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olivLaw · US equity research

Five9, Inc. FIVN

Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)

36.35USD+1.62% · 1 dayClose 04 Nov 2026

Five9 is a cloud platform provider for enterprise contact centers that is evolving into an AI-native CX platform through its Genius AI suite. The company continues to grow, with revenue of 1149.1 million USD in fiscal 2025 and full-year 2026 revenue guidance of 1.260 to 1.272 billion USD, which matters as customers migrate away from on-premises systems.

At the close of 04 Nov 2026, Five9, Inc. (FIVN) stock was 36.35 USD (+1.62% on the day), with market capitalisation 2.7 bn USD, P/E 52.7 on diluted EPS of 0.69 USD over the last 12 months, beta 1.66, 52-week range 13.61–38.65 USD. Latest reported quarter (Q2 2026): revenue of 312.4 m USD (+10.3% YoY), net income of 3.4 m USD (+191.8% YoY), diluted EPS 0.04 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
2.7 bn USD
shares as of 31 Jul 2026
P/E (TTM)
52.7
Diluted EPS TTM 0.69 · TTM to 30 Jun 2026
E/P (TTM)
1.90%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.66
Volatility (1y) 68%
52-week range
13.6138.65

Price history

Loading chart…

Technical reading

RSI (14)
53.8
neutral
Bollinger (20, 2)
32.63 – 38.66
in the upper half of the band · %B 0.62 · band width 16.9%
SMA 50 / 200
34.63 / 24.41
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.62 / 0.65
MACD below signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+5.8%−1.1%+6.9 pp—
3 months+22.8%−0.5%+23.3 pp—
6 months+66.0%+4.4%+61.6 pp—
Year to date+81.3%+12.3%+69.0 pp—
1 year+58.0%+13.5%+44.4 pp−19.2%
3 years−42.6%+76.4%−119.0 pp−18.1%
5 years−75.4%+63.7%−139.1 pp—
Max drawdown (1y)
−40.2%
05 Nov 2025 → 10 Apr 2026
Max drawdown (5y)
−91.8%
16 Nov 2021 → 10 Apr 2026
Compound annual growth (5y)
−24.5%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q2 2026 · 30 Jun 2026

Revenue
312.4 m USD
+10.3% YoY
Net income
3.4 m USD
+191.8% YoY
Diluted EPS
0.04
+300.0% YoY
net / operating
1.1% / 0.6%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ3 '24Q4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26
Revenue264.2 m278.7 m279.7 m283.3 m285.8 m300.3 m305.3 m312.4 m
Cost of revenue121.9 m122.7 m126.0 m127.9 m128.6 m133.8 m134.8 m145.7 m
Gross profit142.2 m156.0 m153.7 m155.4 m157.3 m166.4 m170.5 m166.7 m
Research & development42.5 m41.5 m41.1 m39.9 m35.2 m36.1 m39.7 m42.1 m
Operating income-15.4 m4.2 m-5.4 m-1.6 m16.0 m19.8 m18.5 m2.0 m
Depreciation & amortisation13.1 m14.6 m14.5 m14.6 m15.8 m16.9 m17.8 m19.9 m ≈
Interest expense4.1 m4.3 m4.1 m3.8 m3.1 m3.1 m3.1 m3.5 m
Pre-tax income-8.3 m11.2 m760.0 k2.5 m18.6 m23.0 m20.6 m4.3 m
Income tax-3.9 m-426.0 k184.0 k1.4 m643.0 k3.3 m2.2 m941.0 k
Net income-4.5 m11.6 m576.0 k1.2 m18.0 m19.7 m18.4 m3.4 m
Diluted EPS-0.060.130.010.010.210.230.210.04
Operating cash flow41.1 m ≈49.8 m48.4 m35.1 m ≈59.2 m ≈83.6 m63.9 m42.1 m ≈
Capex14.4 m ≈9.3 m4.7 m3.5 m ≈10.5 m ≈6.2 m5.3 m17.6 m ≈
Share repurchases——00 ≈——10.0 m90.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 60 percentile of its own 5-quarter history (min 23.0, median 43.6, max 294.2; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue257.7 m328.0 m434.9 m609.6 m778.8 m910.5 m1.0 bn1.1 bn
Revenue YoY+28.7%+27.3%+32.6%+40.2%+27.8%+16.9%+14.4%+10.3%
Net income-221.0 k-4.6 m-42.1 m-53.0 m-94.7 m-81.8 m-12.8 m39.4 m
Net income YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPSunavailable-0.08-0.66-0.79-1.35-1.13-0.170.45
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-0.1%-1.4%-9.7%-8.7%-12.2%-9.0%-1.2%3.4%
Free cash flow29.4 m32.0 m36.9 m-13.2 m36.6 m97.6 m100.8 m201.2 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
232.1 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
785.8 m USD
Total assets
1.8 bn USD
Debt / equity
unavailable
Current ratio
4.51x
ROE
5.6%
ROA
2.1%
FCF margin
17.5%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
910.5 m
2024
1.0 bn
2025
1.1 bn

