RingCentral, Inc.

RingCentral, Inc. (RNG) Market Cap

RingCentral, Inc. has a market capitalization of $3.72B.

Price: $42.29

▼ -1.74 (-3.95%)

Market Cap: 3.72B

NYSE · time unavailable

CEO: Vladimir G. Shmunis

Sector: Technology

Industry: Software - Application

IPO Date: 2013-09-27

Website: https://www.ringcentral.com

RingCentral, Inc. (RNG) - Company Information

Market Cap: 3.72B|Sector: Technology

Company Profile

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company offers business cloud communications and contact center solutions based on its Message Video Phone? platform. Its products include RingCentral Office that provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; and RingCentral Engage Digital, a digital customer engagement platform that allows enterprises to interact with their customers. The company's products also comprise RingCentral Engage Voice, a cloud-based outbound/blended customer engagement platform for midsize and enterprise companies; RingCentral Video, a video meeting service which includes our RCV video and team messaging capabilities and offers video and audio conferencing, file sharing, contact, task, and calendar management. In addition, it offers RingCentral Professional, a cloud based virtual telephone service that provides inbound call answering and management services for professionals; and RingCentral Fax that provides online fax capabilities. The company serves a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. It sells its products through a network of direct sales representatives, as well as sales agents, resellers, and channel partners. RingCentral, Inc. has strategic partnerships with Alcatel-Lucent Enterprise; and Vodafone Business. The company was incorporated in 1999 and is headquartered in Belmont, California.

Analyst Sentiment

65%
Buy

From 16 Active Polls

1Y Forecast: $42.13

▼ -0.4% Potential Upside

Consensus Target Metrics

Low Bound

$32

Median

$40

High Bound

$55

Average

$42

Price & Moving Averages

Loading chart...

🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$42.13
▼ -0.38% Upside
Low Target
$32.00
-24% Risk
Median Target
$40.00
-5% Mid
High Target
$55.00
30% Max
Consensus
Buy
28 / 42 Buys

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

valuation & financial ratiosdetailed financials

📊 Historical Valuation Multiples

Real-time Trailing Twelve Month (TTM) momentum side-by-side with discrete quarterly metrics.

Fiscal QuarterTTMQ1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024
Period EndingTrailing 12MMar 31, 2026Dec 31, 2025Sep 30, 2025Jun 30, 2025Mar 31, 2025Dec 31, 2024Sep 30, 2024Jun 30, 2024
Market Cap ($M)3,7173,1492,4872,5682,5762,2543,1752,9072,730
Enterprise Value ($M)5,0324,4643,8363,7213,7113,5084,5114,2764,117
Price to Earnings Ratio (P/E)42.4525.7127.0736.5648.81-54.55-110.41-92.53-46.27
Price/Earnings-to-Growth Ratio (PEG)—997.4232.1412.4335.81—-116.96-34.60-31.08
Price to Sales Ratio (P/S)1.464.893.864.024.153.685.174.774.61
Price to Book Ratio (P/B)-5.88-5.17-4.23-7.68-5.29-4.16-5.76-8.40-5.17
Price to Free Cash Flow Ratio (P/FCF)5.6019.9913.1017.8614.9517.3128.3928.2425.10
Enterprise Value to Sales (EV/Sales)—6.935.965.835.985.737.347.026.94
Enterprise Value to EBITDA (EV/EBITDA)13.8089.2239.2128.6942.6248.3961.8272.5367.74
Debt to Equity Ratio3.61-2.35-2.52-3.88-2.68-2.60-2.87-4.57-3.00
⚠️

Valuation Model Suspended

API Payload Error: Inverted or negative baseline Free Cash Flow margin detected (-8.5%).

Troubleshooting Notice: The upstream financial data supplier has uploaded corrupted or inverted baseline metrics for RNG. The server sandbox cannot calculate an intrinsic value path from negative cash generation baselines.

📘 Full Research Report

ℹ️

AI-Generated Research: This report is for informational purposes only.

