Voss Capital, LLC, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned +5.0% and +4.9% to investors net of fees and expenses respectively, in the third quarter compared to a +12.4% return for the Russell 2000 Index, +12.6% return for the Russell 2000 Value Index, and +8.3% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 205.4% and the net long exposure was 95.8% as of September 30, 2025. The weight of the fund’s top 10 longs was 77.8% and the top 10 shorts were -43.5%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, Voss Capital highlighted stocks such as Five9, Inc. (NASDAQ:FIVN). Five9, Inc. (NASDAQ:FIVN) is an intelligent cloud software provider for contact centers. The one-month return of Five9, Inc. (NASDAQ:FIVN) was -13.69%, and its shares lost 52.10% of their value over the last 52 weeks. On December 01, 2025, Five9, Inc. (NASDAQ:FIVN) stock closed at $19.86 per share, with a market capitalization of $1.553 billion.
Voss Capital stated the following regarding Five9, Inc. (NASDAQ:FIVN) in its third quarter 2025 investor letter:
“Take for instance, Five9, Inc. (NASDAQ:FIVN), whose subscription growth went from 16% in Q2 to 10% in Q3 and the stock has extrapolated the deceleration with minimal terminal cash flows assumed. Our read of the business’s future is more optimistic, and we believe some positive AI proof points are still stacking up in FIVN’s favor. While the “land and expand” AI story is taking longer to materialize in the P&L due to complex implementation cycles, the underlying demand remains robust—Enterprise AI revenue grew over 40% again in the quarter and Enterprise AI bookings grew over 80% y/y. We see the current growth headwinds as minor execution issues rather than sure signs of structural obsolescence.
Competition in the CCaaS space is no doubt intense, but FIVN, in our analysis, is currently priced for negative growth indefinitely despite leading the shift to AI-enabled contact centers and acting as a software platform toll road, so to speak, for any AI-point solutions that gain commercial traction. The stock now trades at just 1x 2027 revenue (~1.5x gross profit) and 5x Adjusted EBITDA, a massive discount to software peers trading at ~13x EBITDA, and major discounts to recent and relevant transaction comps such as enterprise competitor Genesys receiving a $15 billion private valuation mark (>5x sales), and the recent acquisition of low-growth, levered Verint by Thoma Bravo at ~3x gross profit. We would also note that activist Anson Funds (who have board representation and information asymmetry) more than doubled their position recently. The current valuation provides a significant margin of uncertainty and is further buttressed by a new $150 million share repurchase program, coupled with call options on the AI cycle and potential renewed M&A interest in a consolidating sector.”
Five9, Inc. (NASDAQ:FIVN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Five9, Inc. (NASDAQ:FIVN) at the end of the third quarter, which was 40 in the previous quarter. In Q3 2025, Five9, Inc. (NASDAQ:FIVN) reported revenue of $286 million, representing an 8% growth year-over-year. While we acknowledge the risk and potential of Five9, Inc. (NASDAQ:FIVN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Five9, Inc. (NASDAQ:FIVN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Five9, Inc. (NASDAQ:FIVN) and shared the list of cheap US stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
