8-K: Five9 Reports Record 2025 Revenue, Strong AI Growth

Five9, Inc. announced record full-year 2025 revenue of $1.1 billion and strong fourth-quarter performance, driven by significant growth in Enterprise AI revenue.

Summary

• Full Year 2025 total revenue increased 10% to a record $1,149.1 million, compared to $1,041.9 million in 2024.
• Fourth Quarter 2025 revenue increased 8% to a record $300.3 million, compared to $278.7 million for the fourth quarter of 2024.
• Q4 2025 Subscription Revenue Growth was 12%.
• Q4 2025 Enterprise AI Revenue Growth was 50%.
• Full Year 2025 GAAP net income was $39.4 million, or $0.45 per diluted share, a significant improvement from a GAAP net loss of $(12.8) million in 2024.
• Full Year 2025 Non-GAAP net income was $228.7 million, or $2.96 per diluted share, up from $185.3 million in 2024.
• Full Year 2025 Adjusted EBITDA was $269.7 million, or 23.5% of revenue, compared to $196.0 million, or 18.8% of revenue, in 2024.
• Q4 2025 Adjusted EBITDA 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.
• Q4 2025 GAAP operating cash flow was a record $83.6 million, compared to $49.8 million for the fourth quarter of 2024.
• For the full year 2026, Five9 expects revenue in the range of $1.247 to $1.261 billion and non-GAAP net income per share in the range of $3.15 to $3.21.
• For the first quarter of 2026, Five9 expects revenue in the range of $296.5 to $302.5 million and non-GAAP net income per share in the range of $0.66 to $0.70.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong report, highlighted by a return to GAAP profitability, robust AI revenue growth, and positive forward guidance, indicating solid operational execution and market positioning.

Positives

• Record full-year 2025 revenue of $1,149.1 million, representing a 10% increase year-over-year.
• Strong Q4 2025 revenue growth of 8% to $300.3 million.
• Significant Q4 Enterprise AI revenue growth of 50%, highlighting strong performance in a key strategic area.
• Record Q4 GAAP operating cash flow of $83.6 million, indicating robust cash generation.
• Return to GAAP net income of $39.4 million for full-year 2025, a substantial improvement from a GAAP net loss in 2024.
• Improved Adjusted EBITDA margin for both Q4 2025 (25.7%) and full-year 2025 (23.5%), demonstrating enhanced operational efficiency.
• Positive outlook for full-year 2026 revenue ($1.247 to $1.261 billion) and non-GAAP net income per share ($3.15 to $3.21).

Negatives

• GAAP gross margin slightly decreased in Q4 2025 to 55.4% from 56.0% in Q4 2024.
• Adjusted gross margin slightly decreased in Q4 2025 to 63.1% from 63.5% in Q4 2024.
• Non-GAAP net income as a percentage of revenue decreased in Q4 2025 to 20.8% from 21.6% in Q4 2024.
• Cash and cash equivalents decreased from $362,546 thousand at December 31, 2024, to $232,084 thousand at December 31, 2025.
• Marketable investments decreased from $643,410 thousand at December 31, 2024, to $464,835 thousand at December 31, 2025.

