Q3 FY2026
Filed Nov 4, 2026HubSpot Reports Q3 2026 Results: Q3'26 revenue grew 17% on an as-reported basis and in constant currency compared to Q3'25.
Revenue grew 17%, GAAP operating income increased to $71.9 million from $11.2 million, non-GAAP operating income grew 33%, and operating cash flow increased to $238.0 million from $187.4 million. The company also guided for 12% fourth-quarter revenue growth and 18% full-year revenue growth.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenueGAAP | $947.6M | – | 17% |
| Q3 2026 subscription revenueGAAP | $930.2M | – | 18% |
| Q3 2026 professional services and other revenueGAAP | $17.3M | – | down 3% |
| Q3 2026 total cost of revenuesGAAP | $164.7M | – | – |
| Q3 2026 gross profitGAAP | $782.9M | – | – |
| Q3 2026 GAAP operating incomeGAAP | $71.9M | – | – |
| Q3 2026 non-GAAP operating incomenon-GAAP | $214.2M | – | 33% |
| Q3 2026 GAAP operating marginGAAP | 7.6% | – | – |
| Q3 2026 non-GAAP operating marginnon-GAAP | 22.6% | – | – |
| Q3 2026 research and development expenseGAAP | $223.3M | – | – |
| Q3 2026 sales and marketing expenseGAAP | $401.6M | – | – |
| Q3 2026 general and administrative expenseGAAP | $85.11M | – | – |
| Q3 2026 restructuring expenseGAAP | $996K | – | – |
| Q3 2026 total operating expensesGAAP | $711.0M | – | – |
| Q3 2026 GAAP net incomeGAAP | $83M | – | – |
| Q3 2026 non-GAAP net incomenon-GAAP | $188.9M | – | 35% |
| Q3 2026 GAAP basic net income per shareGAAP | $1.68 | – | – |
| Q3 2026 GAAP diluted net income per shareGAAP | $1.67 | – | – |
| Q3 2026 non-GAAP basic net income per sharenon-GAAP | $3.82 | – | 43% |
| Q3 2026 non-GAAP diluted net income per sharenon-GAAP | $3.81 | – | 43% |
| Q3 2026 GAAP subscription margin percentageGAAP | 83.9% | – | – |
| Q3 2026 non-GAAP subscription margin percentagenon-GAAP | 85.4% | – | – |
| Q3 2026 operating cash flowGAAP | $238M | – | – |
| Q3 2026 non-GAAP operating cash flownon-GAAP | $242.7M | – | – |
| Q3 2026 non-GAAP free cash flownon-GAAP | $188M | – | – |
| Q3 2026 calculated billingsother | $924.9M | – | 15% on an as-reported basis and in constant currency |
| Q3 2026 customersother | 311,704 | – | 12% |
| Q3 2026 Average Subscription Revenue Per Customerother | $12,038 | – | 4% on an as-reported basis |
| Nine months ended September 30, 2026 total revenueGAAP | $2.74B | – | – |
| Nine months ended September 30, 2026 GAAP operating income (loss)GAAP | $143.2M | – | – |
| Nine months ended September 30, 2026 non-GAAP operating incomenon-GAAP | $556.3M | – | – |
| Nine months ended September 30, 2026 GAAP operating marginGAAP | 5.2% | – | – |
| Nine months ended September 30, 2026 non-GAAP operating marginnon-GAAP | 20.3% | – | – |
| Nine months ended September 30, 2026 GAAP net income (loss)GAAP | $158.9M | – | – |
| Nine months ended September 30, 2026 non-GAAP net incomenon-GAAP | $496.7M | – | – |
| Nine months ended September 30, 2026 GAAP diluted net income (loss) per shareGAAP | $ 3.12 | – | – |
| Nine months ended September 30, 2026 non-GAAP diluted net income per sharenon-GAAP | $ 9.76 | – | – |
| Nine months ended September 30, 2026 operating cash flowGAAP | $659.6M | – | – |
| Nine months ended September 30, 2026 non-GAAP free cash flownon-GAAP | $509.6M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SubscriptionSubscription revenue represented the substantial majority of total revenue. | $930.2M | – | 18% on an as-reported basis |
| Professional services and otherProfessional services and other revenue declined year over year. | $17.3M | – | down 3% on an as-reported basis |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter 2026 and Full Year 2026 outlook
- RevenueFourth Quarter 2026: $945.0 million to $947.0 million, up 12% year over year on an as-reported basis and in constant currency. Full Year 2026: $3.685 billion to $3.687 billion, up 18% year over year on an as-reported basis and 16% in constant currency.
