Five9 (NASDAQ:FIVN) Releases Earnings Results, Beats Expectations By $0.01 EPS

Five9 (NASDAQ:FIVN) posted its quarterly earnings data on Thursday. The software maker reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01, Briefing.com reports. The business had revenue of $300.28 million during the quarter, compared to the consensus estimate of $298.21 million. Five9 had a net margin of 2.77% and a return on equity of 10.59%. The company’s quarterly revenue was up 7.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.79 earnings per share. Five9 updated its Q1 2026 guidance to 0.100-0.170 EPS and its FY 2026 guidance to 0.860-0.950 EPS.

Here are the key takeaways from Five9’s conference call:

• Five9 finished strong with Q4 revenue of $300 million (8% YoY) and full‑year 2025 revenue of $1.15 billion, while adjusted EBITDA margin hit a record 26% and free cash flow margin reached 22%, with positive GAAP and non‑GAAP EPS for the year.
• Enterprise AI momentum is accelerating—enterprise AI ARR surpassed $100 million, enterprise AI bookings more than doubled YoY in Q4, and AI revenue growth accelerated to ~50% YoY, with AI positioned as the fastest‑growing, consumption‑based part of the portfolio.
• Management initiated 2026 guidance at a midpoint of $1.254 billion revenue and raised non‑GAAP EPS guidance to a $3.18 midpoint (GAAP EPS midpoint $0.91), while returning capital via a $50 million accelerated buyback and $100 million remaining authorization.
• Near‑term headwinds remain—growth is still moderate (Q4 +8%, FY +10%) and the revenue profile is back‑loaded with a flat Q1 guide; telecom usage weakness and professional services compressed adjusted gross margin slightly and LTM dollar‑based retention slipped to 105%, exposing sensitivity to seasonality and macro risks.

Five9 Stock Performance

Shares of NASDAQ FIVN opened at $17.18 on Friday. The stock’s fifty day simple moving average is $18.69 and its 200 day simple moving average is $21.78. The stock has a market capitalization of $1.34 billion, a price-to-earnings ratio of 47.72, a PEG ratio of 0.85 and a beta of 1.32. The company has a quick ratio of 4.61, a current ratio of 4.61 and a debt-to-equity ratio of 0.96. Five9 has a 52-week low of $15.70 and a 52-week high of $49.90.

Insiders Place Their Bets

In other Five9 news, CFO Bryan M. Lee sold 13,219 shares of the firm’s stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $20.35, for a total value of $269,006.65. Following the completion of the transaction, the chief financial officer directly owned 224,269 shares in the company, valued at $4,563,874.15. This trade represents a 5.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, President Andy Dignan sold 7,512 shares of Five9 stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $20.28, for a total transaction of $152,343.36. Following the completion of the transaction, the president directly owned 208,513 shares in the company, valued at approximately $4,228,643.64. This trade represents a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 65,339 shares of company stock worth $1,330,186 over the last three months. Company insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Five9

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FIVN. Quarry LP acquired a new stake in Five9 during the 3rd quarter valued at $33,000. Advisory Services Network LLC acquired a new stake in shares of Five9 in the third quarter worth $38,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Five9 by 2,327.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,622 shares of the software maker’s stock valued at $53,000 after buying an additional 2,514 shares in the last quarter. PharVision Advisers LLC purchased a new position in shares of Five9 during the third quarter valued at $203,000. Finally, Tower Research Capital LLC TRC raised its position in Five9 by 2,005.2% during the second quarter. Tower Research Capital LLC TRC now owns 7,663 shares of the software maker’s stock valued at $203,000 after buying an additional 7,299 shares during the period. Institutional investors and hedge funds own 96.64% of the company’s stock.

Wall Street Analyst Weigh In

FIVN has been the subject of several recent analyst reports. Needham & Company LLC reiterated a “buy” rating and issued a $40.00 price objective on shares of Five9 in a report on Thursday, December 18th. HSBC raised Five9 to a “buy” rating in a research note on Thursday, December 18th. Weiss Ratings reissued a “sell (d+)” rating on shares of Five9 in a research note on Monday, December 29th. Zacks Research cut Five9 from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Finally, DA Davidson set a $24.00 target price on Five9 in a report on Thursday, December 18th. Twelve equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $32.07.

Five9 News Summary

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q4 / FY revenue growth — Five9 reported record full‑year 2025 revenue of $1.1 billion and Q4 revenue of $300.3M, up ~8% year‑over‑year, showing demand resilience. Business Wire Release
• Positive Sentiment: Adjusted EPS beat a consensus snapshot — Some outlets (Zacks) report adjusted EPS of $0.80 vs. the $0.79 estimate, which can be viewed as a modest beat on an adjusted basis. Zacks Article
• Neutral Sentiment: Earnings materials and call available — The Q4 2025 earnings call transcript and slide deck were published (useful for details on AI strategy and cost assumptions). Investors should review management commentary for color on seat pressures and AI initiatives. Earnings Call Transcript Slide Deck
• Neutral Sentiment: Short interest note ambiguous — Published short‑interest data in this batch is inconsistent/zeroed out and does not provide a clear signal on positioning. (No actionable change inferred.)
• Negative Sentiment: Sharp downward guidance — Management cut Q1 2026 EPS to $0.10–$0.17 (consensus ~$0.55) and FY‑2026 EPS to $0.86–$0.95 (consensus ~$2.30). This materially reduced earnings outlook is the main driver of the stock decline.
• Negative Sentiment: GAAP EPS missed — On a GAAP basis some reports show Q4 EPS of $0.35 vs. ~ $0.79 consensus, highlighting the gap between adjusted and GAAP results and pressure on profitability (GAAP gross margin 55.4% vs. 56.0 year‑ago). MarketBeat Report

Five9 declared that its Board of Directors has initiated a share buyback program on Tuesday, November 11th that authorizes the company to repurchase $50.00 million in outstanding shares. This repurchase authorization authorizes the software maker to repurchase up to 3.2% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its stock is undervalued.

About Five9

Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.