Five9 Q4: 26% EBITDA Margin, Free Cash Flow Margin Doubles to 22%, AI ARR Tops $100M
Five9 achieved record Q4 margins with adjusted EBITDA at 26% and free cash flow margin doubling to 22% year-over-year. AI ARR surpassed $100 million as enterprise AI adoption accelerated, and 2026 revenue guidance reflects fast growth in AI and core CCaaS portfolios.
1. Q4 Margin and Cash Flow Records
Five9 delivered record adjusted EBITDA margin of 26% in Q4 and saw free cash flow margin double year-over-year to 22%, marking the highest levels in company history.
2. AI ARR Milestone
Enterprise AI adoption propelled AI Annual Recurring Revenue past $100 million, driven by both new logo attachments and deeper penetration within the existing customer base.
3. 2026 Revenue Guidance Drivers
The 2026 revenue guidance incorporates high growth rates for enterprise AI alongside core CCaaS offerings, reflecting management’s expectation of sustained momentum in AI deployments.
4. Sector Adoption and Data Challenges
Healthcare and retail sectors lead in new feature uptake, while customers face data readiness hurdles that Five9 addresses through consulting on data infrastructure to support AI use cases.