Five9 (FIVN) Company Report

Five9's AI revenues are experiencing significant growth, increasing 41% year over year and now constituting 11% of enterprise subscription revenue, with AI bookings growing 80% year over year in the last quarter.
The company anticipates achieving double-digit revenue growth in the second half of the year and is comfortable with an annual revenue consensus of $1.254 billion for 2026.
Adjusted EBITDA margin is projected to rise from 19% in 2024 to 23% in 2025 and at least 24% in 2026, aiming for a midterm target of 25%-30% by 2027.
Five9 announced a $150 million share purchase program over two years, with $50 million accelerated through Q1 2026, supported by a cash balance exceeding $675 million and improving free cash flow generation.
Key partnerships are strengthening, with ServiceNow ACV bookings quadrupling year over year, Salesforce ACV bookings growing 60% year over year, and the Google pipeline tripling since Q1.

Dec 10, 2025, 9:55 PM

Transcript

Five9 Highlights AI Growth, Profitability Targets, and Share Buyback Program

FIVN

Revenue Acceleration/Inflection

Guidance Update

Share Buyback

Five9's AI revenues grew 41% year-over-year, now comprising 11% of enterprise subscription revenue, with AI bookings increasing 80% year-over-year. The company views AI as a significant tailwind for cloud migration in the CCaaS market, which is projected to grow from 40% to 80% penetration.
Subscription revenue growth slowed from 16% in Q2 to 10% in Q3, primarily due to tough comparisons and a decline in the commercial business, but year-over-year trends are expected to normalize in the next one to two quarters, with double-digit growth anticipated in the second half of 2026.
The company is targeting an adjusted EBITDA margin of 23% for 2025 and at least 24% for 2026, with a midterm goal of 25%-30% by 2027. Free cash flow is projected at $175 million for 2026, driven by improved working capital efficiency and CapEx below 3% in 2025.
Five9 announced a $150 million share purchase program over two years, with $50 million accelerated through Q1 2026, supported by a cash balance exceeding $675 million.
Strategic partnerships are strengthening, with ServiceNow ACV bookings quadrupling year-over-year and Salesforce ACV bookings growing 60% year-over-year.

Dec 10, 2025, 9:55 PM

Transcript

Five9 Discusses Growth Strategy, Financial Outlook, and Capital Allocation

FIVN

Guidance Update

Share Buyback

Revenue Acceleration/Inflection

Five9's growth strategy is driven by AI for CX, with AI revenues growing 41% year-over-year and AI bookings up 80% year-over-year in the last quarter, alongside durable growth in the traditional CCaaS market as cloud penetration is projected to increase from 40% to 80% over several years.
Subscription revenue growth was 16% in Q2 and 10% in Q3, impacted by tough comparisons and a decline in the commercial business, but the company anticipates double-digit growth in the second half of 2025 and an annual revenue of $1.254 billion for 2026.
The company is focused on profitability, with adjusted EBITDA margin guided to 23% for the current year and at least 24% for 2026, aiming for 25%-30% by 2027.
Five9 announced a $150 million share purchase program over two years, including $50 million accelerated through Q1 2026, supported by a cash balance over $675 million and improving free cash flow generation.
Key partnerships are strengthening, with ServiceNow ACV bookings quadrupling, Salesforce ACV bookings growing 60% year-over-year, and Google pipeline opportunities tripling since Q1.

Dec 10, 2025, 9:55 PM

Transcript

Five9 Provides Updates on AI Growth, Financial Performance, and Strategic Initiatives

FIVN

Guidance Update

Revenue Acceleration/Inflection

Share Buyback

Five9's AI business is a significant growth driver, with AI revenue estimated at $85 million (7% of total revenue) and growing around 40%, supported by 80%+ AI bookings growth in the quarter. New AI-powered capabilities like Agentic Quality Management and Genius routing were also announced.
Subscription revenue growth decelerated to 10% in Q3 2025 from 16% in Q2, attributed to tough year-over-year comparisons and an unanticipated decline in commercial revenue. However, management anticipates a return to double-digit growth in the back half of 2026, driven by backlog and continued cloud migration opportunities.
The company projects significant margin expansion, targeting 24% adjusted EBITDA margin in 2026 (up from 23% in 2025) and $175 million in cash flow for 2026. Five9 also initiated a $150 million share repurchase program, with $50 million accelerated into Q1 next year.

Dec 2, 2025, 11:15 PM

Transcript

Five9 Discusses AI Growth, Revenue Deceleration, and Financial Outlook at UBS Conference

FIVN

Guidance Update

Demand Weakening

Share Buyback

Five9's AI business is a significant growth driver, with an estimated $85 million in revenue (approximately 7% of total revenue) and 80%+ AI bookings growth in the most recent quarter, sustaining 40%+ AI revenue growth.
Subscription revenue growth decelerated to 10% in Q3 2025 from 16% in Q2, primarily due to expected tough year-over-year comparisons and an unanticipated decline in commercial revenue.
The company is focused on margin expansion, guiding to at least 100 basis points of Adjusted EBITDA margin expansion for 2026, targeting 24% EBITDA margin. It also expects $175 million in cash flow for 2026 and has initiated a $150 million share repurchase program.
CEO Mike Burkland is transitioning out, with the search for a successor focusing on a proven track record of innovation, AI expertise, a growth mindset, and operational excellence.

