Five9 (FIVN) investor relations material

Executive summary

• Q2 2026 revenue reached $312.4 million, up 10% year-over-year, with subscription revenue up 14% and AI revenue up 78% year-over-year.

• Net income for Q2 2026 was $3.4 million, up from $1.2 million in Q2 2025; adjusted EBITDA was $70.1 million (22.4% of revenue).

• Secured a major $100 million, five-year contract with a Fortune 100 financial services customer and closed a nine-figure TCV agreement through the Google Marketplace.

• Leadership changes included new CTO, Chief Sales Officer, and EVP of Transformation and Strategy to accelerate transformation and strengthen go-to-market execution.

• Continued investments in AI, sales, marketing, and infrastructure, with a focus on regulated industries and platform reliability.

Financial highlights

• Q2 2026 subscription revenue was $259 million (83% of total), telecom $34 million (11%), and professional services $19 million (6%).

• Adjusted gross margin was 61.4% (down from 63% last year); GAAP gross margin was 53.4%.

• Adjusted EBITDA was $70.1 million (22.4% of revenue); operating cash flow was $42.1 million.

• Cash, cash equivalents, and marketable investments totaled $654 million as of June 30, 2026.

• Free cash flow for Q2 2026 was $15 million (5% of revenue); capital expenditures were $22.9 million.

Outlook and guidance

• Full-year 2026 revenue guidance is $1.260–$1.272 billion; Q3 2026 revenue guidance is $316–$322 million.

• Full-year 2026 AI revenue growth outlook raised to at least 60% year-over-year.

• Non-GAAP EPS guidance for 2026 is $3.22–$3.30 per diluted share; GAAP EPS guidance is $0.71–$0.82.

• Annual adjusted EBITDA margin expected to exceed 24%; annual free cash flow projected at $175 million.

• Revenue guidance for the remainder of the year is driven by backlog conversion, with minimal dependency on new business.