Is the business good?
How good a business is HUBS?
HubSpot, Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.2 points above what the capital costs: growth creates value
- Operating margin
- 1.9%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- Share count, year on year
- +0.81%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 28%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −5.8% |
| FY2021 | −4.2% |
| FY2022 | −5.9% |
| FY2023 | −9.3% |
| FY2024 | −2.6% |
| FY2025 | 0.24% |
Details›
- Gross margin12 months to Q1 2026
- 84%
- Operating margin12 months to Q1 2026
- 1.9%
- Net margin12 months to Q1 2026
- 3.0%
- Free cash flow margin
- 23%
- R&D as % of revenue
- 28%
- Revenue, trailing twelve months
- $3.30B
- Free cash flow, trailing twelve months
- $743M
- Net income, trailing twelve months
- $100M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #60 of 90 by Smart Score