A Clean Beat, Then a Soft Fourth-Quarter EPS Band
Five9's investor relations release put revenue at $323.3 million, up 13% from $285.8 million a year earlier. Subscription revenue grew 16%. Non-GAAP diluted EPS was $0.82; GAAP diluted EPS was $0.19. Adjusted EBITDA was $81.2 million, a 25.1% margin. LTM subscription dollar-based retention was 109% as of September 30, 2026. Investing.com cited consensus near $319.0 million of revenue and $0.80 of adjusted EPS, so both headline lines cleared the Street.
The outlook is what moved the tape. For the fourth quarter, Five9 guided revenue to $328.0 million to $334.0 million and non-GAAP diluted EPS to $0.88 to $0.92. Investing.com put fourth-quarter EPS consensus near $0.99, so the midpoint of $0.90 sits about 9% below that figure, while the revenue midpoint of $331.0 million is roughly in line with a $330.8 million consensus. Full-year 2026 revenue guidance is $1.269 billion to $1.275 billion, with non-GAAP diluted EPS of $3.17 to $3.21.
Level AI Is a $325 Million Cash Deal Outside the Numbers
In the same release, Five9 said it signed a definitive agreement to acquire Level AI for $325.0 million in cash, with closing expected in the fourth quarter of 2026 subject to customary conditions. The company said the guidance above does not include any contribution from that pending deal. CEO Amit Mathradas tied the quarter to accelerating subscription growth and said AI revenue growth stepped up, framing Level AI as a way to deepen AI capabilities inside the Genius CX platform. For options traders, a cash M&A print that is excluded from the near-term EPS path can still reprice the stock if investors focus on dilution of cash, integration risk, or the gap between the beat and the guided margin.
Twenty-Two Percent Against a Nineteen-Percent Monthly Chain
FIVN does not list weekly options into this print. The nearest listed expiry was November 20. Delayed Cboe quotes around Thursday evening showed the November 20 $35 call near $2.35 bid / $3.40 ask and the $35 put near $3.10 / $4.20, a midpoint straddle near $6.53, or about 19.1% of the $34.14 close. Break-evens on that midpoint sit near $27.61 and $40.67. An after-hours print near $26.55 is roughly $1.06 below the lower break-even: the $35 put would carry about $8.45 of intrinsic value against a straddle that cost about $6.53 at the midpoint. EarningsMoves had tracked an implied move near 17.9% on the November 20 chain into the report when the stock was still near the high $30s, consistent with a high-teens prepaid range that the after-hours gap cleared to the downside.
Front-month implied volatility on those $35 strikes was quoted near 116% annualized on the delayed tape. Once the event passes, that event premium usually collapses toward longer-dated levels. Those quotes are reference points, not fills: spreads are wide, after-hours stock prints can fade or extend before Friday's open, and equity options do not trade until 9:30 AM ET.
Soft EPS Outlook Meets Elevated Event Premium
A stock that beats the quarter and still gaps about 22% lower is hard on short puts and short put spreads written into earnings, especially if Friday's open retests the after-hours low. Defined-risk put debit spreads or long puts that were already underwater into the close can recover from direction but still lose most of the remaining time value once implied volatility resets. Short straddles that looked rich after a modest cash-session dip are the structures under the most pressure when the gap clears the lower break-even. Our implied volatility guide covers how post-earnings IV usually compresses, and the OCC options disclosure document explains the risks of standardized options, including assignment.
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*By the OptionsPilot Editorial Team. Published November 5, 2026, 4:20 PM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
