Five9 Inc (FIVN)
NASDAQ:FIVN
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Five9
(NASDAQ:FIVN)
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Rating:73Outperform
Price Target:
$24.00
▲(52.09% Upside)
Action:Reiterated
Date:05/05/26
The score is driven primarily by improving fundamentals—solid and growing free cash flow and a clear profitability inflection—reinforced by constructive earnings-call guidance (raised 2026 outlook, >24% adjusted EBITDA margin, and strong AI momentum). Technicals are supportive but stretched (RSI/Stoch elevated), and valuation is reasonable but not helped by any dividend yield.
Positive Factors
Recurring subscription model & strong retention
Five9’s core SaaS model yields high recurring revenue and predictable renewals. A 107% LTM subscription DBR and 13% subscription revenue growth signal durable customer stickiness and upsell potential, supporting steady revenue visibility and lower churn risk over quarters.
Negative Factors
Moderate leverage constrains flexibility
Material outstanding debt relative to equity limits balance-sheet optionality. Sized debt obligations can raise interest and refinancing exposure, reducing capacity for large M&A or aggressive reinvestment if growth slows, making capital allocation decisions more constrained over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription model & strong retention
Five9’s core SaaS model yields high recurring revenue and predictable renewals. A 107% LTM subscription DBR and 13% subscription revenue growth signal durable customer stickiness and upsell potential, supporting steady revenue visibility and lower churn risk over quarters.
Read all positive factors
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 (FIVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.66B
Dividend YieldN/A
Average Volume (3M)3.42M
Price to Earnings (P/E)15.8
Beta (1Y)1.83
Revenue Growth9.31%
EPS GrowthN/A
CountryUS
Employees3,073
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.74
Shares Outstanding76,563,990
10 Day Avg. Volume4,572,826
30 Day Avg. Volume3,419,151
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 Cap1.29
Enterprise Value/Revenue1.83
Enterprise Value/Gross Profit3.31
Enterprise Value/Ebitda11.54
Forecast
1Y Price Target
$27.72Price Target Upside75.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)3.25
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 Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call reflects meaningful operational and financial progress: revenue and subscription growth accelerated, AI revenue showed very strong year-over-year expansion, margins and cash generation improved, and management announced robust capital return programs and greater reporting transparency. However, there are clear near-term caveats — a one-time vendor benefit boosted Q1, AI revenue is lumpy as deployments convert from backlog, organizational redesign will incur temporary costs, and a meaningful portion of the market remains on-premise which can slow cloud/AI adoption. On balance the positives (accelerating revenue, strong AI ARR ramp, margin expansion, cash flow, and disciplined capital allocation) outweigh the near-term uncertainties and costs.Positive Updates
Quarterly Revenue Growth
Q1 total revenue of $305M, up 9% year-over-year, beat the high end of guidance and demonstrated acceleration heading into the year.
Negative Updates
One-Time Vendor Discount Impacting Q1 Results
Q1 profitability and cash flow margins benefited by slightly more than one percentage point from a one-time discount negotiated with a key vendor; management does not expect this benefit to recur, driving a sequential downturn in Q2 guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q1 total revenue of $305M, up 9% year-over-year, beat the high end of guidance and demonstrated acceleration heading into the year.
Read all positive updates
Company Guidance
Management guided Q2 revenue to $303–$309M (midpoint $306M) and non‑GAAP EPS to $0.65–$0.69 (midpoint $0.67), reflecting an estimated 3.6M shares retired via the ASR; full‑year 2026 revenue was raised to $1.254–$1.266B (midpoint $1.26B) with non‑GAAP EPS $3.22–$3.30 (midpoint $3.26), and the company expects annual adjusted EBITDA margin to exceed 24% and free cash flow to be about $175M; 2026 capex (PP&E) is expected to be ~3.5% of revenue. For context, Q1 revenue was $305M (up 9% YoY), subscription revenue grew 13% (CCaaS +8%, AI +68% to an ARR >$125M and ~13% of subscription), LTM subscription dollar‑based retention was 107%, adjusted gross margin was 64%, adjusted EBITDA was $74M (24% of revenue), cash from operations was $64M (21%) and free cash flow $49M (16%), and the quarter ended with $724M in cash and short‑term investments.Five9 Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.17B | 1.15B | 1.04B | 910.49M | 778.85M | 609.59M |
| Gross Profit | 647.22M | 628.03M | 564.40M | 477.80M | 411.35M | 338.49M |
| EBITDA | 185.91M | 163.89M | 54.96M | -23.26M | -38.10M | -8.82M |
| Net Income | 57.25M | 39.42M | -12.79M | -81.76M | -94.65M | -53.00M |
Balance Sheet | ||||||
| Total Assets | 1.87B | 1.79B | 2.05B | 1.49B | 1.24B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 723.88M | 696.92M | 1.01B | 730.30M | 614.26M | 469.86M |
| Total Debt | 800.31M | 847.21M | 1.23B | 793.88M | 790.56M | 825.51M |
| Total Liabilities | 1.04B | 1.00B | 1.43B | 956.48M | 934.52M | 981.81M |
| Stockholders Equity | 829.63M | 785.82M | 622.19M | 538.09M | 309.96M | 211.13M |
Cash Flow | ||||||
| Free Cash Flow | 206.24M | 201.24M | 78.56M | 97.60M | 32.69M | -13.22M |
| Operating Cash Flow | 241.74M | 226.21M | 143.17M | 128.84M | 88.86M | 29.00M |
| Investing Cash Flow | 160.26M | 122.31M | -266.55M | -259.56M | 30.96M | -150.48M |
| Financing Cash Flow | -499.23M | -478.57M | 342.73M | 94.58M | -30.23M | -7.50M |
Five9 Technical Analysis
Positive
15.78
Price Trends
17.15
Positive
17.70
Positive
20.48
Positive
Market Momentum
1.39
Positive
59.74
Neutral
26.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVN, the sentiment is Positive. The current price of 15.78 is below the 20-day moving average (MA) of 19.78, below the 50-day MA of 17.15, and below the 200-day MA of 20.48, indicating a bullish trend. The MACD of 1.39 indicates Positive momentum. The RSI at 59.74 is Neutral, neither overbought nor oversold. The STOCH value of 26.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.66B | 15.82 | 7.37% | ― | 9.31% | ― | |
71 Outperform | $2.01B | 34.43 | 21.19% | 1.33% | 12.08% | -8.14% | |
70 Outperform | $2.30B | 23.25 | 21.99% | 1.66% | 3.00% | -22.69% | |
66 Neutral | $1.68B | 70.80 | 4.48% | ― | -11.45% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
FIVN
Five9
21.13
-5.61
-20.98%
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Five9 Corporate Events
Stock Buyback
Five9 Launches $90 Million Accelerated Share Repurchase
Positive
May 5, 2026
On May 4, 2026, Five9, Inc. entered into an accelerated share repurchase agreement with JPMorgan Chase Bank to buy back $90 million of its common stock under a previously authorized repurchase program. On May 5, 2026, the company will pay $90 mill...
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,...
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.