Five9BSP:F2IV34 +0.45%46 Gross Margin % is 55.85% as of Mar. 2026, which is 2% below its 10-year median of 57.01. GuruFocus rates BSP:F2IV34 with a GF Score™ of 46/100 and a GF Value™ of R$13.12 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 2,683 Software companies, Five9 ranks better than 66.31% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Five9's Gross Profit for the
three
months ended in Mar. 2026 was R$892 Mil. Five9's Revenue for the
three
months ended in Mar. 2026 was R$1,597 Mil. Therefore, Five9's Gross Margin % for the quarter that ended in Mar. 2026 was 55.85%.
Warning Sign:
Five9 Inc gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The historical rank and industry rank for Five9's Gross Margin % or its related term are showing as below:
BSP:F2IV34'
s Gross Margin % Range Over the Past 10 Years
Min: 52.48 Med: 57.01 Max: 59.62
Current: 55.3
During the past 13 years, the highestGross Margin % of Five9 was 59.62%. The lowest was 52.48%. And the median was 57.01%.
BSP:F2IV34's Gross Margin % is ranked better than 66.31% of 2683
companies
in the Software industry
Industry Median: 40.45
vs BSP:F2IV34: 55.30
Five9 had a gross margin of 55.85% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Five9 was -1.10% per year.
Five9 (BSP:F2IV34) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Five9 had a gross margin of 55.85% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Five9 Gross Margin % Related Terms
Five9 Gross Margin % Historical Data
* Premium members only.
The historical data trend for Five9's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:F2IV34 vs AEVA, FLYW, PAYO: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Five9's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Five9 Gross Margin % vs Software Industry
For the Software industry and Technology sector, Five9's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Five9's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Five9 (BSP:F2IV34) has a Gross Margin % of 55.85% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Five9 and its competitors. This is near median its historical median of 57.01. Over the past decade, Five9's Gross Margin % has ranged from 52.48 to 59.62. According to the industry distribution chart, Five9 ranks #904 out of 2683 companies in the Software industry, placing it in the top 33.7%.
Is Five9's Gross Margin % too high?
Five9's current Gross Margin % of 55.85% is near median its 10-year median of 57.01. Over the past 10 years, this metric has ranged from a low of 52.48 to a high of 59.62. The Software industry median Gross Margin % is 40.45. Five9's value of 55.85% is 38.1% above this industry median. Based on the distribution chart, Five9 ranks #904 out of 2683 companies in the Software industry, which is above the industry midpoint. Overall, Five9 has a GF Score™ of 46/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Five9's Gross Margin % compare to AEVA and FLYW?
According to the Software industry distribution chart, Five9 ranks #904 out of 2683 companies for Gross Margin %. This puts Five9 in the upper half of its industry. The industry median Gross Margin % is 40.45. Five9's value of 55.85% is 38.1% above this benchmark. Historically, Five9's own Gross Margin % has ranged from 52.48 to 59.62 over the past decade. While the company's 10-year median is 57.01 vs. the industry median of 40.45, Five9 has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Five9's current Gross Margin % of 55.85% is 38.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Five9 and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Five9's current Gross Margin % is 55.85%, which is near median its own 10-year median of 57.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Five9 stock overvalued right now?
Based on GuruFocus' analysis, Five9 (BSP:F2IV34) is currently considered Significantly Undervalued. The stock's GF Value™ is R$13.12, compared to a current price of R$6.67 — trading 49.2% below its estimated fair value. The current Gross Margin % is 55.85%, which is near median its 10-year median of 57.01 and 38.1% above the Software industry median of 40.45. Five9's overall GF Score™ is 46/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Five9 (BSP:F2IV34), the current Gross Margin % is 55.85% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Five9 (BSP:F2IV34) Overvalued in 2026?
Based on GuruFocus' analysis, Five9 stock appears to be undervalued.
The current stock price of R$6.67 is trading 49.2% below its estimated GF Value™ of R$13.12.
GuruFocus considers Five9 to be Significantly Undervalued.
Key valuation signals for BSP:F2IV34:
Gross Margin %: 55.85% (near median its 10-year median of 57.01)
GF Value™: R$13.12 vs. price of R$6.67 (49.2% below fair value)
Industry Position: 38.1% above the Software median (#904 of 2683)
No single metric tells the full story. See the BSP:F2IV34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Five9 offers cloud-native contact center software enabling digital customer service, sales, and marketing engagement. The company's Intelligent CX platform combines core telephony functionality, omnichannel engagement, and modules into a cloud contact-center-as-a-service, or CCaaS, platform. Five9's modules include digital self-service, agent assist technology, workflow automation, and optimization solutions, as well as artificial intelligence-driven automation solutions that optimize customer service efficiency and manage interaction quality and agent performance.
46GF Score
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