Five9 (FIVN)
NASDAQ:FIVN
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Five9
(NASDAQ:FIVN)
Select Model
Select Model
Rating:63Neutral
Price Target:
$15.50
▲(7.42% Upside)
Action:ReiteratedDate:02/21/26
The score is driven mainly by improving fundamentals and strong cash generation, reinforced by constructive 2026 guidance and continued Enterprise AI momentum. Offsetting these positives are weak technical trend signals and a demanding valuation, with leverage and retention/margin dynamics adding execution risk.
Positive Factors
High recurring subscription revenue mix
A dominant and growing subscription mix (82% of revenue) increases revenue predictability and customer lifetime value, enabling durable recurring cash flows. This supports upsell, higher margin mix over time, and stronger visibility for multi‑quarter planning and product investment.
Negative Factors
Relatively elevated leverage
A roughly 1.0x debt‑to‑equity level is elevated for a SaaS company and constrains financial flexibility. Higher leverage increases interest and refinancing risk, limiting the firm's ability to invest or absorb growth/margin shocks without pressuring capital allocation choices.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring subscription revenue mix
A dominant and growing subscription mix (82% of revenue) increases revenue predictability and customer lifetime value, enabling durable recurring cash flows. This supports upsell, higher margin mix over time, and stronger visibility for multi‑quarter planning and product investment.
Read all positive factors
Five9 (FIVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend YieldN/A
Average Volume (3M)2.70M
Price to Earnings (P/E)39.4
Beta (1Y)1.75
Revenue Growth12.48%
EPS GrowthN/A
CountryUS
Employees3,073
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.80
Shares Outstanding76,495,680
10 Day Avg. Volume1,958,682
30 Day Avg. Volume2,697,359
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.98
Price to Sales (P/S)1.35
P/FCF Ratio7.72
Enterprise Value/Market Cap1.60
Enterprise Value/Revenue1.54
Enterprise Value/Gross Profit2.82
Enterprise Value/Ebitda11.37
Forecast
1Y Price Target
$27.38Price Target Upside89.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)3.19
Revenue Forecast (FY)$1.26B
Five9 Business Overview & Revenue Model
Company Description
Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the br...
How the Company Makes Money
Five9 primarily makes money by selling subscriptions to its cloud contact center software (CCaaS) under SaaS contracts, typically priced based on the number of users/agents and the specific modules or feature bundles a customer licenses. Revenue i...
Five9 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Five9 is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Five9 is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyFive9 Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call reflected strong commercial momentum (record bookings, enterprise AI ARR >$100M, subscription mix growth), meaningful profitability and cash-flow improvements, and strategic progress on product and Google partnership. The main headwinds are modest gross margin pressure from telecom usage and services, a small step-down in LTM dollar-based retention, front-loaded 2026 guidance with Q1 sequentially flat, and variability inherent in consumption-based AI revenue. On balance, the positive operational, financial and strategic developments outweigh the manageable near-term margin and timing risks.Positive Updates
Strong Q4 and Full-Year Revenue Growth
Q4 total revenue of $300 million, up 8% year-over-year; full-year 2025 revenue of $1.15 billion, up 10% year-over-year. Q1 2026 guide midpoint of $299.5 million and 2026 revenue guide midpoint of $1.254 billion (implying ~9.1% incremental revenue vs. 2025).
Negative Updates
Adjusted Gross Margin Pressure
Q4 adjusted gross margin was 63%, down approximately 40 basis points year-over-year, driven primarily by lower gross margins in telecom usage and professional services.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 and Full-Year Revenue Growth
Q4 total revenue of $300 million, up 8% year-over-year; full-year 2025 revenue of $1.15 billion, up 10% year-over-year. Q1 2026 guide midpoint of $299.5 million and 2026 revenue guide midpoint of $1.254 billion (implying ~9.1% incremental revenue vs. 2025).
