Five9 Reports Record Full Year 2025 Revenue of $1.1 Billion

SAN RAMON, Calif.--( BUSINESS WIRE)--Five9, Inc. (NASDAQ:FIVN), the Intelligent CX Platform provider, today reported results for the fourth quarter and full year ended December 31, 2025.

Fourth Quarter 2025 Financial Results

2025 Financial Results

“We're pleased with our fourth quarter performance, exiting the year with a revenue run rate of $1.2 billion and adjusted EBITDA margin of 26%. The CX market is undergoing a significant transformation as AI becomes central to customer experience. Five9's end-to-end platform positions us well to lead this new era of AI-powered CX, and I'm extremely confident in Amit's leadership as we execute on this opportunity.”

- Mike Burkland, Chairman of the Board

“I'm thrilled to be here leading Five9, and I’m enthusiastic about our significant market opportunity. In my first few weeks, I've been impressed by the strength of our platform and team. I look forward to executing our strategy to drive growth, increase profitability, and deliver long-term shareholder value.”

- Amit Mathradas, Chief Executive Officer

Business Outlook

Five9 provides guidance based on current market conditions and expectations. Five9 emphasizes that the guidance is subject to various important cautionary factors referenced in the section entitled "Forward-Looking Statements" below, including risks and uncertainties associated with the ongoing impact of macroeconomic challenges.

With respect to Five9’s guidance as provided above, please refer to the “Reconciliation of GAAP Net Income to Non-GAAP net income - Guidance” table for more details, including important assumptions upon which such guidance is based.

Conference Call Details

Five9 will discuss its fourth quarter 2025 results today, February 19, 2026, via Zoom webinar at 4:30 p.m. Eastern Time. To access the webinar, please register by clicking here. A copy of this press release will be furnished to the Securities and Exchange Commission on a Current Report on Form 8-K and will be posted to our website, prior to the conference call.

A live webcast and a replay will be available on the Investor Relations section of the Company’s web-site at http://investors.five9.com/.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. We calculate adjusted gross profit and adjusted gross margin by adding back the following items to gross profit: depreciation, intangibles amortization, stock-based compensation, acquisition and related transaction costs and one-time integration costs, lease amortization for finance leases, and costs related to reduction in force plans. We calculate adjusted EBITDA by adding back or removing the following items to or from GAAP net income (loss): depreciation and amortization, stock-based compensation, interest expense, gain on early extinguishment of debt, interest income and other, exit costs related to closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, impairment charges related to closure of operating lease facilities, lease amortization for finance leases, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, legal fees related to the securities class action, office closure lease termination costs, and provision for income taxes. We calculate non-GAAP operating income by adding back or removing the following items to or from GAAP loss from operations: stock-based compensation, intangibles amortization, exit costs related to the closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, legal fees related to the securities class action, and office closure lease termination costs. We calculate non-GAAP net income by adding back or removing the following items to or from GAAP net loss: stock-based compensation, intangibles amortization, amortization of discount and issuance costs on convertible senior notes, gain on early extinguishment of debt, exit costs related to the closure and relocation of our Russian operations, acquisition and related transaction costs and one-time integration costs, impairment charge of an equity investment, impairment charges related to closure of operating lease facilities, costs related to reduction in force plans, one-time expenses related to strategic consulting services for operational review, other cost-reduction and productivity initiatives, legal fees related to the securities class action, office closure lease termination costs and tax benefit associated with acquired companies. For the periods presented, these adjustments from GAAP net income (loss) to non-GAAP net income do not include any presentation of the net tax effect of such adjustments given our significant net operating loss carryforwards. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. The Company considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the Company, exclusive of factors that do not directly affect what we consider to be our core operating performance, as well as unusual events. The Company’s management uses these measures to (i) illustrate underlying trends in the Company’s business that could otherwise be masked by the effect of income or expenses that are excluded from non-GAAP measures, and (ii) establish budgets and operational goals for managing the Company’s business and evaluating its performance. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented only as supplemental information for purposes of understanding the Company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP. Please see the reconciliation of non-GAAP financial measures set forth in this release.

