Earnings release
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August 6 , 20262leases << Back FIVE9 ANNOUNCES SECOND QUARTER 2026 FINANCIAL RESULTS Q2 Revenue Grew 10 % year - over - year Q2 Subscription Revenue Grew 14 % year - over - year Announces Approximately $ 100 Million Total Contract Value New Customer Win SAN RAMON , Calif .-- ( BUSINESS WIRE ) -- Aug . 6 , 2026-- Five9 , Inc. ( NASDAQ : FIVN ) , the Intelligent CX Platform provider , today reported results for the second quarter ended June 30 , 2026 . Second Quarter 2026 Financial Results • Revenue for the second quarter of 2026 increased 10 % to $ 312.4 million , compared to $ 283.3 million for the second quarter of 2025 . • GAAP gross margin was 53.4 % for the second quarter of 2026 , compared to 54.9 % for the second quarter of 2025 . • • • • • Adjusted gross margin was 61.4 % for the second quarter of 2026 , compared to 63.0 % for the second quarter of 2025 . GAAP net income for the second quarter of 2026 was $ 3.4 million , or $ 0.04 per diluted share , and 1.1 % of revenue , compared to GAAP net income of $ 1.2 million , or $ 0.01 per diluted share , and 0.4 % of revenue , for the second quarter of 2025 . Non - GAAP net income for the second quarter of 2026 was $ 53.5 million , or $ 0.70 per diluted share , and 17.1 % of revenue , compared to non - GAAP net income of $ 58.3 million , or $ 0.76 per diluted share , and 20.6 % of revenue , for the second quarter of 2025 . Adjusted EBITDA for the second quarter of 2026 was $ 70.1 million , or 22.4 % of revenue , compared to $ 67.9 million , or 24.0 % of revenue , for the second quarter of 2025 . GAAP operating cash flow for the second quarter of 2026 was $ 42.1 million , compared to GAAP operating cash flow of $ 35.1 million for the second quarter of 2025 . " Q2 marks our third consecutive quarter of accelerating subscription revenue growth , with Al revenue accelerating even faster , and further evidence that our focused execution is producing results . Closing a 9 - figure TCV agreement through the Google Marketplace and launching Five9 Voice Al Agents in the same quarter underscore the breadth of our platform and the strength of our market position . With the executive appointments in June , I am confident we have the right team and strategy to extend this momentum and compete to win in Al - empowered customer experiences . " - Amit Mathradas , Chief Executive Officer Second Quarter & Recent Business Highlights • LTM subscription dollar - based retention rate was 107 % as of June 30 , 2026 ⚫ LTM subscription and telecom dollar - based retention rate was 106 % as of June 30 , 2026 • Appointed Niranjan Vijayaragavan as Chief Technology Officer , Rob Hornish as Chief Sales Officer , and Sven Linsmaier as Executive Vice President , Transformation and Strategy • Launched Five9 Voice Al Agents : human - like conversations , real - time responsiveness , enterprise - grade governance , and seamless Al + Human collaboration • Joined S & P SmallCap 600 on August 3 , 2026 Supplemental metric disclosure is available on the Investor Relations section of Five9's website • at https://investors.five9.com/ Business Outlook Five9 provides guidance based on current market conditions and expectations . Five9 emphasizes that the guidance is subject to various important cautionary factors referenced in the section entitled " Forward - Looking Statements " below , including risks and uncertainties associated with the ongoing impact of macroeconomic challenges .
