Five9 Raises Full-Year Outlook After Faster Growth

The Tip Desk · November 7, 2026 · 3 min read

Third-quarter revenue reached $323.3 million, up 13%, and the company lifted 2026 revenue guidance to as much as $1.275 billion.

Five9, Inc. (FIVN), the Genius CX Platform provider, reported third-quarter revenue of $323.3 million, up 13% from $285.8 million a year earlier, accelerating from 10% growth in the second quarter and 9% in the first.

Subscription revenue, 83% of the total, grew 16% year over year after 14% growth in the prior quarter and 13% in the quarter before. Chief Executive Officer Amit Mathradas said the quarter was highlighted by accelerating subscription growth and that AI revenue growth stepped up significantly, and that the results indicated the company’s Humantic CX strategy is working.

GAAP net income fell to $14.5 million, or $0.19 a share and 4.5% of revenue, from $18.0 million, or $0.21 a share and 6.3% of revenue, a year earlier. Non-GAAP net income was $63.7 million, or $0.82 a share and 19.7% of revenue, compared with $60.6 million, or $0.78 a share and 21.2% of revenue. Adjusted EBITDA was $81.2 million, or 25.1% of revenue, versus $71.7 million, or 25.1% of revenue, a year earlier. GAAP operating cash flow was $58.4 million.

GAAP gross margin compressed to 53.4% from 55.0% a year earlier. Adjusted gross margin was 61.7%, compared with 62.8% a year earlier.

Last-twelve-months subscription dollar-based retention rose to 109% as of September 30, 2026, from 107% as of June 30. Last-twelve-months subscription and telecom dollar-based retention was 107%, versus 106% three months earlier.

The company signed a definitive agreement to acquire Level AI for $325.0 million in cash, expected to close in the fourth quarter of 2026, subject to customary closing conditions. Mathradas said adding Level AI strengthens Five9’s competitive position, expands the customers it can serve, and deepens the AI talent behind its innovation. Guidance does not include any contribution from the pending acquisition.

For the full year 2026, Five9 expects revenue in the range of $1.269 billion to $1.275 billion, up from the $1.260 billion to $1.272 billion range issued after the second quarter. GAAP net income is expected at $0.75 to $0.83 a share, and non-GAAP net income at $3.17 to $3.21 a share, assuming diluted shares outstanding of approximately 77.1 million.

For the fourth quarter of 2026, the company expects revenue of $328.0 million to $334.0 million. GAAP net income is guided at $0.28 to $0.36 a share, and non-GAAP net income at $0.88 to $0.92 a share, assuming diluted shares outstanding of approximately 78.0 million.

Cash and cash equivalents were $263.8 million at September 30, 2026. Convertible senior notes outstanding were $738.2 million.

Five9 said it was named a Leader in the 2026 Gartner Magic Quadrant for Contact Center as a Service and recognized as a Leader in the 2026 IDC MarketScape for worldwide agentic contact center-as-a-service platforms.