SoFi shares rise as record revenue, member growth drive strong Q3 results
Investing.com - Mizuho has adopted a "tactically bullish" stance on Five9 (NASDAQ:FIVN) and NICE (NASDAQ:NICE) ahead of their upcoming third-quarter earnings reports, despite both stocks underperforming the broader software sector in recent months. Five9’s earnings report is scheduled for November 6, with InvestingPro data showing the company maintains strong financial health with a current ratio of 4.44.
The firm noted that Five9 and NICE shares have declined 6% and 15% respectively over the past six months, compared to a 22% gain in the iShares Expanded Tech-Software Sector ETF (IGV), resulting in significant multiple compression to approximately 10x enterprise value to 2026 free cash flow. According to InvestingPro analysis, Five9’s current EV/EBITDA stands at 29.2x, while maintaining a healthy revenue growth of 14.2% over the last twelve months. For deeper insights into Five9’s valuation metrics and 12+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.
For Five9, Mizuho sees "an attractive H2 set-up" and expects management to meaningfully raise 2025 revenue guidance for the first time this year while sustaining momentum into 2026. The company’s strong financial position is evidenced by its liquid assets exceeding short-term obligations, with analysts projecting continued profitability this year.
Regarding NICE, the firm anticipates in-line core results, with investor focus likely shifting to revised guidance incorporating the Cognigy acquisition and the upcoming Capital Markets Day on November 17, which Mizuho views as "a positive catalyst" where management could provide mid-term growth targets exceeding current expectations.
Mizuho believes the risk/reward profile for both companies is skewing positively heading into Q3 results, particularly at their current "depressed valuations," adding that another quarter of AI revenue acceleration could improve investor sentiment toward both stocks heading into 2026.
In other recent news, Five9 Inc. reported its Q2 2025 earnings, highlighting a 12% year-over-year increase in revenue and a 45% rise in non-GAAP earnings per share (EPS). The company emphasized significant growth in AI-driven revenue and announced strategic realignments in its executive team. These developments come amidst a backdrop of mixed investor sentiment. While the earnings report showcased strong financial performance, the stock faced a decline in aftermarket trading. This reflects the complex dynamics influencing investor perspectives. No analyst upgrades or downgrades were noted in the available information. The company continues to focus on leveraging AI technology to drive future growth. These recent developments underscore Five9’s strategic direction and financial health.
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