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Five9
(NASDAQ:FIVN)
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Rating:69Neutral
Price Target:
$37.00
▲(60.03% Upside)
Action:Downgraded
Date:08/08/26
FIVN scores well on improving fundamentals and cash flow strength, reinforced by a constructive earnings update with raised 2026 guidance and expanding margins. The score is tempered by leverage that still limits balance-sheet flexibility, overbought technical signals that raise near-term volatility risk, and a valuation multiple that leaves less room for execution missteps.
Positive Factors
Recurring subscription growth and retention
Subscription growth and retention above 100% indicate a durable recurring-revenue base, with customers expanding usage over time. This supports visibility and creates opportunities to grow through additional seats, channels, modules, and AI capabilities.
Negative Factors
Significant leverage limits flexibility
Debt roughly in line with equity leaves Five9 less balance-sheet flexibility than best-in-class software peers. Leverage may constrain acquisitions, investment choices, and resilience if growth slows or operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription growth and retention
Subscription growth and retention above 100% indicate a durable recurring-revenue base, with customers expanding usage over time. This supports visibility and creates opportunities to grow through additional seats, channels, modules, and AI capabilities.
Read all positive factors
Five9 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows the share of Five9’s revenue coming from each geographic region, helping investors spot market dependencies or opportunities from overseas growth. Regional patterns indicate where management should focus resources and where macroeconomic or regulatory shocks could meaningfully impact the company’s top line.
Shows the share of Five9’s revenue coming from each geographic region, helping investors spot market dependencies or opportunities from overseas growth. Regional patterns indicate where management should focus resources and where macroeconomic or regulatory shocks could meaningfully impact the company’s top line.
Data provided by:
The Fly
The FlyFive9 (FIVN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.42B
Dividend YieldN/A
Average Volume (3M)2.34M
Price to Earnings (P/E)43.1
Beta (1Y)1.97
Revenue Growth8.87%
EPS Growth562.42%
CountryUS
Employees2,910
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.76
Shares Outstanding74,723,530
10 Day Avg. Volume2,171,016
30 Day Avg. Volume2,335,111
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.98
Price to Sales (P/S)1.35
P/FCF Ratio7.72
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$34.13Price Target Upside47.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)3.25
Revenue Forecast (FY)$1.26B
Five9 Business Overview & Revenue Model
Company Description
Five9, Inc. is a global provider of cloud-based contact center software, operating both within the United States and abroad. The company's core offering is a virtual contact center cloud platform, which integrates a comprehensive set of applicatio...
How the Company Makes Money
Five9 primarily makes money by selling subscriptions to its cloud contact center software (CCaaS). Customers typically pay recurring fees to access the platform, with pricing commonly tied to factors such as the number of agent seats/users, the mi...
Five9 Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call reflects meaningful operational and financial progress: revenue and subscription growth accelerated, AI revenue showed very strong year-over-year expansion, margins and cash generation improved, and management announced robust capital return programs and greater reporting transparency. However, there are clear near-term caveats — a one-time vendor benefit boosted Q1, AI revenue is lumpy as deployments convert from backlog, organizational redesign will incur temporary costs, and a meaningful portion of the market remains on-premise which can slow cloud/AI adoption. On balance the positives (accelerating revenue, strong AI ARR ramp, margin expansion, cash flow, and disciplined capital allocation) outweigh the near-term uncertainties and costs.Positive Updates
Quarterly Revenue Growth
Q1 total revenue of $305M, up 9% year-over-year, beat the high end of guidance and demonstrated acceleration heading into the year.
Negative Updates
One-Time Vendor Discount Impacting Q1 Results
Q1 profitability and cash flow margins benefited by slightly more than one percentage point from a one-time discount negotiated with a key vendor; management does not expect this benefit to recur, driving a sequential downturn in Q2 guidance.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q1 total revenue of $305M, up 9% year-over-year, beat the high end of guidance and demonstrated acceleration heading into the year.