SEC (XBRL)· 20 Feb 2026verified

Cost of revenue
2023
432.7 m
2024
477.5 m
2025
516.2 m

SEC (XBRL)· 20 Feb 2026verified

Gross profit
2023
477.8 m
2024
564.4 m
2025
632.9 m

SEC (XBRL)· 20 Feb 2026verified

Research & development
2023
156.6 m
2024
166.2 m
2025
152.3 m

SEC (XBRL)· 20 Feb 2026verified

Operating income
2023
-98.6 m
2024
-51.3 m
2025
28.9 m

SEC (XBRL)· 20 Feb 2026verified

Depreciation & amortisation
2023
48.5 m
2024
52.9 m
2025
61.8 m

SEC (XBRL)· 20 Feb 2026verified

EBITDA
2023
-50.1 m ≈
2024
1.6 m ≈
2025
90.6 m ≈

SEC (XBRL)· 20 Feb 2026derived

Interest expense
2023
7.6 m
2024
14.8 m
2025
14.1 m

SEC (XBRL)· 20 Feb 2026verified

Pre-tax income
2023
-79.4 m
2024
-12.8 m
2025
44.9 m

SEC (XBRL)· 20 Feb 2026verified

Income tax
2023
2.3 m
2024
40.0 k
2025
5.5 m

SEC (XBRL)· 20 Feb 2026verified

Net income
2023
-81.8 m
2024
-12.8 m
2025
39.4 m

SEC (XBRL)· 20 Feb 2026verified

Diluted EPS
2023
-1.13
2024
-0.17
2025
0.45

SEC (XBRL)· 20 Feb 2026verified

Weighted average diluted shares
2023
72.0 m
2024
74.5 m
2025
88.0 m

SEC (XBRL)· 20 Feb 2026verified

Balance sheet · USD

Cash
2023
143.2 m
2024
362.5 m
2025
232.1 m

SEC (XBRL)· 20 Feb 2026verified

Receivables
2023
97.4 m
2024
115.2 m
2025
131.0 m

SEC (XBRL)· 20 Feb 2026verified

Current assets
2023
924.1 m
2024
1.2 bn
2025
959.7 m

SEC (XBRL)· 20 Feb 2026verified

Property, plant & equipment, net
2023
108.6 m
2024
144.9 m
2025
164.6 m

SEC (XBRL)· 20 Feb 2026verified

Goodwill
2023
227.4 m
2024
365.4 m
2025
366.3 m

SEC (XBRL)· 20 Feb 2026verified

Intangibles (excl. goodwill)
2023
38.3 m
2024
65.6 m
2025
51.2 m

SEC (XBRL)· 20 Feb 2026verified

Total assets
2023
1.5 bn
2024
2.1 bn
2025
1.8 bn

SEC (XBRL)· 20 Feb 2026verified

Accounts payable
2023
24.4 m
2024
26.3 m
2025
30.0 m

SEC (XBRL)· 20 Feb 2026verified

Current liabilities
2023
167.2 m
2024
641.7 m
2025
213.0 m

SEC (XBRL)· 20 Feb 2026verified

Total liabilities
2023
956.5 m
2024
1.4 bn
2025
1.0 bn

SEC (XBRL)· 20 Feb 2026verified

Equity
2023
538.1 m
2024
622.2 m
2025
785.8 m

SEC (XBRL)· 20 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
128.8 m
2024
143.2 m
2025
226.2 m

