Five9 Q4 Earnings Surpass Expectations, Revenues Rise Y/Y

Five9, Inc. FIVN reported fourth-quarter 2025 earnings of 80 cents per share, which beat the Zacks Consensus Estimate by 1.3%. FIVN’s fourth-quarter earnings jumped 1.3% from the year-ago quarter’s 79 cents.

FIVN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 13.6%.

FIVN’s fourth-quarter revenues increased 8% year over year to $300.3 million and beat the Zacks Consensus Estimate by 0.9%. FIVN’s performance was driven by a rise in subscription revenues, which grew 12% year over year due to traction in Enterprise AI revenues.

Five9, Inc. Price, Consensus and EPS Surprise

Five9, Inc. price-consensus-eps-surprise-chart | Five9, Inc. Quote

FIVN’s Q4 Results in Detail

For the fourth quarter, FIVN posted an adjusted non-GAAP gross profit of $189.47 million, representing a robust improvement from the year-ago quarter’s $176.85 million. FIVN’s adjusted non-GAAP gross margin in the fourth quarter of 2025 was 63.1%, down 40 basis points year over year.

FIVN’s non-GAAP operating income increased to $61.62 million from $49.52 million reported in the year-ago quarter. FIVN’s non-GAAP operating margin in the fourth quarter of 2025 was 20.5%, up from year-ago quarter’s 17.8%.

General & administrative (G&A) expenses on a non-GAAP basis increased to $18.2 million from $17.7 million in the year-ago quarter. G&A expenses accounted for 6.1% of quarterly revenues, down from 6.4% in the year-ago quarter.

Research & development (R&D) expenditures on a non-GAAP basis decreased to $26.2 million from $31.9 million in the year-ago quarter. R&D expenses accounted for 8.7% of fourth-quarter revenues, down from 11.5% in the year-ago quarter.

Non-GAAP sales & marketing costs of $67.7 million were up from $62.9 million. The same represented 22.6% of fourth-quarter revenues, in line with the year-ago quarter’s level.

FIVN’s Balance Sheet & Cash Flow

FIVN exited the reported quarter with cash and cash equivalents and marketable investments of $696.92 million compared with $676.2 million at the end of the prior quarter.

The company generated an operating cash flow of $83.6 million in the fourth quarter. The company reported a free cash flow of $67.3 million and a free cash flow margin of 22% in the fourth quarter.

FIVN’s Guidance for Q1 and 2026

Five9 expects 2026 revenues in the range of $1.247-$1.261 billion. The Zacks Consensus Estimate for FIVN’s 2026 revenues is pegged at $1.26 billion, indicating year-over-year growth of 9.6%.

The company expects GAAP net income per share to be between 86 cents and 95 cents, assuming approximately 87.4 million diluted shares outstanding. Non-GAAP net income per share is anticipated in the range of $3.15-$3.21, based on roughly 78 million diluted shares outstanding. The Zacks Consensus Estimate for FIVN’s 2026 earnings is pegged at $3.19, indicating year-over-year growth of 8.3%.

For the first quarter of fiscal 2026, Five9 forecasts revenues between $296.5 million and $302.5 million. The Zacks Consensus Estimate for FIVN’s first-quarter 2026 revenues is pegged at $299.3 million, indicating year-over-year growth of 7%.

GAAP net income per share is projected in the range of 10-17 cents, with 86.4 million diluted shares outstanding, while non-GAAP net income per share is expected to be between 66 cents and 70 cents, assuming 77 million diluted shares outstanding. The Zacks Consensus Estimate for FIVN’s first-quarter 2026 earnings is pegged at 67 cents, indicating year-over-year growth of 8.1%.

Zacks Rank & Stocks to Consider

FIVN currently carries a Zacks Rank #3 (Hold).

Lam Research LRCX, Applied Materials AMAT and Amphenol APH are some better-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Lam Research, Applied Materials and Amphenol carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings is pegged at $5.26 per share, revised upward by 8.9% over the past 30 days and suggests a year-over-year increase of 27.1%. Lam Research shares have soared 176% over the past year.

The Zacks Consensus Estimate for Applied Materials’ fiscal 2026 earnings has moved upward by 13.1% over the past seven days to $10.88 per share, calling for an increase of 15.5% year over year. Applied Materials shares have climbed     115% in trailing 12 months.

The Zacks Consensus Estimate for Amphenol’s 2026 earnings has been revised upward to $4.32 per share from $4.24 over the past 30 days. Amphenol shares have surged 123.7% over the past year.

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This article originally published on Zacks Investment Research (zacks.com).

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