← The Wire·Earnings·

Five9 shares drop 22% after weak fourth-quarter EPS outlook

Five9 fell 22% after its fourth-quarter EPS outlook disappointed investors. The reaction puts renewed scrutiny on whether the company’s modest growth and thin profitability can support its valuation.

STOCK PHOTO · FABIO RICCOBONO

The story

Five9 shares fell 22% on Nov. 5 after the company issued a disappointing outlook for fourth-quarter earnings per share. The report centers on the forward EPS forecast rather than a reported quarterly result.

Five9’s latest full-year company figures show $1.1B in revenue, up 10.3% year over year, with a 55.1% gross margin and a 3.4% net margin. Diluted EPS was $0.45 for the year ended Dec. 31, 2025.

The earnings outlook connects directly to Five9’s profitability profile: revenue growth remains positive, but the 3.4% net margin leaves less room for an EPS forecast to miss without affecting the equity narrative. The 55.1% gross margin is the main disclosed cushion between revenue and bottom-line earnings.

The size of the share-price reaction is established, but the precise fourth-quarter EPS figure, the reason for the shortfall and management’s broader operating assumptions remain open questions. The next relevant evidence will be the company’s fourth-quarter results and any updated outlook.

Our read · Thu, Nov 5

Five9 shares fell 22% after its fourth-quarter EPS outlook disappointed investors.

Why. The 22% reaction raises the bar for Five9’s next earnings update, particularly against a 3.4% net margin that leaves earnings sensitive to modest operating changes. Revenue reached $1.1B and grew 10.3% in the latest full-year figures, but the disappointing EPS outlook makes profitability delivery the immediate test.

Both cases

The case it holdsFive9 still has $1.1B of revenue growing 10.3% year over year and a 55.1% gross margin, giving the company an operating base from which earnings could recover.
The case it breaksThe 22% decline followed a disappointing fourth-quarter EPS outlook, while the latest full-year net margin was only 3.4%, leaving limited disclosed profitability cushion.

What could change this view: The read fails if fourth-quarter results meet or exceed the outlook that triggered the selloff, or if management identifies a temporary factor that does not affect the broader earnings trajectory.

Five9 stock page →
Your side is graded privately against closes after 10 trading days. Research, not advice.

Who reported it · 1

Investing.comoriginalThu, Nov 5 · 5:40 PM ETFive9 falls 22% on disappointing fourth quarter EPS outlook

Keep reading

Latest on the Wire

SMCI files 10-Q — Quarterly Report: 10-QHims ends GLP-1 compounding in Lilly deal as shares rallyUS adds 165,000 jobs in October as wages rise and unemployment fallsTrump weighs renewed Iran strikes as negotiators review a new proposalBitcoin holds $76,000 as Nasdaq futures rebound 1.5% before jobs dataContinue on the Wire →

Top this week

Democrats sweep Congress, setting Trump up for legislative gridlockFutures rebound after blue sweep as dollar slides and gold tops $4,000Bitcoin plunges as AI chip selling drags Nasdaq down more than 2%Trump’s Republican Party faces a midterm verdict from US voters todayBitcoin faces renewed pressure as Binance hack intensifies market fear
The Wire at 7 AM ET, free. Top stories with a bull and a bear case on each, every morning. No account needed.

About this report

Reported by Investing.com as Five9 falls 22% on disappointing fourth quarter EPS outlook, . Who answers for this

The only report in this record. Closes are licensed end-of-day data from Databento; the move after a story is its first close against the close before it. How this is decided →

Kept as written · your side, if you take one, is graded privately against licensed closes after 10 trading days · nothing here is advice · How the Wire is made →