Recent News
Jan. 2026: Company announced appointment of Amit Mathradas as Chief Executive Officer effective February 2026. Dec. 15, 2025: Five9 earned placement on Computerworld’s 2026 Best Places to Work in IT list. Dec. 4–5, 2025: Company president reported sale of 8,212 shares in open-market transactions, per regulatory filing. Jan. 2026: several brokers published lowered price targets and adjustments to ratings amid ongoing commercial execution updates and partnership announcements, and reports noted an expanded Google Cloud collaboration.
Technical Analysis
Directional indicators show trend strength: ADX at 27.17 signals a strong underlying trend; DI+ peaked then reversed while DI- dipped then reversed, a combination that reads as a bearish directional shift and increases near-term downside risk relative to the current valuation.
MACD sits negative at -0.68 with a peak-and-reversal trend and a signal line at -0.65; that configuration denotes declining momentum and confirms bearish pressure that conflicts with any immediate upside narrative tied to valuation support.
MRO registers -32.06 and trends downward; the negative reading indicates price presently sits below the WMDST target and carries potential upside pressure toward that valuation, but the magnitude implies a meaningful gap rather than a trivial mismatch.
RSI at 41.58 with a peak-and-reversal trend shows momentum has rolled over from higher levels and now sits below neutral, reinforcing the near-term bearish bias while leaving room for mean-reversion if buying interest reappears.
Price sits below short-, medium- and long-term averages: close $16.33 beneath the 50-day average $19.06 and the 200-day average $23.61; 12-day EMA and 26-day EMA both declining. Price near the lower Bollinger band ($16.36 at 1× std dev) suggests compression close to the recent lower bound, increasing the likelihood of volatile tradable swings against the wider bearish backdrop.
Volatility and volume context amplify the message: 42-day beta 1.69 and 52-week beta 1.84 indicate above-market sensitivity, while 10- and 50-day average volumes exceed the most recent session, implying episodic liquidity that can accelerate directional moves away from the valuation anchor.
Fundamental Analysis
Profitability: EBIT $21,703,000 yields an EBIT margin of 7.59%, well below the industry peer mean 36.20% and industry peer median 45.06%, and positioned inside the peer range toward the lower bound. Operating margin registers 5.61% and mirrors that relative weakness versus peer benchmarks.
Growth: reported total revenue $285,832,000. QoQ revenue change shows -28.96% and year-over-year revenue change shows -81.14% as provided; sequential and annual growth figures indicate material variability that reduces clarity around near-term top-line momentum despite product-level AI traction reported elsewhere.
Cash flow and liquidity: operating cash flow $59,196,000 and free cash flow $38,301,000 produce a free cash flow yield of 2.03%. Cash and short-term investments total $676,156,000 and current ratio stands at 4.61 with a cash ratio of 3.29, giving material near-term liquidity to fund buybacks, investments, or balance-sheet flexibility tied to strategic execution.
Leverage and coverage: total debt $798,006,000 produces debt-to-equity 102.93% and debt-to-EBITDA ~18.75; interest coverage about 7.03x. The capital structure shows meaningful leverage relative to operating earnings but adequate interest coverage at current earnings levels.
Earnings and valuation signals: EPS actual $0.78 versus estimate $0.73, an EPS surprise ratio of 6.85%. Trailing P/E stands at 116.22 while forward P/E sits near 41.48; price-to-book 2.43 and enterprise multiple 47.16. Those multiples reflect market pricing for recovery and margin expansion rather than the present reported margins.
