Why One Fund Has an $8.5 Million Bet on Five9 Despite a 50% One-Year Stock Collapse

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Jonathan Ponciano, The Motley Fool

Fri, December 19, 2025 astatine 10:40 AM CST 5 min read

New York City-based S Squared Technology added 165,000 shares of Five9 successful the 3rd quarter.
As of quarter-end, the money reported holding 350,000 FIVN shares valued astatine $8.5 million.
Five9 present accounts for 3.2% of AUM, which places it extracurricular the fund's apical 5 holdings.
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New York City-based S Squared Technology accrued its holdings successful Five9 (NASDAQ:FIVN) by 165,000 shares successful the 3rd quarter, reflecting an estimated $3.6 cardinal presumption worth change, according to a November 13 SEC filing.

According to a filing with the Securities and Exchange Commission dated November 13, S Squared Technology accrued its involvement successful Five9 (NASDAQ:FIVN) by 165,000 shares implicit the 3rd quarter. The summation brought the fund’s full holdings successful the institution to 350,000 shares, worthy $8.5 cardinal astatine quarter’s end.

The fund's Five9 presumption present represents 3.2% of 13F assets nether management.

Top holdings aft the filing:

NASDAQ: LSCC: $25.4 cardinal (9.7% of AUM)
NASDAQ: KRYS: $19.3 cardinal (7.3% of AUM)
NASDAQ: SYM: $18.9 cardinal (7.2% of AUM)
NASDAQ: KTOS: $18.2 cardinal (6.9% of AUM)
NYSE: PRLB: $15.6 cardinal (5.9% of AUM)

As of Friday, Five9 shares were priced astatine $20.72, down 50% implicit the past twelvemonth and good underperforming the S&P 500's 16% summation successful the aforesaid period.

Metric

Value

Price (as of Friday)	$20.72
Market Capitalization	$1.6 billion
Revenue (TTM)	$1.1 billion
Net Income (TTM)	$31.3 million

Five9 provides a cloud-based interaction halfway level offering voice, video, chat, email, societal media, and API-driven lawsuit engagement solutions.
The institution serves endeavor clients crossed industries, including banking, fiscal services, healthcare, technology, education, and concern process outsourcing.
It operates a subscription-based model, with clients paying for entree to its virtual interaction halfway suite and related services.

Five9, Inc. is simply a starring supplier of unreality bundle for interaction centers, enabling enterprises to negociate omnichannel lawsuit interactions efficiently. The institution leverages precocious technologies, including earthy connection processing and automatic code recognition, to heighten the lawsuit experience. Its scalable level and absorption connected innovation presumption Five9 arsenic a cardinal subordinate successful the cloud-based interaction halfway market.

S Squared's determination apt signals condemnation successful Five9's operating fundamentals and not needfully its stock-market momentum -- astatine slightest not implicit the past year. The banal has fallen astir 90% from its 2021 highs, and it's inactive down astir 50% implicit the past year, but Five9's latest 4th supports a thesis that its concern has stabilized and aboriginal currency flows mightiness beryllium mispriced.

Revenue roseate 8% twelvemonth implicit twelvemonth to a grounds $285.8 million, portion Enterprise AI gross surged 41%. Profitability besides improved meaningfully, with adjusted EBITDA margins expanding to 25.1% from 19.8% a twelvemonth earlier. Operating currency travel reached a quarterly grounds of $59 million, reinforcing that maturation is nary longer coming astatine the disbursal of discipline. Management besides authorized a $150 cardinal stock repurchase program, a notable awesome fixed the company’s past of stock-based compensation.

Within the portfolio, this presumption sits beneath larger bets successful semiconductor, defense, and aerospace names, making it much similar a calculated bundle allocation alternatively than a halfway holding. For semipermanent investors, the takeaway is straightforward: Five9 isn't priced for maturation perfection, but its improving margins, rising AI mix, and strengthening currency procreation suggest the concern whitethorn beryllium acold healthier than the banal illustration implies.