Description

Five9’s $125 Million AI Run Rate: Can It Redefine CCaaS Growth?

The latest quarterly update from Five9, Inc. presents a cautiously optimistic view of the company’s operational and financial performance amid an evolving market landscape. Five9 reported total revenue of $305 million for the first quarter of 2026, reflecting a 9% year-over-year increase. Subscription revenue, which constitutes the majority of the business, grew 13% year-over-year and represented approximately 82% of total revenue. Of particular note, artificial intelligence (AI) related revenue grew by 68% year-over-year, reaching an annual run rate surpassing $125 million and now accounting for roughly 13% of subscription revenue compared to 8% a year earlier. This acceleration in AI revenue is underpinned by an earlier-than-expected ramp in backlog. The company’s non-GAAP adjusted gross margin expanded to 64% from 62% the prior year, while adjusted EBITDA reached $74 million or 24% of revenue, up from $53 million and 19% respectively.