Five9 (NASDAQ:FIVN) Announces Earnings Results, Beats Estimates By $0.01 EPS

Five9 (NASDAQ:FIVN) posted its quarterly earnings data on Thursday. The software maker reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01, Briefing.com reports. Five9 had a return on equity of 10.59% and a net margin of 2.77%.The company had revenue of $300.28 million for the quarter, compared to analysts’ expectations of $298.21 million. During the same period in the previous year, the firm posted $0.79 EPS. Five9’s revenue was up 7.8% compared to the same quarter last year. 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 Trading Up 18.5%

Shares of NASDAQ FIVN traded up $3.18 during midday trading on Friday, reaching $20.36. 3,408,639 shares of the stock were exchanged, compared to its average volume of 2,215,394. The company has a 50 day simple moving average of $18.69 and a 200 day simple moving average of $21.78. The stock has a market capitalization of $1.59 billion, a P/E ratio of 56.59, a PEG ratio of 0.85 and a beta of 1.32. The company has a debt-to-equity ratio of 0.96, a quick ratio of 4.61 and a current ratio of 4.61. Five9 has a twelve month low of $15.70 and a twelve month high of $49.90.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on FIVN. Zacks Research lowered Five9 from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Truist Financial decreased their price objective on Five9 from $40.00 to $23.00 and set a “buy” rating on the stock in a report on Friday. Needham & Company LLC reaffirmed a “buy” rating and set a $40.00 target price on shares of Five9 in a report on Thursday, December 18th. Wall Street Zen cut shares of Five9 from a “strong-buy” rating to a “buy” rating in a research report on Sunday, February 15th. Finally, Wells Fargo & Company lowered their price target on shares of Five9 from $28.00 to $22.00 and set an “equal weight” rating on the stock in a research report on Friday, November 7th. Thirteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $29.88.

More Five9 News

Here are the key news stories impacting Five9 this week:

• Positive Sentiment: Q4 results beat modestly: GAAP EPS $0.80 vs. $0.79 consensus and revenue $300.3M vs. $298.2M consensus; full‑year 2025 revenue hit a record ~$1.1B and revenue grew ~7.8% YoY — shows demand resiliency. Five9 Reports Record Full Year 2025 Revenue
• Positive Sentiment: Analyst support: Rosenblatt reaffirmed a “buy” rating and set a $26 price target (roughly ~51% above current levels), which can attract momentum buyers and provide a bullish catalyst. Rosenblatt Reaffirms Buy on Five9
• Neutral Sentiment: Company disclosure & investor materials are available (earnings slide deck and conference call transcript), giving investors detail to reassess assumptions. Five9 Q4 Slide Deck
• Neutral Sentiment: Full earnings call transcript published for deeper color on strategy (AI pivot / seat pressures discussed), which could clarify near-term growth drivers. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Some coverage and previews (Benzinga, Investing.com) discuss whether AI initiatives can offset seat-price pressure — useful background but outcome-dependent. Five9 Earnings Preview
• Negative Sentiment: Forward guidance disappointed materially: Q1 2026 EPS guide of $0.10–$0.17 vs. ~$0.55 consensus and FY 2026 EPS guide of $0.86–$0.95 vs. ~$2.30 consensus — this large shortfall is the primary headwind pressuring valuation and explains investor caution. Five9 Q4 Results & Guidance
• Neutral Sentiment: Short-interest report in available feeds shows anomalous data (zeros/NaN) and is not conveying a clear bearish or bullish signal at this time. Market Data

Five9 announced that its board has authorized a stock repurchase plan on Tuesday, November 11th that permits the company to repurchase $50.00 million in shares. This repurchase authorization permits the software maker to reacquire up to 3.2% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Five9

In related news, CEO Michael Burkland sold 17,992 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $20.35, for a total value of $366,137.20. Following the completion of the transaction, the chief executive officer directly owned 349,570 shares in the company, valued at approximately $7,113,749.50. This represents a 4.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, President Andy Dignan sold 7,512 shares of the firm’s stock in a transaction on Thursday, December 4th. The stock was sold at an average price of $20.28, for a total value of $152,343.36. Following the sale, the president directly owned 208,513 shares of the company’s stock, valued at approximately $4,228,643.64. This trade represents a 3.48% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 65,339 shares of company stock valued at $1,330,186 in the last ninety days. 1.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of FIVN. Invesco Ltd. increased its position in shares of Five9 by 45.7% during the fourth quarter. Invesco Ltd. now owns 167,947 shares of the software maker’s stock valued at $3,367,000 after acquiring an additional 52,672 shares during the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in shares of Five9 during the 4th quarter worth approximately $312,000. Mackenzie Financial Corp boosted its position in shares of Five9 by 66.0% during the 4th quarter. Mackenzie Financial Corp now owns 60,553 shares of the software maker’s stock worth $1,209,000 after purchasing an additional 24,076 shares during the period. XTX Topco Ltd increased its holdings in Five9 by 13.4% in the 4th quarter. XTX Topco Ltd now owns 56,549 shares of the software maker’s stock valued at $1,134,000 after purchasing an additional 6,662 shares during the last quarter. Finally, VARCOV Co. purchased a new stake in Five9 in the fourth quarter valued at approximately $300,000. Institutional investors and hedge funds own 96.64% of the company’s stock.

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.