Five9 (FIVN) Company Report

Five9 announced a CEO transition, with Mike Burkland stepping down as CEO to become Executive Chair, and Amit Mathradas appointed as the new CEO, effective February 2nd.
The company highlighted its significant growth under Mike Burkland, from $10 million to approximately $1.1-$1.2 billion in revenue.
Five9's growth strategy focuses on the on-premise to cloud migration in the traditional CCaaS market (projected 9% CAGR) and the AI-driven CX market (projected 34% CAGR), leveraging its end-to-end platform and conversational data as key differentiators.
The company expects Net Revenue Retention (NRR) to see upside in 2026, after a slight dip to 107% in Q3 2025, driven by lapping tough comparisons and a backlog of install-based bookings including upsell/cross-sell software like AI.
Five9 is targeting a midterm adjusted EBITDA margin of 25%-30% for calendar 2027, supported by operational cost savings and the high gross margin of its AI agents (high 70s% to low 80s%).

Jan 13, 2026, 8:45 PM

Transcript

Five9 Announces CEO Transition and Strategic Outlook

FIVN

CEO Change

Revenue Acceleration/Inflection

New Projects/Investments

Mike Burkland is stepping down as CEO, with Amit Mathradas appointed as the new CEO starting February 2nd. Burkland will remain as Executive Chair.
Five9 has grown from $10 million to $1.1-$1.2 billion in revenue under Burkland's leadership and sees significant growth opportunities in on-premise to cloud migration (9% CAGR) and AI-driven CX (34% CAGR), with its AI revenue growing 41% in the most recent quarter.
The company targets a midterm adjusted EBITDA margin of 25%-30% for calendar 2027, driven by cost savings and the high gross margin of its AI agents (high 70s%-low 80s%).
Net Revenue Retention (NRR) dipped to 107% in Q3 from 108% in Q2, but the company expects upside in 2026 due to lapping tough compares and a backlog of install-based bookings, including AI upsells.

Jan 13, 2026, 8:45 PM

Transcript

Five9 Discusses CEO Transition, Growth Drivers, and Financial Outlook

FIVN

CEO Change

Revenue Acceleration/Inflection

Guidance Update

Outgoing CEO Mike Burkland will be succeeded by Amit Mathradas starting February 2nd, who has a proven track record in AI and growth at scale.
Five9 sees substantial growth in its market, with traditional CCaaS projected to grow at a 9% CAGR and AI-driven CX at a 34% CAGR; the company's AI revenue grew 41% in Q3.
The company's competitive edge is its end-to-end platform acting as a system of record for conversational data, crucial for personalized AI experiences and integrating with various AI engines.
The trailing 12-month Net Retention Rate (NRR) was 107% in Q3, down from 108% in Q2, but Five9 expects upside in 2026 from new install-based bookings for upsell/cross-sell software, including AI.
Five9 targets a midterm adjusted EBITDA margin of 25%-30% for calendar 2027, driven by cost savings and the high gross margin of AI agents (in the high 70s% to low 80s%).

Jan 13, 2026, 8:45 PM

Transcript

Five9 Launches Joint Enterprise CX AI Solution with Google Cloud

FIVN

Product Launch

New Projects/Investments

Five9 announced an expanded partnership with Google Cloud and launched a new joint Enterprise CX AI solution.
This integrated solution combines the Five9 AI-Infused Intelligent CX Platform with Google Cloud’s Gemini Enterprise for Customer Experience (GECX) and advanced AI services to deliver intelligent, personalized, and seamless customer interactions.
The partnership includes an enhanced go-to-market strategy, enabling customers to purchase Five9 directly through the Google Cloud Marketplace.
Five9 is also deepening its commitment to Google Cloud’s AI infrastructure by running key internal enterprise workloads on Google Cloud and utilizing Gemini Enterprise for internal operational efficiency.

Jan 12, 2026, 9:05 PM

Press Release

Five9 Highlights AI Revenue Growth, Strong Financial Outlook, and Share Buyback Program

FIVN

Revenue Acceleration/Inflection

Share Buyback

Guidance Update

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

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