RingCentral (RNG)
Market Price (7/29/2026): $57.4 | Market Cap: $4.8 BilSector: Information Technology | Industry: Application Software
RingCentral (RNG)
Market Price (7/29/2026): $57.4Market Cap: $4.8 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 22% Attractive yieldFCF Yield is 13% Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), Unified Communications as a Service (UCaaS), Show more. | Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% Weak multi-year price returns3Y Excs Rtn is -29% Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 10% | Stock price has recently run up significantly12M Rtn12 month market price return is 102% Key risksRNG key risks include [1] a weak competitive moat, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 26%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 22% |
| Attractive yieldFCF Yield is 13% |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), Unified Communications as a Service (UCaaS), Show more. |
| Trading close to highsDist 52W High is 0.0%, Dist 3Y High is 0.0% |
| Weak multi-year price returns3Y Excs Rtn is -29% |
| Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 10% |
| Stock price has recently run up significantly12M Rtn12 month market price return is 102% |
| Key risksRNG key risks include [1] a weak competitive moat, Show more. |
Qualitative Assessment
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RingCentral (RNG) stock has gained about 55% since 3/31/2026 because of the following key factors:
1. Robust Financial Performance Exceeding Expectations and Raised Outlook. RingCentral consistently delivered strong financial results, surpassing analyst estimates for both fiscal Q1 2026 (ended March 31, 2026) and fiscal Q2 2026 (ended June 30, 2026). For fiscal Q2 2026, the company reported total revenue of $657 million, exceeding analyst estimates by approximately 1%, and non-GAAP earnings per share (EPS) of $1.22, beating expectations by 4-5%. This strong performance was complemented by a significant increase in GAAP EPS by 215% to $0.45. Furthermore, RingCentral raised its full-year fiscal 2026 outlook for revenue, margins, and free cash flow, signaling continued positive momentum and improved profitability to investors.
2. Accelerated Adoption and Strategic Focus on AI-Powered Products. A core driver of the stock's appreciation was the accelerating momentum in RingCentral's AI-powered communications products. Annual Recurring Revenue (ARR) from customers utilizing at least one native paid AI product doubled year-over-year in fiscal Q2 2026, now constituting 13% of total ARR. Specific products demonstrated remarkable growth, such as the AI Receptionist (AIR), which expanded its customer base to over 16,400 in fiscal Q2 2026, representing a more than 400% increase year-over-year. This strong adoption of AI-driven solutions highlighted the company's successful repositioning and innovation in a high-growth market.
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RingCentral (RNG) stock has gained about 55% since 3/31/2026 because of the following key factors:
1. Robust Financial Performance Exceeding Expectations and Raised Outlook. RingCentral consistently delivered strong financial results, surpassing analyst estimates for both fiscal Q1 2026 (ended March 31, 2026) and fiscal Q2 2026 (ended June 30, 2026). For fiscal Q2 2026, the company reported total revenue of $657 million, exceeding analyst estimates by approximately 1%, and non-GAAP earnings per share (EPS) of $1.22, beating expectations by 4-5%. This strong performance was complemented by a significant increase in GAAP EPS by 215% to $0.45. Furthermore, RingCentral raised its full-year fiscal 2026 outlook for revenue, margins, and free cash flow, signaling continued positive momentum and improved profitability to investors.
2. Accelerated Adoption and Strategic Focus on AI-Powered Products. A core driver of the stock's appreciation was the accelerating momentum in RingCentral's AI-powered communications products. Annual Recurring Revenue (ARR) from customers utilizing at least one native paid AI product doubled year-over-year in fiscal Q2 2026, now constituting 13% of total ARR. Specific products demonstrated remarkable growth, such as the AI Receptionist (AIR), which expanded its customer base to over 16,400 in fiscal Q2 2026, representing a more than 400% increase year-over-year. This strong adoption of AI-driven solutions highlighted the company's successful repositioning and innovation in a high-growth market.
3. Significant Free Cash Flow Generation and Enhanced Shareholder Returns. RingCentral showcased robust cash generation capabilities during the period. In fiscal Q2 2026, free cash flow surged by 24.8% year-over-year to $180 million, with the free cash flow margin expanding to an impressive 27.4%. This substantial cash flow enabled the company to increase its quarterly dividend by approximately 67% to $0.125 per share and continue its share repurchase program, buying back $81 million in shares in fiscal Q1 2026 and an additional 2.2 million shares for about $94 million in fiscal Q2 2026. These actions underscored strong financial health and a commitment to delivering value to shareholders.
4. Improved Financial Discipline and Debt Reduction. The company demonstrated significant progress in strengthening its balance sheet and improving financial discipline. In fiscal Q1 2026, RingCentral successfully repaid $609 million in Convertible Senior Notes due that year, leveraging a new term loan and cash on hand, effectively eliminating debt maturities until 2030. By the end of fiscal Q2 2026, the net debt to adjusted EBITDA leverage ratio improved to 1.5x, moving closer to investment-grade levels. This disciplined approach to debt management and capital allocation significantly enhanced investor confidence in the company's long-term financial stability.
5. Expanded Strategic Partnerships for Enterprise Market Penetration. RingCentral strengthened its market position through an expanded strategic partnership with NiCE. Under this new multi-year agreement, NiCE will resell RingCentral's Unified Communications as a Service (UCaaS) solution, RingEX, creating a "fully bi-directional" relationship. This partnership aims to unite UCaaS and Contact Center as a Service (CCaaS) offerings, providing a more integrated solution for businesses and giving RingCentral a stronger channel to penetrate large enterprise customers through NiCE's established client base.
