, verbatim
In Q2, we made deliberate choices to accelerate our AI transformation.
Yamini Rangan, Chief Executive Officer at HubSpot
Scaling companies want real outcomes and predictable pricing when adopting AI, and we are evolving our product, pricing, and go-to-market to meet those needs.
Yamini Rangan, Chief Executive Officer at HubSpot
The AI shift unlocks a much larger opportunity for HubSpot, and I'm confident these choices position us to drive long-term, compounding growth.
Yamini Rangan, Chief Executive Officer at HubSpot
Not in the filing
stated, not guessed- Prior-year dollar amount for total revenue
- Prior-year dollar amounts for subscription revenue and professional services and other revenue
- Gross profit and gross margin, GAAP and non-GAAP
- Prior-quarter comparisons for reported operating metrics
- GAAP free cash flow
- Debt balance
- Dividend declaration or payment
- Third Quarter 2026 and Full Year 2026 guidance for gross margin, operating expenses, and tax rate
- Previous-period outlook for comparison with reported results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is HubSpot’s SEC Form 8-K (Item 2.02) with Q2 2026 results and forward guidance, plus Item 5.02 director/officer-related disclosure.
Ticker impact
HubSpot reported Q2 revenue of $911.7M (+20% as-reported) and issued Q3 and full-year 2026 non-GAAP guidance with EPS ranges.
Likely positive bias for the stock into the next session as traders reprice growth and margin expectations around the guided non-GAAP EPS and operating income.
The filing includes multiple concrete, decision-relevant figures: Q2 revenue, GAAP and non-GAAP profitability, operating cash flow, a $1.0B incremental buyback authorization, and forward guidance ranges for revenue, non-GAAP operating income, and non-GAAP EPS.
Market effects
Reinforces demand and margin expansion narrative for CRM and marketing software names pursuing AI-driven go-to-market, potentially supporting sector multiples.
Limited direct regional spillover; primarily US software sentiment via earnings and guidance.
Constant-currency growth and subscription strength may modestly influence global SaaS sentiment, but impact is company-specific.
Counterpoint
Non-GAAP results and margins are emphasized; traders may discount quality of earnings and focus on GAAP profitability trajectory and share count dynamics.
Key entities
- public_companyHubSpot, Inc.
Agentic customer platform company reporting Q2 2026 results and issuing Q3 and FY 2026 guidance.
- executiveYamini Rangan
CEO quoted on accelerating AI transformation and evolving product, pricing, and go-to-market.
