Executive Summary

Q3 2025 delivered a clean beat and margin expansion: revenue $809.5M (+21% y/y; +18% cc) and non-GAAP diluted EPS $2.66; non-GAAP operating margin rose to 19.9% from 18.7% y/y, driven by operating leverage and continued mix shift to subscription . Against S&P Global consensus, revenue and EPS exceeded $786.9M and $2.586, respectively*.
FY25 guidance raised across the board: revenue to $3.113–$3.115B (from $3.080–$3.088B), non-GAAP operating income to $574–$575M (from $568–$572M), and non-GAAP EPS to $9.60–$9.62 (from $9.47–$9.53). Q4 introduced with revenue $828–$830M, non-GAAP OI $183–$184M, EPS $2.97–$2.99 .
KPIs remained healthy: customers reached 278,880 (+17% y/y), ASRPC rose 3% as reported to $11,578, calculated billings were $804.0M; non-GAAP free cash flow was $146.9M (18% of revenue). HUBS repurchased $375M of stock in Q3 and ended with ~$1.7B in cash and investments .
Management emphasized accelerating AI adoption (Customer Agent 6,200 customers; Prospecting Agent 6,400 activations; Data Agent early traction) and the new “Loop” playbook to navigate AI-driven changes in marketing (AEO), supporting a durable growth narrative into 2026+ .

What Went Well and What Went Wrong

What Went Well
- Beat on revenue and EPS with operating leverage: $809.5M revenue; non-GAAP op margin 19.9%; non-GAAP EPS $2.66 .
- Strong AI momentum and multi-hub adoption: “Our AI strategy is working…Customer Agent and Prospecting Agent are delivering results…we released over 200 new product innovations and launched the Loop” — CEO Yamini Rangan .
- Up-market strength: deals >$5K MRR grew 35% y/y; 43% of Pro Plus installed base by ARR on three core hubs and 39% on 4+ hubs, supporting expansion and pricing/seat model leverage .
What Went Wrong
- Billings growth moderated versus Q2’s outsized print; mix shift to install-based selling and less duration benefit narrowed the billings/revenue gap this quarter, despite healthy fundamentals .
- ASRPC growth still modest in constant currency; while improving, management continues to cite value-focused customers and upgrades as a key swing factor for ASRPC momentum .
- Net revenue retention remained 103% in Q3 (flat q/q) with step-up expected in Q4; other net upgrade motions outside seats remain challenged as customers stay value oriented .

Financial Results

P&L and Margins (chronological: oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	669.7	714.1	760.9	809.5
GAAP Diluted EPS ($)	0.16	(0.42)	(0.06)	0.31
Non-GAAP Diluted EPS ($)	2.18	1.78	2.19	2.66
GAAP Operating Margin (%)	(1.4%)	(3.8%)	(3.2%)	1.4%
Non-GAAP Operating Margin (%)	18.7%	14.0%	17.0%	19.9%

Segment Revenue ($M)

Segment	Q3 2024	Q2 2025	Q3 2025
Subscription	654.7	744.5	791.7
Prof. Services & Other	15.0	16.3	17.8
Total	669.7	760.9	809.5

KPIs and Mix

KPI	Q1 2025	Q2 2025	Q3 2025
Customers (Period End)	258,258	267,982	278,880
ASRPC ($)	11,038	11,310	11,578
Calculated Billings ($M)	766.8	814.3	804.0
International Revenue Mix (%)	—	48	49
Net Revenue Retention (%)	—	103	103
Non-GAAP Free Cash Flow ($M)	122.3	116.2	146.9

Actuals vs S&P Global Consensus

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue Actual ($)	669,721,000	714,137,000	760,866,000	809,518,000
Revenue Consensus ($)	647,292,640*	700,401,390*	740,082,190*	786,884,180*
Primary EPS Actual ($)	2.18	1.78	2.19	2.66
Primary EPS Consensus ($)	1.90888*	1.76310*	2.12399*	2.58596*