Read all positive updates
Company Guidance
Five9 initiated 2026 guidance with revenue at a $1.254 billion midpoint and Q1 revenue at a $299.5 million midpoint (sequentially flat), expecting Q2 to increase slightly and revenue to return to double‑digit growth in the second half; the guidance implies about $105 million of incremental revenue for 2026, roughly two‑thirds of which is expected from DBRR with the remainder covered by backlog (no dependency on new‑logo bookings. Management guided 2026 non‑GAAP EPS to a $3.18 midpoint (up from the prior $3.14 outlook) and GAAP EPS to a $0.91 midpoint, with Q1 non‑GAAP EPS at a $0.68 midpoint reflecting typical seasonality. They also expect at least a 24% annual adjusted EBITDA margin and approximately $175 million in annual free cash flow, see LTM dollar‑based retention range‑bound in H1 then inflecting upward in H2, and reiterated that enterprise AI (consumption/capacity‑based) will remain the fastest‑growing part of the business. Finally, they completed a $50 million accelerated share repurchase (~2.6M shares), have $100 million remaining under authorization through December 2027, and plan an Investor Day in late 2026.Five9 Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
55
Neutral
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.15B | 1.04B | 910.49M | 778.85M | 609.59M |
| Gross Profit | 628.03M | 564.40M | 477.80M | 411.35M | 338.49M |
| EBITDA | 163.89M | 54.96M | -23.26M | -38.10M | -8.82M |
| Net Income | 39.42M | -12.79M | -81.76M | -94.65M | -53.00M |
Balance Sheet | |||||
| Total Assets | 1.79B | 2.05B | 1.49B | 1.24B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 696.92M | 1.01B | 730.30M | 614.26M | 469.86M |
| Total Debt | 847.21M | 1.23B | 793.88M | 790.56M | 825.51M |
| Total Liabilities | 1.00B | 1.43B | 956.48M | 934.52M | 981.81M |
| Stockholders Equity | 785.82M | 622.19M | 538.09M | 309.96M | 211.13M |
Cash Flow | |||||
| Free Cash Flow | 201.24M | 78.56M | 97.60M | 32.69M | -13.22M |
| Operating Cash Flow | 226.21M | 143.17M | 128.84M | 88.86M | 29.00M |
| Investing Cash Flow | 122.31M | -266.55M | -259.56M | 30.96M | -150.48M |
| Financing Cash Flow | -478.57M | 342.73M | 94.58M | -30.23M | -7.50M |
Five9 Technical Analysis
Negative
14.43
Price Trends
17.11
Negative
18.67
Negative
22.17
Negative
Market Momentum
-0.75
Positive
34.89
Neutral
22.27
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 14.43 is below the 20-day moving average (MA) of 16.35, below the 50-day MA of 17.11, and below the 200-day MA of 22.17, indicating a bearish trend. The MACD of -0.75 indicates Positive momentum. The RSI at 34.89 is Neutral, neither overbought nor oversold. The STOCH value of 22.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIVN.
Five9 Risk Analysis
Five9 disclosed 66 risk factors in its most recent earnings report. Five9 reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Five9 Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.29B | 38.01 | 19.49% | 1.66% | 3.30% | 31.18% | |
70 Outperform | $1.60B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
70 Outperform | $2.02B | 124.82 | 0.04% | ― | -11.61% | 99.07% | |
63 Neutral | $1.10B | 39.43 | 5.36% | ― | 12.48% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FIVN
Five9
14.43
-12.72
-46.85%
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80.31
20.93
35.25%
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22.34
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38.55%
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11.36
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12.70%
Five9 Corporate Events
Business Operations and StrategyExecutive/Board Changes
Five9 Amends Cooperation Agreement to Extend Board Alignment
Positive
Feb 20, 2026
On December 8, 2024, Five9, Inc. entered into a cooperation letter agreement with investment firm Anson and related parties, formalizing terms around board representation and governance. On February 17, 2026, the company and Anson amended this agr...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Five9 Guides 2026 Growth After Record 2025 Results
Positive
Feb 19, 2026
Five9 reported record 2025 revenue of $1.15 billion, up 10% from 2024, with GAAP results swinging from a $12.8 million loss to a $39.4 million profit and operating cash flow rising to $226.2 million. The company expanded GAAP and adjusted margins,...
Business Operations and StrategyExecutive/Board Changes
Five9 Announces CEO Succession and Governance Transition Plan
Neutral
Jan 21, 2026
On January 20, 2026, Five9’s board approved an Amended and Restated Employment Transition Agreement that formalizes the succession from current CEO Michael Burkland to incoming CEO Amit Mathradas, who is set to take over effective February 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.