Five9 (NasdaqGM:FIVN) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsAmit Mathradas - CEOAndy Dignan - PresidentArjun Bhatia - Co-Group Head of Technology, Media, and CommunicationsBryan Lee - CFOClark Wright - Senior Research AssociateMike Burkland - ChairmanPeter Levine - Managing DirectorSamad Samana - Managing DirectorYanni Samoilis - Equity Research AssociateNone - Company RepresentativeConference Call ParticipantsCatharine Trebnick - Senior Research Analyst for Cloud Communica ...

Five9 (NasdaqGM:FIVN) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Speaker11Thank you for joining us today. Certain statements made during the course of this conference call that are not historical facts, including those regarding the future financial performance and cash position of the company, expected improvements in financial and related metrics, expected ARR from certain customers, certain expected revenue mix shifts, expectations regarding seasonality, customer growth, anticipated customer ben ...

This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. Disclosure of this presentation, its contents, extracts or abstracts to third parties is not authorized without the express written permission of Five9, Inc. (the "Company"), and it may not be retained, reproduced or distributed, in whole or in part, by any means (including electronic) without the prior written consent of Five9, Inc. This presentation speaks only as of the date of first public ...

• 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. Exhibit 99.1 Five9 Reports Record Full Year 2025 Revenue of $1.1 Billion Q4 Subscription Revenue Growth of 12% Q4 Enterprise AI Revenue Growth of 50% Q4 Record Operating Cash Flow of $84 Million SAN RAMON, Calif. - February 19, 2026 - Five9, Inc. (NASDAQ:FIVN), the I ...

Company Overview - Five9 is a leading provider of cloud software for contact centers, focusing on scalable, multi-channel customer engagement solutions [6] - The company serves various sectors including banking, healthcare, technology, and education, utilizing advanced technologies like natural language processing and automatic speech recognition [9] Financial Performance - For the trailing twelve months (TTM), Five9 reported revenue of $1.1 billion and a net income of -$31.3 million [4] - The market capitalization of Five9 is $1.30 billion, with shares priced at $16.57 as of February 12, 2026, reflecting a 59.8% decline over the past year [4][8] Recent Developments - Gagnon Advisors, LLC increased its holdings in Five9 by 168,891 shares, valued at approximately $3.58 million, raising its stake to 4.28% of reportable assets under management (AUM) [2][8] - Following the transaction, the valuation of Gagnon’s position in Five9 increased by $2.69 million due to additional shares and market price changes [2] Market Sentiment - Despite a negative sentiment surrounding Five9, the company reported record third-quarter revenue of $285.8 million, an 8% year-over-year increase, with adjusted EBITDA reaching $71.7 million, resulting in a 25.1% margin [10] - Operating cash flow for the quarter was $59 million, up from $41.1 million a year earlier, indicating improved operational efficiency [10]

Key Takeaways The Zacks Consensus Estimate of $297.7 million for FIVN's Q4 revenues implies a Y/Y increase of 6.8%.The consensus mark for FIVN's Q4 EPS of 79 cents indicates Y/Y growth of 1.3%.Enterprise AI strength and partnerships are likely to have supported Q4 performance.Five9, Inc. (FIVN) is set to report its fourth-quarter 2025 results on Feb 19.The company expects revenues in the band of $294.7-$300.7 million for the fourth quarter. The Zacks Consensus Estimate for revenues is pegged at $297.71 mill ...

Core Insights - Five9, Inc. (FIVN) has experienced a significant stock decline of nearly 30% since a Buy rating was issued in mid-October, indicating potential volatility in its market performance [1] Company Analysis - The analyst emphasizes a focus on companies with strong fundamentals and real potential, particularly in the tech, infrastructure, and internet services sectors [1] - The analyst's background in petroleum and gas engineering, combined with a transition to finance, highlights a diverse skill set that informs investment analysis [1] Investment Strategy - The article aims to share investment ideas and foster connections among investors who prioritize long-term returns over short-term market fluctuations [1]

