Five9 achieves milestone annual revenue driven by strong enterprise demand and continued growth in AI-powered customer experience solutions.
Five9, Inc. a leading provider of the Intelligent CX Platform, delivered a strong finish to fiscal 2025, reporting solid fourth-quarter and full-year financial results that underscore its expanding role in the rapidly evolving AI-powered customer experience (CX) market. The company highlighted record revenue, improving profitability, expanding margins, and robust cash flow generation as it transitions leadership and positions itself for accelerated growth in 2026 and beyond.
Fourth Quarter 2025 Financial Performance
For the fourth quarter ended December 31, 2025, Five9 reported revenue of $300.3 million, representing an 8% year-over-year increase compared to $278.7 million in the fourth quarter of 2024. The quarterly performance marked a record revenue level for the company and reflected steady enterprise demand for its cloud-based contact center and AI-driven CX solutions.
Gross margins remained resilient. On a GAAP basis, gross margin for the quarter was 55.4%, slightly down from 56.0% in the same period last year. On a non-GAAP or adjusted basis, gross margin was 63.1%, compared to 63.5% in the fourth quarter of 2024. While margins experienced modest year-over-year compression, they remained strong overall, reflecting disciplined cost management and a scalable cloud infrastructure.
Profitability showed meaningful improvement. GAAP net income for the quarter rose to $19.7 million, or 6.6% of revenue, translating to $0.23 per diluted share. This compares favorably to GAAP net income of $11.6 million, or 4.2% of revenue and $0.13 per diluted share, in the fourth quarter of 2024. The year-over-year expansion in GAAP profitability highlights Five9’s continued operating leverage and improved cost efficiency.
On a non-GAAP basis, net income for the fourth quarter reached $62.4 million, or 20.8% of revenue and $0.80 per diluted share. This compares to non-GAAP net income of $60.3 million, or 21.6% of revenue and $0.79 per diluted share, in the prior-year period. While the non-GAAP margin percentage dipped slightly, the company delivered incremental earnings growth and improved absolute profitability.
Adjusted EBITDA, a key measure of operating performance, increased significantly to $77.3 million, representing 25.7% of revenue. This compares with $64.3 million, or 23.1% of revenue, in the fourth quarter of 2024. The 260-basis-point margin expansion demonstrates improving operational efficiency and strong expense discipline amid continued investment in AI innovation and go-to-market initiatives.
Cash generation was another highlight. GAAP operating cash flow for the quarter was $83.6 million, a substantial increase from $49.8 million in the same quarter last year. This improvement reflects stronger earnings performance, effective working capital management, and the scalability of Five9’s subscription-based business model.
Full Year 2025 Results
For the full year ended December 31, 2025, Five9 delivered record total revenue of $1.149 billion, representing 10% growth compared to $1.042 billion in 2024. The company exited the year with a revenue run rate of approximately $1.2 billion, underscoring sustained demand across enterprise and mid-market customers adopting cloud-native CX solutions.
GAAP gross margin for the full year improved to 55.1%, up from 54.2% in 2024. On an adjusted basis, gross margin expanded to 62.8%, compared to 61.7% in the prior year. These gains reflect efficiencies in infrastructure, scale benefits, and optimization of service delivery.
The most notable improvement came in bottom-line performance. Five9 reported GAAP net income of $39.4 million for 2025, or 3.4% of revenue and $0.45 per diluted share. This marks a significant turnaround from 2024, when the company posted a GAAP net loss of $12.8 million, or $(0.17) per basic share. The swing to GAAP profitability underscores successful cost controls, higher recurring revenue, and margin expansion initiatives.
Non-GAAP net income for 2025 rose to $228.7 million, or 19.9% of revenue and $2.96 per diluted share, compared to $185.3 million, or 17.8% of revenue and $2.47 per diluted share, in 2024. This improvement highlights both revenue growth and expanding operating leverage as the company scales its AI-driven CX platform.
Adjusted EBITDA for the year climbed to $269.7 million, representing 23.5% of revenue, compared to $196.0 million, or 18.8% of revenue, in 2024. The nearly five-percentage-point margin expansion reflects disciplined expense management and improved efficiency across sales, marketing, research and development, and general and administrative functions.
Operating cash flow for the year reached $226.2 million, compared to $143.2 million in 2024. The substantial increase in cash generation strengthens Five9’s balance sheet flexibility and supports continued investments in product innovation, AI capabilities, and strategic growth initiatives.
Leadership Transition and Strategic Vision
In conjunction with its strong financial performance, Five9 emphasized a pivotal leadership transition. Chairman of the Board Mike Burkland expressed confidence in the company’s trajectory and in its new CEO, Amit Mathradas.
Burkland noted that the customer experience market is undergoing a major transformation as artificial intelligence becomes central to how businesses engage with customers. Five9’s end-to-end Intelligent CX Platform integrates AI across the customer journey, positioning the company to capitalize on this structural shift.
Amit Mathradas, recently appointed Chief Executive Officer, shared enthusiasm about leading the organization. In his first weeks, he highlighted the strength of Five9’s platform and team and reaffirmed his commitment to driving growth, increasing profitability, and delivering long-term shareholder value. His leadership comes at a critical time as enterprises increasingly prioritize AI-enabled automation, analytics, and omnichannel engagement to enhance customer satisfaction and operational efficiency.
2026 Business Outlook
Looking ahead, Five9 provided financial guidance for both the first quarter and full year 2026. Management emphasized that its outlook is based on current market conditions and remains subject to macroeconomic uncertainties and other risk factors outlined in forward-looking statements.
For the full year 2026, Five9 expects:
- Revenue in the range of $1.247 billion to $1.261 billion, implying continued growth from 2025 levels.
- GAAP net income per diluted share between $0.86 and $0.95, based on approximately 87.4 million diluted shares outstanding.
- Non-GAAP net income per diluted share between $3.15 and $3.21, based on approximately 78.0 million diluted shares outstanding.
The guidance signals expectations of sustained revenue expansion and further profitability improvement as AI adoption accelerates and Five9 deepens enterprise penetration.
For the first quarter of 2026, the company anticipates:
- Revenue between $296.5 million and $302.5 million.
- GAAP net income per diluted share between $0.10 and $0.17, assuming approximately 86.4 million diluted shares outstanding.
- Non-GAAP net income per diluted share between $0.66 and $0.70, assuming approximately 77.0 million diluted shares outstanding.
These projections indicate continued momentum entering the new fiscal year, although management remains mindful of macroeconomic challenges and customer spending patterns.
AI-Driven CX Market Opportunity
Five9’s results and outlook reflect broader industry dynamics. The convergence of artificial intelligence, automation, analytics, and cloud infrastructure is reshaping the contact center and customer experience landscape. Enterprises are increasingly seeking integrated platforms capable of supporting omnichannel communication, intelligent virtual agents, predictive analytics, and seamless human-agent collaboration.
Five9’s Intelligent CX Platform aims to address this demand by offering end-to-end capabilities that combine cloud contact center infrastructure with embedded AI tools. The company’s ability to scale profitably while investing in innovation positions it competitively within the fast-growing CX technology ecosystem.
The improved EBITDA margins and positive GAAP earnings trajectory suggest that Five9 is balancing growth and profitability effectively—an important consideration for investors amid shifting macroeconomic conditions.
Conference Call and Investor Communication
Five9 scheduled a conference call and Zoom webinar to discuss its fourth-quarter and full-year 2025 results on February 19, 2026, at 4:30 p.m. Eastern Time. The company also indicated that a copy of the earnings press release would be furnished to the U.S. Securities and Exchange Commission on Form 8-K and posted to its investor relations website prior to the call.
