📊 AI Stock Rating — Summary

HubSpot reported quarterly revenue of approximately $809.5 million with a net income of $16.5 million, resulting in an EPS of $0.31. The net margin stands at 2%, while free cash flow is a robust $177 million. Year-over-year, the company demonstrates solid revenue growth, driven by increased adoption of its CRM solutions. Profitability is relatively modest but positive, indicating room for operational improvements. The company maintains a strong balance sheet with $617 million in cash and a net debt position of -$342.4 million, signaling significant financial flexibility. Despite not returning capital to shareholders via buybacks or dividends, the high FCF suggests potential for future shareholder returns. Analysts provide price targets ranging from $465 to $775, with a consensus of $582, highlighting expectations of potential upside. As observed, HUBS focuses its investment on growth and innovation, evident from its strong investment in capital expenditures, suggesting an optimistic forward outlook. Its valuation would likely lean towards the higher end of its peers given the growth prospects.

AI Score Breakdown

Revenue Growth — Score: 8/10

Revenue increased with stability, driven by strong demand for CRM and marketing solutions. HubSpot's strategic expansions into new markets and enhancement of its product suite are significant growth drivers.

Profitability — Score: 6/10

Profitability remains modest with an operating margin of around 2%. EPS has positive momentum, but ongoing investment in growth slightly dampens current margin efficiency.

Cash Flow Quality — Score: 9/10

Free cash flow is strong and consistent at $177 million. The company has ample liquidity and demonstrates efficient working capital management.

Leverage & Balance Sheet — Score: 8/10

HubSpot maintains a healthy balance sheet with substantial cash reserves and negative net debt, providing financial resilience and flexibility for future growth.

Shareholder Returns — Score: 5/10

With no dividends or buybacks, shareholder returns rely on capital appreciation potential. Analysts' high price targets indicate strong appreciation expectations.

Analyst Sentiment & Valuation — Score: 7/10

Analysts anticipate price targets ranging from $465 to $775, suggesting potential upside. HubSpot is likely priced at a premium to peers, reflecting its growth outlook and market position.

⚠ AI-generated — informational only, not financial advice.