Five9 (FIVN) Q4 2025 earnings summary

Executive summary

• Achieved record full-year 2025 revenue of $1.15 billion, up 10% year-over-year, with Q4 revenue of $300 million, up 8% from Q4 2024.

• Q4 subscription revenue grew 12% year-over-year and now comprises 82% of total revenue.

• Enterprise AI annual run rate revenue surpassed $100 million in Q4, growing 50% year-over-year, with AI bookings for enterprise more than doubling.

• Leadership transition completed, with Amit Mathradas appointed as CEO, bringing deep product and AI experience.

• Expanded partnership with Google Cloud, launching a joint enterprise CX AI solution.

Financial highlights

• Q4 adjusted EBITDA margin reached 26%, up 260 basis points year-over-year; full-year adjusted EBITDA margin expanded to 23.5%.

• Free cash flow more than doubled year-over-year to a margin of 22% in Q4; full-year free cash flow was $162.1 million.

• Q4 adjusted gross margin was 63%, down slightly year-over-year; full-year adjusted gross margin improved to 62.8%.

• Q4 GAAP EPS was $0.23 per diluted share; non-GAAP EPS was $0.80.

• Ended Q4 with $697 million in cash and investments; year-end 2025 total debt was $746.7 million.

Outlook and guidance

• 2026 revenue guidance midpoint set at $1.254 billion, with Q1 revenue guidance at $299.5 million.

• 2026 non-GAAP EPS guidance midpoint at $3.18; GAAP EPS at $0.91.

• Expect double-digit revenue growth to return in the second half of 2026, driven by backlog conversion and AI momentum.

• Annual adjusted EBITDA margin expected at least 24%; free cash flow guidance at approximately $175 million.

• Medium-term model (2027): revenue growth of 10–15%, adjusted gross margin of 66–68%+, and adjusted EBITDA margin of 25–30%+.