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Stock Movement Drivers
Fundamental Drivers
The 53.3% change in RNG stock from 3/31/2026 to 7/28/2026 was primarily driven by a 147.3% change in the company's Net Income Margin (%).| (LTM values as of) | 3312026 | 7282026 | Change |
|---|---|---|---|
| Stock Price ($) | 37.13 | 56.93 | 53.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,515 | 2,584 | 2.7% |
| Net Income Margin (%) | 1.7% | 4.3% | 147.3% |
| P/E Multiple | 73.7 | 43.4 | -41.1% |
| Shares Outstanding (Mil) | 86 | 84 | 2.4% |
| Cumulative Contribution | 53.3% |
Market Drivers
3/31/2026 to 7/28/2026| Return | Correlation | |
|---|---|---|
| RNG | 53.3% | |
| Market (SPY) | 13.9% | 6.6% |
| Sector (XLK) | 28.7% | 0.7% |
Fundamental Drivers
The 97.8% change in RNG stock from 12/31/2025 to 7/28/2026 was primarily driven by a 701.3% change in the company's Net Income Margin (%).| (LTM values as of) | 12312025 | 7282026 | Change |
|---|---|---|---|
| Stock Price ($) | 28.78 | 56.93 | 97.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,486 | 2,584 | 4.0% |
| Net Income Margin (%) | 0.5% | 4.3% | 701.3% |
| P/E Multiple | 196.0 | 43.4 | -77.9% |
| Shares Outstanding (Mil) | 90 | 84 | 7.2% |
| Cumulative Contribution | 97.8% |
Market Drivers
12/31/2025 to 7/28/2026| Return | Correlation | |
|---|---|---|
| RNG | 97.8% | |
| Market (SPY) | 8.9% | 15.0% |
| Sector (XLK) | 19.0% | 6.7% |
Fundamental Drivers
The 101.5% change in RNG stock from 6/30/2025 to 7/28/2026 was primarily driven by a 74.8% change in the company's P/S Multiple.| (LTM values as of) | 6302025 | 7282026 | Change |
|---|---|---|---|
| Stock Price ($) | 28.26 | 56.93 | 101.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,428 | 2,584 | 6.4% |
| P/S Multiple | 1.1 | 1.9 | 74.8% |
| Shares Outstanding (Mil) | 91 | 84 | 8.3% |
| Cumulative Contribution | 101.5% |
Market Drivers
6/30/2025 to 7/28/2026| Return | Correlation | |
|---|---|---|
| RNG | 101.5% | |
| Market (SPY) | 20.9% | 22.0% |
| Sector (XLK) | 35.7% | 13.4% |
Fundamental Drivers
The 74.5% change in RNG stock from 6/30/2023 to 7/28/2026 was primarily driven by a 25.8% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 6302023 | 7282026 | Change |
|---|---|---|---|
| Stock Price ($) | 32.62 | 56.93 | 74.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,054 | 2,584 | 25.8% |
| P/S Multiple | 1.5 | 1.9 | 21.8% |
| Shares Outstanding (Mil) | 96 | 84 | 13.9% |
| Cumulative Contribution | 74.5% |
Market Drivers
6/30/2023 to 7/28/2026| Return | Correlation | |
|---|---|---|
| RNG | 74.5% | |
| Market (SPY) | 73.0% | 35.8% |
| Sector (XLK) | 100.5% | 28.6% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RNG Return | -51% | -81% | -4% | 3% | -18% | 87% | -86% |
| Peers Return | -4% | -48% | 15% | -6% | -4% | 12% | -42% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 97% |
Monthly Win Rates [3] | |||||||
| RNG Win Rate | 33% | 8% | 42% | 42% | 50% | 71% | |
| Peers Win Rate | 52% | 30% | 58% | 52% | 53% | 54% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| RNG Max Drawdown | -60% | -85% | -48% | -29% | -42% | -29% | |
| Peers Max Drawdown | -35% | -57% | -33% | -35% | -35% | -28% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MSFT, ZM, CSCO, FIVN, EGHT. See RNG Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 7/28/2026 (YTD)
How Low Can It Go
| Event | RNG | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -32.2% | -18.8% |
| % Gain to Breakeven | 47.6% | 23.1% |
| Time to Breakeven | 150 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -35.6% | -9.5% |
| % Gain to Breakeven | 55.3% | 10.5% |
| Time to Breakeven | 404 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -41.5% | -6.7% |
| % Gain to Breakeven | 71.0% | 7.1% |
| Time to Breakeven | 1093 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -44.1% | -33.7% |
| % Gain to Breakeven | 79.0% | 50.9% |
| Time to Breakeven | 35 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -21.9% | -19.2% |
| % Gain to Breakeven | 28.0% | 23.8% |
| Time to Breakeven | 50 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -16.8% | -3.7% |
| % Gain to Breakeven | 20.2% | 3.9% |
| Time to Breakeven | 13 days | 6 days |
In The Past
RingCentral's stock fell -32.2% during the 2025 US Tariff Shock. Such a loss loss requires a 47.6% gain to breakeven.
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| Event | RNG | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -32.2% | -18.8% |
| % Gain to Breakeven | 47.6% | 23.1% |
| Time to Breakeven | 150 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -35.6% | -9.5% |
| % Gain to Breakeven | 55.3% | 10.5% |
| Time to Breakeven | 404 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -41.5% | -6.7% |
| % Gain to Breakeven | 71.0% | 7.1% |
| Time to Breakeven | 1093 days | 31 days |
| 2020 COVID-19 Crash | ||
| % Loss | -44.1% | -33.7% |
| % Gain to Breakeven | 79.0% | 50.9% |
| Time to Breakeven | 35 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -21.9% | -19.2% |
| % Gain to Breakeven | 28.0% | 23.8% |
| Time to Breakeven | 50 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -25.2% | -12.2% |
| % Gain to Breakeven | 33.8% | 13.9% |
| Time to Breakeven | 88 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -24.3% | -6.8% |
| % Gain to Breakeven | 32.1% | 7.3% |
| Time to Breakeven | 59 days | 15 days |
| 2013 Taper Tantrum | ||
| % Loss | -22.5% | -0.2% |
| % Gain to Breakeven | 29.0% | 0.2% |
| Time to Breakeven | 413 days | 1 days |
In The Past
RingCentral's stock fell -32.2% during the 2025 US Tariff Shock. Such a loss loss requires a 47.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About RingCentral (RNG)
RingCentral, Inc. (RNG) is a leading provider of software-as-a-service (SaaS) solutions, enabling businesses to communicate, collaborate, and connect effectively through the cloud. The company's core offering is built upon its Message Video Phone (MVP) platform, providing comprehensive cloud communications and contact center solutions designed to replace traditional on-premise systems. Essentially, RingCentral helps businesses streamline all their communication needs, from internal team collaboration to external customer engagement, through a unified cloud-based system.
The company's product portfolio is extensive, with its flagship being RingCentral Office, a unified communications as a service (UCaaS) solution that integrates high-definition voice, video conferencing, SMS, team messaging, and online meetings. Beyond UCaaS, RingCentral offers specialized solutions such as RingCentral Contact Center for managing customer interactions across multiple channels, and RingCentral Engage Digital and Engage Voice platforms for advanced customer engagement. Additionally, its offerings include RingCentral Video for dedicated video meetings and team messaging, and services like RingCentral Professional for virtual telephone management and RingCentral Fax for online faxing.
