Five9, Inc. (FIVN) SEC Filings & Earnings Calls

Gross margin compression despite revenue growth

“Adjusted gross margin declined from 63.0% to 61.4% YoY”

Macroeconomic Headwinds

“We are subject to risks and exposures, including new and continued macroeconomic challenges resulting from the impact of global tariff increases and potential future increases and announcements regarding same, as well as the impact of current and potential global conflicts.” · word for word

Customer Concentration Risk

“The year-over-year decrease for annual dollar-based retention rate for both subscription plus telecom revenue as well as subscription revenue reflects year-over-year challenges related to a single large new customer ramping significantly throughout 2024...” · word for word

Litigation Risk

“On December 4, 2024, a purported holder of our securities filed a putative class action complaint against us... alleging violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934...” · word for word

Potential disruption in product development leadership.

“EVP of Product Engineering departing; new CTO to be announced.”

Tariff-driven macroeconomic uncertainty

“we believe such macroeconomic challenges could have an adverse impact on our revenue in future periods” · word for word

Customer retention pressure

“Annual Dollar-Based Retention Rate (Subscription plus Telecom Revenue) 105% 107%” · word for word

Securities class action litigation

“On December 4, 2024, a purported holder of our securities filed a putative class action complaint against us” · word for word

Macroeconomic headwinds could impact enterprise spending on cloud CX solutions.

“Five9 emphasizes that the guidance is subject to various important cautionary factors... including risks and uncertainties associated with the ongoing impact of macroeconomic challenges.” · word for word

Poor relative stock performance

“The Compensation Committee determined that its actual total shareholder return was (51.28)% for 2025 with resulting RTSR rankings and payouts as summarized in the table below: 2023 (Final Measurement Period) RTSR Ranking (percentile) 10.0 Percentage Earned (%) —; 2025 (First Measurement Period) RTSR Ranking (percentile) 9.0 Percentage Earned (%) —; 2024-2025” · word for word

CEO transition execution risk

“Mr. Mathradas has served as our Chief Executive Officer and a member of our Board of Directors since February 2026.”

Cybersecurity breach risk

“Our solution involves the storage and transmission of our customers’ information, including information about our customers’ customers or other information treated by our customers as confidential.” · word for word

Regulatory compliance burden (TCPA, GDPR, CCPA, AI Act)

“The European Union’s GDPR may continue to increase our costs and the costs of our customers to operate, limit the use of our solution or change the way we operate, exposes us to substantial fines and penalties if we fail to comply” · word for word

Debt service and convertible note dilution risk

“As of December 31, 2025, we had approximately $747.5 million in principal outstanding under our convertible senior notes issued in March 2024 that mature on March 15, 2029.” · word for word

NOL limitation due to ownership change

“If we experience an 'ownership change' ... our ability to utilize net operating loss carryforwards or other tax attributes, such as research tax credits, in any taxable year may be limited”

Activist investor involvement; ongoing cooperation agreement limits strategic flexibility.

“Amendment extends standstill obligations until 2027 annual meeting.”

Macroeconomic challenges may impact future performance.

“Guidance subject to risks and uncertainties associated with the ongoing impact of macroeconomic challenges.”

CEO transition risk; potential disruption to strategy and operations.

“Employment Transition Agreement with CEO Michael Burkland.”

Incomplete information; role and terms not disclosed.

“Excerpt only mentions offer letter; no details on position or compensation.”

Macroeconomic headwinds pressuring retention

“Our Dollar-Based Retention Rate decreased year-over-year, reflecting a combination of factors, including continued macroeconomic headwinds” · word for word

AI disruption risk to subscription revenue

“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” · word for word

Securities class action litigation

“On December 4, 2024, a purported holder of our securities filed a putative class action complaint against us” · word for word

Macroeconomic challenges could impact future performance.

“Guidance subject to risks and uncertainties associated with the ongoing impact of macroeconomic challenges.”