Q4 2025 HubSpot Inc Earnings Call [BACKUP]

February 11, 2026

Yamini Rangan: Data. More than 2,500 customers have already activated it, a clear signal that customers want AI to take on the manual work that slows teams down. And while it's still early, our usage-based credits model is starting to scale. In Q4, Customer Agent accounted for about 60% of credits consumed. Data Agent, Prospecting Agent, and intent monitoring each contribute between 10% to 15% of credits consumed. All of this reinforces the clear point: AI is becoming a core driver of how our customers grow and therefore how we grow. Okay, let's look ahead to 2026. Our strategy is clear and focused on three things: making AI work for growth companies, reimagining marketing with a new playbook and products, and accelerating upmarket growth with a platform that delivers both power and simplicity. First, we are focused on making AI work for growth companies.

Yamini Rangan: More than 2,500 customers have already activated it, a clear signal that customers want AI to take on the manual work that slows teams down. And while it's still early, our usage-based credits model is starting to scale. In Q4, Customer Agent accounted for about 60% of credits consumed. Data Agent, Prospecting Agent, and intent monitoring each contribute between 10% to 15% of credits consumed. All of this reinforces the clear point: AI is becoming a core driver of how our customers grow and therefore how we grow. Okay, let's look ahead to 2026. Our strategy is clear and focused on three things: making AI work for growth companies, reimagining marketing with a new playbook and products, and accelerating upmarket growth with a platform that delivers both power and simplicity. First, we are focused on making AI work for growth companies.

Yamini Rangan: While there is no shortage of AI solutions in the market, there is a real gap between generating AI output and driving growth outcomes. Closing that gap is what will unlock broad AI adoption, and that requires context: having the right information at the right time with the judgment to know what to do with it. And that's where HubSpot has a clear advantage. Most AI tools ask customers to bring their own context, upload brand guidelines, teach the system who their customer is and how their business works, then do it again for the next agent or LLM, and again. That's backwards. With HubSpot, context is shared and powers everything. Our AI vision is to lead with our agentic customer platform, where unified customer data, business context, pure benchmarks across more than 288,000 customers, and deep domain expertise powers workflows and agents.

Yamini Rangan: To do this, we are bringing together three interconnected layers: context layer, where customer understanding lives, action layer, with our hubs and agents, where they help do work, and a coordination layer to connect everything. You will see us accelerate this vision throughout this year. It will show up in powerful use cases where AI does real work for teams and drives measurable growth. That is our AI strategy. At the same time, marketing is going through the biggest shift we have seen in decades. Search traffic is declining as AI-generated answers become the starting point for product and brand discovery. Customers are spending time across more channels, and AI is creating new ways for companies to be found. We saw these changes coming and have deliberately diversified our marketing channels.

Yamini Rangan: Last year YouTube leads grew 68% newsletter leads grew 53%, and HubSpot became the most visible CRM in LLM-generated answers. Now we're turning what we have learned into a playbook and products for our customers. We launched The Loop, a new growth playbook for the AI era, along with AI-powered solutions to help teams put it into action. Data Hub gives customers clean unified data foundation essential for marketing in the AI era. Marketing Studio provides an AI-powered workspace to plan and create campaigns faster. Our AEO tools give marketers a real opportunity to offset declines in traditional search. Customers are already seeing results. Docebo, an AI-powered learning platform with over 1,000 employees, shifted towards AEO as organic traffic declined. Using HubSpot, they improved their visibility in LLMs and saw 13% of their leads come from new AI-driven sources.

Yamini Rangan: Crunch Fitness, a global brand with over 1,200 employees and 500 franchise locations, used HubSpot to deliver personalized on-brand messages at scale, sending more than 15 million targeted emails a month and generating 2 million leads in a year. HubSpot helped define the inbound marketing era, and we are uniquely positioned to lead what comes next. The third pillar of our strategy is to keep winning upmarket. Last year was one of our strongest upmarket years. That was driven by product innovation that delivered real results for larger customers. Within their first year on HubSpot, upmarket customers generated more leads, closed more deals, and improved ticket close rates. In 2026, we're doubling down on that momentum. We are aligning dedicated product resources to the needs of this segment and increasing sales capacity to drive growth.

Yamini Rangan: This is a large market where we have clear product-market fit, a strong and energized partner ecosystem, and significant room to grow. Our strategy shows up clearly in our growth levers. Our core drivers remain strong and durable: upmarket momentum, multi-hub adoption, and tracing tailwinds. These are working consistently, and we expect them to continue to scale. As we enter a more transformational phase with AI, we see two emerging growth levers: core seat adoption and credits. We have significantly expanded the value of the core seat by including Breeze Assistant, enriched company data with buying intent signals, and platform features that brings teams together. As a result, adoption of enriched data jumped from 51% to nearly 70% in Q4, a clear signal of the value customers are seeing with core seat.

Yamini Rangan: Our goal is to make the core seat the foundation for every go-to-market employee and to drive broad adoption across teams. And as customers rely on agents to do more work on their behalf, we will scale credits consumption. Together these levers expand how customers get value from HubSpot and how we accelerate growth. With that I'll hand it over to our CFO Kate Bueker to walk you through our financial and operating results.

Kate Bueker: Thanks Yamini. Let's turn to our fourth quarter and full year 2025 financial results. Q4 revenue grew 18% year-over-year in constant currency and 20% on an as-reported basis. Q4 subscription revenue grew 21% year-over-year while services and other revenue increased 12% on an as-reported basis. Q4 domestic revenue grew 17% year-over-year and international revenue growth was 19% in constant currency and 24% as reported, representing 49% of total revenue. For the full year of 2025 revenue grew 18% year-over-year in constant currency and 19% as reported. Full year subscription revenue grew 18% year-over-year in constant currency and 19% as reported. Services and other revenue grew 16% on an as-reported basis.

Kate Bueker: We added 9,800 net new customers in Q4, bringing our total customer count to over 288,000, growing 16% year-over-year, with particular strength in Pro Plus customer additions in the quarter. Average subscription revenue per customer was $11,700 in Q4, up 1 point year-over-year in constant currency and up 3 points on an as-reported basis. Moving into 2026, we continue to expect net additions in the 9,000 to 10,000 range with low- to mid-single-digit ASRPC growth in constant currency. Customer dollar retention remained in the high 80s in Q4, while net revenue retention increased sequentially, as expected, to 105%.

Kate Bueker: For the full year of 2025, Net Revenue Retention was 103.5%, up from 101.8% in 2024, reflecting continued momentum in seat expansion and the benefit from our pricing change. Looking ahead to 2026, we expect to grow Net Revenue Retention by another 1 to 2 points year-over-year, driven by a combination of continued seat expansion and ramping credit adoption. As a reminder, we tend to see a seasonal downtick in Net Revenue Retention in Q1, followed by expansion as we move through the year. Q4 Calculated Billings were $971 million, growing 20% year-over-year in Constant Currency and 27% on an as-reported basis. Q4 billings benefited from strong upmarket performance, resulting in a modest increase in overall billings duration in the quarter.

If they did it a clear signal that customers want a I have to take on the manual work that's low teens down.

And while it's still early our usage based credits model is starting to scale in.

In Q4 customer agent accounted for about 60% of credits consumed data agent prospecting agents in infant monitoring each contribute between 10% to 15% of credits consumed.

All of this reinforces the peer point AI is becoming a core driver of how our customers grow and therefore, how the growth.

Okay, Let's look ahead to 2026.

Our strategy is clear and focused on three things.

Making a I work for growth companies re imagining marketing with a new playbook and products and accelerating upmarket growth with a platform that delaware's both power and simplicity.

Kate Bueker: For the full year of 2025, calculated billings were $3.4 billion, growing 19% year-over-year in constant currency and 23% on an as-reported basis. The remainder of my comments will refer to non-GAAP measures. Q4 operating margin was 23%, up 4 points compared to the year-ago period and 3 points sequentially. Full year 2025 operating margin was 18.6%, up 1 point year-over-year. We delivered operating leverage as a result of disciplined hiring as well as the ongoing benefits of our partner commissions changes. Net income was $163 million, or $3.09 in Q4, and $516 million, or $9.70 per fully diluted share, for the full year of 2025.

First we're focused on making a I work for growth companies. While there is no shortage of AI solutions in the market. There is a real gap between generating AI output and driving growth outcome.

Closing the gap is what will unlock broad AI adoption and that requires context.

Having the right information at the right time with the judgment to know what to do with it.

And that's where hub spot has a clear advantage.

Most AI tools, our customers to bring their own context upload Brian guideline teach the system, who their customer is and how their business works.

And do it again for the next agent or LLS and again.

That's backwards.

With hub spot context is shared and powers everything.

Kate Bueker: Free cash flow was $209 million or 25% of revenue in Q4 and $595 million or 19% of revenue for the full year of 2025. Our cash and marketable securities totaled $1.8 billion at the end of December. As Yamini shared, our board has authorized a new $1 billion share repurchase program. While we remain focused on investing in organic product innovation and selective M&A, we also see the opportunity to return capital to shareholders through an additional share repurchase program. This reflects our continued confidence in the long-term opportunity ahead. Before turning to guidance, I want to highlight several factors shaping our 2026 growth outlook and the underlying strengths of our business performance.

Our AI vision is to lead with our agent and customer platform, where unified customer data business context, pure benchmarks across more than 288000 customers and deep domain expertise powers workflows and agents.

