Five9 (FIVN) AI Stock Analysis

• Market Cap: $1.61B
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 57.7
• Beta (1Y): 1.71
• Revenue Growth: 12.48%
• EPS Growth: N/A
• Country: US
• Employees: 3,073
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.78
• Shares Outstanding: 78,216,050
• 10 Day Avg. Volume: 1,802,133
• 30 Day Avg. Volume: 1,876,856
• PEG Ratio: 2.79
• Price to Book (P/B): 4.87
• Price to Sales (P/S): 2.91
• P/FCF Ratio: 38.54
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 3.60
• Enterprise Value/Ebitda: 21.36
• 1Y Price Target: $33.44
• Price Target Upside: 62.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 2.94
• Revenue Forecast (FY): $1.15B

• Rating: 69 Neutral
• Price Target: $23.00 ▲(11.98% Upside)

Five9's overall stock score is driven by strong earnings call results and strategic initiatives in AI, which are offset by high valuation concerns and moderate financial performance. The company's focus on AI and customer experience solutions, along with recent corporate events, supports its growth trajectory, but profitability and valuation remain areas to watch.

Positive Factors

AI Revenue Growth

The significant growth in AI bookings indicates strong demand for Five9's AI solutions, positioning the company well in the expanding AI market.

Cash Flow Improvement

Improved cash flow enhances Five9's ability to reinvest in growth opportunities and maintain financial flexibility, supporting long-term sustainability.

Leadership Transition

The new CEO brings extensive industry experience, potentially driving strategic initiatives and strengthening Five9's competitive position.

Negative Factors

Low Net Profit Margin

Low profitability may limit Five9's ability to generate shareholder returns and reinvest in growth, posing a challenge to long-term financial health.

Commercial Revenue Decline

Declining commercial revenue suggests challenges in market penetration and sales execution, potentially impacting overall growth prospects.

Delayed Revenue Conversion

Delays in converting bookings to revenue could hinder Five9's ability to realize growth from new contracts, affecting short to medium-term performance.

Five9 Business Overview & Revenue Model

Company Description

Five9 (FIVN) is a leading provider of cloud-based contact center software that enables businesses to deliver exceptional customer service and support. The company operates primarily in the technology sector, focusing on solutions that enhance customer engagement through advanced analytics, artificial intelligence, and automation. Five9's core products include its cloud contact center platform, which offers features such as omnichannel routing, workforce optimization, and reporting capabilities, designed to streamline communication between businesses and their customers.

How the Company Makes Money

Five9 generates revenue primarily through a subscription-based model, where customers pay for access to its cloud contact center software and services. This includes tiered pricing based on the number of users and the level of features required. Key revenue streams include recurring software subscriptions, professional services for implementation and training, and ongoing support and maintenance. Additionally, Five9 has formed strategic partnerships with other technology providers and telecommunications companies, which enhance its service offerings and contribute to its earnings through bundled solutions and shared customer bases.

Five9 Financial Statement Overview

Summary

Five9 exhibits solid revenue growth and improved cash flow metrics, reflecting a positive trajectory in financial performance. However, profitability remains a concern with low net profit margins and return on equity. The company has made progress in managing leverage, but further improvements in profitability are needed to enhance overall financial health.

