HubSpot, Inc.

Good day everyone. My name is Lennius 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. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question and answer session. If you would like to ask a question during this time and if you have joined via the webinar, please use the raise hand icon which can be found at the bottom of your webinar application. At this time, I would like to turn the call over to Vice President, Investor Relations, Jeff Kobler. 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, including statements regarding our financial guidance for the third fiscal quarter and full year 2026, future financial performance, business outlook, and strategy. These statements reflect our views only as of today, and, except as required by law, we undertake no obligation to update or revise them. Yamini Rangan, Yamini?

Thank you, Jack, and welcome, everyone. I'll start with our Q2 results and what drove them. Then, I'll walk through what we learned in the first half, the deliberate choices we are making as a company in response, and how we are accelerating our AI transformation across the company. Let's dive in. Q2 revenue grew 17.5% year-over-year in constant currency. We delivered three points of non-GAAP operating margin expansion year-over-year. Our total customer count reached over 306,000 globally, with 7,000 net additions in the quarter. I'm pleased to announce that our Board of Directors have authorized an additional share repurchase program of up to $1 billion, a clear signal of the confidence we have in our business and the growth opportunity ahead. We are still in the early stages of a massive shift with AI, and this quarter reflected that reality. Let me be direct about what happened. April got off to a slow start, and the quarter we expected did not fully materialize. Two factors drove the headwinds. The first was deliberate. As we discussed last quarter, customers adopting AI want proof of value before they commit and predictability in what it costs. So in April, we leaned into those trends and made changes across product, pricing, and go-to-market. On the product side, we introduced trials so customers can turn on agents and AEO in their own environment with their data for their workflows. The goal was simple. Let customers experience real outcomes before they buy. We knew this would create some near-term headwinds by extending the buying process, but we believe it's the right long-term trade-off. Lowering the barrier to adoption and building customer confidence in outcomes will ultimately accelerate AI adoption. So far, this approach has worked best with upmarket customers, where our teams and partners provide the support needed to make the trial successful. Our focus is to scale that experience so every customer can adopt AI with the same confidence. On pricing, predictability has become a defining theme in AI adoption. Businesses have been hit with unpredictable token costs, and they want pricing that is transparent and tied to value. In response, we introduced outcome-based pricing for several of our HubSpot agents, lowered entry price points, and are providing customers clear visibility and control over usage and spend, including the ability to set thresholds that fit their budget. The second factor was a shift in the demand environment in Q2 with increased budget sensitivity. Businesses want greater confidence that their investments will position them for the AI platform shift. As a result, purchase decisions are facing greater scrutiny, buying committees are larger, and more deals require C-suite and board approval, leading to longer sales cycles. For existing customers, Unpredictable AI costs across the broader landscape are impacting budgets, leading to budget optimization and downgrade pressure. In response, we've evolved our execution playbook by engaging the C-suite earlier, accelerating time to value with our partner ecosystem, and demonstrating our pace of innovation that future-proofs their investments. These trends reinforce our conviction in accelerating our strategic pivots to deliver predictable pricing and clear value tied to AI. Now, despite the headwinds in Q2, we continue to see real momentum in AI adoption, upmarket wins, and multi-hub growth. On AI, customer adoption is accelerating. Data Agent has over 16,000 customers activated, up 80% quarter over quarter. Prospecting Agent has almost 17,000 customers activated, up 28%, and Customer Agent reached over 10,000 customers. We launched HubSpot AEO in April, both within Marketing Hub and as a standalone product. And since then, 32% of Marketing Hub ProPlus customers have activated AEO, and nearly 16,000 customers have activated a standalone AEO trial in Q2. More importantly, Customers are seeing real business outcomes. Sesame HR, a 400-person HR software platform, could only respond to 70% of incoming support tickets before deploying customer agents. Now, they cover all tickets received with 60% fully resolved without human escalation. After their initial trial, they have now purchased more than 1 million credits and are expanding into other agents. RevenueWell, a 250% dental software company, combined HubSpot's buyer intent with prospecting agent to identify high-end buyers and reach them with personalized outreach. Meetings booked increased from 8% to 28%, and conversion rates climbed to nearly 10%, well above industry benchmarks. They have since grown their usage to more than 350,000 credits across six HubSpot agents. Off-market momentum continued to be strong. Deals over $120,000 ARR grew 38% year-over-year, reflecting continued demand from larger customers for a unified AI-powered customer platform. And multi-hub momentum continued. 