To do this we are bringing together three interconnected layers.

Contact Slayer, where customer understanding lives.

Action layer with our hubs and agents, where they help do work and coordination layer to connect everything.

You will see us accelerate this vision throughout this year. It will show up in powerful use cases, where AI dust real work for teens and drive measurable growth.

Kate Bueker: In 2025 net new ARR growth exceeded constant currency revenue growth in every quarter, with full year net new ARR growing 24% year over year, 6 points above constant currency revenue growth. Looking ahead, we expect full year 2026 net new ARR growth to outpace constant currency revenue growth, supported by the underlying trend Yamini outlined, continued upmarket momentum, multi-hub adoption, and pricing benefits, and the emerging impact of core seat adoption and credits. Going forward, we plan to share net new ARR growth on an annual basis as part of our Q4 earnings. With that, let's dive into our guidance for the first quarter and full year of 2026.

That is our AI strategy.

At the same time marketing is going through the biggest shift we've seen in decades.

Traffic is declining of AI generated answers become the starting point for product and brand discovery Cove.

So we're spending time across more channels and AI is creating new ways for companies to be found.

We saw these changes coming and have deliberately diversified our marketing channels.

Last year, you do believes grew 68% newsletter leap grew 53% and hotspot became the most visible CRM in LLM generated answers and now we're turning what they've learned into our playbook and products for our customers, we launched a loop a new growth playbook for the AI.

Error, along with AI powered solutions to help teams put it into action.

Kate Bueker: For the Q1 total as-reported revenue is expected to be in the range of $862 to 863 million, up 16% year-over-year in constant currency and 21% on an as-reported basis. Non-GAAP operating profit is expected to be between $144 and 145 million, representing a 17% operating profit margin. Non-GAAP diluted net income per share is expected to be between $2.46 and $2.48. This assumes 52.5 million fully diluted shares outstanding.

Data hub Gibbs customers clean unified data foundation essential for marketing in the AI era and marketing studio provides an AI powered workspace to plan and create campaigns faster.

And our ACO tools give marketers a real opportunity to offset declines in traditional search cut.

Customers are already seeing results.

Siebel and AI powered learning platform with over 1000 employees shifted towards AUO as organic traffic declined using some spot they improve their visibility in Alabama and saw 13% all their lead come from new AI driven sources and.

Kate Bueker: For the full year of 2026, total as-reported revenue is expected to be in the range of $3.69 to 3.7 billion, up 16% year-over-year in constant currency and 18% on an as-reported basis, modestly above our guidance for Q1 constant currency revenue growth. Non-GAAP operating profit is expected to be in the range of $736 to 740 million, representing a 20% operating profit margin. Non-GAAP diluted net income per share is expected to be between $12.38 and $12.46. This assumes 51.8 million fully diluted shares outstanding.

And crunch fitness, a global brand with over 1200 employees and 500 franchise locations used hotspot to Delaware Personalised on brand messages at scale, sending more than 15 million targeted emails a month and generating 2 million leads.

In a year.

Hotspot helped define the inbound marketing era, and we are uniquely positioned to lead what comes next.

The third pillar of our strategy is to keep winning upmarket last year was one of our strongest of market shares.

That was driven by product innovation that Delaware drill results for larger customers.

Kate Bueker: As you adjust your models, please keep in mind the following: we expect our legacy Clearbit business to be a 40 basis point headwind to full year 2026 revenue growth, moderating slightly from the 60 basis point headwind for 2025. Our EPS guidance for Q1 and full year 2026 includes the expected impact from our share repurchase program. We expect CapEx as a percentage of revenue to be 5% to 6% for the full year of 2026, and free cash flow to be about $740 million. With that, I will turn the call back over to Yamini for her closing remarks.

Within their first year on hotspot upmarket customers generated more needs close more deals and improved ticket close rates.

In 2026, we're doubling down on that momentum.

We are aligning dedicated product resources to the needs of this segment and increasing sales capacity to drive growth.

This is a large market, where we have clear product market fit a strong and energized partner ecosystem and significant room to grow.

Our strategy shows up clearly in our growth levers are.

Our core drivers remain strong and durable upmarket momentum multi hub adoption and pricing tailwind.

Yamini Rangan: Okay, in closing, I'm energized by our position heading into 2026. We are moving with urgency and focus, innovating quickly to help our customers grow with AI and evolving how we operate to support that pace. We have transformed how we build products and how we serve customers with AI, and we are turning those learnings into real value for our customers. We enter 2026 with clear momentum. Our core growth drivers remain strong, and our emerging AI levers are gaining traction. Together, they give us confidence in our ability to deliver durable growth. I want to thank our customers, partners, and investors for your continued trust and support, and a heartfelt thank you to HubSpotters around the world for staying focused on solving for our customers every single day. With that, operator, please open up the call for questions.

These are working consistently and we expect them to continue to scale.

As we enter a more transformational phase with AI, we see two emerging growth levers.

For seed adoption and credits.

We have significantly expanded the value of the core seat by including brief assistant enriched company data with buying intent signals and platform features that bringing teams together.

As a result adoption of Enbridge data jump from 51% to nearly 70% in Q4, a clear signal of the value customers are seeing with coffee.

Our goal is to make the core set the foundation for every go to market employee and to drive broad adoption across teams.

And as customers rely on agents to do more work on their behalf, we will scale credits consumption.

Operator: Thank you. If you would like to ask a question, please dial star followed by one one on your telephone keypad now. If you change your mind, please dial star followed by one one again to exit the queue. When preparing to ask your question, please ensure your phone is unmuted and limit yourself to one question per person. Please stand by for our first question. Our first question comes from the line of Samad Samana from Jefferies.

Together these levers expand how customers get value from hubs box and how we accelerate growth.

With that I'll hand, it over to our CFO, Kate Bueker to walk you through our financial and operating results.

Thanks, how many let's turn to our fourth quarter and full year 2025 financial table.

Q4 revenue grew 18% year over year in constant currency and 20% on an as reported basis.

Q4 subscription revenue grew 21% year over year, while services and other revenue increased 12% on an as reported basis.

Samad Samana: Hi, good evening, and thanks for taking my questions. So, Yamini, I thought I'd kick off with just ripping off the Band-Aid that everybody's focused on. The software complex is under a ton of pressure on AI destruction fears. It's asked on every earnings call of every company, and and you spoke a lot in your prepared remarks about context and moats, but can you dig deeper into how defensible HubSpot's role is as a system of record and maybe what your fear on LLM destruction is, and related to that, how would you respond to investors that fear that more data will be sucked into and be retained in in third-party agents and that this could threaten the role of a system of record itself. I know there's a lot to unpack there, but I think that's what we get asked the most every day now.

Q4, domestic revenue grew 17% year over year and international revenue growth was 19% in constant currency and 24% as reported representing 49% of total revenue.

For the full year of 2025.

Revenue grew 18% year over year in constant currency and 19% as reported.

Full year subscription revenue grew 18% year over year in constant currency and 19% as reported.

Services and other revenue grew 16% on an as reported basis.

We added 9800 net new customers in Q4, bringing.

Yamini Rangan: All right, Samad. Let's start with ripping off the Band-Aid. I'll probably start with the disruption threat and specifically our moat to address that. Then I'll take the second part of your question, which is about, you know, value getting captured outside of SaaS as data gets sucked straight out of solutions. All right. First off, in terms of disruption, there's a big difference between point SaaS solutions and platforms. And that difference matters even more in the AI era. Look, in the last decade, HubSpot won as a platform because we were the source for customer data. With AI, we will win because we are the source of customer context, and that matters. As I talk to customers right now, the biggest challenge we see with AI adoption, particularly in mid-market companies, is not access to more AI tools, more LLMs, more agents. There are plenty of those.

Bringing our total customer count to over 208000 growing 16% year over year with particular strength in pro plus customer additions in the quarter.

Average subscription revenue per customer was $11700 in Q4.

A point year over year in constant currency and up three points on an as reported basis.

Moving into 2026.

We continue to expect net additions in the 9% to 10000 range with low to mid single digit a S. R. P C growth in constant currency.

Customer retention remained in the high eighties, and Q4 will net revenue retention increased sequentially as expected to 105%.

For the full year of 2025 net revenue retention was 103, 5% up from 101, eight and 2024.

Reflecting continued momentum in seat expansion and the benefit from a pricing change.

Yamini Rangan: The biggest challenge that I see is that there is a huge gap between AI output and AI outcomes. And when I say outcomes, I mean more leads, more deals, more growth. And by the way, that's all our customers want to talk to us about. Mid-market companies don't care about AI for the sake of AI. They don't want to just adopt it. They care about driving growth. And if AI can help with that, they will adopt it. And in order for AI and agents to drive outcomes, you need customer context. This is the context that was in the heads of people, but now you need that pattern of what works, what doesn't work in your business, in your industry, in your particular function, and then you need to be able to take an action on it. And that is what a platform like HubSpot delivers.

Looking ahead to 2026.

We expect to grow net revenue retention by another one to two points year over year.

Driven by a combination of continued seat expansion and ramping credit adoption.

As a reminder, we tend to see a seasonal downtick in net revenue retention in Q1, followed by expansion as we move through the year.

Q4, calculated billings were $971 million growing 20% year over year in constant currency and 27% on an as reported basis.