Dec 2, 2025, 11:15 PM

Transcript

Five9 Discusses AI Growth, Revenue Deceleration, Margin Expansion, and CEO Transition at UBS Conference

FIVN

Guidance Update

Share Buyback

CEO Change

Five9's AI business is estimated at $85 million in revenue, representing approximately 7% of total revenue, and has been growing at 40% or more. AI bookings growth was over 80% in the most recent quarter.
Subscription revenue growth decelerated from 16% in Q2 to 10% in Q3, primarily due to expected tough year-over-year comparisons and an unanticipated decline in commercial revenue. Management anticipates a return to double-digit growth in the second half of 2026, supported by a strong backlog and normalizing commercial trends.
The company achieved approximately 500 basis points of adjusted EBITDA margin expansion in the past year and guided to at least 100 basis points for 2026, targeting 24% EBITDA margin. Five9 also guided to $175 million in cash flow for 2026.
Five9 announced a $150 million share repurchase program, with $50 million to be accelerated through Q1 next year, supported by a strong cash balance of over $675 million and increasing free cash flow.
CEO Mike Burkland will step down, remaining a board member, with the search for a successor focusing on innovation, AI expertise, growth mindset, operational excellence, and culture fit.

Dec 2, 2025, 11:15 PM

Transcript

Five9 Reports Strong Q3 2025 Results, Raises Full-Year EPS Guidance, and Announces Share Repurchase Program

FIVN

Earnings

Guidance Update

Share Buyback

Five9 reported Q3 2025 revenue of $286 million, an 8% year-over-year increase, with subscription revenue growing 10% year-over-year and enterprise AI revenue up 41% year-over-year. Adjusted EBITDA grew 37% year-over-year to a 25% margin, and free cash flow increased 84% year-over-year to $38 million.
For Q4 2025, the company guides to a revenue midpoint of $297.7 million and non-GAAP EPS of $0.78 per diluted share. Full-year 2025 non-GAAP EPS guidance was raised to $2.94 per diluted share, and adjusted EBITDA margin expectations were increased to approximately 23%.
Five9 announced an inaugural $150 million share repurchase program, with $50 million allocated through an accelerated repurchase program expected to complete before the end of Q1 2026.
The company anticipates revenue to return to double-digit growth in the second half of 2026 and expects to exceed street consensus non-GAAP EPS of $3.14 per diluted share for 2026. Enterprise AI bookings grew over 80% year-over-year, and year-to-date ACV bookings with ServiceNow quadrupled following the launch of Five9 Fusion for ServiceNow.

Nov 6, 2025, 9:30 PM

Transcript

Five9 Announces Q3 2025 Results and Share Repurchase Program

FIVN

Earnings

Share Buyback

Guidance Update

Five9 reported Total Revenue of $286 million, an Adjusted EBITDA Margin of 25%, and a Free Cash Flow Margin of 13% for Q3 2025. Total Revenue grew 8% year-over-year.
The company authorized an inaugural $150 million share repurchase program expiring December 31, 2027, and intends to enter into an Accelerated Share Repurchase (ASR) agreement to repurchase $50 million of common stock, with final settlement expected by the end of Q1 2026.
AI-related metrics showed strong growth in Q3 2025, with Enterprise AI Revenue YoY Growth at 41% and Enterprise AI Bookings YoY Growth exceeding 80%.
For Q4 2025, Five9 expects Revenue between $294.7 million and $300.7 million and Non-GAAP Net Income Per Diluted Share between $0.76 and $0.80. Full-year 2025 Revenue is guided to be between $1.1435 billion and $1.1495 billion, with Non-GAAP Net Income Per Diluted Share between $2.92 and $2.96.

Nov 6, 2025, 9:30 PM

Presentation

Five9 Reports Record Q3 2025 Revenue and Announces Share Repurchase Program

FIVN

Earnings

Share Buyback

Guidance Update

Five9 reported record revenue of $285.8 million for the third quarter of 2025, an 8% increase compared to $264.2 million for the third quarter of 2024.
The company achieved GAAP net income of $18.0 million, or $0.21 per diluted share, for Q3 2025, a significant improvement from a GAAP net loss of $(4.5) million in Q3 2024.
Non-GAAP net income for Q3 2025 was $60.6 million, or $0.78 per diluted share, up from $50.5 million in Q3 2024.
Adjusted EBITDA for the third quarter of 2025 was $71.7 million, representing a 25.1% of revenue, compared to $52.4 million, or 19.8% of revenue, for Q3 2024.
Five9 announced a $150 million share repurchase program, which includes a $50 million accelerated share repurchase.
For the full year 2025, Five9 expects revenue in the range of $1.1435 to $1.1495 billion and non-GAAP net income per share in the range of $2.92 to $2.96.

Nov 6, 2025, 9:16 PM

8-K

Five9 Reports Strong Q2 2025 Results and Provides Q3 and Full-Year 2025 Guidance

FIVN

Earnings

Guidance Update

Revenue Acceleration/Inflection

Five9 reported strong Q2 2025 financial results, with total revenue growing 12% year-over-year and subscription revenue increasing 16% year-over-year.
The company achieved an all-time high Adjusted EBITDA Margin of 24% in Q2 2025, alongside 63% year-over-year growth in Adjusted EBITDA.
Five9's AI initiatives demonstrated significant growth in Q2 2025, with Enterprise AI Revenue increasing 42% year-over-year and Enterprise AI Bookings growing over 3x year-over-year.
For Q3 2025, Five9 projects revenue between $283.0 million and $286.0 million and Non-GAAP Net Income Per Diluted Share between $0.72 and $0.74.
The full-year 2025 guidance includes revenue of $1.1435 billion to $1.1495 billion and Non-GAAP Net Income Per Diluted Share of $2.86 to $2.90.

Aug 22, 2025, 12:00 AM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for Five9.

Q3 2025

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Five9 (FIVN)

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