HubSpot, Inc. (HUBS): A Bull Case Theory

We came across a bullish thesis on HubSpot, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on HUBS. HubSpot, Inc.’s share was trading at $461.87 as of August 7^th. HUBS’s forward P/E was 49.26  according to Yahoo Finance.

HubSpot delivered a strong Q2 2025, with revenue of $760.9M growing 19.4% YoY and beating estimates by 2.9%. Calculated billings surged 25.6% YoY to $814M, supported by solid net new ARR of $183M (+129.4% YoY). Free cash flow margin improved to 15.3%, and non-GAAP EPS of $2.19 exceeded expectations by 3.8%. International growth remained robust, now accounting for 48% of revenue, while total customers grew 17.5% YoY to nearly 268,000.

HubSpot’s evolving multi-product suite continues to gain traction—Sales Hub seat upgrades rose 71% YoY, Service Hub 110%, and Content Hub reached a 48% attach rate to Marketing Hub. Adoption of AI agents is scaling fast, with over 12,000 customers using Content Agent and strong uptake of Customer and Prospecting Agents. While monetization via AI credits began only in June, its full impact is expected in FY26. The company is transitioning to a hybrid monetization model blending persona-based seats with usage-based AI credits, improving flexibility and long-term durability. Upmarket momentum is evident: 42% of ARR customers now use all three core hubs, and 61% of new Pro+ users land with multiple products.

Although macro headwinds are delaying some non-seat upgrades, seat-based expansion and Core Seat adoption are driving higher retention and improved margins. Share repurchases continued, and HubSpot raised full-year guidance with Q3 revenue expected at $785–$787M, up 17.4% YoY. As management positions HubSpot as a leading AI-powered CRM platform, its diversified demand engine, scalable AI adoption, and disciplined execution point to durable growth and potential upside into FY26.

Previously, we covered a bullish thesis on Datadog, Inc. (DDOG) by @bigbullcap in May 2025, which highlighted the company’s multi-product engine, diversified ARR base, and deepening customer penetration. The company’s stock price has appreciated approximately by 19.15% since our coverage. This is because the thesis around product adoption and innovation is playing out. Sergey shares a similar outlook on HubSpot but emphasizes AI-led monetization and enterprise traction.

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Disclosure: None.