Q4 billings benefited from strong upmarket performance, resulting in a modest increase in overall billings duration in the quarter.

For the full year of 2025 calculated billings were $3 4 billion growing 19% year over year in constant currency and 23% on an as reported basis.

Yamini Rangan: I'll give you a practical example. You can ask an LLM to generate outreach for 100 prospects. Then do the same thing in a platform with a history of interactions with a prioritization of what sales cares about with how your best reps handle competitive objections within your industry, and then ask it to generate outreach. The difference is one will be AI output and the other will be AI outcomes. One produces words, the other wins deals. One knows a lot about the external world, the platform knows specifically about the customer's world and what is happening today. There's this whole idea that AI is like a magic wand and you can abstract away all of this problem and expect agents to work. It just will not. Context has to come from somewhere. It has to be trusted.

Yeah.

The remainder of my comments will refer to non-GAAP measures.

Q4, operating margin was 23% up four points compared to the year ago period, and three points sequentially.

Full year 2025 operating margin was 18, 6% up one point year over year.

We delivered operating leverage as a result of disciplined hiring as well as the ongoing benefits of our partner Commission changes.

Net income was $163 million or $3.09 in Q4.

$516 million or $9.70 per fully diluted share for the full year of 2025.

Yamini Rangan: It needs to be real-time, and it needs to be actionable. And that is what a platform like HubSpot delivers. Our strategy, as I just articulated, is to be that intelligent system of customer context, and we have the data, but more importantly, we have the business context, the industry context, and the domain context to deliver it. And that's why customers come to us. They rely on us for that context. They want to use more of our APIs, and partners want to customize and build on top of us. And as AI adoption accelerates, the value of our agentic platform increases. Okay, now going to your second part of the question, which is, can all this data just be completely sucked out so that there is no value captured by SaaS? Well, first of all, that assumes that, you know, we will not build agents rapidly ourselves.

Free cash flow was $209 million or 25% of revenue in Q4, and $595 million or 19% of revenue for the full year of 2025.

Our cash and marketable securities totaled $1 $8 billion at the end of December.

As you know many shared our board has authorized a new $1 billion share repurchase program.

While we remain focused on investing in organic product innovation and selective M&A.

Also see the opportunity to return capital to shareholders.

There are an additional share repurchase program.

This reflects our continued confidence in the long term opportunity ahead.

Before turning to guidance.

Yamini Rangan: We are building agents on top of that customer context, and it is working, and we're seeing that adoption. Second, it assumes that SaaS platforms are data. SaaS platforms are more than data. It is the logic, right? You can certainly get a non-deterministic output for a sales email, but try taking a non-deterministic output for your sales forecast. That is not possible. It's workflows like forecasting, routing, approvals, permissions. That is logic. It's not data to be sucked away. And ownership, accountability, and governance, all of those lives inside applications. And it's much easier to bring AI into these applications rather than try to extract all of this away as like as if it's just data. It is not. And then the last thing I'll say is that we serve companies that have 2 to 2,000 employees. That mid-market segment is what we care about.

I'll highlight several factors shaping our 2026 growth outlook and the underlying strength of our business performance.

In 2025, net new air growth exceeded constant currency revenue growth in every quarter with full year net new air are growing 24% year over year six points above constant currency revenue growth.

Looking ahead, we expect full year 2026, net new AOR growth to outpace constant currency revenue growth supported by the underlying trends do you have any outlined continued upmarket momentum multi you have adoption and pricing benefits and the emerging impact of core seat.

Adoption and credits.

Going forward, we plan to share net new air growth on an annual basis.

Part of our Q4 earnings.

With that let's dive into our guidance for the first quarter and full year of 2026.

Yamini Rangan: They're focused on growing business. They're not managing model complexity. They're not looking at the latest LLM version. They're not stitching together AI infrastructure. They want AI that just works and drives measurable growth. And that's our focus making AI simple, practical, and actionable and driving outcomes for scaling companies. That's our strategy and we think it's very defensible for the segment of customers that we are delivering value for.

For the first quarter.

Total as reported revenue is expected to be in the range of $862 million to $863 million up 16% year over year in constant currency and 21% on an as reported basis.

non-GAAP operating profit is expected to be between 144 and $145 million.

Representing a 17% operating profit margin.

non-GAAP diluted net income per share is expected to be between $2.46 and $2.48.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Jackson Ader from KeyBank Capital Markets.

This assumes 52.5 million fully diluted shares outstanding.

And for the full year of 2026.

Samad Samana: Great. Thanks for taking our questions, guys. The question I had was on acceleration. You know, the guidance for 16% constant currency growth this year. You know, it's certainly not an acceleration, but all the breadcrumbs that you're giving us on kinda net new ARR would, you know, mathematically just leads to acceleration. So, I'm curious what the disconnect is there between guidance of slowing growth and net new ARR, which would hint at accelerating growth. Thank you.

Jackson Ader: Great. Thanks for taking our questions, guys. The question I had was on acceleration. You know, the guidance for 16% constant currency growth this year. You know, it's certainly not an acceleration, but all the breadcrumbs that you're giving us on kinda net new ARR would, you know, mathematically just leads to acceleration. So, I'm curious what the disconnect is there between guidance of slowing growth and net new ARR, which would hint at accelerating growth. Thank you.

Total as reported revenue is expected to be in the range of $3 six nine to $3 $7 billion up 16% year over year in constant currency and 18% on an as reported basis modestly above our guidance for Q1 constant currency revenue growth.

non-GAAP operating profit is expected to be in the range of $736 million to $740 million.

Presenting a 20% operating profit margin.

non-GAAP diluted net income per share is expected to be between $12.38 and $12 46.

Yamini Rangan: Yeah, Jackson, thanks for the question. I'll just start by saying that we remain confident that we can reaccelerate and hit our 20% revenue growth goal. You're right. All of the leading indicators are pointing in the right direction. Net new ARR is like an important forward indicator of growth for us, and we've delivered net new ARR growth in excess of revenue growth now over the last 6 quarters. Our revenue guidance implies a modest acceleration throughout 2026. You know, as I shared in my prepared remarks, net revenue retention is expected to expand by another 1 to 2 points this year. And we're also expecting that 2026 net new ARR growth is also gonna outpace constant currency revenue growth. And that's supported by all of those underlying trends that Yamini talked about.

Kate Bueker: Yeah, Jackson, thanks for the question. I'll just start by saying that we remain confident that we can reaccelerate and hit our 20% revenue growth goal. You're right. All of the leading indicators are pointing in the right direction. Net new ARR is like an important forward indicator of growth for us, and we've delivered net new ARR growth in excess of revenue growth now over the last 6 quarters. Our revenue guidance implies a modest acceleration throughout 2026. You know, as I shared in my prepared remarks, net revenue retention is expected to expand by another 1 to 2 points this year. And we're also expecting that 2026 net new ARR growth is also gonna outpace constant currency revenue growth. And that's supported by all of those underlying trends that Yamini talked about.

This assumes 51 8 million fully diluted shares outstanding.

As you adjust your models please keep in mind the following.

We expect our legacy <unk> business to be a 40 basis point headwind to full year 2026 revenue growth moderating slightly from the 60 basis point headwind for 2025.

Our EPS guidance for Q1 and full year 2026 includes the expected impact from our share repurchase program.

And we expect Capex as a percentage of revenue to be 5% to 6% for the full year of 2026 and free cash flow to be about $740 million.

With that I will turn the call back over to Yamani for her closing remarks.

Yamini Rangan: Continued upmarket momentum, continued multi-hub adoption, continued benefit from our ongoing pricing changes, and then those emerging growth levers of core seat adoption and credits. The momentum that we're seeing with net new ARR is what gives us the confidence that we will be able to deliver 20% revenue growth in the future.

Kate Bueker: Continued upmarket momentum, continued multi-hub adoption, continued benefit from our ongoing pricing changes, and then those emerging growth levers of core seat adoption and credits. The momentum that we're seeing with net new ARR is what gives us the confidence that we will be able to deliver 20% revenue growth in the future.

Okay in closing I'm energized by our position heading into 2026.

We are moving with urgency and focus innovating quickly to help our customers grow with AI and evolving how we operate to support that pace, we've transformed how we build products and how we serve customers with AI and we are turning those learnings into real value for.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Keith Bachmann from BMO.

Customers.

We enter 2026 with clear momentum.

Core growth drivers remain strong and our emerging AI levers are gaining traction together, they give us confidence in our ability to deliver durable growth.

Keith Bachman: Hi, thank you very much. It's a good following question to the previous one. Kate, I was hoping to dig a little more into the context of guidance. In particular, a few things I wanted to flush out. You talked about pricing, and I just wanted to try to understand A, how much pricing help was in 25 versus 26. And B, if you could comment a little bit about any guidance, so to speak, on how much core seat growth may add and/or credits as we think about what is embedded in guidance as you articulated. And then the final one, I know it's a multi-part question here, sorry, is could you give any color on what like-for-like seat growth was in 25 and how you think that may be different or the same in 26.

I want to thank our customers partners and investors for your continued trust and support and a heartfelt. Thank you to hubs partners around the world for staying focused on solving for our customers every single day with that operator, please open up the call for questions.

Thank you if you would like to ask a question. Please Giles star followed by one one on your telephone keypad now if you change your mind. Please dial star followed by one one again to exit the Q1 preparing to ask your question. Please ensure your phone is on mute it.

