Five9 (FIVN) investor relations material

Executive summary

• Q1 2026 revenue grew 9% year-over-year to $305.3 million, with subscription revenue up 13% and comprising 82% of total revenue.

• Adjusted EBITDA margin reached 24.4%, up from 18.8% a year ago, reflecting improved operational efficiency.

• Net income rose to $18.4 million from $0.6 million in Q1 2025, with non-GAAP net income at $58.6 million.

• New leadership and organizational changes, including the appointment of a Chief Marketing and Growth Officer, aim to drive growth and unify marketing strategy.

• Continued investment in AI-powered customer experience solutions and international expansion, with industry recognition for leadership in CCaaS and AI.

Financial highlights

• Adjusted gross margin improved to 64% (non-GAAP), with GAAP gross margin at 56%; adjusted gross profit was $194 million.

• Adjusted EBITDA was $74.5 million, up from $52.7 million a year ago.

• Cash from operations was $64 million, with free cash flow at $49 million (16% of revenue), benefiting from a one-time vendor discount.

• Cash, cash equivalents, and marketable investments totaled $724–$782.6 million at quarter end.

• Stock-based compensation expense reduced to $33 million, a 3 percentage point decrease as a percent of revenue year-over-year.

Outlook and guidance

• Q2 2026 revenue guidance: $303–$309 million; non-GAAP EPS: $0.65–$0.69 per diluted share.

• Full year 2026 revenue guidance: $1.254–$1.266 billion; non-GAAP EPS: $3.22–$3.30; adjusted EBITDA margin expected to exceed 24%.

• Annual free cash flow expected to be approximately $175 million.

• AI revenue growth for 2026 anticipated to exceed 40% year-over-year.

• Guidance for Q2 2026 includes an $8–9 million impairment loss related to headquarters consolidation, excluded from non-GAAP measures.