SEC (XBRL)· 20 Feb 2026verified

Capex
2023
31.2 m
2024
42.4 m
2025
25.0 m

SEC (XBRL)· 20 Feb 2026verified

Free cash flow
2023
97.6 m ≈
2024
100.8 m ≈
2025
201.2 m ≈

SEC (XBRL)· 20 Feb 2026derived

Investing cash flow
2023
-259.6 m
2024
-266.6 m
2025
122.3 m

SEC (XBRL)· 20 Feb 2026verified

Financing cash flow
2023
94.6 m
2024
342.7 m
2025
-478.6 m

SEC (XBRL)· 20 Feb 2026verified

Share repurchases
2023
0
2024
0
2025
50.0 m

SEC (XBRL)· 20 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
10.3%
computed by olivLawFY 2025
Revenue CAGR 3Y
13.8%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
21.4%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
99.7%
computed by olivLawFY 2025

Profitability

Gross margin
54.9%
computed by olivLawTTM to 30 Jun 2026
EBITDA margin
10.5%
computed by olivLawTTM to 30 Jun 2026
EBIT margin
4.7%
computed by olivLawTTM to 30 Jun 2026
Net margin
4.9%
computed by olivLawTTM to 30 Jun 2026
FCF margin
17.4%
computed by olivLawTTM to 30 Jun 2026

Returns

ROE
7.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROA
3.4%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
3.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
4.4x
computed by olivLawTTM to 30 Jun 2026

Liquidity

Current ratio
4.1x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.8x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
248.8 m USD
computed by olivLawTTM to 30 Jun 2026
Capital expenditure
39.6 m USD
computed by olivLawTTM to 30 Jun 2026
Free cash flow
209.1 m USD
computed by olivLawTTM to 30 Jun 2026
FCF conversion
351.7%
computed by olivLawTTM to 30 Jun 2026
Cash conversion
196.3%
computed by olivLawTTM to 30 Jun 2026

Efficiency

Days sales outstanding
41 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
23 days
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
2.7 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
45.7x
computed by olivLawTTM to 30 Jun 2026
P/E (TTM)
52.7x
computed by olivLawTTM to 30 Jun 2026
Earnings yield
1.9%
computed by olivLawTTM to 30 Jun 2026
P/B
3.5x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
2.3x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
13.0x
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
FCF yield
7.7%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
5.5%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026

4 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

36.35 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 2.7 bn USD

Key indicators

Market capitalisation
2.7 bn USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
52.7x
computed by olivLawTTM to 30 Jun 2026
P/B
3.5x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
7.9%
computed by olivLawTTM to 30 Jun 2026 · balance sheet at 30 Jun 2026
Net margin
4.9%
computed by olivLawTTM to 30 Jun 2026
Revenue growth (YoY)
10.3%
computed by olivLawFY 2025
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 31 Jul 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 2186derived 52

Score by group

77% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)

no valuation method could be computed

Multiple comparisons use the SIC vertical: Services-Computer Processing & Data Preparation (SIC 7374)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
Gross margin · Quality54.9%37 (on a fixed band)14%
EBIT margin · Quality4.7%53 (vs peers)11%
FCF margin · Quality17.4%69 (on a fixed band)11%
Revenue CAGR 3Y · Growth13.8%55 (on a fixed band)22%
Revenue growth (YoY) · Growth10.3%57 (vs peers)11%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Current ratio · Balance sheet4.1x100 (on a fixed band)8%
EV/Sales · Valuationunavailableunavailable—
FCF yield · Valuation7.7%100 (on a fixed band)17%
Shareholder yield (distributions) · Returns5.5%100 (on a fixed band)6%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial100/100 · 1/2 factors with a value
  • Growth56/100 · 2/2 factors with a value
  • Quality52/100 · 3/3 factors with a value
  • Returns100/100 · 1/1 factors with a value
  • Valuation· partial100/100 · 1/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Five9, Inc. (FIVN). Latest full fiscal year: 2025; data up to 2026-06-30.

