Five9 (FIVN) AI Stock Analysis

• Market Cap: $1.66B
• Dividend Yield: N/A
• Average Volume (3M): 1.91M
• Price to Earnings (P/E): 219.7
• Beta (1Y): 1.79
• Revenue Growth: 14.21%
• EPS Growth: N/A
• Country: US
• Employees: 3,073
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.78
• Shares Outstanding: 77,262,690
• 10 Day Avg. Volume: 1,977,381
• 30 Day Avg. Volume: 1,912,790
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $32.80
• Price Target Upside: 65.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $23.00 ▲(15.93% Upside)

Five9's overall stock score is driven by strong financial performance and positive earnings call highlights, particularly in AI and subscription revenue growth. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. The company's strategic initiatives and share repurchase program provide a positive outlook, but challenges in the commercial segment and delayed revenue conversion temper the 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. is a leading provider of cloud-based contact center software, enabling businesses to deliver exceptional customer service through advanced automation and analytics. Founded in 2001 and headquartered in San Ramon, California, Five9 offers a comprehensive suite of solutions that includes inbound and outbound calling, multichannel communication, workforce optimization, and artificial intelligence integration. The company primarily serves sectors such as retail, healthcare, financial services, and technology, helping organizations enhance customer engagement and improve operational efficiency.

How the Company Makes Money

Five9 generates revenue primarily through subscription-based pricing models, which include monthly or annual fees for access to its cloud contact center solutions. The company's key revenue streams consist of software licenses, professional services, and customer support. Additionally, Five9 offers various add-on services, such as analytics and workforce optimization tools, that provide opportunities for upselling and cross-selling. Significant partnerships with major telecommunications providers and technology companies further contribute to its earnings by expanding its market reach and enhancing product offerings.

Five9 Financial Statement Overview

Summary

Five9 exhibits strong revenue growth and improving operational efficiency, evident from positive trends in revenue and cash flow metrics. Despite these strengths, the company's profitability remains constrained by negative EBIT, and leverage is still a concern. The balance sheet reflects improved financial stability, but further reduction in leverage would enhance overall strength.

Income Statement

The company has shown strong revenue growth over the years, with a notable increase in the TTM period. Gross Profit Margin remains healthy at 54.9%, but the Net Profit Margin is low at 0.8% due to negative EBIT. The company has improved its EBITDA Margin to 2.3%, indicating better operational efficiency compared to previous periods.

Balance Sheet

The Debt-to-Equity Ratio has improved to 1.11, showing a reduction in leverage compared to last year, but it remains relatively high. Return on Equity (ROE) is positive at 1.2% for TTM, reflecting improved profitability. The Equity Ratio is 42.1%, suggesting a moderate level of financial stability.

Cash Flow

The company has demonstrated a robust Operating Cash Flow to Net Income Ratio of 19.8, indicating strong cash generation relative to net income. Free Cash Flow has grown significantly in TTM, and the Free Cash Flow to Net Income Ratio stands at 16.2, suggesting efficient 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	622.41M	564.40M	477.80M	411.35M	338.49M	254.62M
EBITDA	56.05M	54.96M	-10.62M	13.31M	-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	193.41M	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	156.43M	78.56M	88.07M	32.69M	-13.73M	36.88M
Operating Cash Flow	192.46M	143.17M	128.84M	88.86M	28.48M	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: 19.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 19.84 is below the 20-day moving average (MA) of 22.68, below the 50-day MA of 24.11, and below the 200-day MA of 27.98, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 29.40 is Positive, neither overbought nor oversold. The STOCH value of 12.61 is Positive, 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	77 Outperform	$1.30B	26.57	23.88%	1.37%	10.27%	3.52%
CSGS	70 Neutral	$2.14B	27.08	28.84%	1.61%	3.30%	31.18%
EVCM	67 Neutral	$2.09B	―	-1.92%	―	-7.25%	51.12%
FIVN	64 Neutral	$1.66B	219.71	1.42%	―	14.21%	―
VRNT	62 Neutral	$1.23B	30.75	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 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.