📘 RINGCENTRAL INC CLASS A (RNG) — Investment Overview

🧩 Business Model Overview

RingCentral delivers Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) through a cloud platform that integrates voice, messaging, video, collaboration, and support workflows. The business sells seat-based subscriptions for communication features (e.g., phone system, team messaging, video meetings) and adds contact-center capability for customer service teams.

The value chain is anchored in providing reliable real-time communications infrastructure (including telephony capabilities and contact routing) plus the software layer that workflows depend on. Switching away requires reconfiguring phone numbers/number porting, recreating call flows and integrations, and retraining staff, which increases customer stickiness over time.

💰 Revenue Streams & Monetisation Model

Revenue is primarily recurring, subscription-driven, complemented by usage-based and service components. Subscription revenue typically drives visibility and supports operating leverage as customer bases grow and retention holds.

  • Recurring subscriptions: Seat and bundle pricing for UC and contact center functionality, typically the main driver of gross margin durability.
  • Usage/transactional components: Call/voice usage, conferencing, and other variable consumption that can create margin sensitivity to traffic volumes and telecom cost pass-through.
  • Professional services & implementation: Onboarding, migration, and configuration work that can support adoption and reduce churn risk, though it is less recurring.

Margin dynamics generally hinge on (1) the mix of subscription versus usage revenue, (2) the cost of providing carrier-grade telephony and cloud compute at scale, and (3) the efficiency of onboarding and support as customer counts expand.

🧠 Competitive Advantages & Market Positioning

RingCentral’s defensibility is most visible in switching costs and workflow integration, rather than in large-scale “network effects” in the consumer sense. Once teams operationalize call routing, call recording/compliance settings, CRM integrations, and support workflows, the cost of re-platforming rises materially.

  • High switching costs (business and data gravity): Configured phone systems, historical contact/account linkages, user permissions, routing logic, and third-party integrations create meaningful reimplementation effort.
  • Operational stickiness: Real-time communications reliability requirements and administrative control make buyers value stability and support responsiveness—attributes that can compound over multi-year deployments.
  • Platform breadth in UC + contact center: Consolidation of communication and support tooling can reduce tool sprawl for mid-market customers.

Competitive benchmarking (2–3 primary competitors):

  • Zoom: Strong in meetings and collaboration; competition can occur at the “collaboration wedge,” especially when buyers standardize around a meeting-first platform. RingCentral’s differentiation leans toward full telephony and communications workflows rather than meeting-only adoption.
  • Microsoft (Teams/telephony offerings): Bundled suite leverage and enterprise procurement processes can pressure UCaaS pricing and mindshare. RingCentral competes by emphasizing standalone cloud communications and a more targeted deployment for UC/CC use cases.
  • 8x8 (UCaaS/CCaaS): Similar addressable segments with overlapping feature sets. RingCentral’s positioning benefits from integration depth across communications and contact center workflows, where switching costs and configuration complexity matter.

In contact center specifically, buyers also compare against NICE and Genesys (enterprise-grade CCaaS/contact-center suites). RingCentral’s focus is typically the mid-market and integrated communication use cases where a unified cloud platform and lower implementation friction can be decisive.

🚀 Multi-Year Growth Drivers

  • Ongoing cloud migration in business communications: Organizations continue shifting from premises-based PBX/telephony toward hosted, software-defined communications to reduce maintenance burden and speed feature deployment.
  • Expansion of unified communications into customer service: Contact center adoption and agent-assist workflows broaden TAM by tying internal communications to external customer interactions.
  • Mid-market digitization and standardization: Mid-sized firms prefer solutions that can be deployed without the complexity of enterprise transformation programs, supporting steady seat growth and feature take-rate.
  • Integration-driven penetration: CRM and helpdesk ecosystems support embedded voice/contact functionality, enabling deeper usage once integration is established.
  • Retention and upsell potential: Once routing rules, user training, compliance settings, and integrations are embedded, expansion can occur via additional seats, advanced contact center features, and broader geographic rollouts.

