Five9 (FIVN) Q1 2026 earnings summary

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 and cost controls.

• Net income rose to $18.4 million ($0.21 per diluted share), up from $0.6 million ($0.01 per share) in Q1 2025.

• Four strategic priorities include performance-driven culture, operational optimization, core business stabilization, and leadership in AI-powered customer experiences.

• Recognized as a leader in CCaaS and AI innovation by industry analysts and awards.

Financial highlights

• Q1 2026 adjusted gross margin was 64%, with adjusted gross profit at $194 million; GAAP gross margin was 55.9%.

• Adjusted EBITDA was $74.5 million (24.4% of revenue), up from $52.7 million (18.8%) a year ago.

• Free cash flow for Q1 2026 was $49 million (16% of revenue).

• Cash and cash equivalents were $273.0 million, with total cash, cash equivalents, and marketable investments at $782.6 million as of March 31, 2026.

• Net cash provided by operating activities was $63.9 million, up from $48.4 million a year earlier.

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.

• Annual adjusted EBITDA margin expected to exceed 24%; annual free cash flow projected at ~$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.