Revenue growth has decelerated to 9.2% in 2026Q1, while gross margins remain constrained in the mid-50% range, specifically at 55.9%, due to persistent infrastructure costs.
| 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 | 1.17B | 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 % | 9.31% | 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 | 527.49M | 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 | 647.22M | 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 % | 55.1% | 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 | 592.29M | 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 | 445.97M | 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 | 151.64M | 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 | 54.93M | 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 % | 4.68% | 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 | 139.83M | 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 % | 11.9% | 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 % | 19794.51% | 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) | 84.91M | 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 | 54.14M | 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 | 3.62M | 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 | 13.58M | 18.22M | 46.74M | 26.8M | 4.81M | 0 | 3.03M | 6.08M | 3.31M | 490K | 0 | 100K | 245K | 29K | 14K |
| Interest Expense | 6.82M | 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 | 9.82M | 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 | 64.75M | 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 % | 5.51% | 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 | 7.49M | 5.53M | 40K | 2.34M | 4.39M | -11.29M | -2.45M | 104K | 300K | 268K | 54K | 61K | 85K | 70K | 62K |
| Effective Tax Rate % | 11.57% | 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 | 57.25M | 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 % | 4.87% | 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 % | 1213.42% | 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) | 57.25M | 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) | 0.66 | 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 % | 838.2% | 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 | 86.3M | 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 | 76.82M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Hyperscaler competitive pricing pressure
As reported in recent financial filings, Five9's year-over-year revenue growth has decelerated to 9.2% in 2026Q1, down from the mid-teens levels observed in early 2024, suggesting that the initial wave of cloud contact center adoption may be reaching a point of market saturation among enterprise clients.
The transition from double-digit growth to single-digit expansion indicates that the company is struggling to maintain its previous momentum as it moves deeper into the enterprise segment. Investors should monitor whether this deceleration reflects a longer sales cycle for complex deployments or a fundamental shift in demand for CCaaS solutions.
Based on the provided income statement data, Five9's gross margin has remained stubbornly capped in the mid-50% range, with 2026Q1 reporting 55.9%, a figure that highlights the persistent variable costs associated with carrier-grade voice transit and cloud infrastructure compared to pure-play software peers.
The inability to scale gross margins significantly above 55% suggests that the company's cost structure is heavily tethered to usage-based telephony expenses. This structural reality limits the company's ability to achieve the high-margin profile typical of enterprise SaaS, making margin expansion dependent on a successful pivot to AI-driven automated interactions.
According to historical income statements, Five9's operating income has fluctuated significantly, swinging from a negative 8.4% margin in 2024Q1 to a positive 6.1% in 2026Q1, demonstrating that the company has yet to achieve consistent, predictable operating leverage despite its efforts to scale the enterprise business.
The erratic nature of operating margins suggests that SG&A and R&D investments are not yet yielding the expected efficiency gains relative to revenue growth. The reliance on high stock-based compensation to attract talent may continue to mask the true underlying profitability of the core operations.
As evidenced by the quarterly data, Five9's net income is heavily influenced by the timing and magnitude of stock-based compensation, which reached $32.7 million in 2026Q1, creating a disconnect between GAAP profitability and the actual cash-generating capacity of the underlying business model for shareholders.
The significant quarterly variance in SBC expenses warrants caution, as it complicates the assessment of true operational performance. Investors should look past the GAAP net income figures to evaluate whether the company can sustain profitability without the dilutive impact of ongoing equity-based incentive programs.
Based on the competitive landscape, the entry of hyperscalers like Amazon and Google into the CCaaS space poses a material risk to Five9's pricing power, as these entities can bundle voice services with broader cloud infrastructure, potentially forcing Five9 into a defensive, margin-dilutive pricing posture.
The market's assumption that Five9 can maintain its premium positioning may be overly optimistic given the commoditization of basic voice routing. If the company fails to differentiate through its proprietary AI modules, it may face sustained pressure on both its top-line growth and its already constrained gross margins.
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.