And limit yourself to one question per person.

Keith Bachman: So sort of three engines within the context of guidance of CY 2026. Thank you.

Please standby for our first question.

Our first question comes from the line of some modest umana from Jefferies.

Yamini Rangan: Yeah, maybe I'm gonna just start by giving a high-level view of how we set guidance for 2026. The short answer there is that we set guidance in a way that is very consistent with how we have always set guidance. That is, you know, it's early in the year; we want to set guidance that we feel comfortable that we can meet or exceed throughout the year under any, you know, a set of outcomes across economic and execution outcomes that capture our range. Again, it's early in the year, and we want to establish a set of guidance that we're comfortable that we can deliver against. That said, like, our guidance, our starting point guidance for 2026, is higher than our starting point guidance for 2025.

Hi, good evening and thanks for taking my questions. So how many I thought I'd kick off with just ripping off the band aid that everybody is focused on the software complex is under a ton of pressure on AI destruction fears. It's asked on every earnings call of every company.

And you spoke a lot in your prepared remarks about contacts and modes, but can you dig deeper into how defensible hotspots role is as a system of record and maybe what your fear disruption is and related to that.

How would you respond to investors that fear that more data will be sucked into and be retained and third party agents and that this could threaten the role of a system of record itself I know theres a lot to unpack there, but I think that's what we get asked the most everyday now.

Alright, so let's start with ripping off the band aid.

I'll, probably start with the disruption threat.

Yamini Rangan: It's up about 0.5 point from last year. Our full year guidance this year is higher than our Q1 guidance. And so that would indicate that Q1 is gonna be the low point for growth this year and that we're gonna accelerate growth throughout the year. It's early. We wanted to put forward guidance that is consistent in terms of methodology that we're comfortable we can deliver against and that shows that we can reaccelerate revenue over time.

And specifically our boat to address that then I'll take the second part of your question, which is about.

Youre getting captured outside fast data.

Alcohol solution alright.

First off in terms of disruption, there's a big difference between point SaaS solutions and platform and that difference matters, even more in the AI era look into that.

Last decade hotspot, one as a platform because we were the source for customer data with AI. We will then because we are a source of customer context and that matters.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Gabriela Borges from Goldman Sachs.

As I talk to customers right now the biggest challenge, we see with AI adoption, particularly in mid market companies did not access to more AI tools more Ala lands more agents. There are lumpy also the biggest challenge that I see is that there's a huge gap between AI output.

Gabriela Borges: Hey, good afternoon. Thank you for taking my question. Yamini, I remembered your Dario keynote from Inbound. And Dharmesh, I know you spent a lot of time in the Claude ecosystem. Maybe talk to us about how you see your leading-edge customers using a tool like Claude Code alongside HubSpot to get to a better and complementary outcome with both tools working side by side. Thank you.

And AI outcome, and when I say outcomes I mean more leads more deals more growth and by the way. That's all our customers want to talk to us about mid market companies don't care about AI for the sake of AI. They don't want to just adopted they care about driving growth and if I can help with that they will adopt it.

Dharmesh Shah: Hi, thanks for the question. You know, Anthropic's Claude Cowork is still very early, and it's solving for consumer-oriented use cases. It's still very early to kinda see our customers using it. What we do see customers using is our Claude Connector that connects an individual's account on Claude to HubSpot via our connector, and that's getting increased usage. What gives us a lot of kinda optimism is around what that's really doing, which is extending the customer platform that Yamini's been talking about and providing it via a new channel, which is these kinda AI applications like Claude and ChatGPT. We're not seeing Claude Cowork use yet, but we are seeing the kinda classic Claude Connector and the ChatGPT connector being used.

And in order for AI and agents to drive outcomes you need customer context. This is the context that wasn't the heads of people, but now you need the pattern of what works what doesn't work in your business in your industry and your particular function and then you need to be able to take an action on it.

And that is what a platform like hotspot delivers I'll give you a practical example, you can ask them that allow them to generate outreach for other prospects and then do the same thing in a platform with a history of interactions with the prioritization of what sales cares about with how you best reps handle competitive objections within your industry.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Alex Zukin from Wolf Research.

And then ask it to generate outreach the differences one will be an output and the other will be a outcome on producers, whereas the other one deal one knows a lot about the external world the platform no specifically about the customers' world and what is happening today. There's this whole idea that AI.

Alex Zukin: Yeah, hey guys. Thanks for taking the question. And maybe following on the previous question to the extent that, you know, the modality develops around third-party agents and agent networks that continuously have to access both to read and to action information within HubSpot. Can you just give us a framework for how you're thinking about monetization in that type of environment? And then to some extent, how should we think about, to Keith's prior question, kinda the potential for consumption tailwinds on ARR growth, net new ARR growth for on the credit side for 2026 and maybe beyond?

Like a magic wand and you can attract away all of this problem and they expect agents to work. It just will not context has to come from somewhere and it has to be trusted it needs to be real time, and it needs to be actionable and that is what our platform like hub spot delivers our strategy as I just art.

Can I do it is to beat that intelligence system of customer context, and we have the data, but more importantly, we have the business context, the industry context in that domain context to deliver it and that's why customers come to us they rely on us for their contacts they wanted to use more of our API and partners want to customize and build on top of us.

Yamini Rangan: Alex, thanks a lot for the question. So I'll start with the first one, then talk about the credit consumption. So in the first part, you know, for the way we think about ourselves is we are an open platform. That's how we won. In the last decade, that's how we will win in the next decade. And we want customers to bring in and use as much data as possible. So we're very open about that. We don't charge for customers bringing in the data. The more complete the customer context, the better outcomes that we can deliver. So we don't try to restrict that, and we try to enable that. The second thing I would say is we also want partners building on top of HubSpot. And this could be workflows, this could be agents, this could be custom apps. And we want that to happen.

And as AI adoption accelerates the value of our Egencia platform increases.

Okay now going to your second part of the question, which is can all those data just be completely stopped out so that there is no value capture by Sun.

Well first of all that assumes that.

We will not build agents rapidly ourselves we are building agents on top of that customer contact and it is working and we're seeing that adoption.

It assumes that south platforms, our beta sites.

South platforms are more than data. It is the logic right you can certainly get a non deterministic output for a sale female.

Yamini Rangan: And we've always been partner-friendly. We will continue to operate that way. The part that we will say we're very disciplined is around platform access at scale. If other agents or other platforms that are emerging are relying on our customer context, that access we will monitor it, we will meter it, and we will monetize it. And specifically, if it is high frequency extraction at scale, if it's like bulk export of data or content or context, we will govern it and monetize that accordingly. So the way to think about our platform is we are open by design, but we're not a free data pipeline for everybody to take that information out. We're an intelligent customer platform.

By taking a non deterministic output for your sales forecast that is not possible workflows like forecasting routing approvals permission that logic, its not data to be sucked away and ownership accountability and governance all of those with insight applications and it's much easier to <unk>.

Bring AI into these applications rather than try to extract all of this away as like as if its just data. It is not and then the last thing I'll say is that resource companies that have two to 2000 employees that mid market segment is what we care about their focus on growing business, they're not managing model.

Complexity, they're not looking at the latest Avalon version, they're not stitching together AI infrastructure. They want AI that just works and drive measurable growth and that's our focus making AI simple practical and actionable and driving outcomes for scaling companies, that's our strategy and.

Yamini Rangan: Access to that context is valuable, and we'll price it in a way that is fair, scalable, and aligned to the value that we create for customers, which means we'll also share that value. So that's in terms of our posture. The second question you asked is around monetization, specifically of credits, and how we think about that as tailwind now and maybe in the future. And I'll start by saying that we're beginning to see real usage beyond included credits. And that's again happening because customers are getting clear, measurable value. And the biggest driver today that we see is Customer Agent. I talked about this. This has got clear product market fit and clear value. And customers are using it to resolve support tickets, but they're also using it to answer tickets in terms of marketing as well as sales.

We think it's very defensible for the segment of customers that we are delivering value for.

Q1 moment far next question.

Our next question comes from the line of Jackson Ader from Keybanc capital markets.

Great. Thanks for taking my questions guys.

The question I had was on the acceleration.

And then the guidance for 16% constant currency growth this year.

It's certainly not an acceleration, but all the bread crumbs that youre, giving us on kind of net new <unk> would mathematically just lead to acceleration. So I'm curious what the disconnect is there between.

Yamini Rangan: And it represents nearly 60% of the credits that are getting consumed right now. We are also seeing very strong adoption in 3 other use cases. Prospecting Agent has found really clear fit. And think about this agent. It can do account research, it can monitor your contacts, and then it can drive outreach based on the signal that you get about a company or a particular contact. And given how much disruption's happening in terms of the leads, this has got real pull. I talk to customers day in and day out about Prospecting Agents. Now, what is interesting is how customers are buying credits. They're not just like thinking of this as an experiment. They're beginning to scale it. They're starting with what's included, then they replace real work, and then they allocate more budget. And that is real positive green shoot.

Guidance of slowing growth and net new IRR, which would hinder accelerating.

Yes.

Yeah Jackson. Thanks for the question I'll, just start by saying that we remain confident that we can reaccelerate and hit our 20% revenue growth goal.