Forward-Looking Statements

This news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements in the quote from our Chairman and Chief Executive Officer, including statements regarding shifts in the CX industry, customer preferences for unified platforms where AI is natively embedded, Five9's market position and expected impact on the Company's growth, Five9's market opportunity and growth prospects, including as a result of AI, Five9’s ability to deliver sustainable growth and robust free cash flow, Five9’s stock repurchase program, and the first quarter and full year 2026 financial projections and expectations set forth under the caption “Business Outlook,” that are based on our current expectations and involve numerous risks and uncertainties that may cause these forward-looking statements to be inaccurate. Risks that may cause these forward-looking statements to be inaccurate include, among others: (i) the impact of adverse economic conditions, including the impact of macroeconomic challenges, global tariff increases and potential future increases and announcements regarding same, continued inflation, uncertainty regarding consumer spending, high interest rates, fluctuations in currency rates, the impact of the Russia-Ukraine conflict, the impact of current and potential global conflicts, and other factors, may continue to harm our business; (ii) if we are unable to attract new customers or sell additional services and functionality to our existing customers, our revenue and revenue growth will be harmed; (iii) if our existing customers terminate their subscriptions or reduce their subscriptions and related usage, or fail to grow subscriptions at the rate they have in the past or that we might expect, our revenues and gross margins will be harmed and we will be required to spend more money to grow our customer base; (iv) because a significant percentage of our revenue is derived from existing customers, downturns or upturns in new sales will not be immediately reflected in our operating results and may be difficult to discern; (v) if we fail to manage our technical operations infrastructure, our existing customers may experience service outages, our new customers may experience delays in the deployment of our solution and we could be subject to claims for credits or damages, among other things; (vi) if we are unable to attract and retain highly skilled leaders and other employees, our business and results of operations may be harmed; (vii) as AI solutions will likely perform an increasing proportion of contact center interactions, if we are unable to replace decreases in subscription revenue from licenses with revenue from the sale of additional AI solutions, our revenue, results of operations and business will be harmed; (viii) further development of our AI solutions may not be successful and may result in reputational harm and our future operating results could be materially harmed; (ix) the AI technology and features incorporated into our solution include new and evolving technologies that may present both legal and business risks; (x) we have established, and are continuing to increase, our network of technology solution distributors and resellers to sell our solution; our failure to effectively develop, manage, and maintain this network could materially harm our revenues; (xi) our quarterly and annual results may fluctuate significantly, including as a result of the timing and success of new product and feature introductions by us, may not fully reflect the underlying performance of our business and may result in decreases in the price of our common stock; (xii) our historical growth may not be indicative of our future growth, and even if we continue to grow rapidly, we may fail to manage our growth effectively; (xiii) failure to adequately retain and expand our sales force will impede our growth; (xiv) the use of AI by our workforce may present risks to our business; (xv) the contact center software solutions market is subject to rapid technological change, and we must develop and sell incremental and new solutions in order to maintain and grow our business; (xvi) our growth depends in part on the success of our strategic relationships with third parties and our failure to successfully maintain, grow and manage these relationships could harm our business; (xvii) the markets in which we participate involve a high number of competitors that is continuing to increase, and if we do not compete effectively, our operating results could be harmed; (xviii) we continue to expand our international operations, which exposes us to significant macroeconomic and other risks; (xix) security breaches, cybersecurity incidents, and improper access to, use of, or disclosure of our data or our customers’ data, or other cyber-attacks on our systems, could result in litigation and regulatory risk, harm our reputation, our business or financial results; (xx) we may acquire other companies, or technologies, or be the target of strategic transactions, or be impacted by transactions by other companies, which could divert our management’s attention, result in additional dilution to our stockholders or use a significant amount of our cash resources and otherwise disrupt our operations and harm our operating results; (xxi) we sell our solution to larger organizations that require longer sales and implementation cycles and often demand more configuration and integration services or customized features and functions that we may not offer, any of which could delay or prevent these sales and harm our growth rates, business and operating results; (xxii) we rely on third-party telecommunications and internet service providers to provide our customers and their customers with telecommunication services and connectivity to our cloud contact center software and any failure by these service providers to provide reliable services could cause us to lose customers and subject us to claims for credits or damages, among other things; (xxiii) prior to 2025, we had a history of losses and we may be unable to sustain profitability; (xxiv) our stock price has been volatile, may continue to be volatile and may decline, including due to factors beyond our control; (xxv) we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs; (xxvi) failure to comply with laws and regulations could harm our business and our reputation; (xxvii) we may not have sufficient cash to service our convertible senior notes and repay such notes, if required, and other risks attendant to our convertible senior notes and increased debt levels; (xxviii) risks that we may not execute repurchases in full, under our announced stock repurchase program, or may not achieve the intended benefits therefrom; and (xxix) the other risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in our Securities and Exchange Commission filings and reports, including, but not limited to, our most recent annual report on Form 10-K and quarterly reports on Form 10-Q. Such forward-looking statements speak only as of the date hereof and readers should not unduly rely on such statements. We undertake no obligation to update the information contained in this press release, including in any forward-looking statements.