Figures computed from the financial statements: revenue 1.1 bn USD in 2025; YoY growth 10.3%; net margin 4.9%; ROE 7.9%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Current ratio: 4.1x
  • FCF yield: 7.7%
  • Shareholder yield (distributions): 5.5%

What contradicts it

No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.

Versus the vertical median

Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
52.7x
vertical median 22.1x
above median (+138.1%)
EV/EBITDA
—
vertical median 7.2x
P/S
2.3x
vertical median 0.9x
above median (+142.3%)
P/B
3.5x
vertical median 1.0x
above median (+234.6%)
ROE
7.9%
vertical median 11.8%
below median (−33.1%)
Net margin
4.9%
vertical median 5.9%
below median (−16.2%)
EBIT margin
4.7%
vertical median 3.2%
above median (+47.7%)
Revenue YoY
10.3%
vertical median 6.7%
above median (+52.5%)
Net debt/EBITDA
—
vertical median -0.3x
Dividend yield
—
vertical median 2.2%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
ADPAutomatic Data Processing, Inc.119.8 bn27.777.0%20.1%+6.7%+19% / +32%
WDAYWorkday, Inc.44.4 bn40.916.0%12.3%+13.1%−6% / −25%
VRSKVerisk Analytics, Inc.25.9 bn30.1—29.3%+6.6%−12% / −18%
ATHMAutohome Inc.10.4 bn53.56.3%443.2%+11.1%−5% / −18%
FIVNFive9, Inc.2.7 bn52.77.9%4.9%+10.3%+58% / −43%
DXCDxc Technology Company2.3 bn21.93.7%0.9%−1.8%+13% / −36%
EVTCEVERTEC, Inc.2.1 bn22.914.4%9.0%+10.2%+20% / −6%
INODInnodata Inc1.5 bn32.837.7%14.7%+47.6%−25% / +541%
CLVTClarivate PLC1.4 bn—-8.2%-15.1%−4.0%−44% / −73%
LZLegalZoom.com, Inc.1.1 bn56.012.1%2.6%+10.9%−26% / −40%
PLTKPlaytika Holding Corp.808.6 m——-9.9%+8.1%−48% / −76%
YEXTYext, Inc.775.0 m40.627.8%5.9%+6.1%−7% / +18%
NRDSNerdWallet, Inc.754.4 m13.318.2%7.6%+21.7%−21% / +1%
NXTTNext Technology Holding Inc.736.5 m—-59.4%-2,356.0%+545.3%−99% / −100%
CARSCars.com Inc.682.5 m22.47.4%4.7%+0.6%+10% / −32%
IBEXIBEX Limited593.6 m14.330.4%7.2%+15.4%+27% / +152%
SOPHSOPHiA GENETICS SA477.3 m—-110.0%-102.2%+18.6%+42% / +73%
GRVYGravity Co., Ltd.475.7 m0.016.5%17.0%−31.0%+19% / −6%
SOHUSohu.com Limited355.1 m1.035.8%67.4%−2.4%−12% / +70%
MOVECorvex, Inc.176.9 m—-9.6%-623.5%−57.3%−17% / −93%
SSTKShutterstock, Inc.161.1 m—-43.4%-22.9%+5.8%−79% / −90%
TRAKRepositrak, Inc.132.7 m18.714.9%32.5%+3.0%−46% / −29%
GMHSGamehaus Holdings Inc.51.4 m8.511.8%4.1%−11.3%−35% / −93%
DDIDoubleDown Interactive Co., Ltd.34.1 m0.311.4%28.5%+5.5%+48% / +72%
SJScienjoy Holding Corporation23.5 m—-66.6%-47.3%−4.9%+28% / −68%

