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

Five9 (NASDAQ:FIVN) released its earnings results on Thursday. The software maker reported $0.82 earnings per share for the quarter, topping the consensus estimate 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%. The company’s revenue was up 13.1% on a year-over-year basis. During the same quarter in the previous 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 NASDAQ FIVN traded down $6.02 during midday trading on Friday, hitting $28.12. The company’s stock had a trading volume of 6,549,861 shares, compared to its average volume of 1,557,405. Five9 has a 1-year low of $13.29 and a 1-year high of $40.00. The firm’s fifty day moving average price is $34.54 and its 200-day moving average price is $24.49. 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 firm has a market cap of $2.15 billion, a P/E ratio of 41.97 and a beta of 1.56.

Analyst Upgrades and Downgrades

FIVN has been the subject of several research analyst reports. KeyCorp boosted their price objective on Five9 from $32.00 to $34.00 and gave the company an “overweight” rating in a report on Friday. Truist Financial reduced their target price on Five9 from $40.00 to $35.00 and set a “buy” rating on the stock in a report on Friday. Wall Street Zen downgraded Five9 from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. FBN Securities started coverage on Five9 in a research report on Wednesday, September 16th. They issued an “outperform” rating and a $40.00 target price for the company. Finally, Canaccord Genuity Group boosted their price target on Five9 from $33.00 to $39.00 and gave the company a “buy” rating in a report on Monday, August 24th. Twelve analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $33.94.

Insider Buying and Selling at Five9

In related news, CAO Leena Mansharamani sold 1,253 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $31.53, for a total transaction of $39,507.09. Following the sale, the chief accounting officer owned 52,417 shares in the company, valued at $1,652,708.01. This represents a 2.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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 Meriweather sold 5,114 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $31.55, for a total transaction of $161,346.70. Following the completion of the transaction, the insider directly owned 253,249 shares in the company, valued at $7,990,005.95. This represents a 1.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 worth $2,821,366 in the last quarter. 1.20% of the stock is currently owned by corporate insiders.

More Five9 News

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.