⚠ Risk Factors to Monitor

  • Competitive intensity and pricing pressure: UCaaS/CCaaS is feature-comparable, and large-suite platforms can bundle communications, compressing unit economics.
  • Telecom cost and network quality variability: Voice service economics can be sensitive to carrier costs, traffic patterns, and latency/reliability expectations that affect churn.
  • Security, privacy, and regulatory compliance: Communications data and customer call recordings heighten exposure to data protection requirements and incident risk.
  • Technology disruption and platform dependency: Rapid changes in collaboration software, authentication, and developer ecosystems can require continuous investment to maintain compatibility.
  • Channel concentration and implementation risk: Overreliance on specific go-to-market partners or migration execution issues can impact retention and perceived reliability.

📊 Valuation & Market View

The market typically values UCaaS/CCaaS providers using SaaS frameworks that emphasize recurring revenue quality and operating leverage. Common valuation lenses include:

  • EV / ARR (or similar recurring-revenue multiples): Driven by retention, net revenue growth, and the subscription mix.
  • EV / EBITDA (when profitability becomes clearer): Influenced by margin durability and cost scaling versus telecom/hosting costs.
  • Revenue durability and customer cohort health: Turnover, churn trends, and expansion within existing customer bases typically matter more than one-off revenue.

Key valuation drivers are therefore sustainable subscription expansion, improving mix toward higher-margin offerings, and demonstrated ability to manage telecom and cloud infrastructure costs without undermining reliability.

🔍 Investment Takeaway

RingCentral’s core investment case rests on high switching costs created by configured communications workflows, integrations, and administrative controls, supported by a cloud platform that can expand from UC into contact center use cases. While competition from collaboration suites and other UCaaS vendors can pressure pricing, the operational depth of communications deployments and the effort required to re-platform customers support a durable retention profile and potential for multi-year upsell growth.


⚠ AI-generated — informational only. Validate using filings before investing.

📰 Market News & Coverage

15 Stories Available

Real-time institutional reporting and market updates for RNG.

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gurufocus.com•2026-05-29

RingCentral Inc (RNG) Stock Up 3.5% but GF Value Says Overvalued -- GF Score: 73/100

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A Look at RingCentral Inc (RNG) After 4.7% Gain -- GF Value $37.95 vs Price $42.59

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Casella Waste Systems and Waga Energy Unveil RNG Facility at Ribbon Cutting

RUTLAND, Vt., May 14, 2026 (GLOBE NEWSWIRE) -- Casella Waste Systems, Inc. (NASDAQ: CWST), a regional solid waste, recycling and resource management services company in the Eastern United States, and Waga Energy (EPA: WAGA), a global expert in the production of Renewable Natural Gas (RNG) from landfills, held a ribbon-cutting ceremony on May 14, 2026, to celebrate the opening of the RNG production facility at the Chemung County Landfill in Elmira, New York.

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gurufocus.com•2026-05-13

RingCentral Inc (RNG) Shares Fall 7.5% -- What GF Score of 75 Tells Investors

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seekingalpha.com•2026-05-13

RingCentral Stock Is Poised For Strong Growth After Positive Q1 Results

RingCentral is leveraging AI innovations to drive customer engagement, product adoption, and higher ARPU, supporting robust growth prospects. RNG raised 2026 revenue guidance to $2.62–$2.64B and EPS to $4.85–$5.01, reflecting strong Q1 results and margin expansion. Valuation remains compelling at 8.5x 2026E EPS and 1.43x forward sales, significantly below sector medians, with profitability and margin gains fueling the upside.

seekingalpha.com•2026-05-11

RingCentral Earnings Review: Q1 Results Validate Distribution Moat

RingCentral is mispriced as a commoditized UCaaS provider, yet its AI monetization and FCF compounding are underappreciated. Q1 2026 results show AI Receptionist customers up 40% QoQ to 11,800, with RCAI-utilizing customers now over 10% of ARR and net retention above 100%. Operating leverage is accelerating: non-GAAP operating margin reached 22.9%, FCF per share grew 15%, and share count declined 6% YoY.

