Five9 (FIVN) AI Stock Analysis

• Market Cap: $1.38B
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 49.6
• Beta (1Y): 1.70
• 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: 2,158,574
• 30 Day Avg. Volume: 1,630,671
• 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: 1.44
• Enterprise Value/Revenue: 1.76
• Enterprise Value/Gross Profit: 3.20
• Enterprise Value/Ebitda: 18.98
• 1Y Price Target: $32.93
• Price Target Upside: 86.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $19.50 ▲(10.42% 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

Enterprise AI bookings

Sustained >80% YoY enterprise AI bookings growth builds a meaningful, durable backlog and signals strong enterprise demand for AI CX. Large AI deals improve multi-quarter revenue visibility, foster cross-department expansions, and create stickiness that supports long-term upsell and retention.

Recurring subscription mix

A high-share recurring subscription model (81% of revenue) with steady growth enhances predictability of cash flows and customer lifetime value. This durable revenue base lowers volatility, enables efficient capacity planning, and supports margin expansion as fixed platform costs scale with additional seats and modules.

Cash generation profile

Improving free cash flow and strong operating cash conversion indicate solid cash generation capacity. Reliable FCF underpins sustained R&D and AI investments, debt management, and buybacks without heavy external financing, giving management flexibility to invest for long-term competitive advantage.

Negative Factors

Low net profitability

A net margin near 2.8% despite revenue growth signals limited ability to convert sales into lasting profits. Persistently thin margins restrict retained earnings for reinvestment, reduce resilience to cost pressures, and constrain the company's capacity to fund long-term strategic initiatives organically.

Weak return on equity

ROE around 4.5% denotes low capital efficiency in generating shareholder returns. Over time, sustained weak ROE can signal that investments are not yielding adequate returns, making it harder to justify additional equity deployment and potentially limiting the company’s ability to compete via reinvestment.

Delayed revenue conversion

Extended implementation and expansion timelines for AI projects slow the conversion of bookings into recognized revenue and cash. This structural onboarding complexity can make growth lumpy, raise customer success costs, and delay payback on sales investments, pressuring near- to medium-term cash flow predictability.

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 breadth of contact center-related customer service, sales, and marketing functions. Its solution enables its clients to manage these customer interactions across various channels, including voice, video, chat, email, website, social media, click-to-call, callback, and mobile channels, as well as through APIs; and provides natural language processing and automatic speech recognition solutions. The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.

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: 17.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 17.66 is below the 20-day moving average (MA) of 18.72, below the 50-day MA of 19.57, and below the 200-day MA of 23.98, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 37.12 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	$1.25B	25.56	23.88%	1.33%	10.27%	3.52%
CSGS	74 Outperform	$2.27B	27.06	28.84%	1.66%	3.30%	31.18%
FIVN	69 Neutral	$1.38B	49.61	4.67%	―	12.48%	―
EVCM	65 Neutral	$2.16B	-3,089.74	0.04%	―	-11.61%	99.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Five9 Corporate Events

Five9 Announces CEO Succession and Governance Transition Plan

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, 2026. Under the new agreement, Burkland will remain CEO until the transition date, continue as a director and Chairman of the Board through the 2026 annual meeting of stockholders, and then serve as a paid consultant for one year, during which time his existing equity awards will keep vesting but he will receive no new equity grants and limited additional board compensation; the board also plans to reduce its size by one seat after his departure and appoint an independent chairman by the 2026 annual meeting, signaling a structured leadership handover and a shift toward strengthened governance and independent oversight for stakeholders.

The most recent analyst rating on (FIVN) stock is a Buy with a $19.50 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.

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.

The most recent analyst rating on (FIVN) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.

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.

The most recent analyst rating on (FIVN) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.

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.

The most recent analyst rating on (FIVN) stock is a Hold with a $24.50 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.