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, now comprising 82% of total revenue.

• Enterprise AI annual run rate revenue surpassed $100 million in Q4, growing 50% year-over-year and now 12% of enterprise subscription revenue.

• Adjusted EBITDA margin reached 26% in Q4, with free cash flow margin at 22%.

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

Financial highlights

• Q4 total revenue: $300 million, up 8% year-over-year; full-year revenue: $1.15 billion, up 10%.

• Subscription revenue: 12% year-over-year growth in Q4, now 82% of total revenue.

• Adjusted EBITDA margin reached 26% in Q4; Q4 adjusted gross margin was 63%.

• Free cash flow more than doubled year-over-year to a margin of 22% in Q4; 2025 free cash flow was $162.1 million.

• 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: $1.254 billion, with Q1 revenue guidance at $299.5 million.

• 2026 non-GAAP EPS guidance midpoint: $3.18 per diluted share; GAAP EPS midpoint: $0.91.

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

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

• Annual adjusted EBITDA margin expected at least 24%; annual free cash flow projected at ~$175 million.