seekingalpha.com•2026-05-11

RingCentral: Applied AI Products Are Taking Off

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📊 AI Financial Analysis

Powered by StockMarketInfo
Earnings Data: Q Ending 2026-03-31

"Roku (RNG) reported Q1 2026 Revenue of $644.2M (+5.7% QoQ; +5.3% YoY) and Net Income of $30.6M (vs $22.97M in Q4 and -$10.3M in Q1’25). EPS was $0.36 diluted ($0.35), up from $0.26 in Q4 and $-0.11 a year ago. Profitability improved materially: gross margin expanded to 72.1% (from 71.4% in Q4; 70.5% in Q1’25), while net margin rose to 4.75% (from 3.57% in Q4; -1.69% a year ago). Operating leverage is evident as operating income and net income both accelerated sequentially. Cash flow quality remains strong. Q1 operating cash flow was $164.0M and free cash flow $157.5M. The company also returned capital via buybacks (-$81.3M) and paid limited dividends (-$6.4M). On the balance sheet, leverage and equity look structurally constrained (total equity remains negative at -$409.9M), but liquidity improved versus Q4 (cash & equivalents down slightly in absolute terms, while current ratio remains ~1.15). Shareholder returns are a clear positive: shares are up 79.1% over 1 year, boosting total return expectations given the combination of price momentum and ongoing capital returns. Current quarter valuation metrics should be viewed in the context of improving earnings power and a still-higher earnings multiple."

Revenue Growth

Good

Revenue was $644.2M in Q1’26, up +5.7% QoQ (vs $644.0M in Q4’25) and +5.3% YoY (vs $612.1M in Q1’25). Growth is modest but positive and consistent.

Profitability

Strong

Net income improved to $30.6M from $23.0M QoQ (+33.3%) and from a loss of -$10.3M YoY (turnaround). Net margin expanded to 4.75% from 3.57% (QoQ) and -1.69% (YoY); gross margin also expanded to 72.1%.

Cash Flow Quality

Strong

Q1’26 operating cash flow was $164.0M and free cash flow $157.5M. Dividend outflow was small (-$6.4M) and buybacks continued (-$81.3M), supporting shareholder yield while remaining covered by strong FCF.

Leverage & Balance Sheet

Neutral

Equity remains negative (-$409.9M), which mechanically weighs on leverage/return metrics. However, liquidity/current ratio is ~1.15 and net debt is negative (-$43.7M), indicating no immediate balance-sheet stress relative to cash.

Shareholder Returns

Strong

1-year price momentum is strong (+79.1%). Add ongoing capital returns via buybacks and a small dividend, resulting in a likely attractive total shareholder return profile.

Analyst Sentiment & Valuation

Positive

Valuation appears demanding (price/earnings ~25.7x in the ratio set). Street expectations are moderate (consensus price target ~$37.67 vs current price ~$40.39 implies limited upside), but improving profitability supports the earnings multiple.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

RevenueEarningsP/E RatioSharesDebtMargin %

Fundamentals Overview

Loading fundamentals overview...

RingCentral reported Q1 2026 revenue of ~$644M (+5.3% YoY), at the upper end of guidance, alongside strong profitability and cash generation. Non-GAAP operating margin reached ~23% (+110 bps YoY) and GAAP operating margin rose to 7.8% (improving >600 bps YoY). The company continued materially reducing SBC: down ~400 bps YoY to 9% of revenue, while maintaining subscription gross margin stable above 80%. Free cash flow exceeded $140M (+8% YoY) and management raised full-year FCF to ~$600M (+13% YoY). Capital allocation remained disciplined: refinancing the $609M convertible with undrawn Term Loan A, reducing net leverage to 1.6x, repurchasing ~$81M of stock, and paying the first dividend ($0.075/share). Strategically, management is pushing RCAI (AIR/AVA/ACE) and hybrid AI-human workflows, with customer cohorts using AI products now representing >10% of the base. Q&A centered on sustaining growth beyond ~5% amid price rationalization, maintaining margins while investing in AI, and why the product model remains hybrid due to legal/regulatory constraints.

