Five9 (FIVN) AI Stock Analysis

• Market Cap: $1.78B
• Dividend Yield: N/A
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 254.9
• Beta (1Y): 1.68
• Revenue Growth: 14.21%
• EPS Growth: N/A
• Country: US
• Employees: 3,073
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.76
• Shares Outstanding: 77,262,690
• 10 Day Avg. Volume: 1,795,083
• 30 Day Avg. Volume: 1,791,219
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 47.15
• 1Y Price Target: $36.92
• Price Target Upside: 60.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 67 Neutral
• Price Target: $28.00 ▲(21.63% Upside)

Five9's strong financial performance and positive earnings call sentiment are significant strengths, driven by growth in AI solutions and strategic partnerships. However, high valuation metrics and technical indicators suggest caution. The company's ongoing executive transitions and macroeconomic uncertainties also pose risks.

Positive Factors

AI Revenue Growth

The significant growth in AI revenue indicates strong demand and adoption of Five9's AI solutions, enhancing its competitive edge and market position in the contact center software industry.

Strong Cash Flow

Robust cash flow generation relative to net income signifies efficient cash management, providing Five9 with financial flexibility to invest in growth opportunities and withstand economic uncertainties.

Strategic Partnerships

Strong partnerships with leading tech companies expand Five9's market reach and enhance its product offerings, supporting long-term growth and innovation in its solutions.

Negative Factors

High Leverage

While leverage has improved, it remains high, which can strain financial flexibility and increase risk, potentially impacting Five9's ability to invest in strategic initiatives.

Executive Transitions

The CEO transition introduces uncertainty and potential disruption in leadership continuity, which may affect strategic direction and execution in the near term.

Macroeconomic Uncertainty

Ongoing macroeconomic uncertainties pose challenges to Five9's growth prospects, potentially affecting customer spending and leading to tougher year-over-year comparisons.

Five9 Business Overview & Revenue Model

Company Description

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions. Its solution enables its clients to manage these customer interactions across various channels, including voice, video, chat, email, website, social media, click-to-call, callback, and mobile channels, as well as through APIs; and provides natural language processing and automatic speech recognition solutions. The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.

How the Company Makes Money

Five9 generates revenue primarily through subscription-based pricing models, which include monthly or annual fees for access to its cloud contact center solutions. The company's key revenue streams consist of software licenses, professional services, and customer support. Additionally, Five9 offers various add-on services, such as analytics and workforce optimization tools, that provide opportunities for upselling and cross-selling. Significant partnerships with major telecommunications providers and technology companies further contribute to its earnings by expanding its market reach and enhancing product offerings.

Five9 Financial Statement Overview

Summary

Five9 exhibits strong revenue growth and improving operational efficiency, evident from positive trends in revenue and cash flow metrics. Despite these strengths, the company's profitability remains constrained by negative EBIT, and leverage is still a concern. The balance sheet reflects improved financial stability, but further reduction in leverage would enhance overall strength.

Income Statement

The company has shown strong revenue growth over the years, with a notable increase in the TTM period. Gross Profit Margin remains healthy at 54.9%, but the Net Profit Margin is low at 0.8% due to negative EBIT. The company has improved its EBITDA Margin to 2.3%, indicating better operational efficiency compared to previous periods.

Balance Sheet

The Debt-to-Equity Ratio has improved to 1.11, showing a reduction in leverage compared to last year, but it remains relatively high. Return on Equity (ROE) is positive at 1.2% for TTM, reflecting improved profitability. The Equity Ratio is 42.1%, suggesting a moderate level of financial stability.

Cash Flow

The company has demonstrated a robust Operating Cash Flow to Net Income Ratio of 19.8, indicating strong cash generation relative to net income. Free Cash Flow has grown significantly in TTM, and the Free Cash Flow to Net Income Ratio stands at 16.2, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	1.04B	910.49M	778.85M	609.59M	434.91M
Gross Profit	607.38M	564.40M	477.80M	411.35M	338.49M	254.62M
EBITDA	53.19M	54.96M	-10.62M	13.31M	-8.82M	14.54M
Net Income	8.83M	-12.79M	-81.76M	-94.65M	-53.00M	-42.13M
Balance Sheet
Total Assets	1.70B	2.05B	1.49B	1.24B	1.19B	1.06B
Cash, Cash Equivalents and Short-Term Investments	635.88M	1.01B	730.30M	614.26M	469.86M	603.54M
Total Debt	799.50M	1.23B	793.88M	790.56M	825.51M	653.22M
Total Liabilities	987.48M	1.43B	956.48M	934.52M	981.81M	784.58M
Stockholders Equity	717.38M	622.19M	538.09M	309.96M	211.13M	279.16M
Cash Flow
Free Cash Flow	142.75M	78.56M	88.07M	32.69M	-13.73M	36.88M
Operating Cash Flow	174.38M	143.17M	128.84M	88.86M	28.48M	67.30M
Investing Cash Flow	284.62M	-266.55M	-259.56M	30.96M	-150.48M	-382.33M
Financing Cash Flow	-428.81M	342.73M	94.58M	-30.23M	-7.50M	457.42M

Five9 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIVN, the sentiment is Negative. The current price of 23.02 is below the 20-day moving average (MA) of 25.65, below the 50-day MA of 26.03, and below the 200-day MA of 30.28, indicating a bearish trend. The MACD of -0.60 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 2.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FIVN.

Five9 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSGS	76 Outperform	$1.85B	22.63	28.19%	1.96%	3.31%	31.16%
ATEN	76 Outperform	$1.32B	26.72	25.01%	1.30%	11.04%	18.70%
FIVN	67 Neutral	$1.78B	254.87	1.42%	―	14.21%	―
VRNT	62 Neutral	$1.23B	30.76	4.61%	―	-2.32%	7.70%
EVCM	61 Neutral	$1.98B	-95.53	-2.82%	―	-7.25%	51.12%
AVDX	60 Neutral	$2.07B	-252.15	-1.17%	―	8.04%	39.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Five9 Corporate Events

Five9 Reports Strong Q2 2025 Financial Results

On August 22, 2025, Five9 released an updated investor presentation detailing its financial results for Q2 2025, highlighting a 12% year-over-year growth in total revenue and a 16% increase in subscription revenue. The company also reported significant growth in its AI segment, with a 42% increase in enterprise AI revenue and multiple customer wins, including a Fortune 50 financial services company and a global data analytics firm, showcasing Five9’s expanding market presence and innovation in AI solutions.

Five9 Announces CEO Retirement and CFO Appointment

On July 31, 2025, Five9, Inc. announced the retirement of its CEO, Michael Burkland, who will remain in his role until a successor is appointed. Burkland will then serve as Executive Chairman for up to six months to aid in the transition. Concurrently, Bryan Lee was appointed as Chief Financial Officer, having previously served in an interim capacity. The company also plans to declassify its board and remove the supermajority vote threshold, aiming to enhance corporate governance and shareholder engagement.