Income Statement

Five9 has shown consistent revenue growth, with a TTM revenue growth rate of 1.96%. The gross profit margin has remained stable around 55%, indicating efficient cost management. However, the net profit margin is relatively low at 2.77%, suggesting limited profitability. The EBIT and EBITDA margins have improved but remain modest, reflecting ongoing operational challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 1.03 in the TTM, indicating better leverage management compared to previous years. However, the return on equity is low at 4.50%, suggesting limited returns for shareholders. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Five9 has demonstrated strong free cash flow growth of 9.59% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is high at 0.94, showing efficient conversion of earnings to cash. The free cash flow to net income ratio is also strong at 0.81, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.04B	910.49M	778.85M	609.59M	434.91M
Gross Profit	620.02M	564.40M	477.80M	411.35M	338.49M	254.62M
EBITDA	104.61M	54.96M	-23.26M	-38.10M	-8.82M	14.54M
Net Income	31.28M	-12.79M	-81.76M	-94.65M	-53.00M	-42.13M
Balance Sheet
Total Assets	1.77B	2.05B	1.49B	1.24B	1.19B	1.06B
Cash, Cash Equivalents and Short-Term Investments	676.16M	1.01B	730.30M	614.26M	469.86M	603.54M
Total Debt	798.01M	1.23B	793.88M	790.56M	825.51M	653.22M
Total Liabilities	993.12M	1.43B	956.48M	934.52M	981.81M	784.58M
Stockholders Equity	775.29M	622.19M	538.09M	309.96M	211.13M	279.16M
Cash Flow
Free Cash Flow	137.70M	78.56M	97.60M	32.69M	-13.22M	36.88M
Operating Cash Flow	192.46M	143.17M	128.84M	88.86M	29.00M	67.30M
Investing Cash Flow	137.34M	-266.55M	-259.56M	30.96M	-150.48M	-382.33M
Financing Cash Flow	-427.22M	342.73M	94.58M	-30.23M	-7.50M	457.42M

Five9 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVN, the sentiment is Negative. The current price of 20.54 is above the 20-day moving average (MA) of 20.46, below the 50-day MA of 21.20, and below the 200-day MA of 25.15, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIVN.

Five9 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	79 Outperform	$1.29B	26.32	23.88%	1.34%	10.27%	3.52%
CSGS	73 Outperform	$2.20B	26.13	28.84%	1.66%	3.30%	31.18%
FIVN	69 Neutral	$1.61B	57.70	4.67%	―	12.48%	―
EVCM	65 Neutral	$2.15B	-3,069.23	0.04%	―	-11.61%	99.07%
VRNT	64 Neutral	―	―	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AVDX	60 Neutral	―	―	-1.17%	―	8.04%	39.57%

Five9 Corporate Events

Five9 Announces New CEO Amid Leadership Transition

Five9, Inc. announced that Amit Mathradas will assume the role of Chief Executive Officer and join its Board of Directors effective February 2, 2026, succeeding Michael Burkland, who will remain on the Board. Mathradas brings extensive experience in leadership roles within the tech industry, having served in senior positions at companies like Nintex USA, Avalara, and PayPal, which is expected to bolster Five9’s strategic initiatives and enhance its standing in the competitive cloud software market. The terms of his compensation and performance-based incentives highlight a strong, results-driven approach to aligning his leadership with shareholder value, potentially reinforcing Five9’s market position and long-term growth trajectory.

Five9 Announces $50 Million Share Buyback Agreement

On November 11, 2025, Five9, Inc. initiated an accelerated share repurchase agreement with JPMorgan Chase Bank to buy back $50 million of its common stock. The company will make a payment on November 12, 2025, and expects to receive an initial delivery of approximately 1.9 million shares, with the final settlement anticipated by the end of the first quarter of 2026.

Five9 Announces Record Revenue and Share Buyback

On November 6, 2025, Five9 reported record revenue of $286 million for the third quarter, marking an 8% increase from the previous year. The company also announced a $150 million share repurchase program, including a $50 million accelerated share repurchase agreement with JPMorgan Chase Bank. This move reflects the company’s confidence in its sustainable growth and long-term value creation. The third quarter saw a significant 41% growth in Enterprise AI revenue, with profitability improvements as adjusted EBITDA margin reached a record 25%. These results underscore Five9’s strategic positioning in the AI-powered customer experience market.

Five9 Announces Board of Directors Reshuffle

On September 26, 2025, Five9, Inc. announced several changes to its Board of Directors. David Welsh resigned from his roles, including as Lead Independent Director and Chair of the Nominating and Governance Committee. In response, the company appointed Robert Zollars as the new Lead Independent Director, Jonathan Mariner as the Chair of the Nominating and Governance Committee, and Michael Burdiek as the Chair of the Compensation Committee. Additionally, Sudhakar Ramakrishna was appointed as a Class II director and will serve on the Nominating and Governance Committee. Ramakrishna brings extensive experience from his roles at SolarWinds Corporation and other companies, enhancing Five9’s strategic leadership. His appointment includes a compensation package with restricted stock units, reflecting the company’s commitment to aligning director incentives with shareholder interests.