Five9 Posts 8% Q4 Revenue Growth, AI ARR Exceeds $100M
Five9 delivered Q4 revenue of $300 million, up 8% year-over-year, with subscription revenue (82% of total) growing 12% and AI annual run-rate surpassing $100 million. Adjusted EBITDA margin rose to 26% as free cash flow more than doubled to $67 million, while Amit Mathradas took helm as CEO.
1. Q4 Financial Results
Five9 reported Q4 revenue of $300 million, up 8% year-over-year, with subscription revenue comprising 82% of total and growing 12% year-over-year. Adjusted EBITDA margin expanded to 26% and free cash flow rose to $67 million, marking a more than twofold increase versus prior year.
2. AI Growth Momentum
Enterprise AI bookings more than doubled year-over-year, driving enterprise AI annual run-rate past $100 million with roughly 50% growth in Q4. Core CCaaS revenue also accelerated to 8% year-over-year, and 228 customers with over $1 million in ARR saw subscription revenue grow 24%.
3. Leadership Transition
Amit Mathradas assumed the CEO role on February 2, succeeding Mike Burkland after 18 years. Mathradas has prioritized product innovation, AI solutions, partner engagement and operational execution, spending his initial weeks meeting customers, partners and employees to assess roadmaps.
4. 2026 Guidance
Five9 guided 2026 revenue to a midpoint of $1.254 billion and non-GAAP EPS to $3.18, targeting at least a 24% adjusted EBITDA margin. Management expects continued subscription growth and improved profitability driven by AI and platform expansion.