AI IconGrowth Catalysts

  • Agentic voice AI adoption: AIR (AI Receptionist/AIR Pro) + AVA (AI Virtual Assistant) + ACE (AI Conversation Experts); customers using ≥1 AI product represent >10% of base and have more than doubled YoY
  • ICE/quality and CX monetization via hybrid human-in-the-loop: AIR + ACE + human routing to improve lead handling, abandonment reduction, and post-call coaching/quality management
  • Right-sizing informal to formal contact center expansion: CEB (Customer Engagement Bundle) attach nearly 40% among paid AI product users; CEB provides SMS shared inbox, voice/call queues, analytics and Teams availability
  • Ongoing migrations from on-prem to cloud (RingEX/RingCX) with AI utilization increasingly embedded in enterprise-wide deployments

Business Development

  • Cartelligent (California automotive broker): deployed AIR, AVA, ACE; achieved lead abandonment to 0 during business hours and 85% lead-to-sign-up target; 9.85/10 CSAT
  • Federally qualified health center: added AIR Pro to RingEX/RingCX/ACE stack for real-time shuttle routing (location/time/shuttle status guided pickup routing)
  • ATB (largest financial institution in Canada): added RingEX seats and ACE to eliminate manual analysis; ACE used for post-call sentiment/next steps and coaching insights
  • Excelsior Orthopaedics (Amherst, NY): using RingCX + ACE Quality Management; reduced abandonment from 22% to 8% and reduced wait times from ~30 minutes to 3 minutes
  • Coca-Cola United (third largest U.S. bottler with 60 locations): migrating thousands of seats to RingEX
  • Fortune 500 insurance customer: replaced on-prem and expanding enterprise-wide RingEX deployment with tens of thousands of seats
  • New York Mets: replacing decade-old on-prem with RingEX, RingCX and call queues booster
  • Major Internet/streaming provider: added RingEX to existing RingCX deployment, plus AI (incl. ACE)
  • Casio: consolidated legacy onto RingEX/RingCX and added ACE quality management for automatic scoring
  • Channel/partners: Cox Communications deploying native AI-powered contact center; TELUS and Spectrum Business started bringing the AI portfolio to their customer bases; multiple GSPs extending offerings to include AI products; branded messaging via Reach Communication Services (RCS)

AI IconFinancial Highlights

  • Total revenue: ~$644M, +5.3% YoY, at upper end of guidance
  • Subscription revenue: ~$623M, +5.6% YoY
  • Non-GAAP operating margin: ~23%, +110 bps YoY (high end of guidance)
  • SBC declined ~400 bps YoY to 9% of revenue
  • GAAP operating margin: 7.8%, improving >600 bps YoY
  • Subscription gross margin: stable above 80%
  • Free cash flow: >$140M in Q1, +8% YoY; FCF per share: $1.62, +15.4% YoY
  • Full-year FCF raised to ~$600M (from guidance), +13% YoY
  • Debt/refinancing: addressed $609M convertible maturity by refinancing with undrawn Term Loan A (no maturities until 2030)

AI IconCapital Funding

  • Refinanced $609M convertible maturity with undrawn Term Loan A
  • Reduced overall debt by ~$46M; net leverage lowered to 1.6x
  • Goal: reduce gross debt to $1B by end of 2026
  • Maintained $355M undrawn credit capacity
  • Share repurchases: ~2.5M shares for ~$81M in Q1; ~$418M remaining under repurchase authorization
  • First quarterly dividend: $0.075/share paid in Q1
  • Diluted share count: ~87M shares, down 6% YoY

