HubSpot Reports 18% YoY Q2 Revenue Growth, Accelerating 1 Point from Q1

HubSpot reported Q2 2025 revenue growth of 18% YoY in constant currency, accelerating from Q1. CEO Yamini Rangan highlighted platform strength, upmarket momentum, and downmarket velocity, with 61% of customers adopting AI. The company is targeting 17% full-year revenue growth.

HubSpot Inc. (NYSE: HUBS) reported robust financial results for the second quarter of 2025, with revenue growth accelerating to 18% year-over-year (YoY) in constant currency. This marks a significant improvement from the previous quarter and underscores the company's continued momentum in the AI-driven customer relationship management (CRM) space.

The company's Chief Executive Officer, Yamini Rangan, highlighted the platform's strength, upmarket momentum, and downmarket velocity, noting that 61% of customers have adopted AI features. This indicates a strong adoption rate and potential for future growth. HubSpot is targeting 17% full-year revenue growth, reflecting confidence in its AI strategy and market position.

Key financial highlights from the quarter include:
- Revenue: $761 million, representing a 19% YoY increase and exceeding analysts' estimates of $739 million [2].
- Adjusted EPS: $2.19 per share, a 3.1% beat over analysts' consensus estimates [1].
- Operating Income: $129 million, with a 17% operating profit margin, unchanged from the previous year [2].
- Free Cash Flow: $116 million, up 26% YoY, indicating strong future revenue potential [2].
- Customer Base: 268,000, a 27% compound annual growth rate (CAGR) since Q1 2019 [2].
- Billings: $814 million, up 26% YoY [2].

The company's AI integration strategy is evident in its platform architecture, which consists of four main layers: Engagement Hubs, Unified Data, Embedded AI, and Ecosystem. These layers are designed to provide a comprehensive AI-powered customer relationship management solution. HubSpot's ecosystem continues to expand, with 1,700+ app integrations and 7,000+ solution partners reselling the platform [2].

Looking ahead, HubSpot expects total revenue between $785-787 million for Q3 2025, representing a 17% YoY growth. For the full year 2025, the company forecasts total revenue of $3,080-3,088 million, with operating profit of $568-572 million and free cash flow of $580 million [2].

The stock traded up 4.4% to $512 immediately following the results, reflecting investor confidence in HubSpot's Q2 performance and future prospects [1]. However, the stock remains down 30% year-to-date and trades just 8% above its 52-week low, indicating ongoing market concerns over decelerating customer spend, rising competition, and uncertain AI monetization [3].

Investors should closely monitor HubSpot's customer metrics and unit economics, as any further weakness could signal rising pricing pressure or a shift in customer behavior.

References:
[1] https://finance.yahoo.com/news/hubspot-nyse-hubs-beats-q2-213231345.html
[2] https://za.investing.com/news/company-news/hubspot-q2-2025-slides-revenue-up-19-ai-platform-expansion-continues-93CH-3823954
[3] https://ca.finance.yahoo.com/news/hubspot-q2-ai-arpu-reignite-184505153.html