Five9 (NASDAQ:FIVN) Posts Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Five9 beat quarterly estimates: EPS came in at $0.70 versus the $0.68 consensus, while revenue reached $312.44 million, above expectations of $306.61 million. Revenue rose 10% year over year, with subscription revenue up 14% and AI revenue up 78%.
• AI momentum strengthened: Five9 raised its full-year 2026 AI revenue growth outlook to at least 60%, and secured a Fortune 100 financial-services contract worth about $100 million in total contract value.
• Profitability faced pressure: Adjusted gross margin fell to 61% and adjusted EBITDA margin to 22% as the company expanded professional-services capacity and incurred temporary organizational costs. Shares declined 4.6% following the results, despite maintained full-year revenue guidance.

Five9 (NASDAQ:FIVN - Get Free Report) issued its quarterly earnings results on Thursday. The software maker reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.02, FiscalAI reports. Five9 had a net margin of 4.87% and a return on equity of 12.66%. The business had revenue of $312.44 million for the quarter, compared to the consensus estimate of $306.61 million. Five9 updated its Q3 2026 guidance to 0.770-0.810 EPS and its FY 2026 guidance to 3.220-3.300 EPS.

Here are the key takeaways from Five9's conference call:

• Q2 revenue was $312 million, up 10% year over year and above the high end of guidance. Subscription revenue grew 14%, while AI revenue accelerated 78% year over year.
• Five9 raised its full-year 2026 AI revenue growth outlook to at least 60%, from more than 40% previously. AI revenue reached approximately $39 million in Q2, or about 15% of subscription revenue.
• The company won a Fortune 100 financial-services customer in a contract worth approximately $100 million in total contract value, expected to ramp to roughly $25 million of subscription ARR. The deal was supported by Five9’s partnership with Google and is expected to contribute minimally in 2026 but grow meaningfully thereafter.
• Five9 maintained its full-year revenue midpoint at $1.266 billion, with second-half guidance relying primarily on converting existing backlog rather than new-logo wins. Management expects subscription dollar-based retention to improve from 107% in Q2 by approximately one percentage point in Q3.
• Adjusted gross margin declined to 61% from 63% a year ago, while adjusted EBITDA margin fell to 22% from 24%, partly due to expanded professional-services capacity for faster AI deployments. Leadership and organizational changes are also expected to create higher temporary expenses in 2026.

Five9 Stock Down 4.6%

Shares of FIVN traded down $1.35 on Thursday, hitting $28.25. The company's stock had a trading volume of 3,477,455 shares, compared to its average volume of 2,886,515. The firm's fifty day moving average price is $23.64 and its 200-day moving average price is $19.71. Five9 has a fifty-two week low of $13.29 and a fifty-two week high of $30.21. The company has a quick ratio of 4.51, a current ratio of 4.51 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $2.16 billion, a price-to-earnings ratio of 42.80 and a beta of 1.42.

Insider Activity

In related news, President Andy Dignan sold 3,073 shares of the firm's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $24.25, for a total transaction of $74,520.25. Following the sale, the president directly owned 275,687 shares in the company, valued at $6,685,409.75. This trade represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Matthew E. Tuckness sold 8,645 shares of the business's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $24.81, for a total transaction of $214,482.45. Following the completion of the sale, the executive directly owned 281,492 shares in the company, valued at $6,983,816.52. This represents a 2.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 85,820 shares of company stock worth $2,014,057. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Five9

Several hedge funds and other institutional investors have recently modified their holdings of FIVN. Invesco Ltd. boosted its position in shares of Five9 by 45.7% during the fourth quarter. Invesco Ltd. now owns 167,947 shares of the software maker's stock worth $3,367,000 after buying an additional 52,672 shares during the period. Mercer Global Advisors Inc. ADV acquired a new stake in Five9 in the 4th quarter valued at approximately $312,000. Mackenzie Financial Corp boosted its position in Five9 by 66.0% during the 4th quarter. Mackenzie Financial Corp now owns 60,553 shares of the software maker's stock worth $1,209,000 after acquiring an additional 24,076 shares during the last quarter. XTX Topco Ltd boosted its position in Five9 by 13.4% during the 4th quarter. XTX Topco Ltd now owns 56,549 shares of the software maker's stock worth $1,134,000 after acquiring an additional 6,662 shares during the last quarter. Finally, VARCOV Co. bought a new position in shares of Five9 during the 4th quarter worth approximately $300,000. Institutional investors and hedge funds own 96.64% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on FIVN. UBS Group upped their target price on shares of Five9 from $22.00 to $25.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Zacks Research downgraded shares of Five9 from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 30th. Barclays increased their price objective on shares of Five9 from $22.00 to $25.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Five9 in a research note on Monday. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $29.00 target price on shares of Five9 in a report on Wednesday, June 24th. Ten research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $25.93.

Five9 Company Profile

Five9, Inc NASDAQ: FIVN is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.

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