Five9 2025 Q2 Earnings Surpasses Expectations with Net Income Rebound

Five9 (FIVN) reported its fiscal 2025 Q2 earnings on Jul 31st, 2025. Five9 exceeded expectations with a strong Q2 performance, reporting record revenue and a return to profitability. The company achieved a 12.4% increase in revenue to $283.27 million, surpassing analysts' estimates. Five9's guidance for the third quarter and full year 2025 was in line with or slightly above previous estimates, reflecting a bullish outlook driven by the company's strategic initiatives and focus on AI-driven solutions.

Revenue
The total revenue of Five9 increased by 12.4% to $283.27 million in 2025 Q2, up from $252.09 million in 2024 Q2.

Earnings/Net Income
Five9 returned to profitability with EPS of $0.02 in 2025 Q2, reversing from a loss of $0.17 per share in 2024 Q2 (111.8% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $1.15 million in 2025 Q2, representing a 109.0% positive swing from the net loss of $-12.82 million in 2024 Q2. This performance indicates a commendable recovery in earnings metrics.

Post-Earnings Price Action Review
The strategy of buying Five9 (FIVN) shares after its revenue increase quarter-over-quarter on the financial report release date and holding for 30 days resulted in significant underperformance. This approach yielded a return of -72.84%, lagging the benchmark by 123.03%. The strategy's Sharpe ratio was -0.64, reflecting a strong risk aversion, while the maximum drawdown was 0%, indicating that although the strategy avoided further losses, it also failed to capitalize on potential gains. This outcome suggests that despite the positive earnings report, market conditions or investor sentiment may not have been favorable, leading to the strategy's poor performance.

CEO Commentary
"We are pleased to report strong second quarter results which exceeded our expectations across all key metrics," said Mike Burkland, Chairman and CEO of Five9. Subscription revenue accelerated to 16% year-over-year growth, primarily driven by Enterprise AI revenue accelerating to 42% year-over-year growth. Adjusted EBITDA margin increased to 24%, reaching an all-time record, helping drive a record for both operating and free cash flow. Our customers are realizing meaningful benefits through our Genius AI suite, and we remain at the forefront of developing leading agentic CX solutions to help reshape the customer journey, creating a very promising future for Five9.

Guidance
Five9 expects to report revenue in the range of $1.1435 to $1.1495 billion for the full year 2025. The company anticipates GAAP net income per share between $0.23 and $0.30, and non-GAAP net income per share in the range of $2.86 to $2.90. For the third quarter of 2025, revenue is expected to be between $283.0 and $286.0 million, with GAAP net income per share forecasted to range from $0.06 to $0.12, and non-GAAP net income per share projected between $0.72 and $0.74.

Additional News
Five9 Inc (FIVN) announced the appointment of Bryan Lee as Chief Financial Officer, effective July 31, 2025. Lee, who has been with the company for nearly eleven years, previously served as the interim CFO and Executive Vice President of Finance and Treasurer. His leadership is expected to enhance the company's financial strategies and operational goals. Additionally, recent reports suggest Five9 has released three top executives, which may fuel speculation of potential acquisition activities. The company’s focus on AI-driven solutions and strategic leadership changes positions it for future growth in the competitive software industry.