HubSpot exceeded Wall Street expectations for both revenue and adjusted earnings in the first quarter of 2025 and raised its outlook for the full year, highlighting ongoing business strength despite reporting a quarterly net loss.
Q1 2025 Financial Performance
HubSpot posted total revenue of $714.1 million for the first quarter of 2025, marking a 16% increase compared to the prior year. Subscription revenue comprised the majority of this, coming in at $698.7 million, while professional services and other revenue accounted for $15.4 million. The company’s adjusted earnings per share hit $1.78, surpassing the $1.74 consensus estimate. Billings, a key indicator of future revenue, increased 20% year-over-year to $766.8 million. HubSpot reported a GAAP net loss of $21.8 million for the quarter, with a GAAP operating margin of -3.8%. However, non-GAAP operating income was $100.3 million for the quarter, up from $92.6 million a year earlier.[5]
Guidance and Outlook for Q2 2025
For Q2, HubSpot projected earnings between $2.10 and $2.12 per share and total revenue ranging from $738 million to $740 million. The company’s leadership cited strong customer demand and momentum across its platform as factors behind the raised outlook. This marks an increase compared to previous guidance and suggests continued optimism for HubSpot’s financial trajectory in 2025.[5]
Operational Metrics and Market Context
HubSpot’s non-GAAP operating margin was reported at 14%, while the GAAP operating margin remained negative at -3.8%. Subscription revenue growth was a key driver, up 16% year-over-year. The company attributed its results in part to ongoing interest in its platform for customer relationship management and marketing services. Calculated billings, a forward-looking metric, rose to $766.8 million, reflecting continued growth in customer contracts and renewals.[5]
Analysis
HubSpot’s first-quarter results demonstrate ongoing revenue and billings growth despite continued GAAP net losses. The company’s ability to outpace analyst expectations on both top and bottom lines, coupled with an improved full-year outlook, points to sustained demand for its software services. However, the negative GAAP operating margin and net loss underline continued investment in growth and expansion. Non-GAAP metrics show strong underlying operating leverage, as non-GAAP operating income grew compared to the prior year. The raised guidance signals management’s confidence in maintaining growth momentum for the remainder of 2025.
Outlook
If HubSpot sustains its revenue trajectory and delivers on its raised full-year guidance, the company may continue to see positive sentiment from investors. Market watchers will pay close attention to the company’s ability to translate growing revenue and billings into sustained operating profitability. Analysts are likely to monitor expansion in subscription services and improvements in operating margins as key indicators of long-term performance.
