Five9 announced that it has entered into an accelerated share repurchase agreement (ASR) with JPMorgan Chase Bank, National Association, to buy back $50 million of its common stock. The agreement, which began on November 11, 2025, required a payment of $50 million on November 12, 2025 and will deliver approximately 1.9 million shares to the company. Final settlement of the ASR is expected by the end of the first quarter of 2026.
The ASR is part of a broader $150 million share‑repurchase program that Five9 disclosed on November 6, 2025. The timing of the announcement follows the company’s Q3 2025 earnings release, which beat expectations on both revenue and earnings per share. While the market reaction to the earnings was muted—investors focused on the company’s cautious revenue guidance—the ASR signals management’s confidence in the long‑term value of the business and its commitment to returning capital to shareholders.
Five9’s Q3 2025 results showed revenue of $286 million, up 1.3 % from the $285.08 million consensus estimate, and earnings per share of $0.78, beating the $0.73 expectation by $0.05. The beat was driven by a 41 % year‑over‑year increase in enterprise AI revenue and a 10 % rise in overall subscription revenue. Adjusted EBITDA margins reached a record 25 %, reflecting strong pricing power and efficient cost management in the company’s high‑margin subscription business.
The earnings beat illustrates how Five9’s focus on AI‑enabled customer‑experience solutions is translating into higher‑margin revenue streams. The 41 % jump in AI revenue indicates robust demand for the company’s AI platform, while the 10 % subscription growth shows continued expansion in its core SaaS offering. Margin expansion to 25 % demonstrates that the company is successfully leveraging scale and pricing power to offset any cost pressures, thereby supporting the earnings beat.
The ASR structure allows Five9 to repurchase shares quickly while preserving flexibility. Shares will be purchased at the volume‑weighted average price (VWAP) over the term, less a discount that reflects the company’s confidence in its valuation. This approach enables the company to adjust the number of shares repurchased in response to market conditions, ensuring that the buyback aligns with the company’s capital‑allocation strategy and cash‑flow profile.
CFO Bryan Lee said, “We are pleased to initiate this accelerated share repurchase agreement, which reflects our confidence in Five9’s long‑term strategic growth plan. The ASR structure allows us to efficiently return capital to shareholders and underscores our commitment to disciplined capital allocation and delivering strong shareholder returns.” The announcement reinforces Five9’s strategy of balancing investment in AI and subscription growth with disciplined capital deployment.
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