Here's Voss Capital's Investment Thesis on its Long Position Five9 (FIVN)

Voss Capital, LLC, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +1.0% and +0.6% to investors net of fees and expenses respectively, in the second quarter compared to a +8.5% return for the Russell 2000 Index, +5.0% return for the Russell 2000 Value Index, and +10.9% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 165.6% and the net long exposure was 68.9% as of June 30, 2025. The weight of the fund’s top 10 longs was 66.9% and the top 10 shorts were -40.8%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Voss Capital highlighted stocks such as Five9, Inc. (NASDAQ:FIVN). Five9, Inc. (NASDAQ:FIVN) provides intelligent cloud software for contact centers. The one-month return of Five9, Inc. (NASDAQ:FIVN) was 4.57%, and its shares lost 18.00% of their value over the last 52 weeks. On August 27, 2025, Five9, Inc. (NASDAQ:FIVN) stock closed at $27.01 per share, with a market capitalization of $2.087 billion.

Voss Capital stated the following regarding Five9, Inc. (NASDAQ:FIVN) in its second quarter 2025 investor letter:

"Five9, Inc. (NASDAQ:FIVN) is a leading provider of cloud-based contact center software, enabling enterprises to modernize customer engagement through omnichannel solutions and increasingly AI-driven automation.

The accusation is usually a story; the defense is usually a statistic. It is hard to debunk and fight a story that up until now has been completely hypothetical—in FIVN’s case it is that AI is an existential threat to the Contact Center as a Service (CCaaS) ecosystem. Hard categorizations and short attention spans rob many stocks of their nuance and FIVN is no different, thus it will take time and repetition to shift the current narrative. Until then, or until the company is acquired, the investment window is wide open.

Five9’s software remains deeply integrated into enterprise IT ecosystems: its APIs plug directly into partners like ServiceNow and Salesforce, and customers must use Five9’s agent desktop to access AI functionality, reinforcing stickiness. With ~60% of its $24 billion core CCaaS addressable market still on-premise and migrating rapidly to cloud, and with AI adoption driving both growth and margin expansion, we see potential for Voss Sauce..." (Click here to read the full text)

Five9, Inc. (NASDAQ:FIVN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Five9, Inc. (NASDAQ:FIVN) at the end of the second quarter, which was 44 in the previous quarter. In Q2 2025, Five9, Inc. (NASDAQ: FIVN) reported a 12% year-over-year revenue growth, primarily driven by subscription revenue growth, which accelerated to 16% year-over-year. While we acknowledge the potential of Five9, Inc. (NASDAQ:FIVN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Five9, Inc. (NASDAQ:FIVN) and shared the list of best stocks to buy in falling markets according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.