RingCentral serves a diverse range of industries, including financial services, education, healthcare, legal services, retail, technology, and various government sectors, catering to the communication needs of businesses of all sizes. The company reaches its customers through a multi-faceted sales approach, utilizing direct sales representatives alongside a strong network of sales agents, resellers, and channel partners. Strategic partnerships with major players like Alcatel-Lucent Enterprise and Vodafone Business further extend its market reach and solution delivery capabilities.
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- RingCentral is like Zoom or Microsoft Teams, but with a complete, enterprise-grade cloud phone system (PBX) fully integrated.
- RingCentral is the cloud-native alternative to legacy business communication providers like Cisco or Avaya, bringing together phone, video, and messaging.
- RingCentral is like having Slack, Zoom, and a professional business phone system all integrated into one cloud service.
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- RingCentral Office: A comprehensive platform offering high-definition voice, video, SMS, messaging, collaboration, conferencing, online meetings, and fax.
- RingCentral Contact Center: A collaborative omnichannel solution for contact center operations.
- RingCentral Engage Digital: A digital customer engagement platform allowing enterprises to interact with customers across various channels.
- RingCentral Engage Voice: A cloud-based outbound/blended customer engagement platform for midsize and enterprise companies.
- RingCentral Video: A video meeting service that includes video and audio conferencing, team messaging, file sharing, and calendar management.
- RingCentral Professional: A cloud-based virtual telephone service offering inbound call answering and management for professionals.
- RingCentral Fax: A service providing online fax capabilities.
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RingCentral, Inc. (RNG) primarily sells its software-as-a-service solutions to other businesses and professionals. The provided background information describes the broad range of industries that RingCentral serves, rather than listing specific major customer companies by name.
RingCentral's business customers come from various sectors, including:
- Financial services
- Education
- Healthcare
- Legal services
- Real estate
- Retail
- Technology
- Insurance
- Construction
- Hospitality
- State and local government
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Vlad Shmunis, Founder, Chairman, and Chief Executive Officer
Vlad Shmunis is the Founder, Chairman, and CEO of RingCentral. He co-founded RingCentral with Vlad Vendrow in 1999, aiming to transform business communications through cloud technology. Prior to RingCentral, Shmunis founded and served as CEO of Ring Zero Systems, a pioneer in desktop business communications software. Ring Zero Systems shipped over 25 million copies of its software through partnerships with major PC manufacturers and was later acquired by Motorola. Shmunis holds Bachelor's and Master's degrees in Computer Science from San Francisco State University.
Vaibhav Agarwal, Chief Financial Officer
Vaibhav Agarwal was appointed Chief Financial Officer of RingCentral, effective August 5, 2025. He joined RingCentral in 2016 and has held multiple leadership positions within the company, including Chief Accounting Officer, Chief Transformation Officer, and Deputy Chief Financial Officer, contributing to its growth from a $400 million business to a $2.6 billion run-rate. Before joining RingCentral, Agarwal held senior finance positions at Intel Corporation, Altera, Intuitive Surgical, and PricewaterhouseCoopers. He holds an MBA from the University of Illinois at Urbana-Champaign and is a Chartered Accountant from India.
Kira Makagon, President & Chief Operating Officer
Kira Makagon serves as the President & Chief Operating Officer of RingCentral. She joined RingCentral in 2012.
Vlad Vendrow, Co-Founder & Chief Technology Officer
Vlad Vendrow is the Co-Founder and Chief Technology Officer at RingCentral. He co-founded the company with Vlad Shmunis in 1999. Before co-founding RingCentral, Vendrow was an engineer at Ring Zero Systems and Motorola.
Homayoun Razavi, Executive Vice President & General Manager, Global Service Providers
Homayoun Razavi is the Executive Vice President & General Manager, Global Service Providers at RingCentral, a role he took on after previously serving as Chief Business Development Officer. He joined RingCentral in January 2020. Razavi has over 40 years of experience in the telecommunications industry, including C-level executive roles for more than 20 years. Prior to RingCentral, he served as EVP, Chief Customer Officer of Coriant, overseeing global sales, marketing, and business development. He also joined BroadSoft in 2010 (pre-IPO) and served as EVP, Managing Director of America, before its acquisition by Cisco in 2017. His career also includes leadership roles at Lucent, Ascend, Cascade, and MCI (Verizon).
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The key risks to RingCentral's business are primarily centered around intense competition, evolving market dynamics and customer preferences, and the persistent threat of cybersecurity breaches.
- Intense Competition: RingCentral operates in a highly competitive market for cloud communications and contact center solutions. It faces significant competition from large technology companies, often referred to as hyperscalers, such as Microsoft (with Teams Phone) and Zoom Phone, which can leverage platform bundling and extensive enterprise footprints. This competitive pressure extends to AI-native Contact Center as a Service (CCaaS) rivals and other unified communications as a service (UCaaS) providers. This intense competition can lead to pricing pressures and challenges in maintaining or growing market share.
- Changing Market Dynamics and Customer Preferences: The market is seeing a shift where customers increasingly prefer integrated platforms over standalone solutions. RingCentral's revenue growth has slowed, and a continued shift in customer preference could potentially erode its market share if it does not effectively address this demand for more integrated offerings. Furthermore, the collaboration market might become a lower priority for many businesses as economic conditions improve, posing a challenge for RingCentral, which has traditionally relied on strong demand for its communication solutions. There's also a risk that an excessive focus on AI products could limit its customer base if traditional cloud-based business products are neglected.
- Cybersecurity Threats and Data Breaches: As a provider of cloud-based communication services, RingCentral faces numerous cybersecurity threats. A breach of its systems could lead to service disruptions for customers, damage the company's reputation, and expose it to substantial liability. The nature of Voice over Internet Protocol (VoIP) systems creates multiple potential entry points for cybercriminals, including risks such as social engineering, call tampering, malware, and Distributed Denial of Service (DDoS) attacks.
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- Microsoft's expansion of Teams Phone System and its broader Microsoft 365 ecosystem: Microsoft, leveraging its immense enterprise install base and platform integration, is aggressively enhancing Teams to become a comprehensive unified communications solution, including voice, video, and messaging. This direct competition, embedded within a ubiquitous productivity suite, poses a significant threat to standalone UCaaS providers like RingCentral, as businesses may opt for an all-in-one solution from a single vendor.
