# Five9 (FIVN.US)

Canonical: https://gigainvestors.com/s/FIVN

Analysis as of: 2026-10-16T07:28:32.676Z. Financial observations: FY2013–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $35.10 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 9

- Operating margin variation: 1.26×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.04×

- FY2017: -0.03×

- FY2018: 0.03×

- FY2019: 0.01×

- FY2020: -0.03×

- FY2021: -0.09×

- FY2022: -0.11×

- FY2023: -0.11×

- FY2024: -0.05×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -9.7%

- ROIC, second-lowest year: -35.2%

- Typical minus recent gross margin: 2.8 pp

- Typical gross margin (annual median): 57.0%

- Recent gross margin (lower of latest and 3-year median): 54.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.7%

- ROIC including acquisitions, ten-year median: -9.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -83.3%

- FY2017: -35.2%

- FY2018: 9.7%

- FY2019: 2.9%

- FY2020: -5.9%

- FY2021: -11.1%

- FY2022: -21.6%

- FY2023: -20.8%

- FY2024: -8.4%

- FY2025: 5.0%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$143M

- Net income, five-year total: -$203M

- Return on incremental invested capital: 96.7%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.4 pp

- Working capital / revenue, final three-year average: 7.8%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$48M

- FY2022: -$95M

- FY2023: -$64M

- FY2024: -$13M

- FY2025: $76M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -35.2% vs -8.4%

- Per-share earnings: -0.23 to -0.17 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.8%

- Ordinary dilution, 5-year annual growth: 6.5%

- Market cap gain: $791M

- Cumulative retained earnings: -$212M

- Diluted shares, 10-year annual growth: 5.8%

- Diluted shares, 5-year annual growth: 6.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $0.05

- Per-share value, starting three-year median: -$0.23

- Per-share value, ending three-year median: -$0.17

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 1.1%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: $442M

- Cumulative net income, 10 years: -$271M

- ROIC, first three-year median: -35.2%

- ROIC, last three-year median: -8.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.23

- FY2017: -$0.16

- FY2018: -$0.00

- FY2019: -$0.08

- FY2020: -$0.66

- FY2021: -$0.79

- FY2022: -$1.35

- FY2023: -$1.13

- FY2024: -$0.17

- FY2025: $0.45

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -10.4%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 65.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 5.74×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.53×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -17.8%

- FY2017: -15.7%

- FY2018: -9.8%

- FY2019: -11.6%

- FY2020: -10.3%

- FY2021: -6.9%

- FY2022: -14.7%

- FY2023: -14.1%

- FY2024: -7.6%

- FY2025: -10.4%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 78% since Oct 2021 · "Five9 Downgraded as Growth Slips Below 10%" (finance.yahoo.com, Jan 2026) · sales +10.3%

Story as of 2026-10-16T09:58:45.779Z; price observation 2026-10-15.

- 2025-05-16: FIVN Q1 Earnings Call: AI Drives Growth and Margin Expansion Amid Cautious Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/fivn-q1-earnings-call-ai-103335130.html))

- 2025-08-01: Five9 Q2 2025 slides: Revenue up 12%, AI business surges 42% ([investing.com](https://www.investing.com/news/company-news/five9-q2-2025-slides-revenue-up-12-ai-business-surges-42-93CH-4164772))

- 2026-01-05: Five9 Downgraded as Growth Slips Below 10% ([finance.yahoo.com](https://finance.yahoo.com/news/five9-downgraded-growth-slips-below-175027900.html))

- 2026-05-05: Five9 (FIVN) Valuation Check After Q1 2026 Beat AI Momentum And New US$200m Buyback ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/five9-fivn-valuation-check-q1-151356691.html))

- 2026-08-06: Five9’s (NASDAQ:FIVN) Q2 CY2026 Sales Beat Estimates, Quarterly Revenue Guidance Slightly Exceeds Expectations ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/five9-nasdaq-fivn-q2-cy2026-210214791.html))

### Sales · FY2024–2025

sales +10.3%; source https://www.sec.gov/Archives/edgar/data/1288847/000128884726000023/fivn-20251231.htm; observed 2026-02-20.

