Jun. 23 at 2:15 PM
$HUBS Hubs is being punished because their P/E is too high. This is potentially why their stock is performing worse than CRM, ADBE, and other (Software stocks). When you dig into why the P/E is so high, a lot of it comes down to stock based compensation. They expensed roughly
$528 million in 2025, about 17% of their
$3.1 billion in revenue, and that absolutely crushes GAAP earnings.
The interesting part is who actually gets that stock. It's not the executives loading up. The 5 named officers got around
$46 million in equity combined, which is only about 9% of the total. The rest goes to the 8,900 regular employees.
So the 90 P/E is mostly an accounting thing. On forward non-GAAP earnings it's more like 13x, and management is already guiding the comp down over time. As that happens the GAAP earnings catch up and the multiple comes down on its own..my opinion.
Still annoyed. Nobody in leadership should get any stock when their shares dropped 70% this year. F off.