- Zoom's aggressive expansion into broader UCaaS and CCaaS offerings: Zoom, having established a dominant position in video conferencing, is rapidly growing its Zoom Phone (UCaaS) and Zoom Contact Center (CCaaS) products. This expansion directly targets RingCentral's core business, leveraging Zoom's strong brand recognition, user experience, and existing customer base to compete across the entire communication and collaboration spectrum.
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Unified Communications as a Service (UCaaS)
The global Unified Communications as a Service (UCaaS) market was valued at approximately USD 66.42 billion in 2025 and is projected to grow to USD 276.9 billion by 2034, demonstrating a compound annual growth rate (CAGR) of 17.10% during the forecast period. Another estimate valued the global UCaaS market at USD 87.39 billion in 2024, with a projection to reach USD 262.37 billion by 2030 at a CAGR of 19.8% from 2025 to 2030. In North America, which dominated the global market with a 42.30% share in 2025, the U.S. market alone is projected to reach USD 18.111 billion by 2026. North America is consistently identified as the region with the largest market share for UCaaS, driven by high adoption of advanced business communication services.
Contact Center as a Service (CCaaS)
The global Contact Center as a Service (CCaaS) market size was valued at USD 7.08 billion in 2025 and is expected to grow to USD 30.15 billion by 2034, exhibiting a CAGR of 17.40% during the forecast period. Other reports indicate a global market size of USD 6.08 billion in 2024, with a projected increase to USD 29.53 billion by 2033, at a CAGR of 19.2% from 2026–2033. North America held a dominant position in the global CCaaS market, accounting for approximately 39.00% of the market share in 2025. In 2024, North America led the CCaaS market, accounting for approximately 41% of total global deployments and supporting over 492,000 business users.
Cloud Communication Platform
The broader Cloud Communication Platform market, which encompasses UCaaS and Communication Platform as a Service (CPaaS), was valued at USD 15.91 billion in 2025 and is projected to reach USD 78.14 billion by 2033, growing at a CAGR of 22.03% from 2026 to 2033. Another estimate places the global cloud communication market size at USD 29.2 billion in 2025, forecasted to reach USD 136.3 billion by 2034 with a CAGR of 18.7%. North America dominated this market in 2025, accounting for 39.51% of the revenue share. The U.S. Cloud Communication Platform Market size was valued at USD 4.58 billion in 2025 and is projected to reach USD 21.92 billion by 2033.
Digital Customer Engagement Solutions
The global customer engagement solutions market was valued at USD 24.1 billion in 2024 and is projected to grow to USD 68.46 billion by 2033, with a CAGR of 12.3% during the forecast period (2026-2033). Another source estimated the market size at USD 23.45 billion in 2023, expected to reach USD 50.03 billion by 2030. North America is anticipated to hold the largest revenue share, projected to account for 40% by 2035.
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Share Repurchases
- In December 2021, RingCentral's Board of Directors authorized a share repurchase program of up to $100 million of its outstanding Class A common stock, effective until December 31, 2022.
- The company expanded its share repurchase authorization to $500 million in February 2026, after having repurchased approximately 31.61 million shares for $967.01 million.
- In 2025, RingCentral repurchased approximately 5 million shares for $135 million, with about $135 million worth of shares bought back in Q4 2025 alone.
Share Issuance
- In February 2026, the company's President and COO acquired 4,131 shares as fully vested Restricted Stock Units (RSUs) granted under an equity bonus plan, which represents a form of share issuance for compensation.
- RingCentral's share-based compensation expense was $269.7 million in 2025, marking a 20.5% decrease year-over-year, indicating a reduction in the dilutive impact of equity awards.
Inbound Investments
- BlackRock, Inc. increased its holdings in RingCentral by acquiring 4,583,470 shares in February 2026, bringing its total to 10,248,861 shares.
- Vanguard Group Inc. increased its position in RingCentral by 1.1% during the third quarter (likely 2025), holding 11,823,636 shares valued at $335,082,000.
Outbound Investments
- In September 2025, RingCentral acquired CommunityWFM, a cloud-based, AI-first contact center workforce management software solution, to enhance its RingCX platform.
- The company acquired select assets from Hopin, including its Events platform and Session product, in August 2023 to expand its video solutions and address virtual and hybrid events.
- In June 2024, RingCentral acquired certain assets of Mitel Networks Corporation for CAD 26.3 million.
Capital Expenditures
- RingCentral's capital expenditures were $30 million for the full year 2025.
- In Q4 2025, the company invested $8.0 million in capital expenditures, funding long-term assets and infrastructure.