About Five9

The Five9 Intelligent CX Platform provides a comprehensive suite of solutions for orchestrating fluid customer experiences. Our cloud-native, multi-tenant, scalable, reliable, and secure platform includes contact center; omni-channel engagement; Workforce Engagement Management; extensibility through more than 1,000 partners; and innovative, practical AI, automation and journey analytics that are embedded as part of the platform. Five9 brings the power of people, technology, and partners to more than 3,000 organizations worldwide. For more information, visit www.five9.com.

FIVE9, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

December 31, 2025

December 31, 2024

ASSETS

Current assets:

Cash and cash equivalents

232,084

362,546

Marketable investments

464,835

643,410

Accounts receivable, net

130,984

115,172

Prepaid expenses and other current assets

43,107

50,840

Deferred contract acquisition costs, net

88,714

76,600

Total current assets

959,724

1,248,568

Property and equipment, net

164,635

144,888

Operating lease right-of-use assets

46,375

38,880

Finance lease right-of-use assets

14,216

19,269

Intangible assets, net

51,166

65,632

Goodwill

366,253

365,436

Other assets

10,725

13,384

Deferred contract acquisition costs, net — less current portion

176,976

155,157

Total assets

1,790,070

2,051,214

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

29,973

26,282

Accrued and other current liabilities

84,120

83,720

Operating lease liabilities

12,922

11,258

Finance lease liabilities

8,480

7,768

Deferred revenue

77,515

79,173

Convertible senior notes

—

433,490

Total current liabilities

213,010

641,691

Convertible senior notes — less current portion

735,490

731,855

Operating lease liabilities — less current portion

42,116

37,071

Finance lease liabilities — less current portion

6,090

11,688

Other long-term liabilities

7,547

6,717

Total liabilities

1,004,253

1,429,022

Stockholders’ equity:

Common stock

Additional paid-in capital

1,163,072

1,039,125

Accumulated other comprehensive income

897

636

Accumulated deficit

(378,229

)

(417,645

)

Total stockholders’ equity

785,817

622,192

Total liabilities and stockholders’ equity

1,790,070

2,051,214

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

Revenue

300,282

278,660

1,149,088

1,041,938

Cost of revenue

133,844

122,663

516,234

477,540

Gross profit

166,438

155,997

632,854

564,398

Operating expenses:

Research and development

36,104

41,480

152,334

166,197

Sales and marketing

76,636

73,898

311,816

311,954

General and administrative

33,902

36,439

139,854

137,550

Total operating expenses

146,642

151,817

604,004

615,701

Income (loss) from operations

19,796

4,180

28,850

(51,303

)

Other income (expense), net:

Interest expense

(3,054

)

(4,271

)

(14,076

)

(14,812

)

Gain on early extinguishment of debt

—

6,615

Interest income and other

6,288

11,242

30,168

46,745

Total other income (expense), net

3,234

6,971

16,092

38,548

Income (loss) before income taxes

23,030

11,151

44,942

(12,755

)

Provision for (benefit from) income taxes

3,317

(426

)

5,526

Net income (loss)

19,713

11,577

39,416

(12,795

)

Net income (loss) per share:

Basic

0.25

0.15

0.51

(0.17

)

Diluted

0.23

0.13

0.45

(0.17

)

Shares used in computing net income (loss) per share:

Basic

77,509

75,430

76,916

74,503

Diluted

87,037

88,645

88,002

74,503

FIVE9, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Twelve Months Ended

December 31, 2025

December 31, 2024

Cash flows from operating activities:

Net income (loss)

39,416

(12,795

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

61,764

52,905

Reduction in the carrying amount of right-of-use assets

20,277

15,358

Amortization of deferred contract acquisition costs

86,006

71,483

Accretion of discount on marketable investments

(7,892

)

(20,818

)

Provision for credit losses

1,617

1,150

Stock-based compensation

148,068

166,315

Amortization of discount and issuance costs on convertible senior notes

4,550

5,478

Gain on early extinguishment of debt

—

(6,615

)

Impairment charge of an equity investment

—

1,250

Impairment charge related to closure of operating lease facilities

835

2,202

Interest on finance lease obligations

1,033

264

Deferred taxes - excluding tax benefit from acquisition

446

647

Deferred taxes - tax benefit from acquisition

524

(5,482

)

Other

(1,051

)

Changes in operating assets and liabilities:

Accounts receivable

(17,430

)

(14,645

)

Prepaid expenses and other current assets

7,774

(12,148

)

Deferred contract acquisition costs

(119,940

)

(104,957

)

Other assets

2,630

3,115

Accounts payable

3,190

1,057

Accrued and other current liabilities

(5,700

)

2,839

Deferred revenue

(958

)

(425

)

Other long-term liabilities (including non-current portions of operating and finance lease liabilities)

(48

)

(1,959

)

Net cash provided by operating activities

226,207

143,168

Cash flows from investing activities:

Purchases of marketable investments

(745,378

)

(1,289,357

)

Proceeds from sales of marketable investments

127,976

122,138

Proceeds from maturities of marketable investments

804,091

1,132,332

Purchases of property and equipment

(24,963

)

(42,388

)

Capitalization of software development costs

(39,135

)

(22,223

)

Payments of initial direct lease costs

(286

)

—

Cash paid to acquire Acqueon Inc.

—

(167,151

)

Cash settlement to acquire Aceyus, Inc.

—

Net cash provided by (used in) investing activities

122,305

(266,550

)

Cash flows from financing activities:

Proceeds from issuance of 2029 convertible senior notes

—

731,055

Payment of debt issuance costs

—

(2,212

)

Payments for capped call transactions associated with the 2029 convertible senior notes

—

(93,438

)

Repurchase of a portion of 2025 convertible senior notes

—

(304,485

)

Cash received from partial termination of capped calls associated with the 2025 convertible senior notes

—

539

Repayment of outstanding 2025 convertible senior notes at maturity

(434,405

)

—

Proceeds from exercise of common stock options

3,137

481

Proceeds from sale of common stock under ESPP

12,472

14,797

Cash paid for repurchase of the Company's common stock

(50,000

)

—

Payments of finance leases

(9,770

)

(4,012

)

Net cash (used in) provided by financing activities

(478,566

)

342,725

Net (decrease) increase in cash, cash equivalents and restricted cash

(130,054

)

219,343

Cash, cash equivalents and restricted cash:

Beginning of period

364,185

144,842

End of period

234,131

364,185

FIVE9, INC.

RECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT

(In thousands, except percentages)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP gross profit

166,438

155,997

632,854

564,398

GAAP gross margin

55.4

56.0

55.1

54.2

Non-GAAP adjustments:

Depreciation

10,983

7,988

37,326

29,944

Intangibles amortization

3,438

4,099

14,466

12,591

Stock-based compensation

6,504

6,921

27,836

29,825

Acquisition and related transaction costs and one-time integration costs

259

Lease amortization for finance leases

2,100

1,802

8,143

3,609

Costs related to reduction in force plans

—

1,565

2,115

Adjusted gross profit

189,467

176,847

722,196

642,741

Adjusted gross margin

63.1

63.5

62.8

61.7

FIVE9, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA

(In thousands, except percentages)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

GAAP net income (loss)

19,713

11,577

39,416

(12,795

)

Non-GAAP adjustments:

Depreciation and amortization

16,853

14,640

61,764

52,905

Stock-based compensation

33,625

38,443

148,068

166,315

Interest expense

3,054

4,271

14,076

14,812

Gain on early extinguishment of debt

—

(6,615

)

Interest (income) and other

(6,288

)

(11,242

)

(30,168

)

(46,745

)

Exit costs related to closure and relocation of Russian operations

—

Acquisition and related transaction costs and one-time integration costs

2,155

2,797

6,245

12,303

Impairment charges related to closure of operating lease facilities

—

2,202

—

2,202

Lease amortization for finance leases

2,292

1,994

8,911

3,857

Costs related to reduction in force plans

—

8,169

9,625

One-time expenses related to strategic consulting services for operational review

—

1,265

—

Other cost-reduction and productivity initiatives

1,728

—

4,553

—

Legal fees related to the securities class action

873

—

1,774

—

Office closure lease termination costs

—

Provision for (benefit from) income taxes

3,317

(426

)

5,526

—

Adjusted EBITDA

77,322

64,256

269,694

195,982

Adjusted EBITDA as % of revenue

25.7

23.1

23.5

18.8

(1) 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.

FIVE9, INC.

RECONCILIATION OF GAAP OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME

(In thousands)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Income (loss) from operations

19,796

4,180

28,850

(51,303

)

Non-GAAP adjustments:

Stock-based compensation

33,625

38,443

148,068

166,315

Intangibles amortization

3,438

4,099

14,466

12,591

Exit costs related to closure and relocation of Russian operations

—

Acquisition and related transaction costs and one-time integration costs

2,155

2,797

6,245

12,303

Costs related to reduction in force plans

—

8,169

9,625

One-time expenses related to strategic consulting services for operational review

—

1,265

—

Other cost-reduction and productivity initiatives

1,728

—

4,553

—

Legal fees related to class action

873

—

1,774

—

Office closure lease termination costs

—

Non-GAAP operating income

61,615

49,519

213,485

149,609

FIVE9, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2024

GAAP net income (loss)

19,713

11,577

39,416

(12,795

)

Non-GAAP adjustments:

Stock-based compensation

33,625

38,443

148,068

166,315

Intangibles amortization

3,438

4,099

14,466

12,591

Amortization of discount and issuance costs on convertible senior notes

937

1,487

4,550

5,478

Gain on early extinguishment of debt

—

(6,615

)

Exit costs related to closure and relocation of Russian operations

(33

)

296

(473

)

452

Acquisition and related transaction costs and one-time integration costs

2,155

2,797

6,245

12,303

Impairment charge of an equity investment

—

1,250

Impairment charge related to closure of operating lease facilities

—

2,202

—

2,202

Office closure lease termination costs

—

Costs related to reduction in force plans

—

8,169

9,625

One-time expenses related to strategic consulting services for operational review