64% of new ProPlus customers landed with multiple hubs, up three points year over year. Taken together, these results reinforce our conviction that we're making the right strategic choices. Now, let me step back from the quarter and talk about the bigger opportunity. The last 20 years were about helping teams do more work with software. The next 20 will be about helping them achieve better outcomes with AI. That's the opportunity we're building for. And that's why we are evolving every part of HubSpot, from our products to our go-to-market to how we operate as a company. Our AI strategy is simple. Drive growth for scaling companies. And that means delivering real outcomes across the full customer journey, and that is exactly what our HubSpot agents do. Customers don't want a chaotic agent sprawl. They want a controlled, cohesive way to build demand, win deals, and delight their customers. In Q2, we expanded our agent portfolio and added both breadth and depth in agent capabilities. We also added two new products, AEO, which shows marketeers how their brand appears in AI search engines and tells them what to do about it, and Revenue Hub, which brings quoting, contracts, billing, and payments into one place. Beyond HubSpot Agents, we want to make building easy. AI is democratizing the ability to build workflows, agents, and automation. And we want every go-to-market builder on our platform to take advantage of that. In July, we launched Agent Builder and Agent Hub. Agent Builder lets anyone build custom agents, agentic workflows, or mix and match both. What makes it powerful is that it connects deeply to HubSpot CRM and context, but it can also automate anything outside HubSpot. Custom agents can take a rich set of actions from sending a WhatsApp message to invoking an LLM to calling a custom API. And Agent Hub gives customers one place to manage all their agents. HubSpot built, customer built, and partner built. Over 2,700 customers have already activated in beta and partners are leading the way here. SmartBug Media, a HubSpot elite solutions partner, built a library of 20 custom agents on HubSpot spanning sales research, content creation, and proposal compliance. We've expanded partner incentives to encourage this motion and expect a significant portion of customers and partners to build on top of our platform given the trusted context we deliver. The biggest adoption jump this quarter was in Breeze Assistant. Breeze is no longer just a chat interface. It is how customers interact with the entire HubSpot platform. They use it to build reports, create automations, invoke agents, and generate artifacts, all without writing a single line of code. More than half of our ProPlus customers are using it. and Weekly Active Usage has doubled since the start of the year. What makes it powerful is what's behind it. Every action and every artifact is grounded in real CRM data, growth context and HubSpot's governance model. Customers get AI that actually knows their business. So how will you know whether our AI strategy is working? We measure it through four lenses, reach, depth, Quality and Growth. First, reach. Our customers adopting AI. Today, more than 55% of our ProPlus customers use our agents or brief assistant, up by double-digit percentage points since the start of the year. HubSpot agent adoption among our ProPlus customers has grown from high single digits to mid-teens this year. Second, depth. are customers using more over time. The total number of monthly agentic actions across our customer base has increased more than 3x this year. Customers are not just experimenting with AI, they're making it part of their daily workflows. Third, quality. Are our agents delivering real outcomes? Customer agent now resolves 72% of support tickets without human escalation. Prospecting agent is generating response rates on par with human written outreach, leading to more meetings booked and more deals closed. Finally, growth. Is AI driving growth of our business? Total credits consumption grew in Q2, despite the pricing changes we made in April. Credit usage is now evenly distributed across data agent, prospecting agent, customer agent, and buyer intent. That is an important signal. Customers aren't adopting a single AI use case. They're using HubSpot agents across the entire customer journey. Transforming our products and pricing is only part of the story. We're also transforming how HubSpot operates, and that internal transformation is driving leverage. We have reorganized into smaller, more focused teams operating in six-week strength. This lets us move at the speed of AI, experiment continuously, and quickly scale what works. AI is now embedded in how we build, how we sell, and how we run the business. We're doing more with less and getting faster as we go, and it is showing up in the numbers. Operating margins are expanding in 2026, even as we invest aggressively in AI innovation. We expect to deliver two to three points of operating margin expansion in 2027, a meaningful step up that reflects the operating leverage we are building as an AI-first company. I want to close with what I keep coming back to. We are in the middle of a real transition to AI, and we are making deliberate choices to lead in it. While some of these choices create near-term headwinds, they will help us drive long-term compounding growth. Our core fundamentals are solid. Our AI momentum is real and accelerating. And the adoption indicators are moving in the right direction. We have a clear strategy, a focused team, and high conviction in where we are headed. With that, I'll hand it over to our CFO, Kate Bueker, to walk you through our financial and operating results. Kate?