Five9 Stock Earnings Reports

Five9 reported an encouraging start to FY2026 with revenue of $305M (up 9% YoY) and subscription revenue growth of 13% YoY. Key drivers: CCaaS growth (8% YoY) and rapidly growing AI revenue (68% YoY), which is now ~13% of total subscription revenue and an annual AI run-rate north of $125M. Profitability and cash generation improved: adjusted EBITDA of $74M (24% of revenue), operating cash flow $64M and free cash flow $49M in Q1. Adjusted gross margin expanded year-over-year, and management reiterated 2026 full-year guidance raised to a midpoint of $1.26B revenue and non-GAAP EPS midpoint $3.26; annual adjusted EBITDA margin is expected to exceed 24% and free cash flow about $175M. Management highlighted four strategic priorities — culture, operations optimization, stabilizing the core, and winning in AI-enabled CX — and said they will drive clearer, trackable metrics and organizational changes (new hires, spans/layers reduction) to accelerate execution. Capital allocation: $10M repurchased in Q1; management intends to complete an accelerated repurchase of the remaining $90M under the prior authorization by end of Q3 and the Board approved an additional $200M buyback program. Management emphasized that AI is expanding the TAM by enabling customers to reallocate labor spend to software/consumption models, and that Five9’s cloud-native platform and ecosystem position it to capture integrated AI + CX demand. Near-term notes: AI revenue will be lumpy due to varying customer ramp schedules; management expects subscription/CCaaS growth to accelerate in H2 2026 driven by backlog conversion. They also published expanded supplemental metrics on the IR site and will shift DBRR disclosure to subscription-only DBRR (Q1 subscription DBRR 107%).