Five9 Q2 Earnings Surpass Expectations, Revenues Rise Y/Y

Five9, Inc. FIVN reported second-quarter 2025 earnings of 76 cents per share, which beat the Zacks Consensus Estimate by 16.9%. FIVN’s second-quarter earnings jumped 46.2% year over year from the year-ago quarter’s earnings of 52 cents.

FIVN’s revenues increased 12.4% year over year to $283.27 million and beat the Zacks Consensus Estimate by 2.98%. FIVN’s performance was driven by a rise in subscription revenues, which grew 16% year over year, due to traction in Enterprise AI revenues. Despite these factors, FIVN’s stock slipped 5.28% on Thursday.

FIVN’s Q2 Results in Detail

Geographically, FIVN’s revenues from the United States accounted for $251.4 million, accounting for 88.7% of the total revenues in the second quarter, which increased 12% year over year.

Five9, Inc. Price, Consensus and EPS Surprise

Five9, Inc. price-consensus-eps-surprise-chart | Five9, Inc. Quote

International revenues accounted for $31.88 million, representing 11.3% of the total revenues, up 15.7% year over year.

For the second quarter, FIVN posted an adjusted non-GAAP gross profit of $175.55 million, representing a robust improvement from the year-ago quarter’s $152.4 million. FIVN’s adjusted non-GAAP gross margin in the second quarter of 2025 was 63%, up 250 basis points year over year.

FIVN’s non-GAAP operating income increased to $54.45 million year over year from an operating income of $31 million in the year-ago quarter. FIVN’s non-GAAP operating margin in the second quarter of 2025 was 19.2%.

FIVN’s Balance Sheet & Cash Flow

FIVN exited the reported quarter with cash and cash equivalents and Marketable investments of $635.88 million compared with $1.04 billion at the end of the prior quarter, with a total debt of $733.6 million as of June 30, 2025.

The company generated an operating cash flow of $83.45 million in the second quarter. FIVN’s total capital expenditure in the second quarter of 2025 was $17.22 million. The company reported a free cash flow of $21.57 million and a free cash flow margin of 8% in the quarter.

FIVN’s Guidance for Q3 and 2025

Five9 expects 2025 revenues in the range of $1.1435-$1.1495 billion. The Zacks Consensus Estimate for FIVN’s 2025 revenues is pegged at $1.14 billion, indicating year-over-year growth of 9.6%.

The company expects GAAP net income per share to be between 23 cents and 30 cents, assuming approximately 88.5 million diluted shares outstanding. Non-GAAP net income per share is anticipated in the range of $2.86-$2.90, based on roughly 77.7 million diluted shares outstanding. The Zacks Consensus Estimate for FIVN’s 2025 earnings is pegged at $2.76, indicating year-over-year growth of 11.7%.

For the third quarter of fiscal 2025, Five9 forecasts revenues between $283.0 million and $286.0 million. The Zacks Consensus Estimate for FIVN’s third-quarter 2025 revenues is pegged at $285.6 million, indicating year-over-year growth of 8.1%.

GAAP net income per share is projected in the range of 6-12 cents, with 87.5 million diluted shares outstanding, while non-GAAP net income per share is expected to be between 72 cents and 74 cents, assuming 78.1 million diluted shares outstanding. The Zacks Consensus Estimate for FIVN’s third-quarter 2025 earnings is pegged at 70 cents, indicating year-over-year growth of 4.5%.

Zacks Rank & Stocks to Consider

FIVN currently carries a Zacks Rank #3 (Hold).

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