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RingCentral (NYSE: RNG) boosts dividend and raises 2026 guidance after Q2

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

RingCentral, Inc. reported higher results for the second quarter ended June 30, 2026. Total revenue was $657 million, up from $620 million a year earlier, with subscriptions revenue of $634 million. GAAP operating margin improved to 7.7% and non-GAAP operating margin to 23.4%. GAAP diluted EPS rose to $0.45 from $0.14, while non-GAAP diluted EPS increased to $1.22 from $1.06. Net cash from operations was $206 million, up 23.3% year-over-year, and free cash flow was $180 million, up 24.8% year-over-year, and the company repurchased about 2.2 million shares for $94 million.

Management highlighted growing adoption of AI products, noting that approximately 13% of ARR now comes from customers using at least one native paid AI product, doubling year-over-year. The board increased the quarterly dividend by about 67% to $0.125 per share, payable August 20, 2026 to stockholders of record on August 6, 2026. For the third quarter, RingCentral guides total revenue of $664–$670 million, non-GAAP operating margin of 23.5%–24.0%, and non-GAAP EPS of $1.25–$1.30. Full-year 2026 guidance was raised, including total revenue of $2.635–$2.646 billion, non-GAAP operating margin of 23.6%–24.0%, non-GAAP EPS of $4.96–$5.10, and free cash flow of $615–$625 million.

Positive

  • Q2 2026 profitability improved, with GAAP diluted EPS rising to $0.45 from $0.14 and non-GAAP EPS to $1.22 from $1.06, while GAAP and non-GAAP margins and EPS were all above the high end of guidance.
  • RingCentral generated strong cash generation, delivering Q2 free cash flow of $180 million (a 27.4% margin) and raising full-year 2026 free cash flow guidance to $615–$625 million.
  • The board significantly increased shareholder returns by raising the quarterly dividend about 67% to $0.125 per share and repurchasing approximately $94 million of stock in Q2 2026.
  • Full-year 2026 guidance was raised across key metrics, including total revenue to $2.635–$2.646 billion and non-GAAP operating margin to 23.6%–24.0%, signaling confidence in sustained performance.

Negative

  • None.

Filing Explained

The filing’s balance-sheet disclosure shows that on June 30, 2026, cash and equivalents were $111,501 thousand, the current portion of long-term debt was $46,269 thousand, long-term debt was $1,074,377 thousand, and stockholders’ deficit was $610,359 thousand.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Total Revenue $657 million Second quarter 2026 total revenue, up from $620 million in Q2 2025
Q2 2026 GAAP Diluted EPS $0.45 GAAP diluted EPS for Q2 2026, compared with $0.14 a year earlier
Q2 2026 Non-GAAP Diluted EPS $1.22 Non-GAAP diluted EPS for Q2 2026, versus $1.06 in Q2 2025
Q2 2026 Non-GAAP Operating Margin 23.4% Non-GAAP operating margin for Q2 2026, up from 22.6% in Q2 2025
Q2 2026 Free Cash Flow $180 million Free cash flow in Q2 2026, equal to 27.4% of total revenue
Quarterly Dividend $0.125 per share Quarterly cash dividend approved, up approximately 67% from $0.075
Q2 2026 Share Repurchases $94 million Amount spent to repurchase approximately 2.2 million shares in Q2 2026
FY 2026 Free Cash Flow Guidance $615 to $625 million Raised full-year 2026 free cash flow guidance range
Adjusted EBITDA financial
"Adjusted EBITDA was $177 million, or 26.9% of total revenue"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow for the second quarter of 2026 was $180 million"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
agentic AI technical
"accelerating our transformation into an Agentic Voice AI leader"
Agentic AI refers to computer systems that can make their own decisions and take actions without needing someone to tell them what to do each time. It's like giving a robot a degree of independence to solve problems or achieve goals on its own, which matters because it could change how we work and interact with technology in everyday life.
annualized exit monthly recurring subscriptions (ARR) financial
"Our reported results also include our annualized exit monthly recurring subscriptions (ARR)"
Net Monthly Subscriptions Dollar Retention Rate financial
"as well as Net Monthly Subscriptions Dollar Retention Rate"
Total revenue $657 million 5.9% year-over-year growth from $620 million
GAAP diluted EPS $0.45 up from $0.14 in the prior-year quarter
Non-GAAP diluted EPS $1.22 up from $1.06 in the prior-year quarter
Free cash flow $180 million up 24.8% year-over-year from $144 million
Non-GAAP operating margin 23.4% up from 22.6% a year earlier
Guidance