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For the full year 2026, Five9 expects to report: Revenue in the range of $1.260 to $1.272 billion. GAAP net income per share in the range of $0.71 to $0.82, assuming diluted shares outstanding of approximately 85.8 million. Non-GAAP net income per share in the range of $3.22 to $3.30, assuming diluted shares outstanding of approximately 76.3 million. For the third quarter of 2026, Five9 expects to report: Revenue in the range of $316.0 to $322.0 million. GAAP net income per share in the range of $0.09 to $0.16, assuming diluted shares outstanding of approximately 85.4 million. Non-GAAP net income per share in the range of $0.77 to $0.81, assuming diluted shares outstanding of approximately 76.0 million. With respect to Five9’s guidance as provided above, please refer to the “Reconciliation of GAAP Net Income to Non- GAAP Net Income - Guidance” table for more details, including important assumptions upon which such guidance is based. Conference Call Details Five9 will discuss its second quarter 2026 results today, August 6, 2026, via an audio-only Zoom webinar at 4:30 p.m. Eastern Time. To access the webinar, please register by clicking here. A copy of this press release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K and will be posted to our website, prior to the conference call. A live webcast and a replay will be available on the Investor Relations section of the Company’s website at https://investors.five9.com/. Non-GAAP Financial Measures In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. We calculate adjusted gross profit and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, and lease amortization for finance leases. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income: depreciation and amortization, stock-based compensation, interest expense, interest income and other, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one- time expenses related to advisory services for long-term strategy and growth, legal fees related to the securities class action, office closure lease termination costs, impairment charge related to consolidation of corporate headquarters, and provision for income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP income from operations: stock-based compensation, intangibles amortization, acquisition and related transaction costs and one-time integration costs, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one-time expenses related to advisory services for long-term strategy and growth, legal fees related to the securities class action, office closure lease termination costs, and impairment charge related to consolidation of corporate headquarters. We calculate non-GAAP net income by adding back or removing the following items to or from GAAP net income: stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, exit costs related to closure and relocation of Russian operations, acquisition and related transaction costs and one-time integration costs, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one-time expenses related to advisory services for long-term strategy and growth, legal fees related to the securities class action, office closure lease termination costs, and impairment charge related to consolidation of corporate headquarters. For the periods presented, these adjustments from GAAP net income to non-GAAP net income do not include any presentation of the net tax effect of such adjustments given our significant net operating loss carryforwards. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. The Company considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company’s management uses these measures to (i) illustrate underlying trends in the Company’s business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company’s business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of non-GAAP financial measures set forth in this release. Forward-Looking Statements
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This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements in the quote from our Chairman and Chief Executive Officer, including statements regarding Five9's market position, platform breadth, current team and strategy, and new product releases, and the expected positive impact of these factors, and the third quarter and full year 2026 financial projections and expectations set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) the impact of adverse economic conditions, including the impact of macroeconomic challenges, global tariff increases and potential future increases and announcements regarding same, continued inflation, uncertainty regarding consumer spending, high interest rates, fluctuations in currency rates, the impact of current and potential global conflicts, and other factors, may harm our business; (ii) if we are unable to attract new customers or sell additional services and functionality to our existing customers, our revenue and revenue growth will be harmed; (iii) if our existing customers terminate their subscriptions or reduce their subscriptions and related usage, or fail to grow subscriptions at the rate they have in the past or that we might expect, our revenues and gross margins will be harmed and we will be required to spend more money to grow our customer base; (iv) because a significant percentage of our revenue is derived from existing customers, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (v) if we fail to manage our technical operations infrastructure, our existing customers may experience service outages, our new customers may experience delays in the deployment of our solution and we could be subject to claims for credits