The you're right on all of the leading indicators are pointing in the right direction net new era is like an important forward indicator of growth for us and we delivered net new era of growth in excess of revenue growth now over the last six quarters, our revenue guidance implies a modest acceleration.

<unk> throughout 2026.

As I shared in my prepared remarks net revenue retention is expected to expand by another one to two points. This year and we're also expecting that 2026 net new AOR growth is also gonna outpaced constant currency revenue growth and that's supported by all of those underlying trends that you already talked about.

Yamini Rangan: One of our customers, SkyTrak and GolfTech, they piloted this Customer Agent and started with 10,000 support chats a month. That agent was so effective that it used up all of the included credits in 4 hours. Then they allocated another $50,000 of their budget for credits and treated it more like a work replacement. So where we are is we have the scaffolding in place. Agents are clearly adding value. They're being adopted. The credit mechanisms are in place. We're beginning to deliver value, and we see this as a tailwind and an emerging lever both in 2026 as well as many years to come.

Continued upmarket momentum continued multi hub adoption.

<unk> continued benefit from our ongoing pricing changes and then those emerging growth levers of course seat adoption in credit.

The momentum that we're seeing with net new era is what gives us the confidence that we will be able to deliver 20% revenue growth in the future.

Thank you one moment for our next question.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Parker Lane from Stifel.

Our next question comes from the line of Keith Bachman from BMO.

Hi, Thank you very much it's a good follow on question to the previous one caito was hoping to dig a little more into the context of guidance in particular, a few things I wanted to flush out.

Keith Bachman: Yeah, hi, good afternoon. This is Jack McShane on for Parker. Thanks for taking my question. Yamini, with the agentic ecosystem buildout seemingly accelerating throughout the quarter, whether it be through frontier Claude Code Opus, et cetera, how did deal velocity trend in the quarter relative to prior periods? You know, are the weekly announcements of, you know, the next use case specific agent or a new model that specializes in coding, are those types of announcements causing any sort of confusion or slowdown in the pipeline? Maybe a better way of asking it is, you know, how are customers and prospects you know digesting to these announcements in real time?

Jack McShane: Yeah, hi, good afternoon. This is Jack McShane on for Parker. Thanks for taking my question. Yamini, with the agentic ecosystem buildout seemingly accelerating throughout the quarter, whether it be through frontier Claude Code Opus, et cetera, how did deal velocity trend in the quarter relative to prior periods? You know, are the weekly announcements of, you know, the next use case specific agent or a new model that specializes in coding, are those types of announcements causing any sort of confusion or slowdown in the pipeline? Maybe a better way of asking it is, you know, how are customers and prospects you know digesting to these announcements in real time?

You talked about pricing and I just wanted to try to understand a.

How much pricing help was in 25 versus 26.

And B, if you could comment a little bit about any guidance so to speak on how much core seat growth may add Andrew or credits as we think about what is embedded in guidance as you articulated.

And then the final one I know a multi part question here sorry.

Could you give any color on what like for like seat growth.

Yamini Rangan: I actually really like this question. I'll tell you there is a huge disconnect between what's happening in terms of announcements and how investors are processing it and the actual conversations that we're having with customers in terms of AI adoption and use case. And again I'll remind that the segment that we serve, there are 2- to 2,000-employee companies. They have a business to run and they're not chasing every announcement that is happening out there. And if you look at the pipeline and what we are talking about, the first conversation that we have is how can it drive innovation and growth. It is not a how can I adopt you know name the announcement of this week. It's really how can I drive adoption and growth and for ourselves and we deliver that.

Was in 'twenty, five and how you think that may be different or the same in 2006, so sort of three engines within the context of guidance of <unk> 26. Thank you.

Yeah, maybe I'm I'm going to just start by giving a high level view of how we set guidance for 2026 and the short answer there is that we set guidance in a way that is very consistent with how we have always set guidance and.

That is that we you know it's early in the year, we want to set guidance that.

That we feel comfortable that we can meet or exceed throughout the year under any set of outcomes.

Outcomes across economic and and execution outcomes.

Yamini Rangan: We deliver our platform. We deliver solutions that are easy to use, that have fast time to implement, and they look to us, you know, to drive it. So we talked about, you know, Q4. In Q4 specifically, upmarket was very strong. And if you look at the nature of the conversations we had, it was consolidating multiple applications. It's driving growth through innovation and then making sure that there is clear data and clean context to be able to get them to grow. That is the kind of conversation that we have. Again, huge disconnect, and you know we had a very robust Q4.

That are that the capture of range.

Again, it's early in the year and we want to establish a set of guidance that we're comfortable that we can deliver against that said like our guidance.

Our starting point guidance for 2026.

Is higher than our starting point guidance for 2025, it's up about a half a point.

From last year, our full year guidance. This year is higher than our Q1 guidance and so that would indicate that Q1 is going to be the low point for growth this year and that we're going to accelerate growth throughout the year. So it's early we wanted to put forward guidance that is consistent in terms of methodology that we're comfortable we can delay.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Taylor McGinnis from UBS.

Ever against and that shows that we can reaccelerate revenue overtime.

Taylor McGinnis: Yeah, hi, thanks so much for taking my question. Kate, maybe just on the acceleration that we could see throughout this year, you mentioned a lot of growth drivers earlier, but could you just break out how much price is contributing to that versus, you know, some of the other growth drivers around seats and, you know, credit adoption? Like, could we be getting to the point that you mentioned earlier that credits are scaling? Could that start to add a point to growth this year? We'd just love to, you know, hear a little bit more about the breakout of those.

Thank you one moment foreign next question.

Our next question comes from the line of Gabriela Borges from Goldman Sachs.

Hey, good afternoon, and thank you for taking my question you know how many I remember your diet keynote from inbound.

Our mesh I know you spent a lot of time in the quarter ecosystem.

Talk to us about how you see your leading edge customers.

They are truly Claude correct alongside hub spot to get to better and complementary outcome about choice.

Kate Bueker: Yeah, thanks so much for the question. I actually think, Taylor, the easiest way to talk about it is through the trends that we're seeing in net revenue retention. As you know, net revenue retention was up this year 105 in Q4. It was up to 103 for the full year, and that's about 1.7 points up from last year. The components of that, if you think about what was actually driving the expansion, it was very much all of the benefits of the seats pricing model change. Now that is not pricing. The biggest impact actually is that we saw higher upgrade rates for seats across sales seats, service seats, and core seats.

Thank you.

Hi, Thanks for the question.

So it's Robert Clark Co work is still very early and it's solving for consumer oriented use cases. So it's still very early to kind of see our customers using it when we do see customers using is our connector.

Connector that connects individuals account.

Calgon Claude to hotspot via our connector and Thats cutting.

<unk> usage and what gives us a lot of optimism is around.

That's really doing is extending the customer platform that <unk> been talking about and providing them to buy a new channel which is these <unk>.

Locations like bottom chart, you can see though we're not being core.

But we are seeing.

Kate Bueker: As you remember, one of the things that happened with the pricing model change is that we lowered the barrier to entry to get started with HubSpot. So people bought the seats that they needed, and there was a much more natural upgrade path from there. The other contributor was what you're talking about, which is, you know, as customers migrated and came up for a renewal, they would see up to a 5% pricing increase. And that did help support net revenue retention in 2025. It will support net revenue retention in 2026 again to a similar amount. But the bigger driver of the expansion this year and into next year were the other factors associated with the pricing change.

Classic Buck nectar in the Chesapeake nature of it.

Thank you one moment for our next question.

Our next question comes from the line of Alex Zukin from Wolfe Research.

Yeah, Hey, guys. Thanks.

Thanks for taking the question maybe following on.

On the previous question to the extent that.

The modality develops around third party agents and agent networks that continuously have to access.

Both to read and action information.

Within hub spot can you just give us a framework for how you're thinking about monetization.

In that type of environment, and then to some extent how should we think about the two keys.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Kirk Materne from Evercore ISI.

First question is kind of the potential for consumption tailwind.

<unk> growth net new <unk> growth for <unk>.

On the credit side for 'twenty, six and maybe beyond.

Dharmesh Shah: Yeah, thanks very much, and thanks for taking the question. I was wondering, Yamini, if you could just talk about the benefits you're seeing from AI internally, just in terms of your own R&D and maybe sales and marketing efficiency where you're seeing some real levers there. Just any anecdotal comments would be great. Thanks.

Kirk Materne: Yeah, thanks very much, and thanks for taking the question. I was wondering, Yamini, if you could just talk about the benefits you're seeing from AI internally, just in terms of your own R&D and maybe sales and marketing efficiency where you're seeing some real levers there. Just any anecdotal comments would be great. Thanks.

Alex Thanks, a lot for the question. So I'll start with the first one and then talk about the credit consumption. So in the first part first the way we think about ourselves as we are an open platform. That's how we've won in the last decade. That's how we will win in the next decade, and we want customers to bring in and use.

Yamini Rangan: Yeah, thanks a lot, Kirk. Look, we have been transforming HubSpot completely through AI. And I'll start with coding. The way we build products has transformed completely. 97% of the code that was committed last year was done with AI assist. And you know, if you look at our top engineers, they are living and breathing in agentic coding with Claude Code, and that's how we build. And that has certainly changed the pace of innovation, but also the types of innovation that we're able to bring to the customers. So that's like number one; it has changed dramatically. And then, when you think about how we serve, we have been on this path of transforming with AI. Support, you know, completely done.