1- and 3-year price returns: for FIVN from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
27.11
Total return -25% · Per year -25%
47.73
Total return 31% · Per year 31%
71.62
Total return 97% · Per year 97%
3 years
31.48
Total return -13% · Per year -5%
61.85
Total return 70% · Per year 19%
101.15
Total return 178% · Per year 41%
5 years
36.56
Total return 1% · Per year 0%
80.16
Total return 121% · Per year 17%
142.86
Total return 293% · Per year 31%
What moves the 3-year price the most
  • Exit P/E± 15.46
  • Net margin± 10.82
  • Annual revenue growth± 8.16
  • Annual dilution± 0.91

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Five9 is a cloud platform provider for enterprise contact centers that is evolving into an AI-native CX platform through its Genius AI suite. The company continues to grow, with revenue of 1149.1 million USD in fiscal 2025 and full-year 2026 revenue guidance of 1.260 to 1.272 billion USD, which matters as customers migrate away from on-premises systems.

SWOT

Strengths

  • The cloud platform is described as scalable, secure and integrated with CRM applications, which supports customer retention 1. The customer base is diversified, with no single customer above 10% of revenue 1.
  • The recurring revenue model gives visibility into revenue, and retention has stayed above 100% 13. The company reported accelerating subscription revenue growth for three consecutive quarters 3.
  • The Genius AI suite and a data flywheel that learns from every interaction are presented as a structural advantage over competitors 1.

Weaknesses

  • GAAP profitability is still recent: net income turned positive only recently after a history of losses 1.
  • Dollar-based retention declined in 2025 from the prior year, showing expansion of existing customers is uneven 1.
  • Professional services carry negative margins, so growth in that line could dilute gross margin 1.

Opportunities

  • Customer migration from on-premises systems to cloud and AI creates selling opportunities for the platform 1.
  • Large contracts such as the one announced in August 2026 could accelerate growth if similar wins recur in other segments 3.
  • The newly launched AI voice agents could generate new consumption-based revenue that grows faster than the rest of the business 3.

Threats

  • AI agents could reduce the volume of interactions handled by human agents, lowering license revenue 1.
  • Macroeconomic pressure, tariffs and global conflicts could weigh on customer spending 2.
  • The number of competitors is rising, and large customers may negotiate harder or move to other solutions 1.

Risks

  • Replacing license revenue with AI revenuehigh

    If revenue from AI solutions does not offset the decline in traditional licenses, revenue and results could be affected, as the annual report warns 1.

  • Macroeconomic conditions and tariffshigh

    The company says macroeconomic challenges and tariff increases could continue to weigh on revenue in future periods 2.

  • Revenue concentration in existing customersmedium

    Because most revenue comes from existing customers, changes in new sales show up with a lag, which makes problems harder to detect early 1.

  • Competition and third-party dependenciesmedium

    Reliance on partners and telecom providers could affect service and customer retention if those providers face problems 1.

  • Cybersecuritymedium

    Security incidents could lead to litigation, regulatory action and reputational harm, according to the disclosed risk factors 1.

Investment thesis

What would need to be true (bull case)

  • If subscription growth keeps accelerating and AI revenue continues to outpace the rest of the business, the company could support a recovery in margins and growth over the medium term 3.
  • Retention above 100% and a diversified customer base could sustain growth even if new sales slow 13.
  • Large contracts and the launch of AI voice agents could open new opportunities in enterprise segments 3.

What would break the thesis

  • If AI agents reduce human-handled interactions faster than AI revenue offsets it, there could be persistent pressure on license revenue 1.
  • GAAP profitability remains modest, and macroeconomic pressure could prevent current margins from being sustained 23.
  • The market is competitive and growing, and large customers could prefer rival or in-house solutions 1.

