Five9 (FIVN) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: N/A
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 55.8
• Beta (1Y): 1.73
• 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: 1,785,050
• 30 Day Avg. Volume: 2,250,314
• 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: 1.98
• Enterprise Value/Gross Profit: 3.60
• Enterprise Value/Ebitda: 21.36
• 1Y Price Target: $34.18
• Price Target Upside: 72.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 2.9
• Revenue Forecast (FY): $1.15B

• Rating: 58 Neutral
• Price Target: $20.50 ▲(3.22% Upside)

Five9's overall stock score reflects a mixed outlook. The strongest positive factor is the company's strategic focus on AI and resulting growth in enterprise AI bookings and subscription revenue, as highlighted in the earnings call. However, technical analysis indicates bearish momentum, and valuation metrics suggest the stock is overvalued. Financial performance shows solid revenue growth but is offset by low profitability. These factors combined result in a moderate overall stock score.

Positive Factors

Enterprise AI Growth

The significant growth in enterprise AI bookings underscores Five9's strong positioning in the AI market, enhancing its competitive edge and supporting long-term revenue growth.

Subscription Revenue Growth

The robust growth in subscription revenue, particularly from AI, highlights Five9's successful business model and potential for sustained revenue expansion.

Profitability Metrics Improvement

Improved profitability metrics indicate enhanced operational efficiency, which can lead to better financial health and support future growth initiatives.

Negative Factors

Commercial Revenue Decline

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

Challenges in Revenue Conversion

Delayed revenue conversion due to longer implementation cycles could hinder cash flow and impact financial performance in the short to medium term.

Slight Decline in Retention Rate

A slight decline in retention rate may indicate challenges in customer satisfaction or competition, potentially affecting long-term customer loyalty.

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: 19.86
• 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 19.86 is below the 20-day moving average (MA) of 20.21, below the 50-day MA of 22.10, and below the 200-day MA of 26.36, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 73.90 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
CSGS	79 Outperform	$2.22B	26.41	28.84%	1.61%	3.30%	31.18%
ATEN	77 Outperform	$1.24B	25.24	23.88%	1.40%	10.27%	3.52%
VRNT	62 Neutral	$1.24B	31.11	4.72%	―	-2.32%	7.70%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
EVCM	61 Neutral	$1.56B	―	0.04%	―	-11.61%	99.07%
AVDX	60 Neutral	―	―	-1.17%	―	8.04%	39.57%
FIVN	58 Neutral	$1.55B	55.79	4.67%	―	12.48%	―

Five9 Corporate Events

Five9 Inc. Earnings Call Highlights Growth and Challenges

The recent earnings call for Five9 Inc. painted a picture of robust growth and strategic advancements, tempered by some challenges in specific segments. The overall sentiment was positive, driven by impressive enterprise AI bookings, subscription revenue growth, and improved profitability metrics. However, concerns were raised regarding the commercial segment’s performance and delayed revenue conversion.

Five9 Inc. Reports Record Q3 Revenue and Strong AI Growth

Five9 Inc., a leading provider of cloud-based contact center software, is renowned for its Intelligent CX Platform that integrates AI and automation to enhance customer experiences across various industries. The company has reported a record revenue of $286 million for the third quarter of 2025, marking an 8% increase from the previous year, alongside a notable 41% growth in Enterprise AI revenue.

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.

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.

The most recent analyst rating on (FIVN) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.

Five9 Reports Strong Q2 2025 Financial Results

On August 22, 2025, Five9 released an updated investor presentation detailing its financial results for Q2 2025, highlighting a 12% year-over-year growth in total revenue and a 16% increase in subscription revenue. The company also reported significant growth in its AI segment, with a 42% increase in enterprise AI revenue and multiple customer wins, including a Fortune 50 financial services company and a global data analytics firm, showcasing Five9’s expanding market presence and innovation in AI solutions.

The most recent analyst rating on (FIVN) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Five9 stock, see the FIVN Stock Forecast page.