- NoteFourth Quarter 2026 non-GAAP operating income: $216.0 million to $217.0 million, representing a 23% operating income margin.
- NoteFull Year 2026 non-GAAP operating income: $772.0 million to $773.0 million, representing a 21% operating income margin.
- NoteFourth Quarter 2026 non-GAAP net income per common share: $3.85 to $3.87.
- NoteFourth Quarter 2026 weighted average diluted shares outstanding assumption: approximately 48.9 million.
- NoteFull Year 2026 non-GAAP net income per common share: $13.59 to $13.61.
- NoteFull Year 2026 weighted average diluted shares outstanding assumption: approximately 50.4 million.
- NoteFourth Quarter 2026 GAAP operating income (loss) range: $8,716-($284).
- NoteFull Year 2026 GAAP operating income (loss) range: $152,371-$143,371.
- NoteFourth Quarter 2026 restructuring charges: $60,813-70,813.
- NoteFull Year 2026 restructuring charges: $63,979-73,979.
- NoteFourth Quarter 2026 GAAP net income range: $12,109-$4,609.
- NoteFull Year 2026 GAAP net income range: $164,916-$157,416.
- NoteFourth Quarter 2026 GAAP net income per diluted share: $0.25-$0.09.
- NoteFull Year 2026 GAAP net income per diluted share: $3.27-$3.12.
Capital returns
- During the third quarter, HubSpot repurchased $237.2 million of its common stock.
- Repurchases of common stock were $ 230,810 (in thousands) for the three months ended September 30, 2026 and $ 973,690 (in thousands) for the nine months ended September 30, 2026.
- No dividend was reported.
What drove it
- Total revenue grew 17% on an as-reported basis and in constant currency.
- Subscription revenue grew 18% on an as-reported basis.
- Customers grew 12% to 311,704 as of September 30, 2026.
- Average Subscription Revenue Per Customer was $12,038, up 4% on an as-reported basis.
- Calculated billings grew 15% on an as-reported basis and in constant currency.
- GAAP operating margin expanded to 7.6% from 1.4%, while non-GAAP operating margin expanded to 22.6% from 19.9%.
- The company described its product, pricing, go-to-market, and operating transformation around AI and the Outcomes Era.
Concerns
- Professional services and other revenue was down 3% on an as-reported basis.
- GAAP subscription margin percentage was 83.9%, compared to 85.2%, and non-GAAP subscription margin percentage was 85.4%, compared to 86.7%.
- Sales and marketing expense increased to $ 401,607 (in thousands) from $ 355,268 (in thousands).
- The company expects to incur charges of $65-75 million in connection with the 2026 Restructuring Plan, with the majority expected in the fourth quarter of 2026.
- Fourth-quarter total revenue guidance calls for 12% year-over-year growth, compared with 17% growth in the third quarter.
What to watch
- Fourth-quarter execution against total revenue guidance of $945.0 million to $947.0 million.
- Fourth-quarter non-GAAP operating income guidance of $216.0 million to $217.0 million and the 23% operating income margin expectation.
- The magnitude and timing of expected 2026 Restructuring Plan charges, of which the majority is expected in the fourth quarter of 2026.
- Subscription revenue growth, customer growth, Average Subscription Revenue Per Customer, and calculated billings.
- Whether the decline in professional services and other revenue persists.
- Cash deployment after $237.2 million of third-quarter share repurchases and $973.7 million of nine-month repurchases.
Balance sheet and cash flow
- Cash and cash equivalents, short-term, and long-term investments balance was $1.3 billion as of September 30, 2026.
- Cash and cash equivalents were $ 1,121,342 (in thousands) as of September 30, 2026, compared with $ 882,242 (in thousands) as of December 31, 2025.
