Revenue growth has decelerated to 10.3% in 2026Q2 from 16.6% in 2024Q4, while operating margin improved to 0.6% from -8.4% over the same period, indicating early operating leverage despite gross margins plateauing at 53.4%.
Five9, Inc. (FIVN) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 1.2B | 1.15B | 1.04B | 910.49M | 778.85M | 609.59M | 434.91M | 328.01M | 257.66M | 200.22M | 162.09M | 128.87M | 103.1M | 84.13M | 63.82M |
| Revenue Growth % | 8.87% | 10.28% | 14.44% | 16.9% | 27.77% | 40.17% | 32.59% | 27.3% | 28.69% | 23.53% | 25.78% | 24.99% | 22.55% | 31.82% | - |
| Cost of Goods Sold | 545.32M | 521.06M | 477.54M | 432.69M | 367.5M | 271.1M | 180.28M | 134.51M | 104.03M | 83.1M | 66.93M | 59.49M | 54.66M | 48.81M | 39.31M |
| COGS % of Revenue | - | 45.35% | 45.83% | 47.52% | 47.19% | 44.47% | 41.45% | 41.01% | 40.38% | 41.51% | 41.29% | 46.17% | 53.02% | 58.01% | 61.59% |
| Gross Profit | 658.56M | 628.03M | 564.4M | 477.8M | 411.35M | 338.49M | 254.62M | 193.5M | 153.63M | 117.12M | 95.16M | 69.37M | 48.44M | 35.33M | 24.52M |
| Gross Margin % | 54.7% | 54.65% | 54.17% | 52.48% | 52.81% | 55.53% | 58.55% | 58.99% | 59.62% | 58.49% | 58.71% | 53.83% | 46.98% | 41.99% | 38.41% |
| Gross Profit Growth % | - | 11.27% | 18.12% | 16.16% | 21.52% | 32.94% | 31.59% | 25.95% | 31.17% | 23.08% | 37.17% | 43.21% | 37.13% | 44.09% | - |
| Operating Expenses | 600.09M | 595.41M | 615.7M | 576.37M | 498.93M | 394.74M | 266.93M | 190.23M | 146.62M | 122.84M | 101.7M | 90.52M | 83.97M | 63.65M | 41.57M |
| OpEx % of Revenue | - | 51.82% | 59.09% | 63.3% | 64.06% | 64.76% | 61.38% | 58% | 56.9% | 61.35% | 62.74% | 70.24% | 81.44% | 75.65% | 65.14% |
| Selling, General & Admin | 451.61M | 448.39M | 431.6M | 419.79M | 357.13M | 287.85M | 198.18M | 145.04M | 112.45M | 95.72M | 77.82M | 67.86M | 61.86M | 46.12M | 28.35M |
| SG&A % of Revenue | - | 39.02% | 41.42% | 46.11% | 45.85% | 47.22% | 45.57% | 44.22% | 43.64% | 47.81% | 48.01% | 52.66% | 60% | 54.82% | 44.43% |
| Research & Development | 153.8M | 152.33M | 166.2M | 156.58M | 141.79M | 106.9M | 68.75M | 45.19M | 34.17M | 27.12M | 23.88M | 22.66M | 22.11M | 17.53M | 13.22M |
| R&D % of Revenue | - | 13.26% | 15.95% | 17.2% | 18.21% | 17.54% | 15.81% | 13.78% | 13.26% | 13.54% | 14.73% | 17.58% | 21.44% | 20.84% | 20.71% |
| Other Operating Expenses | -1000K | -5.32M | 17.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 29K | 0 |
| Operating Income | 58.46M | 32.63M | -51.3M | -98.58M | -87.58M | -56.25M | -12.3M | 3.27M | 7.01M | -5.72M | -6.54M | -21.15M | -35.53M | -28.32M | -17.05M |
| Operating Margin % | 4.86% | 2.84% | -4.92% | -10.83% | -11.25% | -9.23% | -2.83% | 1% | 2.72% | -2.86% | -4.04% | -16.41% | -34.46% | -33.66% | -26.72% |
| Operating Income Growth % | - | 163.59% | 47.96% | -12.55% | -55.7% | -357.13% | -476.65% | -53.39% | 222.54% | 12.57% | 69.07% | 40.47% | -25.45% | -66.06% | - |
| EBITDA | 184.64M | 137.5M | 1.6M | -50.06M | -42.91M | -8.82M | 18.47M | 22.38M | 17.28M | 2.59M | 1.85M | -13.76M | -29.07M | -23.91M | -14.43M |
| EBITDA Margin % | 15.34% | 11.97% | 0.15% | -5.5% | -5.51% | -1.45% | 4.25% | 6.82% | 6.71% | 1.3% | 1.14% | -10.68% | -28.19% | -28.42% | -22.61% |