- RingCentral plans a $250 million investment in research and development for 2026, with the majority directed toward AI-led products.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 74.20 |
| Mkt Cap | 15.9 |
| Rev LTM | 3,758 |
| Op Inc LTM | 683 |
| FCF LTM | 1,269 |
| FCF 3Y Avg | 1,121 |
| CFO LTM | 1,346 |
| CFO 3Y Avg | 1,218 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.2% |
| Rev Chg 3Y Avg | 5.4% |
| Rev Chg Q | 7.5% |
| QoQ Delta Rev Chg LTM | 1.8% |
| Op Inc Chg LTM | 32.3% |
| Op Inc Chg 3Y Avg | 98.5% |
| Op Mgn LTM | 15.2% |
| Op Mgn 3Y Avg | 10.4% |
| QoQ Delta Op Mgn LTM | 0.5% |
| CFO/Rev LTM | 23.7% |
| CFO/Rev 3Y Avg | 22.9% |
| FCF/Rev LTM | 20.9% |
| FCF/Rev 3Y Avg | 20.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 15.9 |
| P/S | 3.7 |
| P/Op Inc | 25.1 |
| P/EBIT | 24.4 |
| P/E | 37.3 |
| P/CFO | 11.0 |
| Total Yield | 3.4% |
| Dividend Yield | 0.1% |
| FCF Yield 3Y Avg | 7.0% |
| D/E | 0.2 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 8.1% |
| 3M Rtn | 18.1% |
| 6M Rtn | 30.0% |
| 12M Rtn | 7.2% |
| 3Y Rtn | 22.1% |
| 1M Excs Rtn | 7.1% |
| 3M Excs Rtn | 14.9% |
| 6M Excs Rtn | 19.3% |
| 12M Excs Rtn | -8.1% |
| 3Y Excs Rtn | -40.8% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Single Segment | 2,515 | 2,400 | 2,202 | 1,988 | |
| Other | 113 | ||||
| Subscriptions | 1,482 | ||||
| Total | 2,515 | 2,400 | 2,202 | 1,988 | 1,595 |
| $ Mil | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Single Segment | 121 | 3 | -199 | -649 |
| Total | 121 | 3 | -199 | -649 |
| $ Mil | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Single Segment | 43 | -58 | -165 | -879 |
| Total | 43 | -58 | -165 | -879 |
Price Behavior
| Market Price | $56.93 | |
| Market Cap ($ Bil) | 4.8 | |
| First Trading Date | 09/27/2013 | |
| Distance from 52W High | 0.0% | |
| 50 Days | 200 Days | |
| DMA Price | $41.03 | $34.59 |
| DMA Trend | up | indeterminate |
| Distance from DMA | 38.7% | 64.6% |
| 3M | 1YR | |
| Volatility | 83.9% | 74.9% |
| Downside Capture | 37.44 | 143.43 |
| Upside Capture | 202.38 | 204.89 |
| Correlation (SPY) | 3.0% | 22.2% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.87 | 0.33 | 0.68 | 1.05 | 1.39 | 1.39 |
| Up Beta | 0.29 | -0.75 | 0.00 | 0.70 | 1.26 | 1.12 |
| Down Beta | 1.24 | 0.42 | -0.25 | -0.07 | 0.89 | 0.97 |
| Up Capture | 29% | 39% | 105% | 206% | 219% | 563% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 7 | 18 | 31 | 61 | 129 | 374 |
| Down Capture | 132% | 78% | 166% | 128% | 135% | 111% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 14 | 23 | 32 | 64 | 123 | 372 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | 114.7% | 74.8% | 1.31 | - |
| Sector ETF (XLK) | 31.3% | 24.9% | 1.04 | 13.8% |
| Equity (SPY) | 17.3% | 12.7% | 0.99 | 22.1% |
| Gold (GLD) | 20.2% | 28.1% | 0.64 | -4.0% |
| Commodities (DBC) | 29.1% | 19.5% | 1.19 | -5.9% |
| Real Estate (VNQ) | 14.4% | 14.1% | 0.72 | 12.7% |
| Bitcoin (BTCUSD) | -46.4% | 42.9% | -1.33 | 16.7% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | -26.6% | 64.3% | -0.22 | - |
| Sector ETF (XLK) | 18.7% | 25.6% | 0.66 | 43.2% |
| Equity (SPY) | 12.9% | 17.1% | 0.58 | 47.1% |
| Gold (GLD) | 16.9% | 18.4% | 0.74 | 4.4% |
| Commodities (DBC) | 9.1% | 19.5% | 0.36 | 6.2% |
| Real Estate (VNQ) | 2.9% | 18.9% | 0.05 | 39.4% |
| Bitcoin (BTCUSD) | 16.2% | 53.4% | 0.48 | 22.7% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | 10.0% | 56.4% | 0.40 | - |
| Sector ETF (XLK) | 23.7% | 24.8% | 0.87 | 45.6% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 43.7% |
| Gold (GLD) | 11.3% | 16.1% | 0.57 | 5.7% |
| Commodities (DBC) | 6.8% | 18.0% | 0.30 | 8.8% |
| Real Estate (VNQ) | 5.2% | 20.7% | 0.21 | 31.6% |
| Bitcoin (BTCUSD) | 57.5% | 66.2% | 0.98 | 15.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/28/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/23/2026 | 25.1% | ||
| 5/7/2026 | 0.5% | -13.3% | -9.8% |
| 2/19/2026 | 34.4% | 26.4% | 28.3% |
| 11/3/2025 | -8.2% | -9.5% | -2.2% |
| 8/5/2025 | 27.0% | 17.8% | 29.3% |
| 5/8/2025 | 3.9% | 5.0% | 2.8% |
| 2/20/2025 | -5.9% | -7.1% | -12.6% |
| 11/7/2024 | -2.1% | -5.3% | 7.6% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 9 | 10 |
| # Negative | 11 | 14 | 13 |
| Median Positive | 6.7% | 10.5% | 16.7% |
| Median Negative | -3.8% | -9.8% | -13.4% |
| Max Positive | 34.4% | 35.1% | 29.3% |
| Max Negative | -23.4% | -27.0% | -37.9% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/23/2026 | 25.1% | ||
| 5/7/2026 | 0.5% | -13.3% | -9.8% |
| 2/19/2026 | 34.4% | 26.4% | 28.3% |
| 11/3/2025 | -8.2% | -9.5% | -2.2% |
| 8/5/2025 | 27.0% | 17.8% | 29.3% |
| 5/8/2025 | 3.9% | 5.0% | 2.8% |
| 2/20/2025 | -5.9% | -7.1% | -12.6% |
| 11/7/2024 | -2.1% | -5.3% | 7.6% |
| 8/1/2024 | 5.4% | 0.9% | -0.4% |
| 5/7/2024 | 14.6% | 25.6% | 16.2% |
| 2/20/2024 | 2.5% | 5.0% | 17.1% |
| 11/6/2023 | 2.7% | -6.8% | 11.5% |
| 8/7/2023 | -18.4% | -21.5% | -15.8% |
| 2/15/2023 | -23.4% | -27.0% | -37.9% |
| 11/9/2022 | 30.1% | 35.1% | 28.9% |
| 8/2/2022 | 6.7% | -1.4% | -13.4% |
| 5/9/2022 | -0.2% | -8.9% | -8.8% |
| 2/22/2022 | -16.0% | -14.8% | -16.7% |
| 11/9/2021 | 20.5% | 9.8% | -20.3% |
| 8/3/2021 | -3.8% | -4.6% | -3.3% |
| 5/4/2021 | -1.9% | -10.2% | -16.2% |
| 2/16/2021 | -3.8% | -10.6% | -25.4% |
| 11/9/2020 | 3.7% | 10.5% | 27.0% |
| 8/3/2020 | -3.1% | -13.1% | 1.6% |
| SUMMARY STATS | |||
| # Positive | 13 | 9 | 10 |
| # Negative | 11 | 14 | 13 |
| Median Positive | 6.7% | 10.5% | 16.7% |
| Median Negative | -3.8% | -9.8% | -13.4% |
| Max Positive | 34.4% | 35.1% | 29.3% |
| Max Negative | -23.4% | -27.0% | -37.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/23/2026 | 10-Q |
| 03/31/2026 | 05/11/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/26/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/22/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/07/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/23/2023 | 10-K |
