We got here throughout a bullish thesis on HubSpot, Inc. on Compounding Your Wealth’s Substack by Sergey. On this article, we are going to summarize the bulls’ thesis on HUBS. HubSpot, Inc.’s share was buying and selling at $461.87 as of August 7th. HUBS’s ahead P/E was 49.26 in accordance with Yahoo Finance.
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HubSpot delivered a powerful Q2 2025, with income of $760.9M rising 19.4% YoY and beating estimates by 2.9%. Calculated billings surged 25.6% YoY to $814M, supported by strong web new ARR of $183M (+129.4% YoY). Free money stream margin improved to fifteen.3%, and non-GAAP EPS of $2.19 exceeded expectations by 3.8%. Worldwide development remained sturdy, now accounting for 48% of income, whereas whole prospects grew 17.5% YoY to almost 268,000.
HubSpot’s evolving multi-product suite continues to realize traction—Gross sales Hub seat upgrades rose 71% YoY, Service Hub 110%, and Content material Hub reached a 48% connect fee to Advertising Hub. Adoption of AI brokers is scaling quick, with over 12,000 prospects utilizing Content material Agent and robust uptake of Buyer and Prospecting Brokers. Whereas monetization through AI credit started solely in June, its full impression is predicted in FY26. The corporate is transitioning to a hybrid monetization mannequin mixing persona-based seats with usage-based AI credit, bettering flexibility and long-term sturdiness. Upmarket momentum is obvious: 42% of ARR prospects now use all three core hubs, and 61% of recent Professional+ customers land with a number of merchandise.
Though macro headwinds are delaying some non-seat upgrades, seat-based enlargement and Core Seat adoption are driving larger retention and improved margins. Share repurchases continued, and HubSpot raised full-year steering with Q3 income anticipated at $785–$787M, up 17.4% YoY. As administration positions HubSpot as a number one AI-powered CRM platform, its diversified demand engine, scalable AI adoption, and disciplined execution level to sturdy development and potential upside into FY26.
Beforehand, we coated a bullish thesis on Datadog, Inc. (DDOG) by @bigbullcap in Might 2025, which highlighted the corporate’s multi-product engine, diversified ARR base, and deepening buyer penetration. The corporate’s inventory value has appreciated roughly by 19.15% since our protection. It’s because the thesis round product adoption and innovation is enjoying out. Sergey shares an analogous outlook on HubSpot however emphasizes AI-led monetization and enterprise traction.
HubSpot, Inc. shouldn’t be on our checklist of the 30 Most Well-liked Shares Amongst Hedge Funds. As per our database, 61 hedge fund portfolios held HUBS on the finish of the primary quarter, which was 73 within the earlier quarter. Whereas we acknowledge the potential of HUBS as an funding, we imagine sure AI shares supply better upside potential and carry much less draw back threat. In case you’re on the lookout for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