- Short-term investments were $ 175,414 (in thousands) and long-term investments were $ 13,747 (in thousands) as of September 30, 2026.
- Total assets were $ 3,480,464 (in thousands) and total liabilities were $ 1,852,877 (in thousands) as of September 30, 2026.
- Deferred revenue was $ 1,034,580 (in thousands) current and $ 5,480 (in thousands) non-current as of September 30, 2026.
- Net cash and cash equivalents provided by operating activities was $ 238,027 (in thousands) for the third quarter and $ 659,607 (in thousands) for the nine months ended September 30, 2026.
- Purchases of property and equipment were $ 16,021 (in thousands) and capitalization of software development costs was $ 38,702 (in thousands) in the third quarter.
- Cash, cash equivalents and restricted cash at the end of period was $ 1,124,045 (in thousands).
Analysis
HubSpot reported a strong third quarter, led by $947.6 million of total revenue, up 17% on both an as-reported and constant-currency basis. Subscription revenue rose 18% to $930.2 million and remained the dominant source of revenue. Customer count reached 311,704, up 12%, while Average Subscription Revenue Per Customer increased 4% to $12,038. Calculated billings grew 15%, providing an additional reported indicator of commercial activity.
Profitability improved substantially. GAAP operating income was $71.9 million compared with $11.2 million, and GAAP operating margin expanded to 7.6% from 1.4%. Non-GAAP operating income increased 33% to $214.2 million, with non-GAAP operating margin increasing to 22.6% from 19.9%. GAAP net income was $83.0 million and non-GAAP net income was $188.9 million. The non-GAAP results exclude, among other items, stock-based compensation, acquired-intangible amortization, acquisition-related expense, restructuring charges, strategic-investment gains or impairments, and related tax effects.
The cost and investment mix warrants attention. GAAP subscription margin percentage was 83.9%, compared with 85.2%, and non-GAAP subscription margin percentage was 85.4%, compared with 86.7%. Sales and marketing expense increased to $401.6 million from $355.3 million, while research and development expense declined to $223.3 million from $227.7 million. Professional services and other revenue declined 3% to $17.3 million, the only reported revenue category with a year-over-year decline.
Cash generation strengthened and capital returns were substantial. Third-quarter operating cash flow was $238.0 million compared with $187.4 million, while non-GAAP free cash flow was $188.0 million compared with $146.9 million. HubSpot repurchased $237.2 million of common stock during the quarter and $973.7 million during the first nine months. Cash and cash equivalents, short-term investments, and long-term investments totaled $1.3 billion as of September 30, 2026.
The outlook calls for $945.0 million to $947.0 million of fourth-quarter revenue, up 12% year over year, and $216.0 million to $217.0 million of non-GAAP operating income at a 23% operating margin. Full-year revenue guidance is $3.685 billion to $3.687 billion, up 18% as reported and 16% in constant currency, with $772.0 million to $773.0 million of non-GAAP operating income. The outlook also incorporates expected restructuring charges under the 2026 Restructuring Plan, the majority of which the company expects to incur in the fourth quarter.
Management, verbatim
We are still in the early stages of a massive shift with AI, and we’re transforming HubSpot to lead in the Outcomes Era.
Yamini Rangan, Chief Executive Officer at HubSpot
AI is fundamentally changing software, from tools that help people do work to agents that do the work and deliver outcomes. We're transforming our product, pricing, go-to-market, and how we operate to capture this opportunity, and we made meaningful progress across these areas this quarter.
Yamini Rangan, Chief Executive Officer at HubSpot
Not in the filing
stated, not guessed- Prior-quarter comparisons for revenue, operating income, net income, EPS, margins, cash flow, billings, customer count, and Average Subscription Revenue Per Customer were not reported.
- Prior-year figures for customer count, Average Subscription Revenue Per Customer, and calculated billings were not printed as absolute figures.
- GAAP and non-GAAP gross margin were not reported as consolidated gross-margin percentages.
- Debt balance was not reported in the consolidated balance sheet.
- Dividend amount and dividend policy were not reported.
- Prior-period outlook was not provided, so no comparison of actual results with prior guidance is available.
- Forward guidance for gross margin, operating expenses, and tax rate was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.