HubSpot

HUBS

Software - Application · Technology

Price

$224.26

-0.31 (-0.14%)

Market Cap

$11.49B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+13.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 46.9M (2021) → 53.2M (2025)

HubSpot makes software that helps businesses find customers and manage relationships with them. Its main products cover marketing, sales, and customer service — all connected in one platform called a CRM (customer relationship management) suite. The company mostly serves small and medium-sized businesses that want an easier, more affordable alternative to larger enterprise software.

HubSpot earns money through subscriptions, charging customers monthly or annually based on the features they use and how many contacts they manage. It operates globally, with a large portion of revenue coming from outside the United States, and competes against companies like Salesforce and Adobe. Its main competitive advantage is how tightly its tools are bundled together, making it convenient and sticky for customers to stay. The key risk is that larger software companies have more resources and are expanding into the same small-business market, which could pressure HubSpot's growth and pricing power over time.

Winston Score History

Politician Trades

7 trades / 12mo

3 Congressional buys and 4 sells on HUBS in the last 12 months.

Unlock the full Smart Money Map — every trade plotted on the price chart with politicians, amounts and returns since each trade. Founder's Deal is $57/mo locked for life.

Unlock politician trades

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+23.4% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+247.6% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$906M/ year

↑ Rising (+16% vs prior year)

28.9% of revenue

1.9x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

3.7%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$944M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Heavy R&D investment

HubSpot is putting 29% of revenue into R&D and that number is rising. That's 1.9x the sector average. And they're generating enough cash to self-fund it.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

83.5%

Premium pricing power — 83.5% gross margin

Operating Margin

3.3%

Thin — 3.3% operating margin

ROCE

1.5%

Weak — 1.5% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

+21.0%

Fast-growing sales (21.0% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

796%

Turns 796% of profit into real cash

FCF Margin

21.6%

Converts sales into free cash efficiently (21.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

N/A

Data not available

Interest Cover

135.07x

Comfortably covers interest (135.1x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

117.5x

Expensive — P/E 117.5

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+105.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (117.5 → 12.1)

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial