The quarter was essentially in line, not a clean beat. Published consensus was approximately $312.65 million of revenue and $0.69 of diluted adjusted EPS; Five9 delivered $312.4 million and $0.70, respectively. The revenue miss was negligible, while the one-cent EPS beat was too small to change the overall read materially.
| Metric | Q2 2026 | Q2 2025 | Market expectation / change |
|---|---|---|---|
| Revenue | $312.4M (Income Statement) | $283.3M (Income Statement) | ~$312.65M consensus; +10.3% YoY |
| GAAP net income | $3.4M (Income Statement) | $1.2M (Income Statement) | — |
| Non-GAAP diluted EPS | $0.70 (Non-GAAP net income reconciliation) | $0.76 (Non-GAAP net income reconciliation) | ~$0.69 consensus |
| Adjusted gross margin | 61.4% (Adjusted gross profit table) | 63.0% (Adjusted gross profit table) | Down 160 bps YoY |
| Adjusted EBITDA | $70.1M (Adjusted EBITDA table) | $68.0M (Adjusted EBITDA table) | Margin fell to 22.4% from 24.0% |
| Operating cash flow, six months | $106.0M (Cash Flow statement) | $83.4M (Cash Flow statement) | +27.0% YoY |
| Full-year non-GAAP diluted EPS guidance | $3.22–$3.30 (Guidance reconciliation) | — | Midpoint $3.26, reaffirmed |
Growth held up, but the quality of that growth deteriorated. Revenue increased 10.3% year over year, and GAAP operating income turned positive at $2.0 million from a $1.6 million loss (Income Statement). But adjusted gross margin contracted to 61.4% from 63.0%, while adjusted EBITDA margin dropped to 22.4% from 24.0% (Adjusted gross profit table; Adjusted EBITDA table). Adjusted diluted EPS also declined to $0.70 from $0.76, so the small consensus beat came despite weaker underlying profitability rather than because of improving leverage.
The AI and large-deal narrative is encouraging but not yet quantified enough to reset expectations. Management highlighted accelerating subscription growth, faster AI revenue growth, a nine-figure total-contract-value agreement through Google Marketplace, and the launch of Voice AI Agents (Management commentary). However, the supplied filing does not provide the actual subscription or AI revenue figures, customer metrics, or contract contribution needed to determine whether those developments materially exceeded what investors already assumed.
Cash generation improved, but shareholder returns consumed much of the balance-sheet flexibility. Six-month operating cash flow rose to $106.0 million from $83.4 million (Cash Flow statement), while the company repurchased $100.0 million of stock (Cash Flow statement). Cash, cash equivalents, and restricted cash consequently fell by $44.7 million to $189.4 million, even as marketable investments remained $466.8 million (Cash Flow statement; Balance Sheet). The full-year adjusted EPS outlook was reaffirmed at a $3.26 midpoint (Guidance reconciliation), not raised, leaving the net message as operationally steady but not meaningfully better than expected.
Read the original 8-K on SEC EDGAR ↗