v3.26.1
Segment and Geographical Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment and Geographical Information Segment and Geographical Information
The Company has a single operating and reportable segment and manages its business activities on a consolidated basis. The Company’s single segment provides its solution through a SaaS business model. The Company generates subscription revenue from its Intelligent CX Platform and also generates usage-based telephony revenue. The Company charges its customers monthly subscription fees for access to its solution, primarily based on the number of licenses. The Company’s AI solutions are sold to its customers on a consumption basis. The Company’s reliable, secure, and scalable Intelligent CX Platform, powered by Five9 Genius AI, delivers a
comprehensive suite of easy-to-use applications that enable the breadth of customer service, sales, and marketing related functions. The Company’s chief operating decision maker (“CODM”) is its chief executive officer. The Company’s CODM reviews financial information presented on a consolidated basis for purposes of assessing financial performance and making operating decisions on how to allocate resources based on net income that is also reported on its consolidated statements of operations and comprehensive income (loss) as consolidated net income (loss). The measure of segment assets is reported on its consolidated balance sheets as total consolidated assets.
Revenue by Geographic Areas
The following table summarizes revenues by geographic region based on customer billing address (in thousands):
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
United States$275,775 $251,390 $545,352 $498,446 
International36,669 31,879 72,411 64,528 
Total revenue$312,444 $283,269 $617,763 $562,974 
Long-Lived Assets, Net by Geographic Areas
The following table summarizes total property and equipment, net in the respective locations (in thousands):
June 30, 2026December 31, 2025
United States$164,206 $154,855 
International15,442 9,780 
Property and equipment, net$179,648 $164,635 
Total purchases of property and equipment for the six months ended June 30, 2026 and 2025 are disclosed in the Company’s Consolidated Statements of Cash Flows.
Segment Information - Consolidated Statements of Operations
Three Months Ended, Six Months Ended,
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Revenue$312,444 $283,269 $617,763 $562,974 
Adjusted cost of revenue(1)
(120,458)(104,724)(231,465)(209,814)
Adjusted research and development(2)
(32,054)(27,419)(61,699)(58,491)
Adjusted sales and marketing(3)
(70,285)(63,967)(141,205)(135,212)
Adjusted general and administrative(4)
(19,595)(19,209)(38,859)(38,804)
Other segment items(5)
(48,156)(54,862)(86,304)(98,503)
Depreciation and amortization(19,919)(14,649)(37,761)(29,139)
Interest expense(3,507)(3,820)(6,649)(7,935)
Interest income and other5,838 7,917 11,050 18,220 
Provision for income taxes(6)
(941)(1,382)(3,092)(1,566)
Net income $3,367 $1,154 $21,779 $1,730 
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(1) Adjusted cost of revenue includes cost of revenue in accordance with GAAP, adjusted for depreciation and amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, and lease amortization for finance leases.
(2) Adjusted research and development includes research and development in accordance with GAAP, adjusted for depreciation and amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, and lease amortization for finance leases.
(3) Adjusted sales and marketing includes sales and marketing expense in accordance with GAAP, adjusted for depreciation and amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, and one-time expenses related to advisory services for long-term strategy and growth.
(4) Adjusted general and administrative includes general and administrative expense in accordance with GAAP, adjusted for depreciation and amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one-time expenses related to advisory
services for long-term strategy and growth, impairment charge related to consolidation of corporate headquarters, and legal fees related to the securities class action.
(5) Other segment items included in segment net income include stock-based compensation, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, one-time expenses related to advisory services for long-term strategy and growth, impairment charge related to consolidation of corporate headquarters, and legal fees related to the securities class action.
(6) Non-GAAP adjustments do not have a material impact on our worldwide income tax provision due to the tax treatment of the non-GAAP adjustments reported, and our domestic valuation allowance position.