- FY2016: $162M 

- FY2017: $200M 

- FY2018: $258M 

- FY2019: $328M 

- FY2020: $435M 

- FY2021: $610M 

- FY2022: $779M 

- FY2023: $910M 

- FY2024: $1.0B 

- FY2025: $1.1B 

### Gross margin · FY2025

gross margin 54.7%; source https://www.sec.gov/Archives/edgar/data/1288847/000128884726000023/fivn-20251231.htm; observed 2026-02-20.

- FY2016: 58.7% 

- FY2017: 58.5% 

- FY2018: 59.6% 

- FY2019: 59.0% 

- FY2020: 58.5% 

- FY2021: 55.5% 

- FY2022: 52.8% 

- FY2023: 52.5% 

- FY2024: 54.2% 

- FY2025: 54.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 1.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1288847/000128884726000023/fivn-20251231.htm (filed 2026-02-20); FY2025: revenue 1149088000; grossProfit 628031000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FIVN.US: Five9, Inc., together with its subsidiaries, provides intelligent cloud software for contact centers in the United States and internationally. It offers CX platform that delivers a suite of applications, which enables the breadth of customer service, sales, and marketing functions. The company's platform comprises AI agents, agent assist, workflow automation, AI insights, AI summaries, workforce engagement management, and revenue execution, as well as allows simultaneous management and optimization of customer interactions across voice, chat, email, web, social media and mobile channels, through our application programming interfaces. It also matches each customer interaction with an agent resource and delivers customer data to the agent in real-time through integrations with adjacent enterprise applications, such as CRM software, to optimize customer experience and enhance agent productivity, as well as offers software-as-a-service business model. The company serves customers in various industries, such as banking and financial services, business process outsourcers, retail, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.

### Why customers stay

Margins ranged from 52.5% to 54.7% during 2023–25; it lost 9.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 52.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 54.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1288847/000128884726000023/fivn-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 54.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,-0.83263734493314],[2017,-0.3520685625243475],[2018,0.09682996811902232],[2019,0.029317089793831998],[2020,-0.05948445722677763],[2021,-0.1107153801882068],[2022,-0.21565063177514165],[2023,-0.2080807152361765],[2024,-0.08375048044138615],[2025,0.050211507751783575]]; median -0.09723293031479648. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 10 years; bought back USD 50 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 9261000; owner earnings 792000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1288847/000128884726000023/fivn-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 24963000; owner earnings 76217000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,0],[2017,0],[2018,258750000],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1288847/000128884726000023/fivn-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 50000000 USD.

### Are managers owners

Insiders own 2.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FIVN.US SharesStats.PercentInsiders = 2.903 percentage points; cache date 2026-10-16.

### What the price says

The price is 2.7 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Closing price 35.1 USD; reporting-to-trading FX 1; FY2025 annual sales per share 13.057521419967728; price multiple 2.6881058717870174. FY2025 cash earnings/share 0.8660825890320675. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $14.32 per share

