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Aurora Investment Counsel acquired a new position in shares of Five9, Inc. (NASDAQ:FIVN – Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 64,127 shares of the software maker’s stock, valued at approximately $1,367,000. Aurora Investment Counsel owned approximately 0.08% of Five9 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Quarry LP acquired a new position in Five9 in the third quarter valued at about $33,000. Advisory Services Network LLC bought a new position in shares of Five9 in the third quarter valued at approximately $38,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Five9 by 378.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 1,728 shares of the software maker’s stock worth $26,000 after acquiring an additional 1,367 shares in the last quarter. Rothschild Investment LLC boosted its holdings in shares of Five9 by 3,572.0% in the 4th quarter. Rothschild Investment LLC now owns 1,836 shares of the software maker’s stock worth $37,000 after acquiring an additional 1,786 shares in the last quarter. Finally, Global Retirement Partners LLC bought a new stake in Five9 during the 2nd quarter worth approximately $45,000. 96.64% of the stock is owned by institutional investors.

Insiders Place Their Bets In other Five9 news, EVP Panos Kozanian sold 5,869 shares of the stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $24.81, for a total transaction of $145,609.89. Following the completion of the transaction, the executive vice president owned 161,671 shares in the company, valued at approximately $4,011,057.51. This represents a 3.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Leena Mansharamani sold 2,556 shares of Five9 stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $24.81, for a total value of $63,414.36. Following the completion of the sale, the chief accounting officer directly owned 57,698 shares in the company, valued at approximately $1,431,487.38. This represents a 4.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 56,003 shares of company stock valued at $1,386,457 in the last ninety days. 1.20% of the stock is currently owned by insiders.

Five9 Stock Up 0.9% Shares of NASDAQ:FIVN opened at $32.74 on Thursday. The company has a debt-to-equity ratio of 0.94, a current ratio of 4.15 and a quick ratio of 4.15. The stock has a market cap of $2.51 billion, a price-to-earnings ratio of 47.45 and a beta of 1.42. The company has a 50 day moving average of $25.39 and a 200-day moving average of $20.73. Five9, Inc. has a one year low of $13.29 and a one year high of $34.58. Five9 (NASDAQ:FIVN – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The software maker reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.68 by $0.02. Five9 had a net margin of 4.94% and a return on equity of 12.92%. The business had revenue of $312.44 million for the quarter, compared to analyst estimates of $306.61 million. During the same period in the prior year, the business posted $0.76 earnings per share. Five9’s revenue was up 10.3% compared to the same quarter last year. Five9 has set its Q3 2026 guidance at 0.770-0.810 EPS and its FY 2026 guidance at 3.220-3.300 EPS. On average, sell-side analysts forecast that Five9, Inc. will post 1.55 earnings per share for the current year.

Analyst Ratings Changes A number of equities analysts have commented on the company. Truist Financial boosted their price objective on Five9 from $23.00 to $35.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Weiss Ratings upgraded Five9 from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, August 7th. Wall Street Zen cut Five9 from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 8th. DA Davidson upped their price target on shares of Five9 from $22.00 to $28.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. Finally, Barclays increased their price objective on shares of Five9 from $25.00 to $34.00 and gave the stock an “overweight” rating in a report on Monday, August 10th. Ten investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $31.50.

View Our Latest Stock Report on FIVN

Five9 Company Profile (Free Report)

Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.

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Posted by Defense World Staff on Aug 8th, 2026

Dimensional Fund Advisors LP lifted its position in shares of Five9, Inc. (NASDAQ:FIVN – Free Report) by 18.6% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,054,769 shares of the software maker’s stock after purchasing an additional 165,623 shares during the period. Dimensional Fund Advisors LP owned 1.38% of Five9 worth $15,998,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the business. Van Berkom & Associates Inc. lifted its holdings in Five9 by 28.0% in the 4th quarter. Van Berkom & Associates Inc. now owns 3,596,380 shares of the software maker’s stock worth $72,107,000 after buying an additional 787,626 shares during the period. Vanguard Group Inc. raised its holdings in shares of Five9 by 8.2% during the fourth quarter. Vanguard Group Inc. now owns 10,037,395 shares of the software maker’s stock valued at $201,250,000 after acquiring an additional 759,237 shares in the last quarter. Qube Research & Technologies Ltd lifted its stake in Five9 by 1,255.8% in the third quarter. Qube Research & Technologies Ltd now owns 422,772 shares of the software maker’s stock worth $10,231,000 after acquiring an additional 391,590 shares during the period. Goldman Sachs Group Inc. boosted its holdings in Five9 by 43.9% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,226,253 shares of the software maker’s stock valued at $24,586,000 after acquiring an additional 374,356 shares in the last quarter. Finally, First Trust Advisors LP increased its position in Five9 by 29.4% during the 4th quarter. First Trust Advisors LP now owns 1,572,466 shares of the software maker’s stock valued at $31,528,000 after purchasing an additional 357,321 shares during the period. 96.64% of the stock is owned by institutional investors.