| EBITDA Growth % | 334.86% | 8482.83% | 103.2% | -16.66% | -386.52% | -147.76% | -17.46% | 29.47% | 566.27% | 40.37% | 113.43% | 52.65% | -21.58% | -65.66% | - |
| D&A (Non-Cash Add-back) | 126.17M | 104.87M | 52.91M | 48.52M | 44.67M | 47.43M | 30.77M | 19.11M | 10.27M | 8.31M | 8.39M | 7.39M | 6.46M | 4.42M | 2.62M |
| EBIT | 79.31M | 59.02M | 2.06M | -71.78M | -82.77M | -56.25M | -16.23M | 9.35M | 7.01M | -5.23M | -7.57M | -21.05M | -33.54M | -30.16M | -18.71M |
| Net Interest Income | 3.92M | 4.14M | 31.93M | 19.15M | -2.68M | -8.04M | -25.31M | -7.71M | -6.93M | -2.98M | -4.24M | -4.63M | -3.92M | -1.05M | -543K |
| Interest Income | 16.71M | 18.22M | 46.74M | 26.8M | 4.81M | 0 | 3.03M | 6.08M | 3.31M | 490K | 0 | 100K | 245K | 29K | 14K |
| Interest Expense | 12.79M | 14.08M | 14.81M | 7.65M | 7.49M | 8.04M | 28.35M | 13.79M | 10.24M | 3.47M | 4.24M | 4.73M | 4.16M | 1.08M | 557K |
| Other Income/Expense | 8.05M | 12.32M | 38.55M | 19.15M | -2.68M | -8.04M | -32.28M | -7.71M | -6.93M | -2.98M | -5.26M | -4.63M | -2.17M | -2.92M | -2.22M |
| Pretax Income | 66.52M | 44.94M | -12.76M | -79.42M | -90.26M | -64.28M | -44.58M | -4.45M | 79K | -8.7M | -11.81M | -25.78M | -37.7M | -31.24M | -19.27M |
| Pretax Margin % | 5.53% | 3.91% | -1.22% | -8.72% | -11.59% | -10.55% | -10.25% | -1.36% | 0.03% | -4.35% | -7.28% | -20% | -36.57% | -37.14% | -30.2% |
| Income Tax | 7.05M | 5.53M | 40K | 2.34M | 4.39M | -11.29M | -2.45M | 104K | 300K | 268K | 54K | 61K | 85K | 70K | 62K |
| Effective Tax Rate % | 10.6% | 12.3% | -0.31% | -2.95% | -4.86% | 17.55% | 5.5% | -2.34% | 379.75% | -3.08% | -0.46% | -0.24% | -0.23% | -0.22% | -0.32% |
| Net Income | 59.47M | 39.42M | -12.79M | -81.76M | -94.65M | -53M | -42.13M | -4.55M | -221K | -8.97M | -11.86M | -25.84M | -37.79M | -31.31M | -19.33M |
| Net Margin % | 4.94% | 3.43% | -1.23% | -8.98% | -12.15% | -8.69% | -9.69% | -1.39% | -0.09% | -4.48% | -7.32% | -20.05% | -36.65% | -37.22% | -30.29% |
| Net Income Growth % | 573.6% | 408.06% | 84.35% | 13.61% | -78.58% | -25.8% | -825.53% | -1959.73% | 97.54% | 24.38% | 54.1% | 31.62% | -20.67% | -61.96% | - |
| Net Income (Continuing) | 59.47M | 39.42M | -12.79M | -81.76M | -94.65M | -53M | -42.13M | -4.55M | -221K | -8.97M | -11.86M | -25.84M | -37.79M | -31.31M | -19.33M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.70 | 0.46 | -0.17 | -1.13 | -1.35 | -0.79 | -0.66 | -0.08 | -0.00 | -0.16 | -0.23 | -0.52 | -1.00 | -0.68 | -0.58 |
| EPS Growth % | 670.95% | 370.59% | 84.96% | 16.3% | -70.89% | -19.7% | -775.33% | - | 97.63% | 30.43% | 55.77% | 48% | -47.06% | -17.24% | - |
| EPS (Basic) | - | 0.51 | -0.17 | -1.13 | -1.35 | -0.79 | -0.66 | -0.08 | -0.00 | -0.16 | -0.23 | -0.52 | -1.00 | -0.68 | -0.58 |
| Diluted Shares Outstanding | 85.48M | 87.04M | 74.5M | 72.05M | 69.92M | 67.51M | 64.15M | 60.37M | 58.08M | 54.95M | 52.34M | 50.14M | 37.6M | 46.05M | 33.35M |
| Basic Shares Outstanding | 75.45M | 77.51M | 74.5M | 72.05M | 69.92M | 67.51M | 64.15M | 60.37M | 58.08M | 54.95M | 52.34M | 50.14M | 37.6M | 46.05M | 33.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying FIVN stock.
