Five9 (NASDAQ:FIVN) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Five9 (NASDAQ:FIVN) released its quarterly earnings data on Thursday. The software maker reported $0.82 EPS for the quarter, beating analysts’ consensus estimates of $0.80 by $0.02, FiscalAI reports. The company had revenue of $323.30 million during the quarter, compared to the consensus estimate of $319.04 million. Five9 had a net margin of 4.94% and a return on equity of 12.92%. Five9’s quarterly revenue was up 13.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.78 EPS.

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

• Five9 reported Q3 revenue of $323 million, up 13% year over year, with subscription revenue up 16%. AI revenue grew 91% to about $45 million, and the company raised its 2026 AI revenue growth outlook to at least 75% from at least 60%.
• Customer expansion and backlog conversion supported a subscription dollar-based retention rate of 109%, up from 107% in the prior quarter. Management expects full-year adjusted EBITDA margin of at least 24% and cash flow of approximately $175 million.
• Five9 agreed to acquire Level AI for $325 million in cash, adding standalone AI products and a second route to customers that are not yet ready to move contact centers to the cloud. Level AI had approximately $20 million in ARR as of October 31 and was growing about 50% year over year; Five9 expects the deal to accelerate its AI roadmap.
• The Level AI deal is expected to dilute adjusted EBITDA margin by about one percentage point in 2027, though management aims to bring its EBITDA dollars to break-even in roughly six months and expects margin accretion in 2028. The acquisition’s revenue and operating contribution are excluded from Five9’s 2026 guidance.
• Five9 lowered its 2026 non-GAAP EPS midpoint by $0.07 to $3.19, citing the timing of planned organizational changes and a higher diluted share count. It still expects sequential adjusted EBITDA margin expansion in Q4, but said the organizational changes will shift into early 2027.

Five9 Stock Performance

Shares of Five9 stock traded down $6.02 during trading on Friday, hitting $28.12. 6,549,861 shares of the stock were exchanged, compared to its average volume of 1,557,405. Five9 has a 12 month low of $13.29 and a 12 month high of $40.00. The company has a debt-to-equity ratio of 0.94, a quick ratio of 4.15 and a current ratio of 4.15. The stock has a market cap of $2.15 billion, a PE ratio of 25.37 and a beta of 1.56. The stock’s fifty day moving average is $34.54 and its 200 day moving average is $24.49.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on FIVN. Zacks Research cut shares of Five9 from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 9th. Robert W. Baird raised their price objective on shares of Five9 from $22.00 to $30.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. Cantor Fitzgerald raised their price objective on shares of Five9 from $34.00 to $40.00 and gave the company an “overweight” rating in a research report on Monday, September 21st. Needham & Company LLC restated a “buy” rating on shares of Five9 in a report on Friday. Finally, Piper Sandler boosted their price target on Five9 from $24.00 to $30.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. Twelve investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $33.94.

Insider Transactions at Five9

In other news, CFO Bryan M. Lee sold 19,308 shares of the firm’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $33.34, for a total transaction of $643,728.72. Following the completion of the sale, the chief financial officer directly owned 290,643 shares of the company’s stock, valued at $9,690,037.62. This trade represents a 6.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Tiffany N. Meriweather sold 13,409 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $33.31, for a total value of $446,653.79. Following the completion of the sale, the insider owned 258,363 shares of the company’s stock, valued at approximately $8,606,071.53. This trade represents a 4.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 83,831 shares of company stock valued at $2,821,366 in the last three months. 1.20% of the stock is currently owned by insiders.

Key Headlines Impacting Five9

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Five9 reported Q3 adjusted EPS of $0.82 versus the $0.80 consensus and revenue of $323.3 million versus $319.0 million. Revenue rose 13% year over year, with subscription growth of 16%. Five9 Q3 results
• Positive Sentiment: Management’s FY 2026 adjusted EPS guidance of $3.17–$3.21 is above the cited $2.92 consensus. The company also highlighted 91% growth in AI revenue, supporting its opportunity to expand AI-powered customer service products. Q3 earnings call highlights
• Neutral Sentiment: Five9 agreed to acquire Level AI for $325 million in cash, adding tools for automating customer interactions and analyzing customer conversations. The deal could strengthen its AI platform, though its eventual financial contribution is uncertain. Level AI acquisition announcement
• Negative Sentiment: Gross margins narrowed year over year: GAAP gross margin was 53.4%, versus 55.0% a year earlier. Q4 EPS guidance of $0.88–$0.92 straddles the $0.90 consensus, while revenue guidance is broadly in line with expectations—limiting evidence of a near-term forecast beat. Q3 estimates and margins
• Negative Sentiment: Analyst responses were mixed but included a downgrade from Evercore to “in-line” with a $24 target and lower targets from Wells Fargo ($28), Truist ($35), and Barclays ($38). These cautious revisions may add pressure despite several firms retaining positive ratings. Wells Fargo analyst rating

About Five9

Five9, Inc is a cloud-based software company that provides customer experience and contact center solutions. Its platform enables organizations to manage customer interactions across voice, chat, email, social media and other digital channels without relying on traditional on-premises contact center infrastructure.

The company’s Intelligent CX Platform includes tools for inbound and outbound communications, digital engagement, workforce optimization, workflow automation, analytics and reporting.