Q3 2026 guidance: total revenue $664–$670 million, non-GAAP EPS $1.25–$1.30, non-GAAP operating margin 23.5%–24.0%; full-year 2026 guidance: total revenue $2.635–$2.646 billion, non-GAAP EPS $4.96–$5.10, free cash flow $615–$625 million.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did RingCentral (RNG) perform financially in Q2 2026?
RingCentral reported Q2 2026 total revenue of $657 million, up from $620 million a year earlier. GAAP diluted EPS was $0.45 versus $0.14, and non-GAAP EPS was $1.22 versus $1.06, with GAAP operating margin at 7.7% and non-GAAP at 23.4%.

What free cash flow did RingCentral (RNG) generate in Q2 2026?
RingCentral generated Q2 2026 free cash flow of $180 million, representing 27.4% of total revenue. Net cash provided by operating activities was $206 million, or 31.4% of revenue, with both metrics increasing more than 20% year-over-year versus the prior-year quarter.

What guidance did RingCentral (RNG) provide for Q3 2026?
For Q3 2026, RingCentral guides subscriptions revenue of $643–$649 million and total revenue of $664–$670 million. It expects GAAP operating margin of 7.2%–8.6%, non-GAAP operating margin of 23.5%–24.0%, and non-GAAP EPS of $1.25–$1.30 on about 86.5 million diluted shares.

What is RingCentral (RNG)’s full-year 2026 outlook?
For 2026, RingCentral raised guidance to subscriptions revenue of $2.550–$2.561 billion and total revenue of $2.635–$2.646 billion. It targets GAAP operating margin of 9.0%–9.7%, non-GAAP margin of 23.6%–24.0%, non-GAAP EPS of $4.96–$5.10, and free cash flow of $615–$625 million.

How is AI contributing to RingCentral (RNG)’s business?
AI is becoming a larger driver, with about 13% of ARR now from customers using at least one native paid AI product, doubling year-over-year. The company expanded AI capabilities in RingCX and AVA, adding agentic AI, autonomous outreach, workflow automation, and enhanced analytics features.

What dividend will RingCentral (RNG) pay and when?
RingCentral’s board approved increasing the quarterly cash dividend by about 67% from $0.075 to $0.125 per share. The dividend is payable on August 20, 2026 to stockholders of record as of the close of business on August 6, 2026.

How much stock did RingCentral (RNG) repurchase in Q2 2026?
In Q2 2026, RingCentral repurchased approximately 2.2 million shares for a total of $94 million. The company noted that this repurchase activity reflects previously authorized plans and that about $326 million remained available under its total share repurchase authorization.
0001384905false00013849052026-07-232026-07-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
FORM 8-K
______________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 23, 2026
______________________
RINGCENTRAL, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3608994-3322844
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
Identification No.)
20 Davis Drive, Belmont, CA 94002
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (650) 472-4100
(Former name or former address, if changed since last report)
______________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common StockRNGNew York Stock Exchange
par value $0.0001


Item 2.02. Results of Operations and Financial Condition.
The information in Item 2.02 of this Current Report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On July 23, 2026, RingCentral, Inc. (the “Company”) issued a press release regarding its financial results for its fiscal quarter ended June 30, 2026. The full text of the Company’s press release is furnished herewith as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d)     Exhibits
Exhibit
Description
99.1
Press release dated July 23, 2026
104Cover Page Interactive Data File (formatted as inline XBRL).