AI IconStrategy & Ops

  • R&D investment: investing over $0.25B per year in innovation, with meaningful/increasing allocation to agentic voice AI (RCAI)
  • SBC reduction plan: continued path toward medium-term target of 3% to 4% of revenue
  • Operational drivers cited for margin expansion: disciplined hiring, expanded offshoring, vendor consolidation, greater internal use of AI, and higher return go-to-market focus
  • Product/feature expansions: AIR now receives inquiries over voice and text; AIR Pro integrates with 100+ prebuilt integrations (EHR/CRM/scheduling/e-commerce/billing); SMS notifications expanded to 190 countries with local numbers
  • CEB product evolution: CEB now available for Microsoft Teams embedding voice, call queues, SMS inbox, routing and analytics to turn Teams into an informal contact center

AI IconMarket Outlook

  • FY2026 guidance (raised): subscription revenue $2.54B–$2.56B (+4.7% to +5.5%); total revenue $2.62B–$2.64B (+4.2% to +5.0%)
  • FY2026 profitability: GAAP operating margin 8.9%–9.6% (expanding 450 bps YoY); non-GAAP operating margin 23.3%–23.7% (expanding 100 bps YoY)
  • FY2026 FCF: $590M–$605M (up 13% YoY); GAAP operating margin expansion and SBC improvement supported
  • FY2026 SBC: ~$240M–$245M, improving 180 bps YoY as % of revenue
  • FY2026 non-GAAP EPS: $4.85–$5.01 (up 13% YoY); FCF per share $6.78–$6.99 (up 18% YoY)
  • Q2 2026 guidance: subscription revenue ~$628M–$633M; total revenue ~$648M–$653M
  • Q2 2026 margins: GAAP operating margin 6.6%–7.6% (+110 bps YoY); non-GAAP operating margin ~23.0%–23.2% (+50 bps YoY)
  • Q2 2026 non-GAAP EPS: $1.15–$1.17; SBC ~$58M–$62M (improving 130 bps YoY as % of revenue)

AI IconRisks & Headwinds

  • Potential price rationalization at the high end acknowledged by management could pressure growth durability and renewal pricing (referenced as repricing/COIVD-lapping effects)
  • AI model advancement and ecosystem commoditization risk implicitly acknowledged (management says AI won’t be free/commoditize; gross margins for RCAI expected to remain similar but not guaranteed)
  • Execution risk in balancing AI-led investment versus maintaining GAAP/FCF margin targets (analyst directly asked; management response emphasizes structural leverage and continued gross margin stability)
  • Regulatory/allowable automation constraints noted: AI likely cannot handle certain legally restricted actions (example: medical advice/prescribing on behalf of licensed providers), requiring human handoffs

Q&A: Analyst Interest

  • Topic: AI hybrid future & voice pervasiveness; management’s detailed response: Management expects a “more or less hybrid world,” not fully AI or fully human. They argue certain actions will remain legally constrained (medical advice/prescriptions) and cite their platform design: AI before/during/after human involvement, with recording/transcript feedback to continually improve both AI agents and human agents on a single platform.
  • Topic: How growth breaks above ~5%; management’s detailed response: Management points to portfolio “green shoots” with double- and in some cases triple-digit sequential growth within AI-led/customer engagement products, while noting RingCentral’s ~$2.6B scale and ongoing market transformation. They reference repricing/COIVD lapping and price rationalization, but emphasize AI-led expansion, strong channel coverage, and continued R&D intensity (~$250M+).
  • Topic: Balancing AI investment vs margins and the 20% GAAP target; management’s detailed response: Management attributes margin expansion to structural operating leverage from a large recurring base, hiring/offshoring discipline, vendor consolidation, internal AI usage, and continued SBC reduction. They highlight Q1 record margins, raised FY guidance (+100 bps non-GAAP), expect SBC down ~200 bps this year toward a 3%–4% medium-term level, and affirm GAAP path to 20% within 3–4 years.

Sentiment: POSITIVE

Note: This summary was synthesized by AI from the RNG Q1 2026 (reported 2026-05-08) earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

📋 Official Regulatory 10-K / 10-Q SEC Filings

Direct authenticated documentation links to audited SEC database reports for RNG.

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© 2026 Stock Market Info — RingCentral, Inc. (RNG) Financial Profile