Forensic Analysis · Software & SaaS · as of Nov 9, 2026
Hubspot Inc (HUBS)
A forensic read on Hubspot Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Grey Zone
Financial health
2.3
Distress distance
Clean
Earnings quality
3
Forensic signals
2.3%
ROE
19.2%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Hubspot Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 2.3, placing it in the Grey zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
0.3%
FY2025
Return on invested capital.Return on invested capital is 0.3% in the latest fiscal year and rising across FY2023–FY2025 from -9.1%. After-tax operating profit was ($159M) in FY2023 and $5M in FY2025, with operating income at -9.3% of revenue in FY2023, -2.6% in FY2024 and 0.2% in FY2025. The capital base behind it went from $1.7B in FY2023 to $1.6B in FY2025 (-8%), while the revenue it carried went from $2.2B to $3.1B. Across FY2024–FY2025, $441M went into capital expenditure, purchases of intangible assets and acquisitions against $211M of depreciation excluding $22M of intangible-asset amortisation. The base is struck net of amortisation, write-downs and the current liabilities that fund it, so it moved by less than that spending net of the wear, and this row does not say which of those absorbed the difference. $1.3B of the $1.6B base at FY2025 is short-term investments and long-term marketable securities (83.0%) — securities held beside cash, which the base keeps because only cash is subtracted from it; they earn the balance sheet's yield, which is not in the operating profit above, so this rate understates what the operating capital earns. FY2023's operating profit carried a $97M restructuring charge that alone took about 4.4 points off that year's return, so about 4.4 of the 9.4-point rise across FY2023–FY2025 is that charge leaving the base year rather than the capital earning more.
+3.3%/yr
FY2023–FY2025
Share-count dilution.Diluted share count changed +7% over the last 2 years to FY2025 (+3.3%/yr). The count is growing — 49.9M shares in FY2023, 53.2M in FY2025: more stock was issued than repurchased over this window, so aggregate results grew faster than their per-share equivalents. That's ~3.3% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2023 has been diluted ~6%.
17% of rev
FY2025
Stock-based comp load.Stock-based compensation ran 17% of revenue and 92% of free cash flow in FY2025 — about $9.93 per diluted share. No cash left the business to pay it, which is why operating cash flow adds it back. Net of repurchases the diluted count still rose about 3.3% a year across FY2023–FY2025, and the rate is falling. Stock compensation is one source of that issuance; acquisition consideration, equity raises, convertibles and other employee plans also net into the count, and these figures do not separate them.
Key fundamentals
Latest Revenue$3.13B
Revenue Growth YoY+19.2%
Revenue CAGR (2yr)+20.1%
Net Margin1.5%
Free Cash Flow$576.9M
Return on Equity2.3%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Hubspot Inc's actual 10-K/10-Q/8-K filings?