Read all positive updates
Company Guidance
Management guided Q2 revenue to $303–$309M (midpoint $306M) and non‑GAAP EPS to $0.65–$0.69 (midpoint $0.67), reflecting an estimated 3.6M shares retired via the ASR; full‑year 2026 revenue was raised to $1.254–$1.266B (midpoint $1.26B) with non‑GAAP EPS $3.22–$3.30 (midpoint $3.26), and the company expects annual adjusted EBITDA margin to exceed 24% and free cash flow to be about $175M; 2026 capex (PP&E) is expected to be ~3.5% of revenue. For context, Q1 revenue was $305M (up 9% YoY), subscription revenue grew 13% (CCaaS +8%, AI +68% to an ARR >$125M and ~13% of subscription), LTM subscription dollar‑based retention was 107%, adjusted gross margin was 64%, adjusted EBITDA was $74M (24% of revenue), cash from operations was $64M (21%) and free cash flow $49M (16%), and the quarter ended with $724M in cash and short‑term investments.Five9 Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.20B | 1.15B | 1.04B | 910.49M | 778.85M | 609.59M |
| Gross Profit | 658.56M | 628.03M | 564.40M | 477.80M | 411.35M | 338.49M |
| EBITDA | 205.48M | 163.89M | 54.96M | -23.26M | -38.10M | -8.82M |
| Net Income | 59.47M | 39.42M | -12.79M | -81.76M | -94.65M | -53.00M |
Balance Sheet | ||||||
| Total Assets | 1.83B | 1.79B | 2.05B | 1.49B | 1.24B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 654.06M | 696.92M | 1.01B | 730.30M | 614.26M | 469.86M |
| Total Debt | 805.04M | 847.21M | 1.23B | 793.88M | 790.56M | 825.51M |
| Total Liabilities | 1.05B | 1.00B | 1.43B | 956.48M | 934.52M | 981.81M |
| Stockholders Equity | 784.80M | 785.82M | 622.19M | 538.09M | 309.96M | 211.13M |
Cash Flow | ||||||
| Free Cash Flow | 199.11M | 201.24M | 78.56M | 97.60M | 32.69M | -13.22M |
| Operating Cash Flow | 248.76M | 226.21M | 143.17M | 128.84M | 88.86M | 29.00M |
| Investing Cash Flow | -111.20M | 122.31M | -266.55M | -259.56M | 30.96M | -150.48M |
| Financing Cash Flow | -155.70M | -478.57M | 342.73M | 94.58M | -30.23M | -7.50M |
Five9 Technical Analysis
Positive
23.12
Price Trends
25.40
Positive
22.32
Positive
20.55
Positive
Market Momentum
2.24
Negative
62.09
Neutral
69.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVN, the sentiment is Positive. The current price of 23.12 is below the 20-day moving average (MA) of 29.64, below the 50-day MA of 25.40, and above the 200-day MA of 20.55, indicating a bullish trend. The MACD of 2.24 indicates Negative momentum. The RSI at 62.09 is Neutral, neither overbought nor oversold. The STOCH value of 69.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIVN.
Five9 Risk Analysis
Five9 disclosed 66 risk factors in its most recent earnings report. Five9 reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Five9 Peers Comparison
UnderperformOutperform
Sector (61)
FIVN
Five9
32.74
6.99
27.15%
ATEN
A10 Networks
25.75
8.92
53.02%
EVCM
EverCommerce
10.11
-0.83
-7.59%
Five9 Corporate Events
Executive/Board Changes
Five9 Announces Executive Product Engineering Leadership Transition
Neutral
Jun 22, 2026
Five9, Inc. announced that Executive Vice President of Product Engineering Panos Kozanian will begin transitioning his responsibilities effective June 29, 2026, and is expected to remain in his role through at least September 4, 2026. During this ...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Five9 Overhauls Governance, Enhances Shareholder Rights Framework
Positive
May 27, 2026
On May 20, 2026, Five9 stockholders approved an Amended and Restated Certificate of Incorporation that declassifies the company’s board of directors and removes supermajority voting requirements, changes that were filed the same day with Del...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Five9 Shareholders Approve Governance Changes at Annual Meeting
Positive
May 20, 2026
At its annual meeting on May 20, 2026, Five9 stockholders approved amendments to the company’s certificate of incorporation to declassify its board of directors and eliminate supermajority voting requirements, moves that enhance governance f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.