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 23, 2026
RINGCENTRAL, INC.
By:
/s/ Vaibhav Agarwal
Name:
Vaibhav Agarwal
Title:
Chief Financial Officer


Exhibit 99.1
ringcentrallogocolora.jpg
RingCentral Announces Second Quarter 2026 Financial Results
Total revenue up 5.9%; GAAP and non-GAAP margins and EPS all above high end of guidance
13% of ARR is now from customers utilizing a native paid AI product, doubling year-over-year
Raising quarterly dividend by approximately 67% to $0.125 per share
Raising full year outlook on revenue, GAAP and non-GAAP margins and free cash flow


Belmont, Calif. – July 23, 2026 – RingCentral, Inc. (NYSE: RNG), a global leader in AI-powered customer engagement, today announced financial results for the second quarter ended June 30, 2026.
Second Quarter Financial Highlights
•Subscriptions revenue increased approximately 5.8% year-over-year to $634 million.
•Total revenue increased approximately 5.9% year-over-year to $657 million.
•GAAP operating margin of 7.7%, compared to 6.0% in the prior year.
•Non-GAAP operating margin of 23.4%, up approximately 90 basis points year-over-year.
•GAAP EPS of $0.45 compared to $0.14 last year.
•Non-GAAP EPS of $1.22 compared to $1.06 last year.
•Net cash provided by operating activities of $206 million, up 23.3% year-over-year.
•Free cash flow of $180 million, up 24.8% year-over-year.
•Reduced stock-based compensation expense as a percentage of revenue by 150 basis points year-over-year.
•Repurchased approximately 2.2 million shares for a total of $94 million.

“We delivered another strong quarter, exceeding the high end of guidance across all key metrics while accelerating our transformation into an Agentic Voice AI leader,” said Vlad Shmunis, RingCentral’s Founder, Chairman and CEO. “Customers using at least one paid AI product now represent approximately 13% of ARR, having doubled year-over-year. This is a reflection of the growing value of our AI portfolio. Powered by our global voice network, rich customer interaction data, and ability to orchestrate AI and human agents, RingCentral is uniquely positioned to lead the future of customer engagement.”

“RingCentral is in a unique position, with a strong recurring core business, a widening moat, increasing momentum from AI-led products, and a financial profile that continues to strengthen,” said Vaibhav Agarwal, RingCentral’s CFO. “We are growing revenues, driving operating efficiencies, and generating high-quality free cash flow, which gives us the flexibility to invest in growth, strengthen the balance sheet, and return capital to shareholders positioning us for long-term growth to compound free cash flow and create meaningful long-term shareholder value.”

RingCentral Declares a Dividend

RingCentral’s Board of Directors approved an increase in the Company's quarterly cash dividend by approximately 67% from $0.075 to $0.125 per share of our outstanding capital stock, payable on August 20, 2026 to stockholders of record as of the close of business on August 6, 2026.