For fiscal year 2025, Five9, Inc. (FIVN) reported total revenue of $1.15B. This represents a 1700.5% increase compared to $63.8M in 2012.
Five9, Inc. (FIVN) is profitable, generating $39.4M in net income for the fiscal year ending 2025 with a net profit margin of 3.4%.
Five9, Inc. (FIVN) reported an operating income of $32.6M, resulting in an operating profit margin of 2.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Five9, Inc. (FIVN) generated $628.0M in gross profit for the year, representing a gross profit margin of 54.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Growth deceleration and competitive pressure
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst AI Push
Revenue growth slowed from 16.6% in 2024Q4 to 10.3% in 2026Q2, per reported figures, suggesting cloud migration tailwinds are fading and enterprise wins are becoming costlier.
The sequential deceleration in year-over-year growth from 16.6% to 10.3% over six quarters indicates that the low-hanging fruit of cloud migration is largely captured. While subscription revenue is reportedly accelerating, overall growth is tempered by usage-based telephony revenue, which carries lower margins. The company's pivot toward AI-driven interactions may eventually reaccelerate growth, but near-term, the trend is clearly decelerating.
Gross Margin Ceiling at Mid-50s
Gross margin has hovered between 53.0% and 56.0% over the past ten quarters, per financial statements, reflecting the high variable costs of telephony infrastructure that cap profitability below pure-play SaaS peers.
The structural gross margin ceiling around 55% is a direct consequence of carrier fees and data center costs embedded in cost of revenue. Unlike software-only peers with 70-80% gross margins, Five9's voice traffic inherently limits expansion. Margin improvement will likely hinge on shifting mix toward AI-driven automated interactions that bypass traditional voice minutes, but that transition is still in early stages.
Operating Leverage Emerging After Losses
Operating margin swung from -8.4% in 2024Q1 to +0.6% in 2026Q2, per reported data, as revenue growth outpaced SG&A and R&D increases, indicating early signs of operating leverage.
The transition from negative to positive operating income is notable, with operating margin improving by nearly 900 basis points over the period. This was achieved despite rising R&D investment, suggesting that SG&A discipline is taking hold. However, the absolute operating margin remains thin at 0.6%, and the sustainability of this leverage depends on maintaining revenue growth while controlling overhead costs.
SBC Distorts Reported Profitability
Stock-based compensation averaged $38M per quarter, exceeding operating income in most periods, per SEC filings, implying that GAAP profitability is heavily reliant on non-cash charges and understates cash generation.
With SBC consistently around $33-45M per quarter, it often exceeds reported operating income, which was as low as -$20.7M in 2024Q1. This suggests that on a cash basis, the company is more profitable than GAAP figures indicate, but it also highlights significant dilution to shareholders. Investors should adjust for SBC to assess true earnings power, but the high SBC also signals that management is using equity as a significant compensation tool.
R&D Investment Surges for GenAI
R&D spending rose from $41.5M in 2024Q1 to $42.1M in 2026Q2, per income statement data, while SG&A remained flat, indicating a strategic shift toward AI product development over sales expansion.
The relatively stable SG&A despite revenue growth suggests improved sales efficiency, but R&D has been maintained at elevated levels to integrate generative AI capabilities. This investment is essential to defend against hyperscaler competition, but it pressures near-term margins. The company appears to be prioritizing long-term product differentiation over short-term profitability, which is a calculated trade-off.
AI Disruption Could Undermine Pricing
Despite management's optimism, the shift to AI-driven interactions may cannibalize seat-based revenue, and hyperscalers like Amazon Connect could compress pricing, per industry dynamics, threatening growth and margins.
The bear case centers on the risk that AI automation reduces the number of human agents, directly cutting into Five9's per-seat revenue. While the company is attempting to charge per interaction, this transition is unproven and could face pricing pressure from cloud giants that bundle CCaaS with broader cloud contracts. Additionally, the deceleration in revenue growth suggests that competitive intensity is already mounting, and the forward guidance implies a modest sequential increase, which may disappoint if AI monetization falls short.