A month has gone by since the last earnings report for HubSpot (HUBS Quick QuoteHUBS - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is HubSpot due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for HubSpot, Inc. before we dive into how investors and analysts have reacted as of late.

HubSpot Q3 Earnings Beat Estimates on Strong Revenue Growth

HubSpot reported impressive third-quarter 2025 results, with both the top and bottom lines beating the respective Zacks Consensus Estimate.

The software-as-a-service vendor reported a top-line expansion year over year, backed by growing user engagement across all segments. The integration of advanced AI tools, which include state-of-the-art features, such as AI assistance, AI agents, AI insights and ChatSpot, across its entire product suites and customer platform is driving more value to customers.

Net Income

On a GAAP basis, the company recorded a net income of $16.5 million or 31 cents per share compared with a net income of $8.1 million or 16 cents per share in the year-ago quarter.
 
Non-GAAP net income was $140.3 million or $2.66 per share, up from $116.6 million or $2.18 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 8 cents.

Revenues

Quarterly revenues improved to $809.5 million from $669.7 million reported in the year-ago quarter. The company is witnessing steady multi-hub adoption from enterprise customers in the premium market. Healthy net customer additions in the starter edition, along with pricing optimization, drove net sales in the lower tier of the market spectrum. Moreover, customers using free editions are increasingly opting for premium plans owing to greater time to value and seamless AI-powered onboarding. The top line beat the Zacks Consensus Estimate of $786 million.

HubSpot added more than 10,900 net new customers during the quarter, which increased the total customer count to 279,000, up 17% year over year.

Subscription revenues rose to $791.7 million, up 21% year over year. The figure missed the Zacks Consensus Estimate of $811.5 million. Average subscription revenues per customer increased 3% year over year to $11,578.

Professional services and other revenues totaled $17.8 million, up from $14.9 million in the year-ago quarter. The top line beat the Zacks Consensus Estimate of $17.71 million.

Other Details

Gross profit in the quarter was $676 million, up from $570.4 million in the year-ago quarter. Operating income, on a GAAP basis, was $11.2 million against a net loss of $9.6 million in the year-ago quarter. Non-GAAP operating income improved to $161.5 million from $125.2 million, with respective margins of 19.9% and 18.7%.

Cash Flow & Liquidity

In the third quarter of 2025, the company generated $187.4 million in cash from operating activities compared with $159.5 million cash generated in the year-ago quarter. As of Sep 30, 2025, HubSpot had $614.3 million in cash and cash equivalents, with $90.6 million in other long-term liabilities.

Outlook

For fourth-quarter 2025, HubSpot forecasts revenues in the range of $828 million to $830 million, up 18%. The company expects non-GAAP net income per share in the band of $2.97-$2.99. The anticipated range for non-GAAP operating income is $183-$184 million, representing a 22% operating profit margin.

For 2025, management estimates revenues between $3.11 billion and $3.115 billion, up 19% year over year. Non-GAAP operating income is expected to be in the range of $574-$575 million, representing an 18% operating profit margin. Non-GAAP net income per share is likely to be in the range of $9.6-$9.62.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 6.02% due to these changes.

VGM Scores

At this time, HubSpot has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, HubSpot has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

HubSpot is part of the Zacks Internet - Software industry. Over the past month, Automatic Data Processing (ADP Quick QuoteADP - Free Report) , a stock from the same industry, has gained 2.8%. The company reported its results for the quarter ended September 2025 more than a month ago.

ADP reported revenues of $5.18 billion in the last reported quarter, representing a year-over-year change of +7.1%. EPS of $2.49 for the same period compares with $2.33 a year ago.

For the current quarter, ADP is expected to post earnings of $2.58 per share, indicating a change of +9.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for ADP. Also, the stock has a VGM Score of D.