Financial Results for the Second Quarter 2026
•Revenue: Total revenue was $657 million for the second quarter of 2026, up from $620 million in the second quarter of 2025, representing 5.9% year-over-year growth. Subscriptions revenue of $634 million increased 5.8% year-over-year and accounted for 96% of total revenue.
•Operating Income: GAAP operating income was $50 million, compared to $37 million in the same period last year. Non-GAAP operating income was $154 million, or 23.4% of total revenue, compared to $140 million, or 22.6% of total revenue, in the same period last year.
•Adjusted EBITDA: Adjusted EBITDA was $177 million, or 26.9% of total revenue, compared to $162 million, or 26.0% of total revenue, in the same period last year.
•Net Income Per Share: GAAP net income per diluted share improved to $0.45, compared to $0.14 in the same period last year. Diluted non-GAAP net income per share was $1.22, compared to $1.06 per share in the same period last year. The second quarters of 2026 and 2025 each reflected a non-GAAP tax rate of approximately 22.5%.
•Cash Flow: Net cash provided by operating activities for the second quarter of 2026 was $206 million, or 31.4% of total revenue, compared to $167 million, or 27.0% of total revenue, for the second quarter of 2025. Free cash flow for the second quarter of 2026 was $180 million, or 27.4% of total revenue, compared to $144 million, or 23.3% of total revenue, for the second quarter of 2025.
•Cash and Cash Equivalents: Total cash and cash equivalents at the end of the second quarter of 2026 was $112 million. Our cash balance reflects the repurchase of $94 million in shares during the second quarter of 2026 under the share repurchase plans previously authorized by our Board. We currently have approximately $326 million remaining under our total authorization.
Additional Highlights
•Expanded AIR Pro with agentic AI capabilities in RingCX, including native AI agents embedded directly into customer engagement workflows, autonomous AI-powered outbound outreach, and intelligent handoffs that seamlessly transfer conversations to live agents with full customer context.
•Enhanced AVA (AI Virtual Assistant) with AI-powered Workflow Builder and conversational analytics, enabling users to create RingCX workflows using natural language and instantly retrieve reports, metrics, and operational insights through simple prompts.
•Advanced RingWEM capabilities with Live Screen Monitoring, giving supervisors real-time visibility into agent interactions and the ability to coach agents live, improving quality management, compliance, and workforce performance.
•RingCentral named to TIME’s list of America’s Best Companies 2026. Presented in collaboration with Statista, the ranking recognizes U.S. companies demonstrating excellence in employee satisfaction, financial performance, and sustainability transparency.
•Nucleus Research named RingCX a Leader in its CCaaS Technology Value Matrix, recognizing RingCentral's AI, workforce engagement, and embedded contact center investments.
•Aragon Research named RingCX a Leader in its Intelligent Contact Center for SMB Globe report, specifically citing the OpenAI partnership as positioning RingCentral to lead the shift toward agentic voice AI across the full customer interaction lifecycle.
•ISG named RingCentral a Leader in its Collaborative AI Suites Buyers Guide — and a category leader in AI Capabilities specifically.
•Metrigy gave RingCentral Top Provider recognition in its 2026 MetriStar Award for UCaaS, based on direct customer ratings — with high scores in voice quality, platform integrations, and ease of use.


Financial Outlook
Third Quarter 2026 Guidance:
•Subscriptions revenue of $643 to $649 million.
•Total revenue of $664 to $670 million.
•GAAP operating margin of 7.2% to 8.6%.
•Non-GAAP operating margin of 23.5% to 24.0%
•Non-GAAP EPS of $1.25 to $1.30 based on approximately 86.5 million fully diluted shares.
•Share-based compensation of $63 to $67 million.
Our full year 2026 guidance is:
•Raising subscriptions revenue range to $2.550 billion to $2.561 billion.
•Raising total revenue range to $2.635 billion to $2.646 billion.
•Raising GAAP operating margin to 9.0% to 9.7%.
•Raising non-GAAP operating margin to approximately 23.6% to 24.0%.
•Raising non-GAAP EPS of $4.96 to $5.10 based on 87.0 to 86.5 million fully diluted shares.
•Share-based compensation of $240 to $245 million.
•Raising free cash flow guidance of $615 to $625 million.
Conference Call Details:
•What: RingCentral financial results for the second quarter of 2026 and outlook for the third quarter and full year of 2026.
•When: Thursday, July 23, 2026 at 2:00PM PT (5:00PM ET).
•Dial-in: 1-888-349-0093 from the United States; 1-412-317-5201 internationally
•Webcast: https://ir.ringcentral.com (live and replay).
Investor Presentation Details
An investor presentation providing additional information and analysis can be found at https://ir.ringcentral.com.
About RingCentral
RingCentral is a global leader in AI–powered customer engagement, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging. Powered by advanced AI capabilities, RingCentral delivers intelligence at every phase of the conversation journey — before, during, and after each human interaction. With RingCentral, businesses can work smarter, respond faster, and connect more meaningfully with their customers. Visit ringcentral.com to learn more.
Forward-Looking Statements
This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, the results of the pace of our innovation, our expectations around our platform and the contribution of our new products, and the payment of dividends. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: our ability to attract new customers and grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to develop and continue to release, and gain customer acceptance of, new and improved versions of our services; our use of AI technologies to help drive future growth; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with channel partners and strategic partners; our ability to realize the anticipated benefits of our strategic relationships; our ability to successfully and


timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; factors affecting the payment of dividends; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.
All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.
Non-GAAP Financial Measures
Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP income from operations, Non-GAAP operating margin, Non-GAAP adjusted EBITDA, Non-GAAP net income, Non-GAAP net income per diluted share, Non-GAAP free cash flow and Non-GAAP free cash flow margin.
Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenues. Non-GAAP subscriptions gross profit is defined as GAAP subscriptions revenues less Non-GAAP subscriptions cost of revenues. Non-GAAP subscriptions cost of revenues is defined as GAAP subscriptions cost of revenues adjusted for share-based compensation which includes related employer payroll taxes, amortization of acquired intangibles, third-party relocation and other costs and restructuring costs.
Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenues. Non-GAAP other gross profit is defined as GAAP other revenues less Non-GAAP other cost of revenues. Non-GAAP other cost of revenues is defined as GAAP other cost of revenues adjusted for share-based compensation which includes related employer payroll taxes, amortization of acquired intangibles and restructuring costs.
Non-GAAP income from operations is defined as GAAP income from operations excluding share-based compensation which includes related employer payroll taxes, amortization of acquired intangibles, asset write-down charges, third-party relocation costs tied to the conflict between Russia and Ukraine and other costs including acquisition-related transaction costs, certain litigation-related costs, impairment charges related to abandoned internal-use software, change in fair-value of contingent consideration, one-time expenses related to strategic consulting services, other cost-reduction and productivity initiatives, and restructuring costs. Non-GAAP operating margin is defined as Non-GAAP income from operations divided by total GAAP revenue. Non-GAAP adjusted EBITDA is defined as Non-GAAP income from operations excluding depreciation and amortization.
Non-GAAP net income is defined as GAAP net income (loss) excluding share-based compensation which includes related employer payroll taxes, amortization of acquired intangibles, asset write-down charges, third-party relocation costs tied to the conflict between Russia and Ukraine and other costs including acquisition-related transaction costs, certain litigation-related costs, impairment charges related to abandoned internal-use software, change in fair-value of contingent consideration, net impact of amended agreements with partners, loss (gain) associated with investments, intercompany remeasurement gains or losses, one-time expenses related to strategic consulting services, other cost-reduction and productivity initiatives, restructuring costs, non-cash interest expense associated with amortization of debt discount and loss (gain) on early extinguishment of debt, and the related income tax effect of these adjustments.
Non-GAAP free cash flow is defined as GAAP net cash provided by operating activities adjusted for capital expenditures including purchases of property and equipment and capitalized internal-use software. We believe information regarding Non-GAAP free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash. Non-GAAP free cash flow margin is defined as Non-GAAP free cash flow divided by total GAAP revenues.
We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income , Non-GAAP


net income per diluted share, Non-GAAP free cash flow and Non-GAAP free cash flow margin in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income, Non-GAAP net income per diluted share, Non-GAAP free cash flow, and Non-GAAP free cash flow margin provide useful measure for period-to-period comparisons of our business.
Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income, Non-GAAP net income per diluted share, Non-GAAP free cash flow and Non-GAAP free cash flow margin are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.
For a reconciliation of our forecasted non-GAAP operating margin and free cash flow, see “Reconciliation of Forecasted Operating Margin and Free Cash Flow GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments, gain (loss) on early debt extinguishment, and provision (benefit) from income taxes including the affect and timing of release of valuation allowance related to our deferred tax assets in certain jurisdictions, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on gain (loss) on early debt extinguishments as these are based on timing of future settlement requests and interest rates, which are difficult to predict and are subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2026, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.
Reconciliations of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.
Our reported results also include our annualized exit monthly recurring subscriptions (ARR), as well as Net Monthly Subscriptions Dollar Retention Rate. We define our ARR as our monthly recurring subscriptions (MRR) multiplied by 12. Our MRR equals the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We define our Net Monthly Subscription Dollar Retention Rate as (i) one plus (ii) the quotient of Dollar Net Change divided by Average Monthly Recurring Subscriptions. We calculate dollar net change as the quotient of (i) the difference of our monthly recurring subscriptions at the end of a period minus our monthly recurring subscriptions at the beginning of a period minus our monthly recurring subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our average monthly recurring subscriptions as the average of the monthly recurring subscriptions at the beginning and end of the measurement period.
© 2026 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Contact Center and the RingCentral logo are trademarks of RingCentral, Inc.


