Expected user growth 9000-10000; actual user growth 7000. Slow start to August; with increased budget sensitivity = I.e. customers less price inelastic, potentially providing issues in up selling.
Issues expected to persist remainder of the year. HubSpot is positioning itself towards Agentic AI, as they believe this to be a much bigger and much more attractive market. Issues partly stem from the whole "seat based pricing", as the growth in Agentic AI is likely to at least cannibalise some of the HubSpot licenses. This creates tremendous risk; as visibility is significantly reduced.
When numbers disappoint in a low visibility environment, then the valuation gets absolutely punished. Today HUBS is down 22% premarket. Management guided for headwinds for the remainder of the year; among these are increased budget sensitivity. This would explain why net upgrades is under pressure, net retention down 1% and a significantly lower single to double digit growth. When management says "increased budget sensitivity" it is important to note that their pricing has increased significantly in recent years; and that the upmarket initiatives are alienating some of their smb's.
In short, the presentation showed that the agentic AI adoption accelerated - especially, with regards to upmarket customers. Credit usage increased, even as pricing was decreased. Currently, Hubspot has been temporary hit by offering trials in AI agents. This action is expected to accelerate agentic AI adoption, as customers become more confident in their use cases.
I am quoting Yamini from memory - "customers dont want 10 different agents from 10 different vendors - they dont want them crawling everywhere". HubSpot (as well as Service Now, Salesforce, Sap etc) are in an attractive positioning, to automate workflows and improve efficiency for their customers - potentially, entering a immature and absolutely massive market.
Not financial advice. I can have made mistakes.
I have shares in HubSpot (and Service Now). Always do your own research.
Webcast: [https://hubspot-q2-2026-earnings-call.open-exchange.net/webcast](https://hubspot-q2-2026-earnings-call.open-exchange.net/webcast)
10Q: [https://ir.hubspot.com/node/15681/html](https://ir.hubspot.com/node/15681/html)