HUBS

EX-99.1

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EX-99.1

EX-99.1

Exhibit 99.1

Team,

I am writing to share some very difficult news. We have decided to reduce the size of our team by ~7% and will be saying goodbye to nearly 660 HubSpotters. We did not make this decision lightly and approached it with the seriousness and care it deserves.

If you are one of the employees impacted in the U.S., you will get an email within the next 15 minutes with information and support. In other countries, this process will vary based on local laws and practices.

Why are we taking this step

Over the past year, we have shifted our strategy from building software that helps customers grow to delivering outcomes for them with AI. That shift is transforming product, pricing and how we serve our customers. But we also need to fundamentally change the way we are organized to compete and win.

We need to move faster, stay closer to our customers and focus our resources on our highest priorities to set ourselves up for success in this next chapter. That requires difficult choices about how we are organized.

What are we changing

We are making three changes to how we operate:

1.

Organize around customer outcomes. Customers don’t think in Hubs and features. They want to generate demand, win deals, delight customers, and scale growth. We will organize product teams around these outcomes instead of hubs, with each team owning the full customer journey and clear accountability for the outcome. As a product focused company, our team of builders are key to driving transformation. We have always worked hard to be the best product company for GTM teams in the world, and the changes we are making will help ensure that remains true going forward, as we adapt to the new way to build and deliver outcomes.

2.

Build a flatter organization with fewer layers. We will reduce management layers and move decisions closer to the people doing the work. We will simplify the organization so decisions can be made faster.

3.

Create agile teams with clear ownership. Teams need the context, capabilities, and authority to get work done. We will reduce fragmented ownership so teams can make decisions and execute with speed and clarity.

What is this not about

I also want to be clear about what is not driving this decision.

This is not driven by AI-related efficiencies. We believe in a world where AI helps make us more productive and we

will continue to invest to make that happen. This change is about aligning our organization with our strategy and how we need to operate going forward.

This is not simply a cost-cutting exercise. We have been thoughtful about how we invest in AI while balancing growth and profitability. We have been disciplined about growing headcount slower than revenue, and we will continue to do so. This change is about where and how we invest so we can put more resources behind our biggest opportunities.

None of that makes today easier. We are saying goodbye to colleagues who have helped build HubSpot. We owe them our gratitude, our respect, and our support through this transition.

What principles guided us

It was very important to me, our executive team, and our founders that we had a clear set of principles to guide the process. We defined the structure, roles, and capabilities needed to execute our strategy. We then assessed every role against the same six criteria. The reduction was the outcome of that work, not the starting point.

•

Strategic need: Is this role critical to delivering our strategy, priorities, and outcomes?

•

Layers and spans: Do we have the right number of layers and spans to move quickly?

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Drive revenue: Are we protecting our capacity to generate demand and drive revenue?

•

Capability: Are we investing in the capabilities we need?

•

Capacity: Is the role needed at the scale required?

•

Leadership: Do we have the right leaders for the next phase, in the right roles?

Supporting employees who are leaving

We are committed to ensuring every employee leaving HubSpot has a dignified, well-supported experience. To take care of these teammates, we looked at severance, benefits, career support and transition support and have done our best to be thoughtful and fair. The transition support will vary by region based on global requirements, but will generally include the following:

•

Severance: 20 weeks of base pay + 1 week per year of service, up to 30 weeks

•

Health benefits: US: COBRA (5 months as a lump sum); Global: Modern Health (5 months)

•

Career support: Everyone will have access to six months of career transition outplacement services to help with their job search.

•

Laptops and WFH set-up: Impacted employees may keep their HubSpot laptops

(it will be cleaned of any company data remotely), as well as any work from home gear like monitors and keyboards.

•

Connect conversations: All US departing employees will have the opportunity for a 1:1 conversation today with a HubSpot manager. Invites will be sent sh

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EX-99.1

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EX-99.1

Exhibit 99.1

HubSpot Reports Strong Q1 2026 Results

Q1'26 revenue grew 23% on an as-reported basis and 18% in constant currency compared to Q1'25

CAMBRIDGE, MA (May 7, 2026) — HubSpot, Inc. (NYSE: HUBS), the agentic customer platform for scaling businesses, announced today its financial results for the first quarter ended March 31, 2026.