WMDST valuation view: WMDST values the stock as under-valued, reflecting the firm’s assessment of long-term cash generation potential relative to current market price and available liquidity, though execution and momentum metrics create a near-term performance headwind.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-06 |
| NEXT REPORT DATE: | 2026-02-05 |
| CASH FLOW | Begin Period Cash Flow | $ 207.6 M |
| Operating Cash Flow | $ 59.2 M | |
| Capital Expenditures | $ -20.89 M | |
| Change In Working Capital | $ -36.00 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -12.14 M | |
| End Period Cash Flow | $ 195.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 285.8 M | |
| Forward Revenue | $ 247.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 128.6 M | |
| Depreciation | $ 20.9 M | |
| Depreciation and Amortization | $ 20.9 M | |
| Research and Development | $ 35.2 M | |
| Total Operating Expenses | $ 269.8 M | |
| PROFITABILITY | ||
| Gross Profit | $ 157.3 M | |
| EBITDA | $ 42.6 M | |
| EBIT | $ 21.7 M | |
| Operating Income | $ 16.0 M | |
| Interest Income | $ 5.7 M | |
| Interest Expense | $ 3.1 M | |
| Net Interest Income | $ 2.6 M | |
| Income Before Tax | $ 18.6 M | |
| Tax Provision | $ 643.0 K | |
| Tax Rate | 3.454 % | |
| Net Income | $ 18.0 M | |
| Net Income From Continuing Operations | $ 18.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.73 | |
| EPS Actual | $ 0.78 | |
| EPS Difference | $ 0.05 | |
| EPS Surprise | 6.849 % | |
| Forward EPS | $ 0.79 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.8 B | |
| Intangible Assets | $ 420.9 M | |
| Net Tangible Assets | $ 354.4 M | |
| Total Current Assets | $ 949.4 M | |
| Cash and Short-Term Investments | $ 676.2 M | |
| Cash | $ 193.4 M | |
| Net Receivables | $ 117.1 M | |
| Inventory | — | |
| Long-Term Investments | $ 8.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 30.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 205.7 M | |
| Net Debt | $ 541.1 M | |
| Total Debt | $ 798.0 M | |
| Total Liabilities | $ 993.1 M | |
| EQUITY | ||
| Total Equity | $ 775.3 M | |
| Retained Earnings | $ -397.94 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 10.03 | |
| Shares Outstanding | 78.214 M | |
| Revenue Per-Share | $ 3.70 | |
| VALUATION | Market Capitalization | $ 1.9 B |
| Enterprise Value | $ 2.0 B | |
| Enterprise Multiple | 47.159 | |
| Enterprise Multiple QoQ | -46.256 % | |
| Enterprise Multiple YoY | -66.94 % | |
| Enterprise Multiple IPRWA | high: 725.943 mean: 90.514 median: 78.121 FIVN: 47.159 low: -500.562 |
|
| EV/R | 7.023 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.281 | |
| Asset To Liability | 1.781 | |
| Debt To Capital | 0.507 | |
| Debt To Assets | 0.451 | |
| Debt To Assets QoQ | -3.774 % | |
| Debt To Assets YoY | 109.295 % | |
| Debt To Assets IPRWA | high: 1.164 FIVN: 0.451 mean: 0.171 median: 0.095 low: 0.001 |
|
| Debt To Equity | 1.029 | |
| Debt To Equity QoQ | -7.642 % | |
| Debt To Equity YoY | 34.471 % | |
| Debt To Equity IPRWA | high: 2.803 FIVN: 1.029 mean: 0.29 median: 0.167 low: -1.761 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.432 | |
| Price To Book QoQ | -17.616 % | |
| Price To Book YoY | -43.024 % | |
| Price To Book IPRWA | high: 32.156 mean: 12.36 median: 10.455 FIVN: 2.432 low: -17.466 |
|
| Price To Earnings (P/E) | 116.218 | |
| Price To Earnings QoQ | 218.088 % | |
| Price To Earnings YoY | 142.554 % | |
| Price To Earnings IPRWA | high: 535.496 mean: 145.658 median: 137.28 FIVN: 116.218 low: -396.374 |
|
| PE/G Ratio | -1.606 | |
| Price To Sales (P/S) | 6.597 | |
| Price To Sales QoQ | -11.764 % | |
| Price To Sales YoY | -27.815 % | |
| Price To Sales IPRWA | high: 95.267 median: 48.871 mean: 45.874 FIVN: 6.597 low: 1.307 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 41.479 | |
| Forward PE/G | -0.573 | |
| Forward P/S | 9.629 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 266.864 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.165 | |
| Asset Turnover Ratio QoQ | 10.249 % | |
| Asset Turnover Ratio YoY | 22.054 % | |
