Five9, Inc.

Five9, Inc., along with its subsidiaries, provides intelligent cloud-based software solutions for contact centers both in the United States and internationally. The company offers a customer experience (CX) platform that includes a comprehensive suite of applications designed to support a wide range of customer service functions.

• CEO Statement- We are proud to share that our second quarter results came in stronger than anticipated, surpassing expectations across all major performance indicators. Subscription revenue saw a notable acceleration, growing 16% year-over-year, fueled in large part by the impressive 42% year-over-year growth in our Enterprise AI offerings. Enterprise AI now accounts for 10% of our total Enterprise subscription revenue, highlighting its increasing contribution to our business.

• Our adjusted EBITDA margin reached a record high of 24% this quarter, reflecting our disciplined approach to profitable growth. This performance also helped deliver record results for both operating and free cash flow in Q2.

• In the second quarter of 2025, Five9, Inc. achieved record revenue of $283.3 million, reflecting a 12% increase compared to $252.1 million reported in the same quarter of 2024. This growth highlights the company’s continued momentum and expanding demand for its cloud-based contact center solutions.

• The company’s GAAP gross margin improved to 54.9% in Q2 2025, up from 53.0% in Q2 2024, indicating greater operational efficiency and cost management. On a non-GAAP basis, gross margin was even stronger, reaching 63.0% in the second quarter of 2025 compared to 60.5% during the same period the prior year, demonstrating ongoing improvements in the company’s profitability on an adjusted basis.

• Five9 also reported a significant turnaround in profitability. GAAP net income for the second quarter of 2025 came in at $1.2 million, or $0.01 per diluted share, representing 0.4% of total revenue. This is a notable improvement from a GAAP net loss of $(12.8) million, or $(0.17) per basic share, which represented (5.1)% of revenue in the second quarter of 2024.

• On a non-GAAP basis, the company delivered strong earnings, reporting net income of $58.3 million for Q2 2025, or $0.76 per diluted share. This represents 20.6% of total revenue and reflects a significant increase compared to non-GAAP net income of $38.9 million, or $0.52 per diluted share, representing 15.4% of revenue in Q2 2024. These results underscore Five9’s ability to enhance shareholder value through both revenue growth and margin expansion.

Acrobull Recommendation Based on Evaluation