or damages, among other things; (vi) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be harmed; (vii) as AI solutions will likely perform an increasing proportion of contact center interactions, if we are unable to replace decreases in subscription revenue from licenses with revenue from the sale of additional AI solutions, our revenue, results of operations and business will be harmed; (viii) further development of our AI solutions may not be successful, may not achieve market acceptance or compete effectively against our competitors, and may result in reputational harm and our future operating results could be materially harmed; (ix) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (x) we have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (xi) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (xii) our historical growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively; (xiii) failure to adequately retain and expand our sales force will impede our growth; (xiv) the use of AI by our workforce may present risks to our business; (xv) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow our business; (xvi) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business; (xvii) the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed; (xviii) we continue to expand our international operations, which exposes us to significant macroeconomic and other risks; (xix) security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of our data or our customers’ data, or other cyber-attacks on our systems, could result in litigation and regulatory risk, harm our reputation, our business or financial results; (xx) we may acquire other companies, or technologies, or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results; (xxi) we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results; (xxii) we rely on third-party telecommunications and internet service providers to provide our customers and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose customers and subject us to claims for credits or damages, among other things; (xxiii) prior to 2025, we had a history of losses and we may be unable to sustain profitability; (xxiv) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxvi) failure to comply with laws and regulations could harm our business and our reputation; (xxvii) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; (xxviii) risks that we may not execute repurchases in full, under our announced stock repurchase program, or may not achieve the intended benefits therefrom; and (xxix) the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report on Form 10-K and quarterly reports on Form 10- Q. Such forward-looking statements speak only as of the date hereof and readers should not unduly rely on such statements. We undertake no obligation to update the information contained in this press release, including in any forward-looking statements. About Five9
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The Five9 Intelligent CX Platform provides a comprehensive suite of solutions for orchestrating fluid customer experiences. Our cloud-native, multi-tenant, scalable, reliable, and secure platform includes contact center; omni- channel engagement; Workforce Engagement Management; extensibility through more than 1,450 partners; and innovative, practical AI, automation and journey analytics that are embedded as part of the platform. Five9 brings the power of people, technology, and partners to more than 3,000 organizations worldwide. For more information, visit www.five9.com. FIVE9, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 187,305 $ 232,084 Marketable investments 466,757 464,835 Accounts receivable, net 141,507 130,984 Prepaid expenses and other current assets 61,487 43,107 Deferred contract acquisition costs, net 94,262 88,714 Total current assets 951,318 959,724 Property and equipment, net 179,648 164,635 Operating lease right-of-use assets 40,889 46,375 Finance lease right-of-use assets 11,315 14,216 Intangible assets, net 44,347 51,166 Goodwill 366,253 366,253 Other assets 46,448 10,725 Deferred contract acquisition costs, net — less current portion 189,842 176,976 Total assets $ 1,830,060 $ 1,790,070 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 37,318 $ 29,973 Accrued and other current liabilities 95,682 84,120 Operating lease liabilities 14,519 12,922 Finance lease liabilities 8,329 8,480 Deferred revenue 73,417 77,515 Total current liabilities 229,265 213,010 Convertible senior notes 737,283 735,490 Operating lease liabilities — less current portion 41,650 42,116 Finance lease liabilities — less current portion 3,255 6,090 Other long-term liabilities 33,803 7,547 Total liabilities 1,045,256 1,004,253 Stockholders’ equity: Common stock 75 77 Additional paid-in capital 1,140,728 1,163,072 Accumulated other comprehensive income 451 897 Accumulated deficit (356,450) (378,229) Total stockholders’ equity 784,804 785,817 Total liabilities and stockholders’ equity $ 1,830,060 $ 1,790,070 FIVE9, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended
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June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenue $ 312,444 $ 283,269 $ 617,763 $ 562,974 Cost of revenue 145,700 127,865 280,492 253,838 Gross profit 166,744 155,404 337,271 309,136 Operating expenses: Research and development 42,068 39,912 81,744 81,012 Sales and marketing 79,703 80,668 159,192 163,523 General and administrative 42,996 36,385 75,865 71,590 Total operating expenses 164,767 156,965 316,801 316,125 Income (loss) from operations 1,977 (1,561) 20,470 (6,989) Other income (expense), net: Interest expense (3,507) (3,820) (6,649) (7,935) Interest income and other 5,838 7,917 11,050 18,220 Total other income (expense), net 2,331 4,097 4,401 10,285 Income before income taxes 4,308 2,536 24,871 3,296 Provision for income taxes 941 1,382 3,092 1,566 Net income $ 3,367 $ 1,154 $ 21,779 $ 1,730 Net income per share: Basic $ 0.04 $ 0.02 $ 0.29 $ 0.02 Diluted $ 0.04 $ 0.01 $ 0.25 $ 0.02 Shares used in computing net income per share: Basic 75,452 76,654 75,981 76,303 Diluted 85,479 88,523 85,678 88,964 FIVE9, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Six Months Ended June 30, 2026 June 30, 2025 Cash flows from operating activities: Net income $ 21,779 $ 1,730 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 37,761 29,139 Reduction in the carrying amount of right-of-use assets 10,722 10,080 Amortization of deferred contract acquisition costs 48,394 41,528 Accretion of discount on marketable investments (2,294) (5,325) Provision for credit losses 600 945 Stock-based compensation 65,644 81,104 Amortization of discount and issuance costs on convertible senior notes 1,792 2,680 Impairment charges of long-lived assets 8,518 835 Interest on finance lease obligations 345 548 Deferred taxes - excluding tax benefit from acquisition 142 33 Other 1,079 (201) Changes in operating assets and liabilities: Accounts receivable (11,123) (13,608) Prepaid expenses and other current assets (7,941) 2,854 Deferred contract acquisition costs (66,809) (56,181) Other assets 2,831 2,552 Accounts payable 7,891 3,853 Accrued and other current liabilities (8,500) (8,096)
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Deferred revenue (4,727) (11,522) Other long-term liabilities (including non-current portions of operating and finance lease liabilities) (106) 497 Net cash provided by operating activities 105,998 83,445 Cash flows from investing activities: Purchases of marketable investments (199,648) (315,146) Proceeds from sales of marketable investments 62,806 90,502 Proceeds from maturities of marketable investments 135,764 442,655 Purchases of property and equipment (22,891) (8,218) Capitalization of software development costs (18,473) (18,730) Net cash (used in) provided by investing activities (42,442) 191,063 Cash flows from financing activities: Repayment of outstanding 2025 convertible senior notes at maturity — (434,405) Proceeds from exercise of common stock options 445 30 Proceeds from sale of common stock under ESPP 7,008 7,921 Cash paid for repurchase of the Company's common stock (100,011) — Principal repayment on financing liability (10,779) — Payment of finance lease liabilities (4,924) (4,671) Net cash used in financing activities (108,261) (431,125) Net decrease in cash, cash equivalents and restricted cash (44,705) (156,617) Cash, cash equivalents and restricted cash: Beginning of period 234,131 364,185 End of period $ 189,426 $ 207,568 FIVE9, INC. RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT (In thousands, except percentages) (Unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP gross profit $ 166,744 $ 155,404 $ 337,271 $ 309,136 GAAP gross margin 53.4% 54.9% 54.6% 54.9% Non-GAAP adjustments: Depreciation 13,976 8,697 25,940 16,480 Intangibles amortization 3,409 3,464 6,819 7,564 Stock-based compensation 5,794 7,296 12,101 14,480 Acquisition and related transaction costs and one- time integration costs 30 — 44 — Lease amortization for finance leases 2,033 2,119 4,123 3,935 Costs related to reduction in force plans — 1,565 — 1,565 Adjusted gross profit $ 191,986 $ 178,545 $ 386,298 $ 353,160 Adjusted gross margin 61.4% 63.0% 62.5% 62.7% FIVE9, INC. RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA (In thousands, except percentages) (Unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
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GAAP net income $ 3,367 $ 1,154 $ 21,779 $ 1,730 Non-GAAP adjustments: Depreciation and amortization 19,919 14,649 37,761 29,139 Stock-based compensation 32,980 41,859 65,644 81,104 Interest expense 3,507 3,820 6,649 7,935 Interest (income) and other (5,838) (7,917) (11,050) (18,220) Acquisition and related transaction costs and one- time integration costs 1,794 1,489 3,476 2,470 Lease amortization for finance leases 2,225 2,311 4,507 4,319 Costs related to reduction in force plans — 7,766 — 7,766 One-time expenses related to strategic consulting services for operational review — — — 1,265 Other cost-reduction and productivity initiatives — 974 (3) 974 One-time expenses related to advisory services for long-term strategy and growth 1,921 — 3,096 — Legal fees related to the securities class action 854 368 1,201 509 Office closure lease termination costs — 95 — 95 Impairment charge related to consolidation of corporate headquarters 8,382 — 8,382 — Provision for income taxes 941 1,382 3,092 1,566 Adjusted EBITDA $ 70,052 $ 67,950 $ 144,534 $ 120,652 Adjusted EBITDA as % of revenue 22.4% 24.0% 23.4% 21.4% Non-GAAP adjustments do not have a material impact on our worldwide income tax provision due to the tax treatment of the non-GAAP adjustments reported, and our domestic valuation allowance position. FIVE9, INC. RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Income (loss) from operations $ 1,977 $ (1,561) $ 20,470 $ (6,989) Non-GAAP adjustments: Stock-based compensation 32,980 41,859 65,644 81,104 Intangibles amortization 3,409 3,464 6,819 7,564 Acquisition and related transaction costs and one- time integration costs 1,794 1,489 3,476 2,470 (1) (1)