—

1,265

—

Other cost reduction and productivity initiatives

1,728

—

4,553

—

Legal fees related to the securities class action

873

—

1,774

—

Tax benefit associated with acquired companies

—

(650

)

524

(5,482

)

—

Non-GAAP net income

62,436

60,251

228,652

185,324

GAAP net income (loss) per share:

Basic

0.25

0.15

0.51

(0.17

)

Diluted

0.23

0.13

0.45

(0.17

)

Non-GAAP net income per share:

Basic

0.81

0.80

2.97

2.49

Diluted

0.80

0.79

2.96

2.47

Shares used in computing GAAP net income (loss) per share:

Basic

77,509

75,430

76,916

74,503

Diluted

87,037

88,645

88,002

74,503

Shares used in computing non-GAAP net income per share:

Basic

77,509

75,430

76,916

74,503

Diluted

77,624

75,999

77,243

75,060

(1)

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.

FIVE9, INC.

SUMMARY OF STOCK-BASED COMPENSATION, DEPRECIATION AND INTANGIBLES AMORTIZATION

(In thousands)

(Unaudited)

Three Months Ended

December 31, 2025

December 31, 2024

Stock-Based

Compensation

Depreciation

Intangibles

Amortization

Stock-Based

Compensation

Depreciation

Intangibles

Amortization

Cost of revenue

6,504

10,983

3,438

6,921

7,988

4,099

Research and development

7,349

833

—

8,259

620

—

Sales and marketing

8,879

—

10,880

—

General and administrative

10,893

1,589

—

12,383

1,895

—

Total

33,625

13,415

3,438

38,443

10,541

4,099

Twelve Months Ended

December 31, 2025

December 31, 2024

Stock-Based

Compensation

Depreciation

Intangibles

Amortization

Stock-Based

Compensation

Depreciation

Intangibles

Amortization

Cost of revenue

27,836

37,326

14,466

29,825

29,944

12,591

Research and development

31,764

2,980

—

37,260

2,972

—

Sales and marketing

42,209

—

51,214

123

—

General and administrative

46,259

6,923

—

48,016

7,275

—

Total

148,068

47,298

14,466

166,315

40,314

12,591

FIVE9, INC.

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME – GUIDANCE (1)

(In thousands, except per share data)

(Unaudited)

Three Months Ending

Year Ending

March 31, 2026

December 31, 2026

Low

High

Low

High

GAAP net income

8,874

14,954

75,496

83,176

Non-GAAP adjustments:

Stock-based compensation (2)

34,554

32,554

142,782

140,782

Intangibles amortization

3,404

13,575

Amortization of discount and issuance costs on convertible senior notes

878

3,684

Acquisition and related transaction costs and one-time integration costs (3)

2,710

1,710

8,563

7,563

Legal fees related to the securities class action

400

1,600

Income tax expense effects (4)

—

Non-GAAP net income

50,820

53,900

245,700

250,380

GAAP net income per share:

Basic

0.12

0.19

0.97

1.07

Diluted

0.10

0.17

0.86

0.95

Non-GAAP net income per share:

Basic

0.66

0.70

3.15

3.21

Diluted

0.66

0.70

3.15

3.21

Shares used in computing GAAP net income per share:

Basic

77,000

78,000

Diluted

86,400

87,400

Shares used in computing non-GAAP net income per share:

Basic

77,000

78,000

Diluted

77,000

78,000

(1)

Represents guidance discussed on February 19, 2026. Reader shall not construe presentation of this information after February 19, 2026 as an update or reaffirmation of such guidance.

(2)

Stock-based compensation expenses are based on a range of probable significance, assuming market price for our common stock that is approximately consistent with current levels.

(3)

Acquisition and related transaction costs and one-time integration costs are based on a range of probable significance for completed acquisitions, and no new acquisitions assumed.

(4)

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.