HubSpot (HUBS) posted adjusted revenue of $548 million for Q3 2025, falling short of the $553 million consensus, while subscription revenue grew 12% year-over-year. The company cited increased customer churn and weaker-than-expected enterprise sales as key pressures.
- HubSpot reported Q3 2025 revenue of $548 million, below the $553 million consensus.
- Subscription revenue grew 12% YoY, down from 15% in Q2.
- Churn rate increased to 4.2%, up from 3.8% in Q2.
- Enterprise new contracts declined 17% compared to Q2.
- Full-year 2025 revenue guidance revised to $2.23B–$2.25B from $2.28B.
- Stock fell 7.3% in after-hours trading following earnings release.
HubSpot's third-quarter results revealed a notable divergence between expectations and actual performance, with revenue coming in below consensus. The company reported total revenue of $548 million, down from $561 million in the same quarter last year, while adjusted earnings per share stood at $0.41, slightly above the $0.40 forecast. Despite this, the miss in top-line growth raised concerns among investors. The core issue stemmed from a 12% year-over-year increase in subscription revenue, which lagged behind the 15% growth seen in the prior quarter. Churn rates rose to 4.2% from 3.8% in Q2, driven by mid-market customer attrition and tighter budget constraints during the holiday season. Enterprise deals, a key growth driver, saw a 17% decline in new contracts compared to Q2, signaling a shift in buyer behavior. Management attributed the slowdown to macroeconomic headwinds, particularly in North America, where expansion in the SMB segment stalled. Sales and marketing expenses increased 8% to $241 million, reflecting ongoing investments in product innovation and global expansion. The company also announced a revised full-year 2025 revenue outlook, now projecting $2.23 billion to $2.25 billion, down from the earlier $2.28 billion target. In response, HubSpot’s stock dropped 7.3% in after-hours trading, erasing gains from recent product launches. The movement affected broader SaaS benchmarks, with the S&P 500 Information Technology Sector declining 1.2% on the day. Investors are now closely monitoring upcoming guidance for Q4 and the sustainability of HubSpot’s cloud-based CRM platform amid intensifying competition from Salesforce and Oracle.