Values with asterisks are from S&P Global consensus via GetEstimates. Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2025	$3.080–$3.088B	$3.113–$3.115B	Raised
Non-GAAP Operating Income	FY 2025	$568–$572M	$574–$575M	Raised
Non-GAAP Diluted EPS	FY 2025	$9.47–$9.53	$9.60–$9.62	Raised
Total Revenue	Q4 2025	—	$828–$830M	Introduced
Non-GAAP Operating Income	Q4 2025	—	$183–$184M	Introduced
Non-GAAP Diluted EPS	Q4 2025	—	$2.97–$2.99	Introduced
CapEx as % of Revenue	FY 2025	5–6%	6%	Raised (upper bound reaffirmed)
Free Cash Flow	FY 2025	≈$580M	≈$580M	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 and Q1)	Current Period (Q3 2025)	Trend
AI/Technology initiatives	First CRM connectors for ChatGPT and Claude; 20K+ customers using; strong AI embed across hubs	Direct connectors to ChatGPT, Claude, Gemini; Customer Agent 6,200 customers; Prospecting Agent 6,400 activations; Data Agent launched; Loop playbook at INBOUND	Accelerating adoption and product cadence
Platform consolidation & Multi-hub	42% of installed base (ARR) on three core hubs	43% on three core hubs; 39% on 4+ hubs	Strengthening
Up-market momentum	Larger deals, partner co-selling up 29% y/y	Deals >$5K MRR +35% y/y; brand awareness up	Positive
Pricing/Seats/Credits	Core seat adoption building; credits introduced, early	Credits consumption led by Customer Agent; Data Hub syncs rising; disciplined activation → monetization framework	Building line of sight to monetization
Marketing & AEO	Diversifying channels; AI search/LLM shifts; early AEO efforts	“Loop” playbook; AEO tools; planned XFunnel acquisition to track LLM presence	Maturing GTM response
Regional trends	International 48% of revenue	International 49% of revenue	Stable/slight expansion
Governance/Board	—	Clara Shih (Meta Business AI) appointed to Board	Enhanced AI governance/insight

Management Commentary

Strategic positioning: “Our AI strategy is working, and customers are seeing value. Customer Agent and Prospecting Agent are delivering results…we released over 200 new product innovations and launched the Loop, a new growth playbook for the AI era.” — CEO Yamini Rangan .
Growth levers: “Platform consolidation, multi-hub adoption, and up-market momentum…emerging levers are gaining momentum, including seats pricing change, core seats, and credits.” — CEO .
Estimates framework: “Net new ARR is the leading indicator…It will take repeating quarters of net new ARR growth above revenue for revenue to inflect.” — CFO Kate Bueker .
Capital allocation: Repurchased $375M of stock; ended Q3 with ~$1.7B in cash and investments .

Q&A Highlights

Path back to 20% growth: Management underscored durable drivers (platform consolidation, up-market, multi-hub) and emerging monetization (seats, credits) while noting revenue inflects after sustained net new ARR outperformance versus revenue growth .
Billings dynamics: Q3 billings grew solidly but with less duration tailwind versus Q2; mix shifted toward install-base selling with fewer upfront months, aligning billings more closely with revenue .
Credits monetization: Early but encouraging signals led by Customer Agent and Data Hub syncs; framework focuses on activation → repeat usage → consistent value → paid usage .
NRR trajectory: NRR was 103% in Q3 (flat q/q); management reiterated a step-up in Q4 driven by seat upgrades and price model changes at renewal cohorts .
Marketing/SEO to AEO: Broad customer interest in Loop/AEO tools as AI overviews disrupt traditional search; diversification across channels (YouTube, social, newsletters) driving top-of-funnel resiliency .

Estimates Context

Q3 2025 beat: Revenue $809.5M vs S&P Global consensus $786.9M*; Primary EPS $2.66 vs $2.586*. Q2 2025 revenue $760.9M vs $740.1M*; EPS $2.19 vs $2.124*. Q1 2025 revenue $714.1M vs $700.4M*; EPS $1.78 vs $1.763*. Values retrieved from S&P Global.
With FY25 raised guidance and a Q4 non-GAAP operating margin target of ~22%, models likely move higher on revenue, operating income, and EPS; watch ASRPC and credit consumption ramps for incremental 2026 estimate risk/upside .