Insider Activity at Five9 In other news, CFO Bryan M. Lee sold 1,511 shares of the company’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $24.25, for a total transaction of $36,641.75. Following the sale, the chief financial officer owned 309,951 shares of the company’s stock, valued at approximately $7,516,311.75. This represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CRO Matthew E. Tuckness sold 8,645 shares of Five9 stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $24.81, for a total value of $214,482.45. Following the completion of the transaction, the executive owned 281,492 shares of the company’s stock, valued at approximately $6,983,816.52. This trade represents a 2.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 85,820 shares of company stock worth $2,014,057 over the last 90 days. 1.20% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth Several equities research analysts have recently commented on the stock. Cantor Fitzgerald raised their target price on shares of Five9 from $32.00 to $34.00 and gave the stock an “overweight” rating in a research report on Monday. Jefferies Financial Group reiterated a “hold” rating on shares of Five9 in a research note on Friday, May 1st. DA Davidson set a $22.00 target price on shares of Five9 in a research note on Monday. Truist Financial increased their price target on Five9 from $23.00 to $35.00 and gave the stock a “buy” rating in a research report on Friday. Finally, Barclays lifted their price objective on Five9 from $22.00 to $25.00 and gave the stock an “overweight” rating in a report on Friday, May 1st. Ten analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Five9 presently has an average rating of “Moderate Buy” and an average target price of $29.64.

Check Out Our Latest Stock Analysis on FIVN

Five9 Stock Performance NASDAQ:FIVN opened at $33.99 on Friday. Five9, Inc. has a fifty-two week low of $13.29 and a fifty-two week high of $34.10. The company has a debt-to-equity ratio of 0.89, a quick ratio of 4.51 and a current ratio of 4.51. The company has a 50 day moving average price of $23.94 and a 200 day moving average price of $19.89. The stock has a market capitalization of $2.60 billion, a P/E ratio of 49.26 and a beta of 1.42.

Five9 (NASDAQ:FIVN – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The software maker reported $0.70 EPS for the quarter, topping analysts’ consensus estimates of $0.68 by $0.02. Five9 had a return on equity of 12.87% and a net margin of 4.94%.The company had revenue of $312.44 million for the quarter, compared to analysts’ expectations of $306.61 million. During the same period in the prior year, the firm earned $0.76 earnings per share. The firm’s revenue was up 10.3% compared to the same quarter last year. Five9 has set its Q3 2026 guidance at 0.770-0.810 EPS and its FY 2026 guidance at 3.220-3.300 EPS. Equities research analysts forecast that Five9, Inc. will post 1.39 EPS for the current year.

Key Stories Impacting Five9 Here are the key news stories impacting Five9 this week:

Positive Sentiment: Quarterly results exceeded expectations: Five9 reported adjusted earnings of $0.70 per share, above the $0.68 consensus estimate, while revenue reached $312.44 million versus expectations of $306.61 million. Revenue increased 10.3% year over year, reinforcing the company’s continued growth in cloud contact-center software. Five9 Beats Q2 Earnings and Revenue Estimates Positive Sentiment: 2026 guidance was raised above analyst expectations: Five9 forecast third-quarter adjusted EPS of $0.77–$0.81, ahead of the $0.74 consensus, and revenue of $316 million–$322 million versus expectations of $314.6 million. Full-year EPS guidance of $3.22–$3.30 also exceeded the $2.88 consensus estimate, suggesting improved profitability expectations. Five9 Q2 Sales Beat Estimates Positive Sentiment: Analysts lifted their targets: Truist raised its target from $23 to $35 while maintaining a Buy rating, and Rosenblatt increased its target from $29 to $32 and kept a Buy rating. These revisions indicate greater confidence following the earnings report. Neutral Sentiment: Analyst views remain mixed: Piper Sandler raised its target from $24 to $30 but retained a Neutral rating, leaving its valuation below the prevailing share price. This suggests some analysts believe much of the improved outlook is already reflected in FIVN’s valuation. Analyst Price Target Updates Negative Sentiment: Profit growth was not uniform: Quarterly EPS declined from $0.76 in the year-earlier period to $0.70, despite the earnings beat. Investors may also monitor whether the company can sustain double-digit revenue growth after the recent rally. Five9 Profile (Free Report)

