HUBSPOT INC Fair Value Disclosure
5. Fair Value of Financial Instruments
The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows:
Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.
The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at December 31, 2025 and December 31, 2024:
|
|
December 31, 2025 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
|
|
(in thousands) |
|
|||||||||||||
Cash equivalents and investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
191,494 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
191,494 |
|
|
Corporate bonds |
|
|
— |
|
|
|
253,765 |
|
|
|
— |
|
|
|
253,765 |
|
U.S. Government agency securities |
|
|
— |
|
|
|
45,710 |
|
|
|
— |
|
|
|
45,710 |
|
U.S. Treasury securities |
|
|
— |
|
|
|
658,739 |
|
|
|
— |
|
|
|
658,739 |
|
Strategic investments |
|
|
— |
|
|
|
— |
|
|
|
19,076 |
|
|
|
19,076 |
|
Restricted cash: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
— |
|
|
|
2,703 |
|
|
|
— |
|
|
|
2,703 |
|
|
Prepaid expenses and other current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency derivative assets |
|
|
— |
|
|
|
240 |
|
|
|
— |
|
|
|
240 |
|
Total assets |
|
$ |
191,494 |
|
|
$ |
961,157 |
|
|
$ |
19,076 |
|
|
$ |
1,171,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses and other current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency derivative liabilities |
|
$ |
— |
|
|
$ |
381 |
|
|
$ |
— |
|
|
$ |
381 |
|
Total |
|
$ |
— |
|
|
$ |
381 |
|
|
$ |
— |
|
|
$ |
381 |
|
|
|
December 31, 2024 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
|
|
(in thousands) |
|
|||||||||||||
Cash equivalents and investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
$ |
64,109 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
64,109 |
|
|
Commercial paper |
|
|
— |
|
|
|
4,941 |
|
|
|
— |
|
|
|
4,941 |
|
Corporate bonds |
|
|
— |
|
|
|
284,575 |
|
|
|
— |
|
|
|
284,575 |
|
U.S. Government agency securities |
|
|
— |
|
|
|
117,369 |
|
|
|
— |
|
|
|
117,369 |
|
U.S. Treasury securities |
|
|
— |
|
|
|
1,307,363 |
|
|
|
— |
|
|
|
1,307,363 |
|
Strategic investments |
|
|
— |
|
|
|
— |
|
|
|
9,409 |
|
|
|
9,409 |
|
Restricted cash: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
— |
|
|
|
4,053 |
|
|
|
— |
|
|
|
4,053 |
|
|
Total assets |
|
$ |
64,109 |
|
|
$ |
1,718,301 |
|
|
$ |
9,409 |
|
|
$ |
1,791,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses and other current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency derivative liabilities |
|
|
— |
|
|
|
584 |
|
|
|
— |
|
|
|
584 |
|
Total |
|
$ |
— |
|
|
$ |
584 |
|
|
$ |
— |
|
|
$ |
584 |
|
The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents on the consolidated balance sheets. At December 31, 2025 and 2024, Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. Certain non-marketable strategic investments measured at fair value on a non-recurring basis are classified as Level 3 as their fair value measurements may include a combination of observable and unobservable inputs.
Foreign currency derivative assets and liabilities are classified as Level 2 and are valued using observable inputs, such as quotations on forward and spot rates for currencies, interest rates and credit derivative market rates.
For certain other financial instruments, including accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances.
Restricted cash is comprised of money market funds related to landlord guarantees for leased facilities. These restricted cash balances have been excluded from our cash and cash equivalents balance on our consolidated balance sheets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 12, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 14, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 12, 2020 | |
| 2018 | Feb 12, 2019 | |
| 2017 | Feb 13, 2018 | |
| 2016 | Feb 16, 2017 | |
| 2015 | Feb 24, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.