HubSpot (HUBS) has rounded out FY 2025 with fourth quarter revenue of US$846.7 million and basic EPS of US$1.04, alongside trailing 12 month revenue of US$3.1 billion and basic EPS of US$0.88, during a period where reported earnings growth and net profit margin improvement have been highlighted as key positives. The company has seen quarterly revenue move from US$703.2 million in Q4 2024 to US$846.7 million in Q4 2025, while basic EPS shifted from US$0.10 to US$1.04 over the same quarters. This sets up a picture of earnings that have moved significantly higher over the last year and a net margin that now sits at 1.5% versus 0.2% a year earlier, which puts profitability and its durability at the center of the latest earnings story.

See our full analysis for HubSpot.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the widely shared narratives about HubSpot's growth, profitability, and risk over the past year.

Profitability Shift Shows Up In TTM Numbers

• On a trailing 12 month basis, HubSpot moved from net income of US$4.6 million and basic EPS of US$0.09 at Q4 2024 to net income of US$45.9 million and basic EPS of US$0.88 at Q4 2025, with net margin at 1.5% versus 0.2% a year earlier.
• Consensus narrative talks about higher recurring revenue and improved margins over time. This move to a 1.5% net margin with US$3.1b of trailing revenue shows that profitability is now visible in the reported numbers. Margin is still low enough that any reversal in those recurring trends would quickly show up in EPS.

Revenue Growth Meets Mixed Valuation Signals

• Trailing revenue reached US$3.1b at Q4 2025, and revenue is forecast in the dataset to grow around 13.6% per year while the stock trades on a P/S of 4x, compared with a peer average of 6.4x and a US Software industry average of 3.7x.
• Bulls point to faster forecast earnings growth of about 34.8% per year and revenue growth above the 11.5% market rate. At the same time, the current P/S premium to the broader software group and a DCF fair value of roughly US$885 vs a share price of US$243.72 means the optimistic view is leaning heavily on those growth forecasts being realised over time.
  • The bullish narrative also highlights room for margin expansion, but with net margin only at 1.5% today, a lot has to happen before profitability lines up with that higher implied DCF fair value.
  • Trading below peers on P/S also supports the bullish argument that there is upside if HubSpot can sustain the forecast revenue and earnings growth embedded in those models.

Bulls arguing that this mix of revenue growth, early profitability and discounted P/S vs peers points to further upside may want to see how their view stacks up against detailed scenario work in the full bull case narrative 🐂 HubSpot Bull Case

Sharp EPS Swing Tests Cautious Views

• Within FY 2025, basic EPS moved from a loss of US$0.42 in Q1 to a loss of US$0.06 in Q2, then to US$0.31 in Q3 and US$1.04 in Q4, with quarterly net income moving from a US$21.8 million loss in Q1 to a US$54.4 million profit in Q4.
• Bears worry that HubSpot depends heavily on smaller customers and early stage AI monetisation. This step change from losses early in the year to positive EPS of US$0.88 on a trailing basis shows the business can swing meaningfully with changes in spending or monetisation, which supports the cautious view that any slowdown in upgrades, credits or larger deals could quickly affect both EPS and margin stability.
  • The bearish narrative also flags that new models like usage based credits are still early, and the fact that most of the trailing 12 month profit comes from a relatively short recent window could be read as evidence that results are still sensitive to how those newer revenue streams develop.
  • Given that analysts in the dataset still expect earnings and margins to grow from here, the sharp intra year volatility in EPS is exactly the sort of pattern bears use to argue that execution risk remains high even with the recent profitable quarters.

Readers who share that cautious angle may want to see how skeptics map these EPS swings into longer term scenarios in the full bear case narrative 🐻 HubSpot Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for HubSpot on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

After reading both the bullish and cautious angles, do the overall risks and rewards feel balanced enough for you to act quickly and form your own view? To see exactly what optimists are focusing on, take a closer look at the 3 key rewards

See What Else Is Out There

HubSpot's low 1.5% net margin, sharp EPS swings within FY 2025, and reliance on newer revenue models highlight earnings and execution risk.

If that volatility makes you want steadier prospects, compare this profile with 72 resilient stocks with low risk scores today and focus your research on companies with more resilient fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.