Five9, Inc (NASDAQ: FIVN) is a leading provider of cloud-based contact center software designed to help organizations manage customer interactions across voice, email, chat, social media and other digital channels. Its platform offers features such as intelligent routing, analytics, workforce optimization and integrated customer relationship management (CRM) connectors. The company emphasizes AI-driven capabilities, including virtual agents and predictive dialing, to enhance both agent productivity and customer experience.

Founded in 2001 and headquartered in San Ramon, California, Five9 completed its initial public offering in February 2014.

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Key Takeaways Five9 offers profitable AI growth, stronger cash flow and a more balanced risk-reward profile.SoundHound's revenues rose 52%, but losses and LivePerson integration add execution risk.Five9 trades at 1.33X forward sales versus SoundHound's 10.49X, despite positive cash flows. Artificial intelligence is rapidly transforming customer engagement as enterprises adopt conversational AI, intelligent virtual agents and automation to improve customer experience while lowering service costs. Companies that can deliver scalable, enterprise-grade AI platforms are expected to benefit from this multiyear technology shift. SoundHound AI (SOUN - Free Report) and Five9 (FIVN - Free Report) are among the companies capitalizing on this opportunity, but they approach the market from different angles.

SoundHound has evolved into a voice-first, agentic AI platform serving industries ranging from automotive and restaurants to financial services, while Five9 remains a leader in cloud contact center software that is embedding AI across its customer experience platform.

Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for SoundHound StockSoundHound continues to position itself as one of the fastest-growing pure-play conversational AI companies. In the first quarter of 2026, revenues increased 52% year over year, while its core Automotive and IoT AI business grew 88%, excluding acquisitions, highlighting robust underlying demand. The company also unveiled OASYS, its self-learning agentic AI platform that enables enterprises to build, deploy and continuously improve AI agents across voice, text, chat, kiosks and other customer touchpoints.

The pending acquisition of LivePerson represents another major growth catalyst. The transaction is expected to create one of the industry's largest conversational AI customer bases, spanning 25 Fortune 100 companies and more than 30 countries. Management expects substantial cross-selling opportunities by combining SoundHound's voice AI with LivePerson's digital messaging capabilities, while projecting a long-term revenue opportunity of roughly $500 million from the combined customer base.

Beyond acquisitions, SoundHound continues to expand across restaurants, automotive, financial services, healthcare, telecommunications and retail. Management highlighted increasing enterprise wins, growing adoption of Voice Insights analytics and strong customer ROI from its AI-powered drive-thru solutions. The company also ended the quarter with $216 million in cash and no debt, providing flexibility to fund future expansion.

Nevertheless, the investment case still carries meaningful risks. The company remains unprofitable, with negative adjusted EBITDA and operating cash flow. Integrating LivePerson while simultaneously investing heavily in proprietary AI models could pressure margins further if anticipated revenue synergies take longer than expected to materialize.

The Case for Five9 StockFive9 offers investors a more mature AI story built on a profitable cloud contact center platform. Rather than pursuing rapid acquisitions, the company has focused on integrating generative AI into its existing intelligent customer experience platform while maintaining disciplined financial execution.

First-quarter 2026 results reflected that strategy. Revenues increased 9% year over year to $305 million, while subscription revenues accelerated 13%. More importantly, adjusted EBITDA rose 41%, operating cash flow increased 32% and free cash flow climbed 42%, demonstrating continued operating leverage. Dollar-based retention rates of 105% overall and 107% for subscription customers indicate that existing clients continue expanding their usage of the platform.

Five9 is also strengthening its competitive position through AI Agents, GenAI Studio and partnerships such as its enterprise AI solution with Google Cloud. Management believes AI significantly expands its addressable market by extending beyond cloud contact center software into AI-driven labor automation, creating a substantially larger long-term opportunity.