Risks

• The impact of adverse economic conditions, including macroeconomic challenges, inflation, high interest rates, currency fluctuations, and global conflicts, may continue to harm the business.
• Inability to attract new customers or sell additional services and functionality to existing customers could harm revenue and revenue growth.
• Existing customers terminating or reducing subscriptions, or failing to grow subscriptions at expected rates, would harm revenues and gross margins.
• Downturns or upturns in new sales may not be immediately reflected in operating results and may be difficult to discern.
• Failure to manage technical operations infrastructure could lead to service outages, deployment delays, and claims for credits or damages.
• Inability to attract and retain highly skilled leaders and other employees may harm the business and results of operations.
• If the company is unable to replace decreases in subscription revenue from licenses with revenue from additional AI solutions, as AI performs an increasing proportion of contact center interactions, revenue, results of operations, and business will be harmed.
• Further development of AI solutions may not be successful and could result in reputational harm and materially harm future operating results.
• AI technology and features incorporated into the solution include new and evolving technologies that may present both legal and business risks.
• Failure to effectively develop, manage, and maintain the network of technology solution distributors and resellers could materially harm revenues.
• Quarterly and annual results may fluctuate significantly due to the timing and success of new product and feature introductions, potentially leading to decreases in common stock price.
• Historical growth may not be indicative of future growth, and failure to manage growth effectively could harm the business.
• Failure to adequately retain and expand the sales force will impede growth.
• The use of AI by the workforce may present risks to the business.
• The contact center software solutions market is subject to rapid technological change, requiring continuous development of incremental and new solutions.
• Growth depends in part on the success of strategic relationships with third parties, and failure to maintain, grow, and manage these relationships could harm the business.
• The markets in which the company participates involve a high and increasing number of competitors, and failure to compete effectively could harm operating results.
• Expanding international operations exposes the company to significant macroeconomic and other risks.
• Security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of data could result in litigation, regulatory risk, and harm to reputation, business, or financial results.
• Acquisitions of other companies or technologies, or being the target of strategic transactions, could divert management's attention, result in additional dilution, or use significant cash resources.
• Selling solutions to larger organizations requires longer sales and implementation cycles and often demands more configuration and integration services or customized features, which could delay sales and harm growth rates.
• Reliance on third-party telecommunications and internet service providers means any failure by these providers could cause loss of customers and claims for credits or damages.
• Prior to 2025, the company had a history of losses and may be unable to sustain profitability.
• The stock price has been volatile, may continue to be volatile, and may decline due to factors beyond the company's control.
• Inability to secure additional financing on favorable terms, or at all, to meet future capital needs.
• Failure to comply with laws and regulations could harm the business and reputation.
• Insufficient cash to service convertible senior notes and repay such notes, if required, and other risks attendant to convertible senior notes and increased debt levels.
• Risks that the company may not execute repurchases in full under its announced stock repurchase program, or may not achieve the intended benefits therefrom.

Future Outlook

Five9 expects full-year 2026 revenue in the range of $1.247 to $1.261 billion and non-GAAP net income per share in the range of $3.15 to $3.21. For the first quarter of 2026, revenue is projected between $296.5 to $302.5 million, with non-GAAP net income per share between $0.66 to $0.70. This guidance is subject to various important cautionary factors, including risks and uncertainties associated with ongoing macroeconomic challenges.

Management Comments

• "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

Industry Context

StockSavvy.ai notes that Five9's strong growth in Enterprise AI revenue and management's emphasis on AI-powered CX align with broader industry trends of increasing adoption of artificial intelligence in customer service and contact center solutions. The company's focus on an end-to-end platform positions it to capitalize on this market transformation, competing with other cloud contact center providers by integrating advanced AI capabilities.

Management Changes

Corporate Governance

Legal Proceedings

• Legal fees related to the securities class action are mentioned as a non-GAAP adjustment, indicating ongoing litigation.

Stakeholder Impact

• Shareholders: Positive impact due to the company's return to GAAP profitability, strong revenue growth, improved margins, and positive future outlook, which could lead to increased shareholder value.
• Employees: The mention of 'costs related to reduction in force plans' in non-GAAP adjustments for both 2025 and 2024 suggests past or ongoing workforce adjustments, which could impact employee morale. However, the company's focus on AI and growth may also present new opportunities.
• Customers: Benefit from the continued development and enhancement of the 'Intelligent CX Platform' and 'AI-powered CX' solutions, indicating ongoing investment in product innovation and service quality.
• Creditors: Improved financial health, particularly the return to GAAP net income and strong operating cash flow, enhances the company's ability to meet its debt obligations and improves its creditworthiness.

Next Steps

• Five9 will discuss its fourth quarter 2025 results via Zoom webinar on February 19, 2026, at 4:30 p.m. Eastern Time.
• The 2026 Annual Meeting of Stockholders will be held virtually via the Internet on May 20, 2026, beginning at 8:30 a.m. Pacific Daylight Time.

Key Dates

Recommendation

The company has demonstrated a significant turnaround to GAAP profitability in 2025, coupled with robust revenue growth, particularly in the high-growth Enterprise AI segment (50% in Q4). Strong operating cash flow and improved Adjusted EBITDA margins indicate efficient operations. The positive guidance for 2026 suggests continued momentum and confidence in future performance, making it an attractive investment for long-term growth.

Keywords

Five9, FIVN, Financial Results, Q4 2025, Full Year 2025, Revenue, Net Income, Adjusted EBITDA, Operating Cash Flow, AI, Customer Experience, CX Platform, Cloud Contact Center, Earnings, Guidance, Shareholder Meeting