Q2 2026 HubSpot Inc Earnings Call Transcript
Key Points
- Q2 revenue grew 17.5% year-over-year in constant currency, with non-GAAP operating margin expanding 3 points to 20.3%.
- AI adoption is accelerating: Data agent has over 16,000 customers activated (up 80% QoQ), Prospecting agent nearly 17,000 (up 28%), and Customer agent over 10,000.
- HubSpot AEO launched in April, with 32% of Marketing Hub Pro Plus customers activating it and nearly 16,000 stand-alone AEO trials in Q2.
- Upmarket momentum strong: deals over $120,000 ARR grew 38% year-over-year, and 64% of new Pro Plus customers landed with multiple hubs.
- Board authorized an additional $1 billion share repurchase program, signaling confidence in the business and growth opportunity.
- Credit consumption grew in Q2 despite pricing changes, with usage evenly distributed across data, prospecting, customer agents, and buyer intent.
- Agent Builder and Agent Hub launched in July, with over 2,700 customers activated in beta and partners building custom agents.
- Breeze Assistant adoption jumped: more than half of Pro Plus customers use it, and weekly active usage has doubled since the start of the year.
- Customer agent now resolves 72% of support tickets without human escalation, and prospecting agent generates response rates on par with human outreach.
- Company expects 2 to 3 points of non-GAAP operating margin expansion in 2027, reflecting operating leverage from AI-first transformation.
- Q2 net customer additions were 7,000, below the 9,000-10,000 expectation, due to weaker conversion rates and buyer hesitancy.
- Net revenue retention was 102%, down 1 point year-over-year, with continued seat and credit expansion offset by budget optimization headwinds.
- Deliberate changes to product, pricing, and go-to-market (e.g., trials, outcome-based pricing) extended buying cycles and created near-term headwinds.
- Demand environment shifted in Q2 with increased budget sensitivity, leading to larger buying committees, C-suite/board approvals, and longer sales cycles.
- Full-year 2026 revenue guidance was lowered to $3.678-$3.686 billion (up 18% as reported, 16% constant currency), reflecting persistent headwinds.
- Q3 revenue guidance of $924-$925 million implies 14% as-reported growth, a deceleration from Q2's 20%.
- Net new ARR growth is expected to be below constant currency revenue growth for fiscal 2026.
- Customer dollar retention remained in the high 80s, but net upgrade rates are expected to be pressured in the second half due to budget optimization.
- The company expects quarterly net additions to be approximately 5,000-6,000 in Q3 and beyond, down from Q2's 7,000.
- ASRPC growth is expected to be in the low to mid-single digits in constant currency, reflecting slower expansion.
Good day, everyone. My name is Lenius, and I will be your conference operator today. At this time, I would like to welcome you to HubSpot's Second Quarter 2026 Earnings Call. (Operator Instructions)
At this time, I would like to turn the call over to Vice President, Investor Relations, Geoff Koegler. Please go ahead.
Thanks, operator. Good afternoon, and welcome to HubSpot's Second Quarter 2026 Earnings Conference Call. Today, we'll be discussing the results announced in the press release we issued this afternoon. With me on the call this afternoon is Yamini Rangan, our Chief Executive Officer; Dharmesh Shah, our Co-Founder and CTO; and Kate Bueker, our Chief Financial Officer.
Before we start, I'd like to draw your attention to the safe harbor statement included in today's press release. During this call, we'll make forward-looking statements within the meaning of the federal securities laws that are subject to risks and uncertainties and including statements regarding our
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