Five9 Stock Down 60% This Past Year, but One Investor Just Lifted Stake With $3.5 Million Buy

Five9 delivers cloud-based contact center software for enterprises, serving clients across finance, healthcare, and technology sectors.On February 12, 2026, Gagnon Advisors, LLC disclosed a buy of Five9 (FIVN +1.24%), adding 168,891 shares in an estimated $3.58 million trade based on quarterly average pricing.What happenedAccording 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 knowGagnon Advisors, LLC made a buy, raising its Five9 stake to 4.28% of reportable AUM after the transactionTop 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 overviewMetricValueRevenue (TTM)$1.1 billionNet income (TTM)($31.3 million)Market capitalization$1.30 billionPrice (as of market close February 12, 2026)$16.57Company snapshotFive9 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 investorsThis 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.About the AuthorJonathan Ponciano is a contributing stock market analyst at The Motley Fool. He has nearly a decade of experience as a financial journalist, most recently as an editor and senior reporter at Forbes focused on markets, technology, and entrepreneurship. Jonathan has also written for Investopedia and the Los Angeles Business Journal. He holds a dual B.A. in Business Journalism and Economics from the University of North Carolina at Chapel Hill and an M.B.A. from Columbia Business School. A North Carolina native now based in New York City, Jonathan has also lived in Mexico City and Los Angeles.CMFjonponcStocks MentionedFive9NASDAQ: FIVN$16.77 (+1.24%) $+0.20*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.