- 2016-11: $15.83 per share

- 2016-12: $14.19 per share

- 2017-01: $15.46 per share

- 2017-02: $15.91 per share

- 2017-03: $16.46 per share

- 2017-04: $18.25 per share

- 2017-05: $22.47 per share

- 2017-06: $21.52 per share

- 2017-07: $22.06 per share

- 2017-08: $21.50 per share

- 2017-09: $23.90 per share

- 2017-10: $25.23 per share

- 2017-11: $24.51 per share

- 2017-12: $24.88 per share

- 2018-01: $26.01 per share

- 2018-02: $30.36 per share

- 2018-03: $29.79 per share

- 2018-04: $29.37 per share

- 2018-05: $34.89 per share

- 2018-06: $34.57 per share

- 2018-07: $31.90 per share

- 2018-08: $48.05 per share

- 2018-09: $43.69 per share

- 2018-10: $39.36 per share

- 2018-11: $42.88 per share

- 2018-12: $43.72 per share

- 2019-01: $51.13 per share

- 2019-02: $53.04 per share

- 2019-03: $52.83 per share

- 2019-04: $53.07 per share

- 2019-05: $51.35 per share

- 2019-06: $51.29 per share

- 2019-07: $49.37 per share

- 2019-08: $63.21 per share

- 2019-09: $53.74 per share

- 2019-10: $55.51 per share

- 2019-11: $68.17 per share

- 2019-12: $65.58 per share

- 2020-01: $71.73 per share

- 2020-02: $73.03 per share

- 2020-03: $76.46 per share

- 2020-04: $92.67 per share

- 2020-05: $104.20 per share

- 2020-06: $110.67 per share

- 2020-07: $120.82 per share

- 2020-08: $127.44 per share

- 2020-09: $129.68 per share

- 2020-10: $151.72 per share

- 2020-11: $155.20 per share

- 2020-12: $174.40 per share

- 2021-01: $166.25 per share

- 2021-02: $185.24 per share

- 2021-03: $156.33 per share

- 2021-04: $187.97 per share

- 2021-05: $177.10 per share

- 2021-06: $183.39 per share

- 2021-07: $201.29 per share

- 2021-08: $158.23 per share

- 2021-09: $159.74 per share

- 2021-10: $158.01 per share

- 2021-11: $142.33 per share

- 2021-12: $137.32 per share

- 2022-01: $125.70 per share

- 2022-02: $110.00 per share

- 2022-03: $110.40 per share

- 2022-04: $110.10 per share

- 2022-05: $96.71 per share

- 2022-06: $91.14 per share

- 2022-07: $108.12 per share

- 2022-08: $98.11 per share

- 2022-09: $74.98 per share

- 2022-10: $60.26 per share

- 2022-11: $64.11 per share

- 2022-12: $67.86 per share

- 2023-01: $78.78 per share

- 2023-02: $66.00 per share

- 2023-03: $72.29 per share

- 2023-04: $64.84 per share

- 2023-05: $66.11 per share

- 2023-06: $82.45 per share

- 2023-07: $87.75 per share

- 2023-08: $72.37 per share

- 2023-09: $64.30 per share

- 2023-10: $57.87 per share

- 2023-11: $76.22 per share

- 2023-12: $78.69 per share

- 2024-01: $75.86 per share

- 2024-02: $61.00 per share

- 2024-03: $62.11 per share

- 2024-04: $57.57 per share

- 2024-05: $46.76 per share

- 2024-06: $44.10 per share

- 2024-07: $44.55 per share

- 2024-08: $32.25 per share

- 2024-09: $28.73 per share

- 2024-10: $29.53 per share

- 2024-11: $41.28 per share

- 2024-12: $40.64 per share

- 2025-01: $40.99 per share

- 2025-02: $36.20 per share

- 2025-03: $27.15 per share

- 2025-04: $25.14 per share

- 2025-05: $26.51 per share

- 2025-06: $26.48 per share

- 2025-07: $25.83 per share

- 2025-08: $26.92 per share

- 2025-09: $24.20 per share

- 2025-10: $24.28 per share

- 2025-11: $19.59 per share

- 2025-12: $20.05 per share

- 2026-01: $17.66 per share

- 2026-02: $17.44 per share

- 2026-03: $15.17 per share

- 2026-04: $17.20 per share

- 2026-05: $24.35 per share

- 2026-06: $21.32 per share

- 2026-07: $27.51 per share

- 2026-08: $34.56 per share

- 2026-09: $34.01 per share

- 2026-10: $35.10 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1288847/000128884726000023/fivn-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.