| 09/30/2022 | 11/09/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/23/2026 | 10-Q |
| 03/31/2026 | 05/11/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/26/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/22/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/07/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/23/2023 | 10-K |
| 09/30/2022 | 11/09/2022 | 10-Q |
| 06/30/2022 | 08/08/2022 | 10-Q |
| 03/31/2022 | 05/10/2022 | 10-Q |
| 12/31/2021 | 03/01/2022 | 10-K |
| 09/30/2021 | 11/09/2021 | 10-Q |
| 06/30/2021 | 08/06/2021 | 10-Q |
| 03/31/2021 | 05/07/2021 | 10-Q |
| 12/31/2020 | 02/26/2021 | 10-K |
| 09/30/2020 | 11/09/2020 | 10-Q |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 05/11/2020 | 10-Q |
| 12/31/2019 | 02/26/2020 | 10-K |
| 09/30/2019 | 11/12/2019 | 10-Q |
Recent Forward Guidance
Updated 7/24/2026Latest: Q2 2026 Earnings Reported 7/23/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Subscriptions Revenue | 643.00 Mil | 646.00 Mil | 649.00 Mil | 2.5% | Higher New | Actual: 630.50 Mil for Q2 2026 | |
| Q3 2026 Total Revenue | 664.00 Mil | 667.00 Mil | 670.00 Mil | 2.5% | Higher New | Actual: 650.50 Mil for Q2 2026 | |
| Q3 2026 GAAP Operating Margin | 7.2% | 7.9% | 8.6% | 0.8% | Higher New | Actual: 7.1% for Q2 2026 | |
| Q3 2026 Non-GAAP Operating Margin | 23.5% | 23.75% | 24.0% | 0.6% | Higher New | Actual: 23.1% for Q2 2026 | |
| Q3 2026 Non-GAAP EPS | 1.25 | 1.27 | 1.3 | 9.9% | Higher New | Actual: 1.16 for Q2 2026 | |
| 2026 Subscriptions Revenue | 2.55 Bil | 2.56 Bil | 2.56 Bil | 0.2% | Raised | Guidance: 2.55 Bil for 2026 | |
| 2026 Total Revenue | 2.63 Bil | 2.64 Bil | 2.65 Bil | 0.4% | Raised | Guidance: 2.63 Bil for 2026 | |
| 2026 GAAP Operating Margin | 9.0% | 9.35% | 9.7% | 0.1% | Raised | Guidance: 9.25% for 2026 | |
| 2026 Non-GAAP Operating Margin | 23.6% | 23.8% | 24.0% | 0.3% | Raised | Guidance: 23.5% for 2026 | |
| 2026 Non-GAAP EPS | 4.96 | 5.03 | 5.1 | 2.0% | Raised | Guidance: 4.93 for 2026 | |
| 2026 Free Cash Flow | 615.00 Mil | 620.00 Mil | 625.00 Mil | 3.8% | Raised | Guidance: 597.50 Mil for 2026 | |
Insider Activity
Updated 7/2/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Shenkan, Amy Guggenheim | Direct | Sell | 7022026 | 40.59 | 1,265 | 51,350 | 1,192,298 | Form | |
| 2 | Theis, Robert I | Direct | Sell | 7022026 | 40.28 | 2,530 | 101,908 | 1,241,994 | Form | |
| 3 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 6172026 | 38.22 | 11,696 | 447,079 | 8,794,455 | Form |
| 4 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 6172026 | 38.52 | 15,556 | 599,203 | 9,312,640 | Form |
| 5 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 6122026 | 38.85 | 4,171 | 162,048 | 3,315,234 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Shenkan, Amy Guggenheim | Direct | Sell | 7022026 | 40.59 | 1,265 | 51,350 | 1,192,298 | Form | |
| 2 | Theis, Robert I | Direct | Sell | 7022026 | 40.28 | 2,530 | 101,908 | 1,241,994 | Form | |
| 3 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 6172026 | 38.22 | 11,696 | 447,079 | 8,794,455 | Form |
| 4 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 6172026 | 38.52 | 15,556 | 599,203 | 9,312,640 | Form |
| 5 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 6122026 | 38.85 | 4,171 | 162,048 | 3,315,234 | Form |
| 6 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 6022026 | 46.17 | 7,047 | 325,353 | 7,815,581 | Form |
| 7 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 6022026 | 43.00 | 3,615 | 155,446 | 2,928,325 | Form |
| 8 | Makagon, Kira | President and COO | Direct | Sell | 5282026 | 42.54 | 16,988 | 722,674 | 9,049,331 | Form |
| 9 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 5282026 | 42.66 | 919 | 39,205 | 3,059,362 | Form |
| 10 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 5222026 | 42.06 | 4,044 | 170,083 | 5,559,268 | Form |
| 11 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 5192026 | 40.62 | 2,220 | 90,179 | 5,703,838 | Form |
| 12 | Makagon, Kira | President and COO | Direct | Sell | 4282026 | 40.27 | 5,870 | 236,364 | 9,531,662 | Form |
| 13 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 4222026 | 43.00 | 953 | 40,979 | 3,205,177 | Form |
| 14 | Shenkan, Amy Guggenheim | Direct | Sell | 4032026 | 37.92 | 1,264 | 47,937 | 1,161,908 | Form | |
| 15 | Theis, Robert I | Direct | Sell | 4032026 | 37.89 | 2,529 | 95,820 | 1,264,113 | Form | |
| 16 | Makagon, Kira | President and COO | Direct | Sell | 3272026 | 35.79 | 44,840 | 1,604,713 | 8,681,520 | Form |
| 17 | Makagon, Kira | President and COO | Direct | Sell | 3272026 | 35.87 | 5,870 | 210,581 | 10,311,131 | Form |
| 18 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 3112026 | 40.69 | 8,840 | 359,655 | 3,071,392 | Form |
| 19 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 3032026 | 36.14 | 3,723 | 134,563 | 3,048,076 | Form |
| 20 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 3032026 | 36.33 | 18,680 | 678,607 | 5,067,502 | Form |
| 21 | Makagon, Kira | President and COO | Direct | Sell | 2272026 | 35.15 | 22,196 | 780,279 | 11,936,376 | Form |
| 22 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 2272026 | 34.80 | 773 | 26,900 | 3,347,029 | Form |
| 23 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 2242026 | 35.59 | 95,831 | 3,410,585 | 4,508,666 | Form |
| 24 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 2242026 | 35.50 | 10,744 | 381,372 | 6,269,389 | Form |
| 25 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 2242026 | 35.26 | 45,284 | 1,596,592 | 7,845,314 | Form |
| 26 | Makagon, Kira | President and COO | Direct | Sell | 2242026 | 35.49 | 46,960 | 1,666,610 | 13,114,407 | Form |
| 27 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 2192026 | 29.58 | 2,223 | 65,754 | 5,762,078 | Form |
| 28 | Shenkan, Amy Guggenheim | Direct | Sell | 1052026 | 28.99 | 1,402 | 40,644 | 733,360 | Form | |
| 29 | Theis, Robert I | Direct | Sell | 1052026 | 27.75 | 2,805 | 77,825 | 715,127 | Form | |