Investor Relations Contact:
Steven Horwitz
ir@ringcentral.com

Media Contact:
Mariana Leventis, RingCentral
Mariana.Leventis@ringcentral.com


TABLE 1
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
June 30, 2026December 31, 2025
Assets
Current assets
Cash and cash equivalents$111,501 $132,564 
Accounts receivable, net389,043 384,100 
Deferred and prepaid sales commission costs157,371 167,304 
Prepaid expenses and other current assets75,298 81,190 
Total current assets733,213 765,158 
Property and equipment, net190,219 186,570 
Operating lease right-of-use assets40,518 30,855 
Deferred and prepaid sales commission costs, non-current227,909 252,504 
Goodwill102,832 97,792 
Acquired intangibles, net77,356 135,410 
Other assets9,318 13,166 
Total assets$1,381,365 $1,481,455 
Liabilities, Temporary Equity, and Stockholders’ Deficit
Current liabilities
Accounts payable$21,676 $27,677 
Accrued liabilities299,378 297,633 
Current portion of long-term debt, net46,269 624,216 
Deferred revenue295,340 269,122 
Total current liabilities662,663 1,218,648 
Long-term debt, net1,074,377 629,580 
Operating lease liabilities23,468 14,372 
Other long-term liabilities31,767 7,525 
Total liabilities1,792,275 1,870,125 
Temporary equity
Series A convertible preferred stock199,449 199,449 
Stockholders’ deficit
Common stock8 9 
Additional paid-in capital1,043,421 1,123,447 
Accumulated other comprehensive income3,286 2,458 
Accumulated deficit(1,657,074)(1,714,033)
Total stockholders’ deficit(610,359)(588,119)
Total liabilities, temporary equity and stockholders’ deficit$1,381,365 $1,481,455 



TABLE 2
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Revenues
Subscriptions$633,649 $598,728 $1,256,815 $1,188,840 
Other23,362 21,670 44,395 43,614 
Total revenues657,011 620,398 1,301,210 1,232,454 
Cost of revenues
Subscriptions159,504 150,788 313,912 303,883 
Other25,198 28,162 50,220 55,517 
Total cost of revenues184,702 178,950 364,132 359,400 
Gross profit472,309 441,448 937,078 873,054 
Operating expenses
Research and development82,801 77,539 164,514 159,522 
Sales and marketing274,907 263,585 547,750 538,483 
General and administrative64,316 63,361 124,501 127,746 
Total operating expenses422,024 404,485 836,765 825,751 
Income from operations50,285 36,963 100,313 47,303 
Other income (expense), net
Interest expense(18,672)(16,466)(33,477)(32,581)
Other income (expense)10,638 (4,820)9,524 (3,418)
Other expense, net(8,034)(21,286)(23,953)(35,999)
Income before income taxes42,251 15,677 76,360 11,304 
Provision for income taxes3,136 2,484 6,627 8,439 
Net income$39,115 $13,193 $69,733 $2,865 
Net income per common share
Basic$0.47 $0.15 $0.83 $0.03 
Diluted$0.45 $0.14 $0.80 $0.03 
Weighted-average number of shares used in computing net income per share
Basic84,049 90,710 84,354 90,861 
Diluted86,619 92,056 86,803 92,488 