As much data as possible. So we're very open about that we don't charge for customers, bringing in the data the more complete the customer context of better outcomes epic in Denver. So we don't try to restrict that and we tried to enable that the second thing I would say is we also want partners building on top of.

And this could be workflows. This could be agents this could be custom apps and we want that to happen and we've always been partner friendly we will continue to operate that way.

The part that we will say, we're very disciplined is around platform axis at scale.

If other agents or other platforms that are emerging are relying on our customer context that axis. We will monitor it we will need to have it and we would monetize it and specifically if it is high frequency extraction of scale, if its like bulk export off.

Yamini Rangan: Our support is the first year support, and nearly 60% of our support is handled by AI, which means our teams are spending on much more complex, you know, cases. We've been using AI to transform marketing as well as prospecting. Our prospecting approach internally has changed the level of meetings and the level of pipeline that we bring, and you know in a given quarter, you know, 10,000 to 15,000 meetings are being set up internally through prospecting. Almost everything that we do from sales in terms of note capture, in terms of deal progression, in terms of smart guidance for getting deals, all of that has grown, which means at the end of the day our efficiency in terms of support, our efficiency in terms of sales, and our efficiency in terms of building pipeline has increased.

Data or content or context, we will govern it and monetize that accordingly, so the way to think about our platform is we are open by design, but we're not a free data pipeline for everybody to take that information out, whereas intelligent customer platform access to that context is valuable and we will price it in a way that is fair.

Gallup scalable and aligned to the value that we create for customers, which means we will also share the value. So that's in terms of our posture. The second question. You asked is around monetization specifically off credit and how we think about that as a tailwind now and maybe in the future and.

Yamini Rangan: You know, overall as a company, we are leaning very hard into AI. We set ourselves a target last year to say we want every HubSpotter to be inspired and work, you know, in this new AI first manner. We put out targets, and we blew through it. At the end of the year, almost every HubSpotter is using AI every day of their week. We're transformed, and that helps us, of course, to move faster and operate at speed. But more importantly, everything that we learn of what works and what doesn't, we're building it into the product, and we are sharing it as best practices for the customer. You know, really good story there; we're happy with that. You know, we're going to continue to do that.

I'll start by saying that we're beginning to see real usage beyond included credits and that's again happening because customers are getting clearer measurable value and the biggest driver today that we see is customer agents I talked about this this has got to clear product market fit and clear value and customers are.

Using it to resolve support ticket, they're also using it to answer tickets in terms of marketing as well as sales and it represents nearly 60% of the credits that are getting consumed right now.

Right.

We're also seeing very strong adoption in three other use cases prospecting agents have found really clear.

Yamini Rangan: Now it's like we're onto the second phase of AI transformation internally to scale up our efforts even more.

And think about this agent it can do accounts research. It can monitor your contact and then he can drive outreach based on the signal that you get about a company or a particular contacts and given how much disruption is happening in terms of the leaf. This is got whirlpool I talked to customers day in and day out.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Rishi Jaluria from RBC.

Prospecting agents now what is interesting is how customers are buying credits, they're not just like thinking of this as an experiment, they're beginning to scale it.

Rishi Jaluria: Oh, wonderful. Thanks. Hey, this is Rishi Jaluria. Thanks so much for taking my question. Maybe I wanna drill into one thing. So, Yamini, I was struck by you mentioning Lovable as a customer, you know, during the prepared remarks. And look, without talking specifically about a single customer, I definitely see it striking that the market clearly is worried that Vibe Coding is going to replace incoming platforms, but one of the leaders in Vibe Coding is using you and tells us the power of that.

Starting with what's included and they replace real work and then they allocate more budget and that is real positive green shoot one of our customers Sky track in Boston. They piloted this customer agent and started with 10000 support chats a month that agent was so effective that it used up all of the.

<unk> credit for.

Rishi Jaluria: My question is really this: as you think about your own adoption amongst AI natives, especially the cutting edge ones that you know have become household names over the past year, in many cases over the past six months, can you talk about why you might feel HubSpot is uniquely positioned for those companies, and you know why they're choosing to use you instead of leveraging you know all the vibe coding tools and Claude Code and Codex et cetera to try to build their own? Thank you.

Ours.

Then they allocated another $50000 of their budget for credits and treated more like a work replacement so.

Where we are is we have the scaffolding in place agents are clearly adding value there being adopted the credit mechanisms are in place we are beginning to deliver value and we see this as a tailwind and in emerging lever bolt in 2026 as well as many years to come.

Kate Bueker: I mean, AI coding has gotten easier, but domain expertise and platform value has not just gone away, right? So people just equate coding to your ability to build everything. Look, I've just said that internally in terms of how we build products; it's completely transformed. We're building products completely. And of course, everybody within the company knows Vibe Coding; our product managers do it, our UX managers do it, and our marketeers do Vibe Coding. But it doesn't mean that we are turning around and replacing our core platform, a core HR platform, ERP platform. We're not building any of that. So I think there's a lot that is getting lost in terms of ability to code versus value of a platform.

Yamini Rangan: I mean, AI coding has gotten easier, but domain expertise and platform value has not just gone away, right? So people just equate coding to your ability to build everything. Look, I've just said that internally in terms of how we build products; it's completely transformed. We're building products completely. And of course, everybody within the company knows Vibe Coding; our product managers do it, our UX managers do it, and our marketeers do Vibe Coding. But it doesn't mean that we are turning around and replacing our core platform, a core HR platform, ERP platform. We're not building any of that. So I think there's a lot that is getting lost in terms of ability to code versus value of a platform.

Thank you one moment far next question.

Our next question comes from the line of Parker Lane from Stifel.

Yeah, Hi, good afternoon. This is Jack Makena for Parker, Thanks for taking my question.

Germany with the Egencia ecosystem build out seemingly accelerating throughout the quarter or whether it be through frontier Claude code Opus et cetera.

How did deal velocity trend in the quarter relative to prior periods are the weekly announcements.

You know the next use case specific agent or a new model that specializes in coding or those types of announcements, causing any sort of confusion or slowdown in the pipeline, maybe a better way of asking it is how our customers and prospects digesting these announcements in real time.

Kate Bueker: That's what I would come back to, which is what we deliver is a platform, and it used to be that that platform had unified data. That's why customers came to us. We built something organically; people came to us because there was value in unifying marketing, sales, and service. But what has fundamentally changed now is that it's not just about the data; it's the context. Because context is what you need to make decisions whether you're an agent or you're a team member that is making decisions on behalf of that agent. And that is what we deliver, and that is why all AI native companies, including the ones that you mentioned, are starting with HubSpot as their platform of choice in terms of go-to-market. Dharmesh, go ahead.

Yamini Rangan: That's what I would come back to, which is what we deliver is a platform, and it used to be that that platform had unified data. That's why customers came to us. We built something organically; people came to us because there was value in unifying marketing, sales, and service. But what has fundamentally changed now is that it's not just about the data; it's the context. Because context is what you need to make decisions whether you're an agent or you're a team member that is making decisions on behalf of that agent. And that is what we deliver, and that is why all AI native companies, including the ones that you mentioned, are starting with HubSpot as their platform of choice in terms of go-to-market. Dharmesh, go ahead.

Hi, I actually really like this question I'll tell you. There's a huge disconnect between what's happening in terms of announcements and how investors are processing it and the actual conversations that we're having with customers in terms of AI adoption.

And again I'll remind that the segments that we serve there two to 2000 employees.

Boy companies, they have a business to run and they're not chasing every announcement that's happening out there and if you look at the pipeline and what we're talking about the first conversation that behalf is how can we drive innovation and growth. It is not a how can I adopt you know name the announcement of this week it is.

How can I drive adoption and growth and for ourselves and we don't have or that we deliver our platform. We deliver solutions that can that are easy to use in a fast time to implement and they look to us to drive it. So we talked about Q4 in Q4, specifically upmarket.

Dharmesh Shah: Yeah, one thing I'd like to add as someone that spends hours a day using agentic coding tools both AI native companies and non-AI companies, the best companies spend the most amount of calories in adding value to their customers. They don't spend their engineering calories going off and vibe coding a CRM or an ERP or an HR system whatever, that just doesn't make sense. So just because it's possible so we have, as Yamini mentioned, a large engineering team knows what they're doing spending 97% of their kinda calories using agentic coding tools, they're not doing it to replace internal platforms. So I, we think the best companies both AI and non-AI will not be using vibe coding to replace core systems, they'll be doing it to add value to their customers.

With very strong and if you look at the nature of the conversations we had it was consolidating multiple applications is driving growth through innovation and then making sure that there is pure data and clean context to be able to get them to grow that as the kind of conversations that behalf again huge disconnect and.

You know we had a very robust Q4.

Dharmesh Shah: That's what Lovable's doing and I think that's what some of the best companies in the world will continue to do.

Thank you one moment far next question.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Raimo Lenschow from Barclays.

Our next question comes from the line of Taylor Mcginnis from UBS.

Yeah, Hi, thanks, so much for taking my question Kate maybe just on the acceleration that we could see throughout this year you mentioned a lot of growth drivers earlier, but could you just break out how much price is contributing to that versus you know some of the other growth drivers around.

