Company Announcements

Q4 Subscription Revenue Growth of 12%
Q4 Enterprise AI Revenue Growth of 50%
Q4 Record Operating Cash Flow of $84 Million

SAN RAMON, Calif.--(BUSINESS WIRE)--Feb. 19, 2026-- Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Results

• Revenue for the fourth quarter of 2025 increased 8% to a record $300.3 million, compared to $278.7 million for the fourth quarter of 2024.
• GAAP gross margin was 55.4% for the fourth quarter of 2025, compared to 56.0% for the fourth quarter of 2024.
• Adjusted gross margin was 63.1% for the fourth quarter of 2025, compared to 63.5% for the fourth quarter of 2024.
• GAAP net income for the fourth quarter of 2025 was $19.7 million, or 6.6% of revenue and $0.23 per diluted share, compared to GAAP net income of $11.6 million, or 4.2% of revenue and $0.13 per diluted share, for the fourth quarter of 2024.
• Non-GAAP net income for the fourth quarter of 2025 was $62.4 million, or 20.8% of revenue and $0.80 per diluted share, compared to non-GAAP net income of $60.3 million, or 21.6% of revenue and $0.79 per diluted share, for the fourth quarter of 2024.
• Adjusted EBITDA for the fourth quarter of 2025 was $77.3 million, or 25.7% of revenue, compared to $64.3 million, or 23.1% of revenue, for the fourth quarter of 2024.
• GAAP operating cash flow for the fourth quarter of 2025 was $83.6 million, compared to GAAP operating cash flow of $49.8 million for the fourth quarter of 2024.

2025 Financial Results

• Total revenue for 2025 increased 10% to a record $1,149.1 million, compared to $1,041.9 million in 2024.
• GAAP gross margin was 55.1% for 2025, compared to 54.2% in 2024.
• Adjusted gross margin was 62.8% for 2025, compared to 61.7% in 2024.
• GAAP net income for 2025 was $39.4 million, or 3.4% of revenue and $0.45 per diluted share, compared to GAAP net loss of $(12.8) million, or (1.2)% of revenue and $(0.17) per basic share, in 2024.
• Non-GAAP net income for 2025 was $228.7 million, or 19.9% of revenue and $2.96 per diluted share, compared to non-GAAP net income of $185.3 million, or 17.8% of revenue and $2.47 per diluted share, in 2024.
• Adjusted EBITDA for 2025 was $269.7 million, or 23.5% of revenue, compared to $196.0 million, or 18.8% of revenue, in 2024.
• GAAP operating cash flow for 2025 was $226.2 million, compared to GAAP operating cash flow of $143.2 million in 2024.

“We're pleased with our fourth quarter performance, exiting the year with a revenue run rate of $1.2 billion and adjusted EBITDA margin of 26%. The CX market is undergoing a significant transformation as AI becomes central to customer experience. Five9's end-to-end platform positions us well to lead this new era of AI-powered CX, and I'm extremely confident in Amit's leadership as we execute on this opportunity.”

- Mike Burkland, Chairman of the Board

“I'm thrilled to be here leading Five9, and I’m enthusiastic about our significant market opportunity. In my first few weeks, I've been impressed by the strength of our platform and team. I look forward to executing our strategy to drive growth, increase profitability, and deliver long-term shareholder value.”

- Amit Mathradas, Chief Executive Officer

Business Outlook

Five9 provides guidance based on current market conditions and expectations. Five9 emphasizes that the guidance is subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below, including risks and uncertainties associated with the ongoing impact of macroeconomic challenges.

• For the full year 2026, Five9 expects to report:
  • Revenue in the range of $1.247 to $1.261 billion.
  • GAAP net income per share in the range of $0.86 to $0.95, assuming diluted shares outstanding of approximately 87.4 million.
  • Non-GAAP net income per share in the range of $3.15 to $3.21, assuming diluted shares outstanding of approximately 78.0 million.
• For the first quarter of 2026, Five9 expects to report:
  • Revenue in the range of $296.5 to $302.5 million.
  • GAAP net income per share in the range of $0.10 to $0.17, assuming diluted shares outstanding of approximately 86.4 million.
  • Non-GAAP net income per share in the range of $0.66 to $0.70, assuming diluted shares outstanding of approximately 77.0 million.

With respect to Five9’s guidance as provided above, please refer to the “Reconciliation of GAAP Net Income to Non-GAAP net income - Guidance” table for more details, including important assumptions upon which such guidance is based.

Conference Call Details

Five9 will discuss its fourth quarter 2025 results today, February 19, 2026, via Zoom webinar at 4:30 p.m. Eastern Time. To access the webinar, please register by clicking here. A copy of this press release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K and will be posted to our website, prior to the conference call.