TABLE 3
RINGCENTRAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Six Months Ended
June 30,
20262025
Cash flows from operating activities
Net income$69,733 $2,865 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization113,997 109,982 
Share-based compensation111,796 141,350 
Amortization of deferred and prepaid sales commission costs78,716 81,863 
Amortization of debt discount and issuance costs1,605 2,381 
Loss on early extinguishment of debt6,409 4,988 
Reduction of operating lease right-of-use assets11,832 12,706 
Provision for bad debt6,813 8,008 
Other4,510 (386)
Changes in assets and liabilities:
Accounts receivable(8,841)(12,907)
Deferred and prepaid sales commission costs(58,806)(52,172)
Prepaid expenses and other assets6,152 (2,461)
Accounts payable(7,830)43,443 
Accrued and other liabilities21,328 (11,984)
Deferred revenue26,111 1,111 
Operating lease liabilities(13,045)(11,711)
Net cash provided by operating activities370,480 317,076 
Cash flows from investing activities
Purchases of property and equipment(17,135)(14,544)
Capitalized internal-use software(32,507)(27,971)
Cash paid for business combination, net of cash acquired(7,929)— 
Net cash used in investing activities(57,571)(42,515)
Cash flows from financing activities
Proceeds from issuance of stock in connection with stock plans9,978 9,064 
Payments for taxes related to net share settlement of equity awards(15,532)(3,571)
Payments for repurchases of common stock(174,985)(81,787)
Payment of dividends(12,774)— 
Proceeds from issuance of long-term debt600,000 — 
Payments for the settlement of convertible notes(609,065)(161,326)
Repurchases of principal on senior notes(105,000)(53,903)
Repayments of principal on term loan(23,135)(60,000)
Payments for fees on long-term debt(868)(1,631)
Repayments of financing obligations(633)(633)
Payments for contingent consideration(889)— 
Net cash used in financing activities(332,903)(353,787)
Effect of exchange rate changes(1,069)4,528 
Net decrease in cash, cash equivalents, and restricted cash(21,063)(74,698)
Cash, cash equivalents, and restricted cash
Beginning of period132,564 242,811 
End of period$111,501 $168,113 


TABLE 4
RINGCENTRAL, INC.
RECONCILIATION OF OPERATING INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in thousands)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Revenues
Subscriptions$633,649 $598,728 $1,256,815 $1,188,840 
Other23,362 21,670 44,395 43,614 
Total revenues657,011 620,398 1,301,210 1,232,454 
Cost of revenues reconciliation
GAAP Subscriptions cost of revenues$159,504 $150,788 $313,912 $303,883 
Share-based compensation(2,609)(3,216)(5,500)(8,145)
Amortization of acquired intangibles(31,319)(31,223)(62,856)(62,447)
Third-party relocation and other costs, net— (86)— (94)
Restructuring costs(1,123)(9)(1,544)(968)
Non-GAAP Subscriptions cost of revenues$124,453 $116,254 $244,012 $232,229 
GAAP Other cost of revenues25,198 28,162 50,220 55,517 
Share-based compensation(339)(1,262)(862)(2,807)
Amortization of acquired intangibles(77)(84)(156)(168)
Restructuring costs(903)(140)(1,010)(716)
Non-GAAP Other cost of revenues$23,879 $26,676 $48,192 $51,826 
Gross profit and gross margin reconciliation
     Non-GAAP Subscriptions80.4 %80.6 %80.6 %80.5 %
     Non-GAAP Other(2.2)%(23.1)%(8.6)%(18.8)%
     Non-GAAP Gross profit77.4 %77.0 %77.5 %77.0 %
Operating expenses reconciliation
     GAAP Research and development$82,801 $77,539 $164,514 $159,522 
     Share-based compensation(15,621)(14,418)(30,608)(32,689)
Third-party relocation and other costs, net(95)(183)(106)(516)
Restructuring costs(480)(1,202)(1,037)(2,896)
Non-GAAP Research and development$66,605 $61,736 $132,763 $123,421 
     As a % of total revenues non-GAAP10.1 %10.0 %10.2 %10.0 %
     GAAP Sales and marketing$274,907 $263,585 $547,750 $538,483 
     Share-based compensation(24,001)(25,897)(48,589)(61,934)
     Amortization of acquired intangibles(2,687)(2,055)(5,607)(4,110)
Third-party relocation and other costs, net(374)(251)(374)(817)
Restructuring costs(4,182)(925)(4,824)(3,913)
Non-GAAP Sales and marketing$243,663 $234,457 $488,356 $467,709 
     As a % of total revenues non-GAAP37.1 %37.8 %37.5 %37.9 %
     GAAP General and administrative$64,316 $63,361 $124,501 $127,746 
     Share-based compensation(16,323)(20,154)(30,903)(39,688)
Third-party relocation and other costs, net(2,739)(1,348)(5,077)(2,722)
Restructuring costs(820)(537)(1,936)(1,410)
Non-GAAP General and administrative$44,434 $41,322 $86,585 $83,926 
     As a % of total revenues non-GAAP6.8 %6.7 %6.7 %6.8 %
Income (loss) from operations reconciliation
GAAP income from operations$50,285 $36,963 $100,313 $47,303 
     Share-based compensation58,893 64,947 116,462 145,263 
     Amortization of acquired intangibles34,083 33,362 68,619 66,725 
Third-party relocation and other costs, net3,208 1,868 5,557 4,149 
Restructuring costs7,508 2,813 10,351 9,903 
Non-GAAP Income from operations$153,977 $139,953 $301,302 $273,343 
Non-GAAP Operating margin23.4 %22.6 %23.2 %22.2 %
Adjusted EBITDA reconciliation
     Depreciation and amortization 23,003 21,559 45,378 43,257 
Non-GAAP Adjusted EBITDA$176,980 $161,512 $346,680 $316,600 
As a % of total revenues non-GAAP26.9 %26.0 %26.6 %25.7 %