Ryan MacWilliams: Hi, guys. This is Damon Coggoneau from Raymo. Thanks for taking the question. Great to hear that YouTube and newsletter leads are driving to differentiation with LLM-generated answers. Given the challenges that the SEO channel faced throughout 2025, should we think about that as a tailwind to topline throughout 2026?

Damon Coggin: Hi, guys. This is Damon Coggoneau from Raymo. Thanks for taking the question. Great to hear that YouTube and newsletter leads are driving to differentiation with LLM-generated answers. Given the challenges that the SEO channel faced throughout 2025, should we think about that as a tailwind to topline throughout 2026?

Heath and crowded adoption like could we be getting to the point that you mentioned earlier that credits are scaling could that start to add a point to growth. This year, which is loved to hear a little bit more about the breakout of those.

Yamini Rangan: I'll maybe talk about the TOFU trends, the top of the funnel trends. Look, yes, you know, there's been an overall decline in terms of content-generated traffic that comes into the website. But that's something that we have seen coming. We have diversified the channels we've talked about, our playbook, and that playbook is working, right? Specifically, you mentioned a couple of, like, channels. For us, YouTube, you know, has grown. Newsletters, leads from newsletters have increased more than 50%, and AEO is increasing.

Yeah. Thanks, so much for the question I actually think Taylor the easiest way to talk about it is through the trends that we're seeing in net revenue retention.

As you know our net revenue retention was up this year a 105 in Q4. It was up to 103 for the full year and that's about 1.7 points up from last year.

Yamini Rangan: I think like part of the way you should think about it is that the diversification strategy, as well as our ability to lead with AI, is going to help us continue to drive top of the funnel, which is why you're seeing us double down on our guidance of net customer additions of 9 to 10K every quarter going forward. Last year we added, you know, 40,000 customers, and this year we'll continue to do it at that pace. A lot of what we have done in terms of the playbook is what helps us drive customer additions even in a very challenging environment when marketing is completely changing.

The components of that if you think about what was actually driving the.

The expansion it was very much all of the benefits of the seats pricing model change no that is not pricing. The biggest impact actually is that we saw higher upgrade rates for seats across sales seats service seats at core seats as you remember one of the things that have.

And with the pricing model change is that we lowered the barrier to get to the barrier to entry to get started with hub spot. So people bought the seats that they needed and there was a much more natural upgrade path from there.

The other contributor was what you were talking about which is as customers migrated and came up for renewal, we would they would see up to a 5% pricing increase and that did help.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Suchita Jain from Mizuho.

Support net revenue retention in 2025, it will support net revenue retention in 2026 again too.

Siti Panigrahi: Great, thanks for taking my question. Yamini, I just wanna ask about the early adopters of AI agents, whoever using it. What kind of trends are you seeing in terms of them talking about their user expansion or seat expansion? Where is actually that's getting funded, all the AI investment they are doing right now? Also, are you seeing any trend differently from your small segment versus versus scaling mid-market companies?

Similar amount, but the bigger.

Driver of the expansion this year and into next year, where are the other factors associated with the pricing change.

Thank you one moment for our next question.

Our next question comes from the line of Kirk <unk> from Evercore ISI.

Yeah, Thanks, very much and thanks for taking the question I was wondering if you have any if you can just talk about the benefits you're seeing from AI internally just in terms of your own R&D, and maybe sales and marketing efficiency, where you're seeing some real levers there just any anecdotal comments would be great. Thanks.

Yamini Rangan: Okay, the great question, Siti. So I'll start with like what are we seeing and then is there any difference between segments. In terms of the AI use cases, use cases that are getting resonance are the ones that show clear measurable value and clear outcomes. So it's really about delivering value and showing clear outcomes that is driving the usage. I would say the strongest traction is Customer Agent. And I would also say Prospecting Agent; we talked about both of these agents. Data Agent that we launched at Inbound is another one. So all three agents are seeing really good, you know, traction and adoption. And in terms of what customers look for, is it easy to implement and get started? And is it clear enough to see value? And can they get confidence that the credit consumption is somewhat predictable?

Thanks, a lot Kurt look we have been transforming hotspot completely through AI and I'll start with coding the where do we build products.

<unk> form completely 97% of the coal that was committed last year was done with AI assist and <unk>.

If you look at our top engineers, they are living and breathing in agency coding with Claude Cold and that's how we build and that has certainly changed the pace of innovation, but also the types of innovation that we're able to bring to the customer. So that's like number one of this changed dramatically and then when you.

About our how we serve we have been on this path of transforming with AI support you know completely done or our support is the first years, the board and nearly 60% of our support that's handled by AI, which means our teams are spending on much more complex pieces, we've been you.

Yamini Rangan: I think it checks the box in each of those areas. The one thing I will talk about is core seat, right? Because when we think about AI monetization, it is both core seat as well as credits. We've talked a lot about the credits. On the core seat side, as you remember, Citi, last year we included Breeze Assistant into the core seat. Now 50% of core seat users have tried and are using Breeze Assistant. So we know that AI is adding value there. Similarly, we added all of the company enrichment data into core seat. Again, the level of adoption for that core seat has really increased in the last couple of quarters. So our strategy to add a lot of AI and data value into the core seat is working.

Using AI to transform marketing as well as prospecting our prospecting approach internally has changed the level of meetings with the level of pipeline that we bring in.

Quarter, Yeah, 10000 to 15000 meetings are being set up internally to prospecting and almost everything that we do from sales in terms of note capture in terms of deal progression in terms of smart guidance for getting deals all of that has grown which means at the end of the day are efficient.

Yamini Rangan: The combination of core seat plus credits is what we think of as durable emerging levers in terms of AI tailwinds. In terms of what you mentioned in terms of upmarket and downmarket, look, broadly speaking, very similar trends. I think upmarket customers care a little bit more about data security. In fact, a lot of them talked to me about which prompts are encrypted, which prompts are retained, and so on. So there's a little bit more sensitivity towards data security and prompt usage versus the downmarket segment. But the use cases are about the same.

In terms of support.

Efficiency in terms of sales and our efficiency in terms of building pipeline has increased and you know overall as a company. We are leaning very hard into AI, we set ourselves a target last year have to say, we want every hub harder to be inspired and work and in this new.

The first matter and we put a target and we blew through it at the end of the you're almost every nut butter is using AI everyday out there weekend, so what transformed and that helps us of course to move faster and operate at speed, but more importantly, everything that we learn what works and what doesn't work.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Brian Peterson from Raymond James.

Building it into the product and we are sharing best practices for the customer and so.

Good story that we're happy with that and you know where we're going to continue to do that now it's like we're onto the second phase of AI transformation internally to scale up our efforts even more.

Brian Peterson: Thanks for taking the question. Yamini, I wanted to follow up on the unified data model. I'm curious where you think that near-term cross-sell opportunity is most significant. Historically, I think we've heard a lot about, you know, building on Marketing Hub with Sales Hub. But as you've kinda broadened out the portfolio, where do you see the like the incremental product adoption really ramping up in 2026? Thank you.

[laughter].

Okay.

Thank you one moment far next question.

Our next question comes from the line of Rucci Xiao L'oreal from RBC.

Yamini Rangan: Maybe clarify the question a little bit. When you said unified data model, are you just talking about multi-hub adoption or are you talking about something else?

Wonderful. Thanks, Hi, this is Richard Deloria. Thanks, so much for taking my question maybe.

Maybe I wanted to drill into one thing.

Brian Peterson: Yeah, multi-hub adoption more from a cross-sell perspective. So as you're looking to kinda go back into your base, where do you see the biggest opportunity for cross-sell in 2026?

So Johnny I was struck by you mentioning lovable.

Customer.

During the prepared remarks without talking specifically about a personal customer WCS striking that the market clearly is a worry that vibe coding is going to replace incumbent platforms, but one of the leaders in VI coding is it uses even tells US the power of that so my question is really vessels do you think about your own adoption among.

Yamini Rangan: Yeah, yeah. That's a great question. Look, I think in terms of where our customers land, they mostly land with Marketing plus Sales Hub. That is, you know, a common land pattern. Or they land with all five hubs, right? Those are the two common patterns. If they land with Marketing Hub and Sales Hub, then what happens is that in a few months they begin to see the need for Data Hub. Because in almost everything that you do with Loop or in almost everything that you're doing with sales automation, you need better quality data, ability to ingest more data, ability to real-time bring data through AI prompts, and that's what Data Hub gives. And so the next combination we see is Data Hub.

AI Meda is especially especially at the cutting edge ones that have become household names over the past year in many cases over the past six months can you talk about why you might youre hotspot is uniquely positioned for those companies and wider why they're choosing to use you instead of leveraging all of the vie cutting tools and quad Cowen and co.

What actions et cetera to try to build their own. Thank you.

Coding has gotten easier, but domain expertise and platform value is not just gone away right. So.

Yamini Rangan: Service Hub is another one that where there's a ton of like cross-sell opportunity, especially with the advancements that we have made with Customer Agent, but also across the full platform embedding summarization of tickets, sentiment analysis, as well as being able to respond quickly. We're beginning to see Service Hub adoption. So the patterns are land with Marketing Hub the and Sales Hub expand to Service Hub, Data Hub, and Content Hub. And we are continuing to invest across the platform, and that is the motion that we wanna continue to build.

So people just equate coding to your ability to build everything look I, just said that internally in terms of how we build product it's completely transformed and we are building products completely and of course, everybody within the company now is by putting our product managers do it our UX managers do it our marketeers Dubai coding, but it does.

