Analyst(s): Keith Kirkpatrick
Publication Date: February 25, 2026
Five9’s Q4 FY 2025 results show steady top-line growth with stronger non-GAAP profitability and operating cash flow, underpinned by accelerating Enterprise AI contribution and subscription mix. Management emphasized platform differentiation, a deep partner ecosystem, and multi-quarter backlog supporting H2 FY 2026 acceleration.
What is Covered in This Article:
- Five9’s Q4 FY 2025 financial results
- AI revenue acceleration and data flywheel leverage
- Partner ecosystem driving enterprise-scale adoption
- Mix shift to subscription and enterprise concentration
- Guidance and Final Thoughts
The News: Five9 (NASDAQ: FIVN) reported Q4 FY 2025 revenue of $300.3 million, up 8% year-on-year (YoY), exceeding Wall Street consensus of $298.5 million by 0.6%. Subscription revenue grew 12% YoY, driven by Enterprise AI revenue up 50% YoY and Core CCaaS (contact center as a service) up 8% YoY, with subscription, composing 82% of total revenue. Adjusted gross margin was 63.1% (vs. 63.5% a year ago) and adjusted EBITDA was $77.3 million (25.7% margin). Non-GAAP net income was $62.4 million (20.8% margin) and non-GAAP diluted EPS was $0.80.
“I’m enthusiastic about our significant market opportunity. In my first few weeks, I’ve been impressed by the strength of our platform and team, and I look forward to executing our strategy to drive growth, increase profitability, and deliver long-term shareholder value,” said Amit Mathradas, Chief Executive Officer
Five9 Q4 FY 2025 Earnings: Revenue Beat, AI Momentum, Cash Flow High
Analyst Take: Five9’s quarter underscores a measured revenue beat alongside pronounced strength in higher-margin subscription and AI-led offerings. Management is leaning into an “end-to-end” CX platform narrative, emphasizing conversational data, orchestration, and a growing installed-base upsell motion. A partner-first go-to-market is scaling enterprise deployments faster, while Google Cloud alignment sharpens AI deployment velocity and credibility. With Q4 record bookings, Enterprise AI ARR over $100 million, and expanding enterprise concentration, set-up for H2 FY 2026 reacceleration appears intact pending execution against backlog and RFP pipelines.
Enterprise AI Momentum and Data Flywheel
Enterprise AI revenue grew 50% YoY in Q4, and Enterprise AI ARR surpassed $100 million, signaling rising attach in both new logos and the installed base. Management positions Five9’s platform advantage around conversational data across voice, digital, and AI agents, enabling relationship-based, contextual experiences.
The suite announced at CX Summit—AQM (agentic quality management), AI-powered Genius Routing, OneVUE unified analytics, and no-code adaptive digital—expands AI-led use cases across the customer journey. Q4 subscription growth of 12% YoY and subscription mix at 82% of total revenue highlight a favorable mix shift tied to AI solutions.
These dynamics, coupled with a data-orchestration loop, strengthen retention and cross-sell opportunities over time. Collectively, AI-led expansion is increasing platform stickiness and broadening monetization paths.
Partner Ecosystem and Google Cloud Expansion
Over 80% of Five9’s business is partner-influenced, and partner certifications to implement Five9 services doubled YoY in 2025, strengthening delivery capacity and scale. The expanded Google Cloud partnership, integrating Five9’s Intelligent CX Platform with Gemini for customer experience, is designed to accelerate production AI deployments with enterprise context. Customer examples included an on-prem to CCaaS modernization at a global power management company ($2.8 million ARR), a healthcare/financial services provider ($1.1 million ARR), and a hospitality technology company migrating from a cloud competitor (~$3.4 million ARR).
These deals reinforce Five9’s open platform approach, deep CRM/vertical integrations, and AI-agent/assist capabilities as core selection drivers. The partner-led model is improving enterprise time-to-value and compressing complex transformation cycles. Strong partner traction should continue to catalyze AI adoption at scale.
Mix Shift, Enterprise Concentration, and Productivity
Enterprise represented ~91% of revenue on an LTM basis, with LTM Enterprise subscription revenue up 15% YoY, and 228 million-plus ARR customers growing subscription revenue 24% YoY to 59% of subscription revenue. Q4 adjusted EBITDA margin improved to 26%, supported by disciplined expense management and 14% YoY revenue per employee growth. While adjusted gross margin was 63% (down ~40 bps YoY), mix effects from telecom usage (11% of revenue) and seasonality dynamics played a role.
Professional services comprised 7% of revenue, indicating continued focus on high-margin subscription expansion. Dollar-based retention rate spot improved sequentially; LTM DBRR moved from 107% in Q3 to 105% in Q4, with expectations to inflect upward in H2 FY 2026. The mix shift toward subscription and enterprise concentration supports durable margin and free cash flow leverage.
Guidance and Final Thoughts
FY 2026 revenue is guided to a midpoint of $1.254 billion, with non-GAAP EPS at a midpoint of $3.18 and at least 24% adjusted EBITDA margin; free cash flow is expected at approximately $175 million. Q1 FY 2026 revenue is guided to a midpoint of $299.5 million and non-GAAP EPS to a midpoint of $0.68, with sequential revenue and profit ramp expected more meaningfully in H2 FY 2026.
Management anticipates double-digit revenue growth returning in the second half, supported by strong backlog from both new logos and installed base expansions. The $50 million accelerated repurchase completed on February 2 and the remaining $100 million authorization through December 2027 underscore confidence and cash generation. Near-term focus areas include scaling Enterprise AI deployments, sustaining partner momentum, and executing against the enterprise pipeline to realize H2 acceleration.
See the full press release on Five9’s Q4 FY 2025 financial results on the company website.
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Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.
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Author Information
Keith Kirkpatrick is VP & Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