TABLE 5
RINGCENTRAL, INC.
RECONCILIATION OF NET INCOME (LOSS)
GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data) (Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net income (loss) reconciliation
GAAP net income$39,115 $13,193 $69,733 $2,865 
Share-based compensation58,893 64,947 116,462 145,263 
Amortization of acquired intangibles34,083 33,362 68,619 66,725 
Third-party relocation and other costs, net(11,440)2,487 (8,676)4,690 
Restructuring costs7,508 2,813 10,351 9,903 
Amortization of debt discount and extinguishment costs5,432 6,237 8,014 7,368 
Income tax expense effects(27,620)(25,759)(54,377)(46,743)
Non-GAAP net income$105,971 $97,280 $210,126 $190,071 
Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net income (loss) per common share:
Weighted average number of shares used in
computing basic net income per share		84,049 90,710 84,354 90,861 
     Effect of dilutive securities2,570 1,346 2,449 1,627 
GAAP weighted average shares used in
computing GAAP diluted net income per share		86,619 92,056 86,803 92,488 
     Effect of dilutive securities— — — — 
Non-GAAP weighted average shares used in
computing non-GAAP diluted net income per share		86,619 92,056 86,803 92,488 
Diluted net income (loss) per share
GAAP net income per share$0.45 $0.14 $0.80 $0.03 
Non-GAAP net income per share$1.22 $1.06 $2.42 $2.06 



TABLE 6
RINGCENTRAL, INC.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES
(Unaudited, in thousands)
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Net cash provided by operating activities$206,434 $167,414 $370,480 $317,076 
Capitalized expenditures(26,243)(23,029)(49,642)(42,515)
Non-GAAP free cash flow$180,191 $144,385 $320,838 $274,561 
Non-GAAP free cash flow margin27.4 %23.3 %24.7 %22.3 %


TABLE 7
RINGCENTRAL, INC.
RECONCILIATION OF FORECASTED OPERATING MARGIN AND FREE CASH FLOW
GAAP MEASURES TO NON-GAAP MEASURES
(Unaudited, in millions)
Q3 2026FY 2026
Low RangeHigh RangeLow RangeHigh Range
GAAP income from operations$48 $58 $237 $258 
GAAP operating margin7.2%8.6%9.0%9.7%
Share-based compensation67 63 245 240 
Amortization of acquired intangibles33 33 117 117 
Third-party relocation, restructuring and other costs8 7 24 20 
Non-GAAP income from operations$156 $161 $623 $635 
Non-GAAP operating margin23.5 %24.0 %23.6 %24.0 %

FY 2026
Low RangeHigh Range
GAAP net cash provided by operating activities$720 $725 
Capitalized expenditures(105)(100)
Non-GAAP free cash flow$615 $625 

Source: View Original Filing on SEC EDGAR

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