What to watch

  • Pace of subscription and AI revenue growth against full-year revenue guidanceQ3 2026
  • Trend in subscription dollar-based retentionnext 10-K
  • Effect of tariffs and macroeconomic conditions on existing customers2027
  • Progress on subleasing excess space after the headquarters consolidation2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Five9 offers an Intelligent CX Platform for enterprise contact centers, delivered as software-as-a-service, with applications for customer service, sales and marketing. The platform integrates voice, chat, email, web and social channels and orchestrates interactions between human and AI agents, according to the annual report 1. The company operates in one reportable segment and has over 3000 customers 1.

The revenue model combines monthly subscription fees, mainly based on licenses, with usage-based telephony fees and consumption or capacity billing for AI solutions 1. Subscriptions and related usage made up 93% of revenue in 2025, with the remainder from professional services 1. In the first half of 2026, subscription and telecom fees reached 94% of revenue 2.

Sales run through a field team for mid-size, enterprise and Fortune 1000 companies, a telesales team for smaller companies, and partners including system integrators and distributors 1. In August 2026 the company announced a new customer win with approximately 100 million USD in total contract value 3.

Segments

Intelligent CX platform and Genius AI suite

The core offering is a cloud platform that routes interactions and integrates CRM data, while the Genius AI suite adds AI agents, Agent Assist, summaries and AI insights 1. In the second quarter of 2026 the company launched Five9 Voice AI Agents and described AI revenue as accelerating faster than the rest of the business 3.

Telephony and communications services

Telephony usage revenue is billed in arrears and carries lower margins than subscriptions, according to the annual report 1. A growing share of customers buy telephony directly from wholesale telecom providers, which could change the revenue mix if the trend continues 2.

Professional services

Professional services for implementation and optimization make up the remaining revenue and, per the report, carry negative margins, so growth in them could weigh on gross margin 1.

Market context

The company describes two trends supporting the cloud contact center market: migration from on-premises systems to the cloud and advances in generative AI, which generally require cloud deployment 1. According to the report, the contact center industry is in the early stages of the AI transition, making customer behavior hard to forecast 1.

The dollar-based retention rate fell from 108% in 2024 to 105% in 2025 and reached 107% for subscriptions as of June 2026, suggesting expansion of existing customers remains important for growth 13. Second-quarter 2026 revenue growth was attributed mainly to larger customers 2.

Trends

  • Migration from on-premises contact centers to the cloudtailwind

    Organizations are replacing legacy on-premises systems with cloud solutions, which could support demand for platforms like Five9's 1. If system refresh cycles continue, this replacement opportunity could sustain new sales.

  • Generative AImixed

    AI enables new contact center capabilities, but the report warns that AI solutions could replace part of traditional license revenue, which the company must offset with AI sales 1.

  • Macroeconomic pressure and tariffsheadwind

    The company flags continued macroeconomic challenges, tariff increases and global conflicts, which it expects could weigh on revenue in future periods 2.

  • Cost discipline and profitabilitytailwind

    Workforce reductions in 2024 and 2025 and expense management led to positive net income in 2025, and the company expects net income to remain positive in 2026 1. If cost discipline holds, margins could keep improving.

Competitive position

The annual report notes that the markets Five9 serves involve a large and growing number of competitors, and that competition could harm operating results if the company does not compete effectively 1. Five9 positions itself as an end-to-end platform combining multichannel capabilities, pre-built CRM integrations and AI 1.

The sources do not name direct competitors, so the company's relative position cannot be assessed from them. The company does note integrations with major CRM and collaboration vendors, which can be both partnership and competitive pressure 1.

  • CRM and collaboration platform vendors with contact center features

    The report cites integrations with major CRM and collaboration vendors but does not explicitly identify them as direct competitors 1.

  • On-premises contact center system vendors

    Legacy on-premises systems are described as what customers replace with cloud, making them part of the indirect competitive set 1.

  • AI solution providers for customer service

    The report warns some customers could use AI solutions from other companies, which would reduce the company's opportunity to sell its own 1.

  • Wholesale telecommunications providers

    Customers who buy telephony directly from these providers reduce the company's telephony revenue, although they remain platform customers 2.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Five9, Inc. · 20 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Five9, Inc. · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Five9, Inc. · 06 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.