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Costs related to reduction in force plans — 7,766 — 7,766 One-time expenses related to strategic consulting services for operational review — — — 1,265 Other cost-reduction and productivity initiatives — 974 (3) 974 One-time expenses related to advisory services for long- term strategy and growth 1,921 — 3,096 — Legal fees related to the securities class action 854 368 1,201 509 Office closure lease termination costs — 95 — 95 Impairment charge related to consolidation of corporate headquarters 8,382 — 8,382 — Non-GAAP operating income $ 51,317 $ 54,454 $ 109,085 $ 94,758 FIVE9, INC. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP net income $ 3,367 $ 1,154 $ 21,779 $ 1,730 Non-GAAP adjustments: Stock-based compensation 32,980 41,859 65,644 81,104 Intangibles amortization 3,409 3,464 6,819 7,564 Amortization of discount and issuance costs on convertible senior notes 913 1,273 1,792 2,680 Exit costs related to closure and relocation of Russian operations (80) (169) (83) (545) Acquisition and related transaction costs and one- time integration costs 1,794 1,489 3,476 2,470 Costs related to reduction in force plans — 7,766 — 7,766 One-time expenses related to strategic consulting services for operational review — — — 1,265 Other cost-reduction and productivity initiatives — 974 (3) 974 One-time expenses related to advisory services for long- term strategy and growth 1,921 — 3,096 — Legal fees related to the securities class action 854 368 1,201 509 Office closure lease termination costs — 95 — 95 Impairment charge related to consolidation of corporate headquarters 8,382 — 8,382 — Income tax expense effects — — — — (1)
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Non-GAAP net income $ 53,540 $ 58,273 $ 112,103 $ 105,612 GAAP net income per share: Basic $ 0.04 $ 0.02 $ 0.29 $ 0.02 Diluted $ 0.04 $ 0.01 $ 0.25 $ 0.02 Non-GAAP net income per share: Basic $ 0.71 $ 0.76 $ 1.48 $ 1.38 Diluted $ 0.70 $ 0.76 $ 1.47 $ 1.37 Shares used in computing GAAP net income per share: Basic 75,452 76,654 75,981 76,303 Diluted 85,479 88,523 85,678 88,964 Shares used in computing non- GAAP net income per share: Basic 75,452 76,654 75,981 76,303 Diluted 76,067 76,919 76,265 76,836 (1)Non-GAAP adjustments do not have a material impact on our worldwide income tax provision due to the tax treatment of the non-GAAP adjustments reported, and our domestic valuation allowance position. FIVE9, INC. SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION (In thousands) (Unaudited) Three Months Ended June 30, 2026 June 30, 2025 Stock-Based Compensation Depreciation Intangibles Amortization Stock-Based Compensation Depreciation Intangibles Amortization Cost of revenue $ 5,794 $ 13,976 $ 3,409 $ 7,296 $ 8,697 $ 3,464 Research and development 7,257 887 — 8,829 799 — Sales and marketing 8,668 5 — 13,355 27 — General and administrative 11,261 1,642 — 12,379 1,662 — Total $ 32,980 $ 16,510 $ 3,409 $ 41,859 $ 11,185 $ 3,464 Six Months Ended June 30, 2026 June 30, 2025 Stock-Based Compensation Depreciation Intangibles Amortization Stock-Based Compensation Depreciation Intangibles Amortization Cost of revenue $ 12,101 $ 25,940 $ 6,819 $ 14,480 $ 16,480 $ 7,564 Research and development 14,772 1,725 — 17,519 1,479 — Sales and marketing 17,232 10 — 24,929 63 — General and administrative 21,539 3,267 — 24,176 3,553 — Total $ 65,644 $ 30,942 $ 6,819 $ 81,104 $ 21,575 $ 7,564 FIVE9, INC.
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RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME – GUIDANCE (In thousands, except per share data) (Unaudited) Three Months Ending Year Ending September 30, 2026 December 31, 2026 Low High Low High GAAP net income $ 8,031 $ 14,071 $ 61,167 $ 70,271 Non-GAAP adjustments: Stock-based compensation 37,825 35,825 139,969 137,969 Intangibles amortization 3,404 3,404 13,585 13,585 Amortization of discount and issuance costs on convertible senior notes 946 946 3,687 3,687 Exit costs related to closure and relocation of Russian operations — — (83) (83) Acquisition and related transaction costs and one- time integration costs 2,602 1,602 8,061 7,061 Other cost-reduction and productivity initiatives — — (3) (3) One-time expenses related to advisory services for long- term strategy and growth 2,423 2,423 5,518 5,518 One-time expenses related to advisory services for research and development transformation 2,890 2,890 3,400 3,400 Impairment charge related to consolidation of corporate headquarters — — 8,382 8,382 Legal fees related to the securities class action 400 400 2,001 2,001 Income tax expense effects — — — — Non-GAAP net income $ 58,521 $ 61,561 $ 245,684 $ 251,788 GAAP net income per share: Basic $ 0.11 $ 0.19 $ 0.81 $ 0.93 Diluted $ 0.09 $ 0.16 $ 0.71 $ 0.82 Non-GAAP net income per share: Basic $ 0.78 $ 0.82 $ 3.25 $ 3.33 Diluted $ 0.77 $ 0.81 $ 3.22 $ 3.30 Shares used in computing GAAP net income per share: Basic 74,700 74,700 75,500 75,500 Diluted 85,400 85,400 85,800 85,800 Shares used in computing non- GAAP net income per share: Basic 74,700 74,700 75,500 75,500 Diluted 76,000 76,000 76,300 76,300 (1)Represents guidance discussed on August 6, 2026. Reader shall not construe presentation of this information after August 6, 2026 as an update or reaffirmation of such guidance. (2)Stock-based compensation expenses are based on a range of probable significance, assuming market price for our common stock that is approximately consistent with current levels. (1) (2) (3) (4)
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(3)Acquisition and related transaction costs and one-time integration costs are based on a range of probable significance for completed acquisitions, and no new acquisitions assumed. (4)Non-GAAP adjustments do not have a material impact on our worldwide income tax provision due to the tax treatment of the non-GAAP adjustments reported, and our domestic valuation allowance position.