| 30 | Makagon, Kira | President and COO | Direct | Sell | 12292025 | 29.22 | 6,495 | 189,784 | 9,822,654 | Form |
| 31 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 12122025 | 30.60 | 2,597 | 79,479 | 2,697,253 | Form |
| 32 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 12012025 | 28.70 | 3,888 | 111,578 | 2,680,738 | Form |
| 33 | Makagon, Kira | President and COO | Direct | Sell | 12012025 | 28.11 | 14,798 | 415,913 | 9,819,056 | Form |
| 34 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 12012025 | 28.06 | 942 | 26,433 | 2,730,238 | Form |
| 35 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 11242025 | 27.68 | 27,018 | 747,858 | 7,258,803 | Form |
| 36 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 11242025 | 25.96 | 14,971 | 388,647 | 4,298,794 | Form |
| 37 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 11242025 | 26.89 | 46,844 | 1,259,569 | 8,527,417 | Form |
| 38 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 11192025 | 26.61 | 2,356 | 62,693 | 5,216,092 | Form |
| 39 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 11142025 | 27.38 | 882 | 24,149 | 2,774,005 | Form |
| 40 | Theis, Robert I | Direct | Sell | 10032025 | 28.49 | 2,805 | 79,905 | 814,144 | Form | |
| 41 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 9122025 | 30.90 | 2,598 | 80,286 | 3,130,937 | Form |
| 42 | Makagon, Kira | President and COO | Direct | Sell | 9122025 | 31.35 | 6,495 | 203,644 | 11,746,619 | Form |
| 43 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 9022025 | 30.72 | 4,032 | 123,867 | 3,274,674 | Form |
| 44 | Makagon, Kira | President and COO | Direct | Sell | 8292025 | 30.73 | 14,887 | 457,403 | 11,916,415 | Form |
| 45 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 8262025 | 31.09 | 1,037 | 32,240 | 3,439,362 | Form |
| 46 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 8222025 | 30.54 | 27,018 | 825,241 | 12,447,621 | Form |
| 47 | Shmunis, Vladimir | CEO and Chairman | Direct | Sell | 8222025 | 28.95 | 46,932 | 1,358,775 | 13,388,244 | Form |
| 48 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 8222025 | 28.70 | 14,970 | 429,564 | 5,624,794 | Form |
| 49 | Agarwal, Vaibhav | Chief Financial Officer | Direct | Sell | 8182025 | 30.70 | 2,443 | 75,000 | 6,951,954 | Form |
| 50 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 6302025 | 28.00 | 7,776 | 217,730 | 3,205,950 | Form |
| 51 | Makagon, Kira | President and COO | Direct | Sell | 6302025 | 27.69 | 21,185 | 586,570 | 11,438,771 | Form |
Investor Activity (13F)
Updated Jul 29, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
RNG Trade Sentinel
Constructive
CONVICTION RATIONALE
RingCentral is successfully executing a pivot to AI, with new product revenue growing rapidly and now approaching 10% of total ARR. This is driving an inflection in consolidated revenue growth and significant margin expansion. While competition is intense, management's strong execution and disciplined capital allocation provide a credible path to re-rating.
STOCK ARCHETYPE
B SaaS(Number of Customers x Average Subscription Value per Customer) + Usage-based AI Revenue Operating leverage inherent in the SaaS model, combined with disciplined cost management and maintaining gross margins on new, higher-value AI products.
INVESTMENT THESIS
Evidence suggests yes. AI-related ARR has doubled year-over-year, driving an inflection in consolidated revenue growth (5.9% last quarter) and a full-year guidance raise.
- AI-utilizing customer ARR has more than doubled year-over-year.
- Latest-quarter revenue growth accelerated to 5.9% from 5.2% in the prior quarter.
- Full-year 2026 guidance for revenue, EPS, and free cash flow was raised.
- Trailing-twelve-month operating margin expanded by 4 percentage points to 6.7%.
- The basic share count has been reduced by 11.8% over the last three years.
PRIMARY RISK
Microsoft and Zoom have massive scale advantages. A peer's revenue is 123.2 times the company's, and RingCentral's operating margin is 6.7%. This allows them to out-invest in R&D and potentially commoditize the market with bundled offerings, capping RingCentral's growth and pricing power.
- Microsoft's revenue is 123.2 times RingCentral's revenue.
- Operating margin is 6.7% for RingCentral.
- Competitors have 'significantly greater resources' and 'larger customer bases'.
- Management cited 'pricing pressures' in the enterprise segment on legacy contracts.
| KPI | Status | Rationale |
|---|---|---|
| Annualized Exit Monthly Recurring Subscriptions (ARR) | $2.76 billion as of June 30, 2026 - Stable | ARR growth remains stable in the mid-single-digit range, consistent with the company's overall revenue trajectory. The sequential dollar additions have been steady, with a slight uptick in the most recent quarter, indicating a durable but not accelerating core business. |
| AI Receptionist (AIR) Customer Count | More than 11,800 paying customers as of the Q1 2026 earnings report - Accelerating | The adoption of RingCentral's flagship AI product is showing explosive, albeit decelerating, sequential growth. The growth rate was over 80% in Q3 2025, 44% in Q4 2025, and over 40% in Q1 2026. This highlights strong market reception for the company's new AI initiatives, which management positions as a primary future growth engine. |
| Net Monthly Subscription Dollar Retention Rate | >99% (June 30, 2026) | Measures the ability to retain and grow subscriptions revenues from the existing customer base, indicating the stability of the revenue base. |
| AI Conversation Expert (ACE) Customers | More than 5,200 (Q1 2026) | Shows the adoption of the company's post-interaction AI analytics tool, a key part of its AI strategy. |
AI Growth Engine vs. Legacy Drag
BULL VIEW
Rapid adoption of new AI products (AIR customers +40% QoQ) and accelerating revenue (5.9% last quarter) show the new growth engine is powerful enough to overcome pricing pressure on legacy enterprise contracts and re-accelerate the entire business.