Doesn't mean that we are turning around and replacing our core platform. Our core HR platform ERP platform, we're not building any of that and so I think there's a lot that is getting lost in terms of ability to core versus value of our platform and that's what I would come back to which is.

Operator: Thank you. One moment for our next question. Our next question will be from the line of Arjun Bhatia from William Blair.

What we deliver is a platform and it used to be that the platform at unified data. That's why customers came to US. We were we built something organically people came to us because there was value in unifying marketing sales and service, but what has fundamentally changed now.

Arjun Bhatia: Perfect. Thank you so much. I just wanted to touch on maybe the other side of the net retention rate pandemic. You know, I'm curious where sort of upsell and upgrades, basically the non-seat-based expansion levers, how how those are playing out and whether we've seen sort of an uptick uptick there at all. And maybe as a part of that, would would just love to hear, Yamini, from you on how the kind of SMB, broader SMB macro environment is is evolving, given we've heard a little bit of noise there.

Is that it's not just about the data it's the context because context is what you need to make decisions, whether you're an agent or your team member that is making decisions on behalf of that agent and that is what we deliver and that is why all AI native companies, including the <unk>.

Ones that you mentioned are starting with hub spot as their platform of choice in terms of go to market. Our mesh go ahead, you know what they.

Kate Bueker: Yeah, thanks Arjun. We've been talking about the dynamics with net revenue retention for a number of quarters now. So I think that you're familiar, but you know we always start the conversation on NRR with customer dollar retention. And customer dollar retention has remained really strong and consistent for us in the high 80s. It's like ticked up a little bit this year, and we expect the same in next year. Where we've seen really strong upgrade motions is in the seats upgrade motion, adding Service Hub seat, adding Sales Hub seat, adding core seats. And we're starting to see a building trend around credit adoption. The other upgrade motions that we've been talking about, contact tier upgrades, some of the cross-sell motions, they've sort of been in this holding pattern for a while. That's the conversation we've been having over time.

As someone that's been hours a day using agent to coding tool.

Both AI native companies and non AI can be the best companies spend the most amount of calories.

Adding value to their customers. So they don't spend their engineering calories going often five coding CRM or ERP or an HR system whatever that just doesn't make sense just because it's possible that we have at the Yamana you mentioned, a large engineering team knows what they're doing is putting 97% of their calories, usually acre decoding tools, they're not doing it the replacement drove.

Platforms. So we think the best company, both AI and not it.

We will not be using by coding to replace core systems they'll be doing it.

There are customers that are doing I think that with all the best company in the World will continue to do.

Kate Bueker: You know, people are adding contacts; they're just not doing it at a rate and pace that is increasing. Our expectation is that those trends are gonna continue here for some time. That said, you know, as I shared, we do expect Net Revenue Retention to be up 1 to 2 points next year. And that's gonna be driven by the continued success in seat upgrade rates as well as a building momentum around core seats and credits.

Thank you one moment for our next question.

Our next question comes from the line of Raimo lunch show from Barclays.

Hi, guys. This is Jamie Kaufman on for Raimo. Thanks for taking the question great to hear that Youtube and newsletter leads are driving differentiation with all of them generated answers given the challenges that the Seo channel faced throughout 2025 should we be thinking about that as a tailwind to topline throughout 2026.

Oh, albeit maybe talk about the tofu trends the top of the funnel trends and look yes.

Operator: Thank you. This concludes the HubSpot Q4 2025 Earnings Call. Thank you to everyone who was able to join us today. You may now disconnect your lines.

You know theres been overall decline in terms of content generated traffic traffic that comes through the web side, but that's something that we have seen coming we have diversified the channels, we've talked about our playbook and that playbook is working right and specifically you mentioned a couple of like channel for US Youtube has grown our newsletters.

Needs from newsletters have increased more than 50% and a yoga is increasing and I think like part of the way you should think about it is that the diversification strategy as well as our ability to lead with AI is going to help us continue to drive top of the funnel, which is why youre seeing us doubled.

Down on our guidance off net customer additions of nine to 10-K every quarter going forward last year, we added in our 40000 customers and this year, we'll continue to do it at that pace and a lot of what we have done in terms of the playbook is what helps us drive customer additions even in a very challenged.

Jing environment men marketing is completely changing.

[laughter].

Thank you one moment for our next question.

Our next question comes from the line of C. T Putney Graci from Mizuho.

Great. Thanks for taking my question.

I just wanted to ask about the oddly adopters, probably I hear Jim whoever using it what kind of trains are you seeing in terms of them talking about their use.

Use your expense and I'll see if the expense and what is actually that's getting funded all the AI investment Theyre doing bake now also have you seen any trend differently from your small segment bus versus scaling mid market companies.

Okay, Great question City, so I'll start with like what are we seeing and then is there any difference between segments in terms of the AI use cases use cases that are getting residents are the ones that show clear measurable value and clear outcome. So it's really about delivering value.

And showing clear outcomes that is driving the use that I would say the strongest traction is customer agent and I would also say prospecting agents, we talked about both of these agents data agent that'd be launched at inbound is another one so all three agents are.

Seeing really good traction.

Traction and adoption and in terms of what customers look for is it easy to implement and get started and is it clear enough to see value and can they get confidence that the credit consumption.

Somewhat predictable and I think it checks the box on each of those areas. The one thing I will talk about his core seats right because when we think about AI monetization. It is both core seat as well as credit we've talked a lot about the credits on the core seat side as you remember city last year. We included brief assist.

Into the core suite and now 50% of course feed users have tried and are using brief assistant. So we know that AI is adding value. There. Similarly, we added all of the company enrichment data into core seats again, the level of adoption for that core seat has really.

<unk> increased in the last couple of quarters. So our strategy to add a lot of AI and data value into the core seats is working and the combination of core seat plus credits is what we think golf as durable emerging levers in terms of AI tailwind.

And in terms of what you what you mentioned in terms of upmarket and Downmarket look broadly speaking very similar trends I think are upmarket customers care, a little bit more about data security in fact, a lot of them talk to me about which prompts are encrypted, which prompts are retained and so on so there is a <unk>.

Little bit more sensitivity towards data security and prompt usage versus the Dod market segment, but the use cases are about the same.

Thank you one moment for our next question.

Our next question comes from the line of Brian Peterson from Raymond James.

Hi, Thanks for taking the question, Germany I wanted to follow up on the unified data model I'm curious, where do you think that near term cross sell opportunity is most significant historically I think we've heard a lot about building a marketing hub with sales hub, but as you kind of broadened out the portfolio, where do you see that incremental product adoption really ramping up in <unk>.

26, thank you.

But maybe maybe clarify the question a little bit and when you said unified data model are you just talking about multi hub adoption or are you talking about something else.

Multi help adoption more from a cross sell perspective, so as youre looking to kind of go back into your base, where do you see the biggest opportunity for cross selling 20, so it's not that.

That's a great question look I think in terms of where our customers land they mostly land with marketing plus sales help that is the <unk> a common non pattern or the land with all five hubs right. Those are the two common package.

The land with marketing hub sales hub, then what happens is that in a few months they begin to see the need for data hub because in almost everything that you do with loop or in almost everything that youre doing with sales automation, you need better quality data ability to ingest more data.

Ability to real time bring data through AI com and that's what data hub for life and so the next combination. We see is data hub service hub is another one where there's a ton of like cross sell opportunity, especially with the advancements that we've made with customer agent, but also across the full plan.

Form embedding summarization of to get a sentiment analysis as well as being able to respond quickly. We're beginning to see service hub adoption. So the patterns are land with marketing hub.

Sales hub expand to a set of hub data hub and content hub and we are continuing to invest across the platform and that is the motion that we want them to develop.

[laughter].

Thank you one moment for our next question.

Our next question will be from the line of our June Bastia from William Blair.

Perfect.

Thank you so much I just want to touch on maybe the other side of.

On the net retention rate dynamics.

I'm curious where are sort of up sell and upgrade basically the two phase expansion levers how those are playing out and whether we've seen sort of an uptick a uptick there at all and maybe as a part of that would just love to hear from you on the ALDA.

Kind of F&B broader SMB macro environment.

It's evolving yards.

A little bit of noise there.

Yeah. Thanks, Arjun we've been talking about the dynamics with net revenue retention for a number of quarters now. So I think that you are familiar but you know we always start the conversation on an IRR with customer dollar retention and customer dollar retention has remained really strong and consistent for us in the high Eighty's, that's like ticked up a bit.

This year and we expect the same in next year, where we've seen really strong upgrade motion is in the seats upgrade motion adding.

Service hub see adding sales hub seat, adding core seats and we're starting to see a building trend around our credit adoption.

The other upgrade motion that we've been talking about contact here upgrade some of the cross sell motion they've sort of been in this holding pattern for a while that's the conversation we've been having over time and you know people are adding contacts they're just not doing it at a rate and pace that is increasing.

And our expectation is that those trends are going to continue here for some time.

That said you know as I shared we do expect net revenue retention to be up one to two points next.

Next year, and that's going to be driven by the continued success and seat upgrade rates as well as a building momentum around core seats and credits.

Thank you. This concludes the hub spot Q4 2025 earnings call. Thank you to everyone, who was able to join US today you may now disconnect your lines.

Okay.

[music].

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