Financial Highlights:

Revenue

● Total revenue was $881.0 million, up 23% on an as-reported basis and 18% in constant currency compared to Q1'25.

o Subscription revenue was $862.3 million, up 23% on an as-reported basis compared to Q1'25.

o Professional services and other revenue was $18.7 million, up 22% on an as-reported basis compared to Q1'25.

Operating Income (Loss)

● GAAP operating income was $27.9 million, compared to an operating loss of ($27.5) million in Q1'25.

● Non-GAAP operating income was $156.8 million, compared to $100.3 million in Q1'25.

● GAAP operating margin was 3.2%, compared to (3.8%) in Q1'25.

● Non-GAAP operating margin was 17.8%, compared to 14.0% in Q1'25.

Net Income (Loss)

● GAAP net income was $32.6 million, or $0.62 per basic and diluted share, compared to a net loss of ($21.8) million, or ($0.42) per basic and diluted share in Q1'25.

● Non-GAAP net income was $143.0 million, or $2.73 per basic and $2.72 per diluted share, compared to $95.9 million, or $1.84 per basic and $1.78 per diluted share in Q1'25.

● Weighted average basic and diluted shares outstanding for GAAP net income per share were 52.5 million and 52.6 million, respectively, compared to 52.2 million basic and diluted shares in Q1'25.

● Weighted average basic and diluted shares outstanding for non-GAAP net income per share were 52.5 million and 52.6 million respectively, compared to 52.2 million and 54.0 million, respectively in Q1'25.

Balance Sheet and Cash Flow

● The company’s cash and cash equivalents, short-term, and long-term investments balance was $1.8 billion as of March 31, 2026.

● During the first quarter, the company repurchased $211.0 million of its common stock. As of March 31, 2026, $789.0 million of the $1 billion repurchase program authorized by the Board of Directors remained available for future stock repurchases.

● During the first quarter, the company generated $198.8 million in operating cash flow, compared with $161.6 million in Q1'25.

● During the first quarter, the company generated $203.5 million of cash from non-GAAP operating cash flow and $153.7 million of non-GAAP free cash flow, compared to $166.1 million of cash from non-GAAP operating cash flow and $122.3 million of non-GAAP free cash flow during Q1'25.

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Additional Recent Business Highlights

● Grew Customers to 299,458 as of March 31, 2026, up 16% from March 31, 2025.

● Average Subscription Revenue Per Customer was $11,722 during the first quarter of 2026, up 6% on an as-reported basis compared to Q1'25.

● Calculated billings were $912.3 million in the first quarter of 2026, up 19% on an as-reported basis and 17% in constant currency compared to Q1'25.

“Q1 was a solid quarter of revenue growth, customer growth, and operating margin expansion,” said Yamini Rangan, Chief Executive Officer at HubSpot. “Scaling companies are increasingly choosing HubSpot as their agentic customer platform to drive AI innovation and reduce total cost of ownership, and that's reflected in our upmarket momentum and multi-hub adoption. The AI innovations we launched at Spring Spotlight, including Customer Agent, Prospecting Agent, and Data Agent, are delivering outcomes for customers and will strengthen our AI momentum.”

Business Outlook Based on information available as of May 7, 2026, HubSpot is issuing guidance for the second quarter and full year of 2026 as indicated below.

Second Quarter 2026:

• Total revenue is expected to be in the range of $897.0 million to $898.0 million, up 18% year over year on an as-reported basis and 16% in constant currency.

• Non-GAAP operating income is expected to be in the range of $173.0 million to $174.0 million, representing a 19% operating income margin.

• Non-GAAP net income per common share is expected to be in the range of $3.00 to $3.02. This assumes approximately 51.2 million weighted average diluted shares outstanding.

Full Year 2026:

• Total revenue is expected to be in the range of $3.700 billion to $3.708 billion, up 18% year over year on an as-reported basis and 17% in constant currency.

• Non-GAAP operating income is expected to be in the range of $762.0 million to $766.0 million, representing a 21% operating income margin.

• Non-GAAP net income per common share is expected to be in the range of $13.04 to $13.12. This assumes approximately 51.8 million weighted average diluted shares outstanding.

For Use of Non-GAAP Financial Measures

In our earnings press releases, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by Regu