A live webcast and a replay will be available on the Investor Relations section of the Company’s web-site at http://investors.five9.com/.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. We calculate adjusted gross profit and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases, and costs related to reduction in force plans. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income (loss): depreciation and amortization, stock-based compensation, interest expense, gain on early extinguishment of debt, interest income and other, exit costs related to closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, impairment charges related to closure of operating lease facilities, lease amortization for finance leases, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, legal fees related to the securities class action, office closure lease termination costs, and provision for income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP loss from operations: stock-based compensation, intangibles amortization, exit costs related to the closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, legal fees related to the securities class action, and office closure lease termination costs. We calculate non-GAAP net income by adding back or removing the following items to or from GAAP net loss: stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, gain on early extinguishment of debt, exit costs related to the closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, impairment charge of an equity investment, impairment charges related to closure of operating lease facilities, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, legal fees related to the securities class action, office closure lease termination costs and tax benefit associated with acquired companies. For the periods presented, these adjustments from GAAP net income (loss) to non-GAAP net income do not include any presentation of the net tax effect of such adjustments given our significant net operating loss carryforwards. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. The Company considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company’s management uses these measures to (i) illustrate underlying trends in the Company’s business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company’s business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of non-GAAP financial measures set forth in this release.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements in the quote from our Chairman and Chief Executive Officer, including statements regarding shifts in the CX industry, customer preferences for unified platforms where AI is natively embedded, Five9's market position and expected impact on the Company's growth, Five9's market opportunity and growth prospects, including as a result of AI, Five9’s ability to deliver sustainable growth and robust free cash flow, Five9’s stock repurchase program, and the first quarter and full year 2026 financial projections and expectations set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) the impact of adverse economic conditions, including the impact of macroeconomic challenges, global tariff increases and potential future increases and announcements regarding same, continued inflation, uncertainty regarding consumer spending, high interest rates, fluctuations in currency rates, the impact of the Russia-Ukraine conflict, the impact of current and potential global conflicts, and other factors, may continue to harm our business; (ii) if we are unable to attract new customers or sell additional services and functionality to our existing customers, our revenue and revenue growth will be harmed; (iii) if our existing customers terminate their subscriptions or reduce their subscriptions and related usage, or fail to grow subscriptions at the rate they have in the past or that we might expect, our revenues and gross margins will be harmed and we will be required to spend more money to grow our customer base; (iv) because a significant percentage of our revenue is derived from existing customers, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (v) if we fail to manage our technical operations infrastructure, our existing customers may experience service outages, our new customers may experience delays in the deployment of our solution and we could be subject to claims for credits or damages, among other things; (vi) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be harmed; (vii) as AI solutions will likely perform an increasing proportion of contact center interactions, if we are unable to replace decreases in subscription revenue from licenses with revenue from the sale of additional AI solutions, our revenue, results of operations and business will be harmed; (viii) further development of our AI solutions may not be successful and may result in reputational harm and our future operating results could be materially harmed; (ix) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (x) we have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (xi) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (xii) our historical growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively; (xiii) failure to adequately retain and expand our sales force will impede our growth; (xiv) the use of AI by our workforce may present risks to our business; (xv) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow our business; (xvi) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business; (xvii) the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed; (xviii) we continue to expand our international operations, which exposes us to significant macroeconomic and other risks; (xix) security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of our data or our customers’ data, or other cyber-attacks on our systems, could result in litigation and regulatory risk, harm our reputation, our business or financial results; (xx) we may acquire other companies, or technologies, or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results; (xxi) we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results; (xxii) we rely on third-party telecommunications and internet service providers to provide our customers and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose customers and subject us to claims for credits or damages, among other things; (xxiii) prior to 2025, we had a history of losses and we may be unable to sustain profitability; (xxiv) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxvi) failure to comply with laws and regulations could harm our business and our reputation; (xxvii) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; (xxviii) risks that we may not execute repurchases in full, under our announced stock repurchase program, or may not achieve the intended benefits therefrom; and (xxix) the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Such forward-looking statements speak only as of the date hereof and readers should not unduly rely on such statements. We undertake no obligation to update the information contained in this press release, including in any forward-looking statements.

About Five9

The Five9 Intelligent CX Platform provides a comprehensive suite of solutions for orchestrating fluid customer experiences. Our cloud-native, multi-tenant, scalable, reliable, and secure platform includes contact center; omni-channel engagement; Workforce Engagement Management; extensibility through more than 1,000 partners; and innovative, practical AI, automation and journey analytics that are embedded as part of the platform. Five9 brings the power of people, technology, and partners to more than 3,000 organizations worldwide. For more information, visit www.five9.com.

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Investor Contact:

Tony Righetti
SVP, Investor Relations
IR@five9.com

Source: Five9, Inc.