Profitable cloud contact-center platform with subscription-led growth and positive free cash flow; the monitoring case depends on durable growth, AI monetization, and operating leverage.
Watchlist initiation: operating momentum is improving, but public-primary valuation inputs are insufficient for a decision-grade security view.
- Posture
- Watchlist initiation: operating momentum is improving, but public-primary valuation inputs are insufficient for a decision-grade security view.
- Business phase
- 5
- Next proof
- Subscription-led growth, Margins and cash conversion, Liquidity, convertibles, and dilution
- Valuation
- Unavailable
| # | KPI | Baseline | Next threshold | Signal | Investor read | Source |
|---|---|---|---|---|---|---|
| 1 | RevenueQ1 FY2026 | $305.3M | Stay at or above $303M | Near threshold | The KPI is still on the safe side, but close enough that the next update matters. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 2 | Gross marginQ1 FY2026 | 55.9% | Stay at or above 55% | Near threshold | The KPI is still on the safe side, but close enough that the next update matters. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 3 | Operating marginQ1 FY2026 | 6.06% | At least 5% | Confirmed | The latest result clears the confirmation threshold. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 4 | Adjusted EBITDAQ1 FY2026 | $74.5M | Stay at or above $74.5M | At threshold | The KPI is exactly at the decision boundary; the next update matters. | Five9 Q1 2026 earnings release (Exhibit 99.1) (2026-04-30) |
| 5 | Operating cash flowQ1 FY2026 | $63.9M | Next comparable update | Monitor | No comparable prior observation is in the public handoff; judge the next update against this baseline. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 6 | Free cash flowQ1 FY2026 | $49.4M | Stay at or above $0 | Above floor | The latest result remains on the safe side of the warning threshold. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 7 | Cash and equivalents2026-03-31 | $273M | Next comparable update | Monitor | No comparable prior observation is in the public handoff; judge the next update against this baseline. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 8 | Marketable investments2026-03-31 | $450.9M | Next comparable update | Monitor | No comparable prior observation is in the public handoff; judge the next update against this baseline. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 9 | Convertible senior notes2026-03-31 | $736.4M | Next comparable update | Monitor | No comparable prior observation is in the public handoff; judge the next update against this baseline. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 10 | Current ratio2026-03-31 | 4.51x | Stay at or above 1.5x | Above floor | The latest result remains on the safe side of the warning threshold. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
| 11 | Diluted weighted-average sharesQ1 FY2026 | 86.3M | Stay at or below 86.3M | At threshold | The KPI is exactly at the decision boundary; the next update matters. | Five9 Q1 2026 Form 10-Q (2026-04-30) |
How to read the scorecard: Signals compare the latest baseline with the stated decision threshold. “Monitor” means the public handoff has one valid baseline but no compatible prior observation; it is not a positive or negative call.
Thesis signals
Thesis pillars
- Subscription growth must sustain the platform transitionRevenue growth must remain subscription-led as Five9 expands AI and enterprise adoption; a drop below the near-term revenue guide would weaken the growth case.
- Growth must convert into durable operating leveragePositive GAAP operating margin, adjusted EBITDA, and free cash flow support improving economics, but the gains must persist without gross-margin erosion.
- Capital allocation must improve per-share outcomesLiquidity is substantial, but convertible notes and dilution mean cash generation and repurchases must be assessed on a per-share basis.
Catalysts
- AI and subscription growth proofSustained subscription growth alongside expanding AI adoption would strengthen the case that product investment is translating into durable platform demand.
- Operating leverage compoundsRevenue growth with stable gross margin, positive GAAP operating margin, and continued free cash flow would improve earnings quality.
Risks
- Growth decelerationRevenue below the Q2 guidance floor or weakening subscription momentum would challenge the platform growth thesis.
- Margin and cash-conversion reversalGross-margin compression, renewed GAAP operating losses, or negative free cash flow would weaken evidence of durable operating leverage.
- Convertible and dilution riskConvertible notes and a rising diluted share count could offset operating progress at the per-share level.
Monitoring triggers
- Subscription-led growthEscalate if revenue falls below the USD 303.0 million Q2 guidance floor or if management reports materially weaker subscription growth.
- Margins and cash conversionEscalate if gross margin falls below 55%, GAAP operating margin falls below 5%, or free cash flow turns negative.
- Liquidity, convertibles, and dilutionReview liquidity, convertible notes, repurchases, and diluted shares for evidence that capital allocation is improving per-share economics.
Evidence limits
Conflicts
- None reported.
Gaps
- None reported.
Public sources
- Five9 Q1 2026 earnings release (Exhibit 99.1) (2026-04-30)
- Five9 Q1 2026 Form 10-Q (2026-04-30)