Financial discipline further strengthens the investment thesis. During the latest quarter, Five9 announced a new $200 million share repurchase authorization after completing the remaining balance of its previous program, highlighting confidence in future cash generation. The company also reaffirmed its full-year outlook despite macroeconomic uncertainty.

The primary challenge is moderating growth. Revenue expansion has slowed into the high-single digits as the company has matured. Management also acknowledged that AI could gradually reduce traditional subscription revenues if newer AI offerings fail to fully offset evolving customer purchasing patterns.

Five9 Has Outperformed in the MarketThe market has rewarded Five9's improving profitability while remaining cautious toward SoundHound's higher-risk growth strategy. Five9 shares have gained 15.3% year to date (YTD), outperforming both the Zacks Computer and Technology sector, which has advanced 9.7%, and the S&P 500, up 7.5%. In comparison, SoundHound shares have plunged 38.2% over the same period.

SOUN vs FIVN Price Performance (YTD)

Image Source: Zacks Investment Research

Among comparable enterprise AI and customer experience software companies, Cisco Systems (CSCO - Free Report) has surged 68.1% YTD as investors increasingly recognize its AI networking opportunity. Meanwhile, NICE Ltd. (NICE - Free Report) has lost 47% amid softer demand for customer experience software and competitive pressures. While SoundHound has significantly lagged Five9 and Cisco, it has performed better than NICE.

SoundHound Commands the Premium MultipleThe valuation gap between the two companies reflects their contrasting business models and investor expectations. On a forward 12-month price-to-sales basis, SoundHound trades at 10.49X, well above the Zacks Computer and Technology sector average of 6.18X, suggesting investors continue to price in substantial long-term AI growth despite ongoing losses. Five9, by comparison, trades at just 1.33X forward sales despite generating positive earnings and cash flows.

SOUN vs FIVN Valuation (P/S F12M)

Image Source: Zacks Investment Research

Peer valuations reinforce this contrast. Cisco Systems trades at 6.65X forward sales, reflecting confidence in its expanding AI portfolio, while NICE trades at 1.57X. Five9 therefore trades at a discount to both Cisco and NICE despite improving profitability and expanding AI capabilities, whereas SoundHound remains the most expensive stock in the group, leaving relatively little room for execution disappointments.

Estimate Trends Favor Five9Analysts' earnings expectations further separate the two companies. For SoundHound, the Zacks Consensus Estimate for 2026 remains unchanged over the past 60 days at a loss of 15 cents per share, wider than last year's reported loss of 13 cents. Revenues are still projected to increase 38% in 2026, followed by another 15.8% growth in 2027, underscoring robust top-line momentum despite continuing losses.

SOUN Estimate

Image Source: Zacks Investment Research

Five9 presents a more balanced outlook. The Zacks Consensus Estimate for 2026 earnings has remained unchanged at $3.26 per share over the past 60 days, while the 2027 estimate has increased to $3.79 from $3.77. Analysts expect 2026 revenue growth of 9.7%, followed by another 10.1% increase in 2027, while earnings are projected to grow 10.1% in 2026 and 16.2% in 2027. These revisions point to improving profitability supported by disciplined execution.

FIVN Estimate

Image Source: Zacks Investment Research

Which Stock Offers Better Growth?Both companies are positioned to benefit from rising enterprise adoption of conversational AI, but they appeal to different investor profiles. SoundHound offers the more aggressive growth story. Its rapidly expanding enterprise pipeline, proprietary OASYS platform and pending LivePerson acquisition could substantially expand its addressable market over the next several years. However, the company still faces meaningful execution, integration and profitability risks.

Five9 offers a more balanced investment proposition. The company combines consistent recurring revenue, improving margins, healthy cash generation, disciplined capital allocation and expanding AI capabilities at an attractive valuation. Its improving earnings outlook further strengthens the investment case.

Since both stocks currently carry a Zacks Rank #3 (Hold), Five9 appears to offer the better growth opportunity today. While SoundHound could ultimately generate stronger long-term revenue growth, Five9's combination of profitable expansion, valuation support, stronger share price momentum and improving earnings visibility provides a more compelling risk-reward profile for investors seeking exposure to the customer AI market.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.