Five9 Stock Down 60% This Past Year, but One Investor Just Lifted Stake With $3.5 Million Buy
Key Points
Gagnon Advisors purchased 168,891 shares of Five9, an estimated $3.58 million trade based on average share prices during the fourth quarter.
Meanwhile, the quarter-end value of the Five9 stake increased by $2.69 million, reflecting both trading and price movement.
Post-trade, the fund held 336,277 shares valued at $6.74 million as of December 31, 2025.
The position now makes up 4.28% of 13F AUM, which places it outside the fund’s top five holdings.
- 10 stocks we like better than Five9 ›
On February 12, 2026, Gagnon Advisors, LLC disclosed a buy of Five9 (NASDAQ:FIVN), adding 168,891 shares in an estimated $3.58 million trade based on quarterly average pricing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 12, 2026, Gagnon Advisors increased its holdings in Five9 by 168,891 shares during the fourth quarter. The estimated value of this purchase, based on the period’s average share price, is $3.58 million. At the end of the quarter, the position’s valuation rose by $2.69 million, reflecting both the additional shares and changes in market price.
What else to know
- Gagnon Advisors, LLC made a buy, raising its Five9 stake to 4.28% of reportable AUM after the transaction
- Top holdings following the filing:
- NASDAQ:WGS: $16.53 million (10.5% of AUM)
- NYSE:AMRC: $13.85 million (8.8% of AUM)
- NYSE:AL: $12.62 million (8.0% of AUM)
- NYSE:EPD: $10.90 million (6.9% of AUM)
- NASDAQ:CDNA: $10.04 million (6.4% of AUM)
- As of February 12, 2026, Five9 shares were priced at $16.57, down 59.8% over the past year and underperforming the S&P 500 by 72.68 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.1 billion |
| Net income (TTM) | ($31.3 million) |
| Market capitalization | $1.30 billion |
| Price (as of market close February 12, 2026) | $16.57 |
Company snapshot
- Five9 provides a cloud-based contact center platform, offering applications for customer service, sales, and marketing across multiple communication channels, including voice, video, chat, and social media.
- The company serves a broad client base across banking, financial services, healthcare, technology, education, and business process outsourcing sectors.
- It leverages advanced technologies such as natural language processing and automatic speech recognition to enhance customer experiences.
Five9 is a leading provider of cloud software for contact centers, with a global presence and a focus on delivering scalable, multi-channel customer engagement solutions. Its strategy centers on enabling enterprises to modernize customer interactions, driving operational efficiency and digital transformation within client organizations.
What this transaction means for investors
This move shows Gagnon leaning into a software name that is quietly stabilizing even while sentiment remains deeply negative. Five9 reported record third quarter revenue of $285.8 million, up 8% year over year, as adjusted EBITDA reached $71.7 million, translating to a 25.1% margin, which was a meaningful step up from 20% last year. Operating cash flow came in at $59 million for the quarter, up from $41.1 million one year earlier.
Growth is no longer hyper speed, but it is looking durable, with the business shifting from a growth at any cost narrative to one centered on margin discipline and cash generation.
Within a portfolio tilted toward energy, infrastructure, and biotech names like AMRC, EPD, and CDNA, this 4.28% position represents a clear bet on a SaaS turnaround, with shares down nearly 60% over the past year.
For long-term investors, the key question is whether mid-single-digit revenue growth paired with expanding margins can reset expectations. If profitability compounds, valuation compression may already reflect excessive pessimism.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Five9. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy.
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