| Asset Turnover Ratio IPRWA | high: 0.414 FIVN: 0.165 mean: 0.127 median: 0.124 low: -0.008 |
|
| Receivables Turnover | 2.511 | |
| Receivables Turnover Ratio QoQ | -5.809 % | |
| Receivables Turnover Ratio YoY | -5.203 % | |
| Receivables Turnover Ratio IPRWA | high: 6.055 FIVN: 2.511 mean: 1.478 median: 1.265 low: -0.167 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 36.344 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 14.402 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | -88.085 % | |
| Cash Conversion Cycle Days IPRWA | high: 226.004 FIVN: 14.402 mean: -22.591 median: -38.513 low: -211.399 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.384 | |
| CapEx To Revenue | -0.073 | |
| CapEx To Depreciation | -1.001 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.5 B | |
| Net Invested Capital | $ 1.5 B | |
| Invested Capital | $ 1.5 B | |
| Net Tangible Assets | $ 354.4 M | |
| Net Working Capital | $ 743.7 M | |
| LIQUIDITY | ||
| Cash Ratio | 3.286 | |
| Current Ratio | 4.614 | |
| Current Ratio QoQ | 4.029 % | |
| Current Ratio YoY | 149.156 % | |
| Current Ratio IPRWA | high: 8.127 FIVN: 4.614 mean: 1.703 median: 1.401 low: 0.159 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 18.746 | |
| Cost Of Debt | 0.373 % | |
| Interest Coverage Ratio | 7.03 | |
| Interest Coverage Ratio QoQ | 322.536 % | |
| Interest Coverage Ratio YoY | -768.376 % | |
| Interest Coverage Ratio IPRWA | high: 225.0 median: 50.142 mean: 37.759 FIVN: 7.03 low: -266.667 |
|
| Operating Cash Flow Ratio | 0.154 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 21.942 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.727 % | |
| Revenue Growth | 0.905 % | |
| Revenue Growth QoQ | -28.964 % | |
| Revenue Growth YoY | -81.138 % | |
| Revenue Growth IPRWA | high: 28.215 % mean: 3.108 % median: 1.612 % FIVN: 0.905 % low: -13.442 % |
|
| Earnings Growth | -72.368 % | |
| Earnings Growth QoQ | -420.482 % | |
| Earnings Growth YoY | -350.877 % | |
| Earnings Growth IPRWA | high: 200.0 % mean: 5.044 % median: 1.918 % FIVN: -72.368 % low: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 55.025 % | |
| Gross Margin QoQ | 0.299 % | |
| Gross Margin YoY | 2.191 % | |
| Gross Margin IPRWA | high: 90.981 % mean: 72.527 % median: 69.046 % FIVN: 55.025 % low: 26.432 % |
|
| EBIT Margin | 7.593 % | |
| EBIT Margin QoQ | 238.369 % | |
| EBIT Margin YoY | -568.704 % | |
| EBIT Margin IPRWA | high: 76.323 % median: 45.059 % mean: 36.204 % FIVN: 7.593 % low: -105.646 % |
|
| Return On Sales (ROS) | 5.613 % | |
| Return On Sales QoQ | -1118.693 % | |
| Return On Sales YoY | -446.481 % | |
| Return On Sales IPRWA | high: 76.795 % median: 48.873 % mean: 37.539 % FIVN: 5.613 % low: -133.444 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 38.3 M | |
| Free Cash Flow Yield | 2.031 % | |
| Free Cash Flow Yield QoQ | 99.509 % | |
| Free Cash Flow Yield YoY | 135.889 % | |
| Free Cash Flow Yield IPRWA | high: 10.114 % FIVN: 2.031 % median: 0.676 % mean: 0.478 % low: -10.76 % |
|
| Free Cash Growth | 77.574 % | |
| Free Cash Growth QoQ | -302.824 % | |
| Free Cash Growth YoY | -50.618 % | |
| Free Cash Growth IPRWA | high: 368.524 % FIVN: 77.574 % median: 0.372 % mean: -7.421 % low: -324.945 % |
|
| Free Cash To Net Income | 2.131 | |
| Cash Flow Margin | 11.113 % | |
| Cash Flow To Earnings | 1.767 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 1.035 % | |
| Return On Assets QoQ | 1596.721 % | |
| Return On Assets YoY | -551.965 % | |
| Return On Assets IPRWA | high: 13.583 % median: 4.421 % mean: 3.724 % FIVN: 1.035 % low: -19.283 % |
|
| Return On Capital Employed (ROCE) | 1.389 % | |
| Return On Equity (ROE) | 0.023 | |
| Return On Equity QoQ | 1339.752 % | |
| Return On Equity YoY | -392.677 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.076 mean: 0.065 FIVN: 0.023 low: -0.395 |
|
| DuPont ROE | 2.408 % | |
| Return On Invested Capital (ROIC) | 1.388 % | |
| Return On Invested Capital QoQ | 301.156 % | |
| Return On Invested Capital YoY | 119.273 % | |
| Return On Invested Capital IPRWA | high: 14.226 % median: 6.978 % mean: 5.469 % FIVN: 1.388 % low: -12.344 % |
|