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)--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 AI 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 AI 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 AI-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 AI Agents: human-like conversations, real-time responsiveness, enterprise-grade governance, and seamless AI + 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.

• 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

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

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
	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	)
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
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^(1)		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	%
^(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. 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
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)		—			—			—			—
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. RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME – GUIDANCE^(1) (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^(2)		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^(3)		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^(4)		—		—		—			—
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.
(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.