Core Insights - Five9, Inc. (NASDAQ:FIVN) is identified as one of the 14 oversold value stocks to consider for investment [1] - The company's shares hit a 52-week low of $16.10, down over 60% from its 52-week high of $49.90, reflecting significant challenges in the SaaS sector [2] - Five9 announced an expanded partnership with Google Cloud, launching a joint Enterprise CX AI solution that enhances customer experience and operational agility [3] - Morgan Stanley reduced its price target for Five9 from $30 to $26, maintaining an 'Equal Weight' rating, while noting the underperformance of the SaaS sector [4] - Five9 specializes in AI-driven contact center solutions, including routing, analytics, workforce management, and reporting for enterprises [5] Company Developments - The partnership with Google Cloud integrates Five9's AI-Infused Intelligent CX Platform with Google's Gemini Enterprise and Vertex AI, aiming to deliver personalized customer experiences [3] - The recent price target adjustment by Morgan Stanley reflects broader market conditions and expectations for AI-related risks in 2026 [4] Market Context - Five9's stock performance is indicative of broader headwinds faced by the SaaS sector, which has seen significant declines [2][4] - The company is positioned within a competitive landscape of AI-driven solutions, with ongoing developments aimed at enhancing its market offering [5]

Core Insights - The fourth-quarter 2025 earnings for Internet stocks were significantly influenced by the acceleration of artificial intelligence (AI) adoption and substantial infrastructure investments, with major tech companies increasing capital expenditures, notably Meta's spending nearly doubling to $115-$135 billion for 2026 to support AI initiatives [1][4] - AI-driven demand led to strong revenue growth, particularly benefiting software analytics companies and cloud computing providers, while social media platforms saw revenue boosts from strong advertising demand and improved AI-powered recommendation algorithms [1][4] Company Performance - Meta Platforms (META) experienced a strong fourth-quarter performance, benefiting from increased AI integration across its services, which reach over 3.58 billion users daily, and an improved recommendation system that enhances user engagement [2] - Spotify Technology is expected to report fourth-quarter revenues of €4.5 billion, reflecting a 13% year-over-year growth, with significant user engagement driven by AI-driven personalization and a 54% surge in video podcast consumption [12] - Fastly anticipates fourth-quarter revenues between $159-$163 million, with a non-GAAP EPS of 4-8 cents, supported by accelerating security revenue and successful cross-sell initiatives [14] - Akamai Technologies is projected to benefit from robust growth in Cloud Infrastructure Services, with annual recurring revenue growth of 40-45%, driven by major contract wins and AI-driven demand [16] - Five9 expects sequential revenue growth towards a guided $297.7 million midpoint, fueled by strong backlog conversion and a 41% year-over-year surge in enterprise AI revenue [18] Market Dynamics - The digital advertising market showed resilience, benefiting from improved targeting technologies that enhanced return on investment for advertisers, while cloud infrastructure demand continued to expand as enterprises accelerated digital transformation initiatives [5] - The Federal Reserve's monetary easing cycle has supported growth-oriented Internet stocks, creating a more favorable financial environment, alongside seasonal market patterns that historically boost fourth-quarter performance [6] - Despite these positive dynamics, tariff-related uncertainties and economic deceleration concerns pose challenges, particularly for advertising-dependent business models and traditional software application companies [7][8]

Group 1: Company Overview - Five9 Inc. (NASDAQ:FIVN) provides intelligent cloud software for contact centers, offering a customer experience (CX) platform that includes a suite of applications for customer service, sales, and marketing functions [4]. Group 2: Analyst Ratings and Price Targets - Morgan Stanley lowered its price target for Five9 to $26 from $30 while maintaining an Equal Weight rating, noting that SaaS stocks lagged behind the broader software and technology sectors in 2025 [1]. - Barclays analyst Raimo Lenschow reduced the price target on Five9 to $25 from $29, keeping an Overweight rating, as part of a generally positive outlook for the software sector despite the lowered targets [3]. Group 3: Market Outlook - There is growing evidence that AI-related risks may be less severe than previously anticipated, leading to a more positive outlook for the SaaS group in 2026 [2]. - Despite the positive outlook, there is a persistent lack of widespread upward revisions in corporate spending, leading firms to remain selectively opportunistic [2]. - Barclays cited stable macroeconomic conditions and IT spending, along with low stock valuations and the sector being currently out of favor, as reasons for a favorable setup in the coming year [3].