CORE TENSION
Can AI ARR, now approaching 10% of total, overcome enterprise pricing pressure, which caused the May stock dip?
PREVAILING SENTIMENT
The latest quarter favors the bulls. Revenue growth accelerated to 5.9% and management raised full-year guidance, suggesting the AI contribution is becoming material.
BEAR VIEW
The AI business is too small to matter. The core business, facing pricing pressure from giants like Microsoft, will keep consolidated growth in the low single digits, revealing the recent stock run as a narrative-driven overshoot.
| Timeline | Event & Metric To Watch |
|---|---|
payable on August 20, 2026 | Quarterly Dividend Payment Watch: A cash dividend of $0.125 per share is scheduled to be paid. |
11/2/2026 | AI Monetization Stalls Watch: Updated customer counts for AIR, ACE, and RingCX, and growth in ARR from AI-utilizing customers. |
11/2/2026 | Next Earnings Report Watch: The company is scheduled to report its next quarterly earnings. |
11/4/2026 | Peer Five9 Earnings Watch: Peer Five9 (FIVN) is scheduled to report earnings. |
11/10/2026 | Peer Cisco Earnings Watch: Peer Cisco Systems (CSCO) is scheduled to report earnings. |
11/23/2026 | Intensifying Peer Competition Watch: Zoom's commentary on Zoom Phone and Zoom Contact Center growth, competitive displacements, and pricing environment. |
No set date | Persistent Enterprise Pricing Pressure Watch: Commentary on enterprise net retention, ARPU trends, and the duration of headwinds from repricing legacy contracts. |
November 5 | Investor Product Briefing Watch: The company will hold an investor product briefing. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-23 | Key Partnerships Expanded Details: The company announced a significant expansion of its partnership with NiCE and a new collaboration with OpenAI to accelerate AI-native innovation across its platform. | +28.3% $37.66 -> $48.31 |
2026-07-23 | Q2 Results Beat, Guidance Raised Details: The company announced Q2 2026 results with latest-quarter revenue growth of 5.9% year-over-year. It raised guidance for Q3 and the full year 2026 across multiple metrics, including revenue and EPS. | +28.3% $37.66 -> $48.31 |
2026-06-23 | AIR Pro Capabilities Expanded Details: The company announced the expansion of AIR Pro to deliver agentic AI capabilities across its customer engagement portfolio, including new features within RingCX for customer resolution and automated outreach. | +2.9% $34.84 -> $35.85 |
2026-05-08 | Q1 Results Met Expectations Details: The company delivered solid Q1 results with total revenue at the high end of guidance. The two-day stock reaction was -2.0%. | -1.7% $45.32 -> $44.55 |
2026-03-10 | AIR Pro AI Platform Launched Details: The company announced RingCentral AIR Pro, a voice-first, omnichannel AI agent platform, including a no-code environment called AIR Pro Studio. A version for Healthcare was also announced. | -7.1% $41.78 -> $38.81 |
2026-02-19 | Strong Q4 Results, Dividend Initiated Details: The company reported strong Q4 2025 results, leading to a +34.0% two-day stock reaction. Management announced the company's first-ever quarterly dividend of $0.075 per share. | +33.6% $29.46 -> $39.37 |
2026-01-25 | New AI Products Show Promise Details: An analyst note from January highlighted that RingCentral is repositioning as an AI voice company, launching new AI-driven products. The note initiated a buy rating, citing valuation and new product promise. | +1.3% $27.04 -> $27.39 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: RNG trades at roughly 61% annualized options-implied volatility versus about 15% for the S&P 500 (4.1x the market), around the 75th percentile of its own trailing year. A 2% - 4% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
MSFT - Microsoft Corporation
Diversified Scale PlayOffers exposure to the same AI and cloud communications trends through a much larger, more diversified, and more profitable business model. Microsoft's operating margin provides stability.
ZM - Zoom Communications, Inc.
Focused High-Margin PeerProvides a more direct play on cloud communications with a significantly higher operating margin of 24.2%. This demonstrates a more mature profitability profile within the same industry.
An established cloud communications provider leveraging its massive voice data moat to pivot into a higher-growth, higher-margin 'agentic voice AI' platform.
RingCentral built a multi-billion dollar business by moving legacy phone systems to the cloud. Now, it is in the early stages of its 'RingCentral 3.0' transformation, using its vast trove of communications data to power a new suite of AI products. This strategy aims to not just connect calls but to add intelligence to them, creating stickier customer relationships, higher ARPU, and a defensible moat against larger competitors. The key is whether this AI-led pivot can re-accelerate growth and expand margins in a highly competitive market.
Sustained double-digit growth in AI product adoption (AIR, ACE, RingCX), announcements of major GSP partners actively selling the new AI portfolio, and continued acceleration in quarterly revenue growth.
A stall in AI product adoption, evidence of significant price compression from competitors like Microsoft or Zoom, or an inability to maintain gross margins on new AI offerings.
Minor product announcements from smaller competitors or short-term stock price fluctuations unrelated to fundamental business performance.
Repricing Catalyst
Successful monetization of the AI product suite, demonstrated by its growing contribution to ARR and its positive impact on overall growth acceleration and margin expansion, as highlighted in recent earnings calls.
Single Segment
$2.5B TTM (100% of Total) · 6% MarginWhat It Is
The company sells a portfolio of cloud-based communication and collaboration solutions to businesses of all sizes globally. Key products include RingEX (UCaaS platform for voice, messaging, video), RingCentral Contact Center and RingCX (CCaaS solutions), and a suite of AI products (AI Receptionist, AI Virtual Assistant, AI Conversation Expert).
Who Pays & How
Businesses across a wide range of industries pay for a unified, reliable, and AI-powered communications platform to replace legacy on-premise systems. They choose RingCentral for its carrier-grade reliability, security, and integrated suite that improves both employee and customer engagement.
Competition
RingCentral — Investor Video Playlist
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Application Software Resources |
| Capterra |
| Software Advice |
| InfoWorld |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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