RingCentral (RNG)
Market Price (5/18/2026): $41.15 | Market Cap: $3.5 BilSector: Information Technology | Industry: Application Software
RingCentral (RNG)
Market Price (5/18/2026): $41.15Market Cap: $3.5 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 25%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 21% Attractive yieldFCF Yield is 16% 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. | Weak multi-year price returns2Y Excs Rtn is -26%, 3Y Excs Rtn is -43% 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 11% | 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 25%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 21% |
| Attractive yieldFCF Yield is 16% |
| 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. |
| Weak multi-year price returns2Y Excs Rtn is -26%, 3Y Excs Rtn is -43% |
| 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 11% |
| Key risksRNG key risks include [1] a weak competitive moat, Show more. |
Qualitative Assessment
AI Analysis | Feedback
1. Strong Financial Performance and Shareholder Returns: RingCentral consistently surpassed earnings per share (EPS) estimates in both its Q4 2025 and Q1 2026 reports. The company reported adjusted EPS of $1.18 in Q4 2025, beating the $1.14 consensus, and $1.20 in Q1 2026, exceeding the $1.17 consensus. Additionally, the company initiated its first quarterly cash dividend of $0.075 per share, payable March 16, 2026, and increased its share repurchase authorization to $500 million, signaling confidence in future cash flows and a commitment to shareholder returns. In Q1 2026, RingCentral repurchased approximately 2.6 million shares for $81 million.
2. Upbeat Guidance and Improved Profitability: The company provided an optimistic outlook, raising its full-year 2026 adjusted EPS guidance, which surpassed consensus estimates. It also raised its Q2 and full-year 2026 guidance for subscriptions revenue, total revenue, non-GAAP operating margin (to approximately 23.3% to 23.7%), and non-GAAP EPS (to $4.85 to $5.01). Furthermore, RingCentral demonstrated significant operational improvements, with its GAAP operating margin increasing to 7.8% in Q1 2026 from 1.7% in the prior year.
Show more
Stock Movement Drivers
Fundamental Drivers
The 58.9% change in RNG stock from 1/31/2026 to 5/17/2026 was primarily driven by a 521.8% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 5172026 | Change |
|---|---|---|---|
| Stock Price ($) | 25.83 | 41.05 | 58.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,486 | 2,547 | 2.5% |
| Net Income Margin (%) | 0.5% | 3.3% | 521.8% |
| P/E Multiple | 175.9 | 41.2 | -76.6% |
| Shares Outstanding (Mil) | 90 | 85 | 6.5% |
| Cumulative Contribution | 58.9% |
Market Drivers
1/31/2026 to 5/17/2026| Return | Correlation | |
|---|---|---|
| RNG | 58.9% | |
| Market (SPY) | 7.1% | 17.1% |
| Sector (XLK) | 22.7% | 16.1% |
Fundamental Drivers
The 36.5% change in RNG stock from 10/31/2025 to 5/17/2026 was primarily driven by a 22.8% change in the company's P/S Multiple.| (LTM values as of) | 10312025 | 5172026 | Change |
|---|---|---|---|
| Stock Price ($) | 30.07 | 41.05 | 36.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,456 | 2,547 | 3.7% |
| P/S Multiple | 1.1 | 1.4 | 22.8% |
| Shares Outstanding (Mil) | 91 | 85 | 7.1% |
| Cumulative Contribution | 36.5% |
Market Drivers
10/31/2025 to 5/17/2026| Return | Correlation | |
|---|---|---|
| RNG | 36.5% | |
| Market (SPY) | 9.0% | 21.5% |
| Sector (XLK) | 17.6% | 21.3% |
Fundamental Drivers
The 61.3% change in RNG stock from 4/30/2025 to 5/17/2026 was primarily driven by a 41.9% change in the company's P/S Multiple.| (LTM values as of) | 4302025 | 5172026 | Change |
|---|---|---|---|
| Stock Price ($) | 25.45 | 41.05 | 61.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,400 | 2,547 | 6.1% |
| P/S Multiple | 1.0 | 1.4 | 41.9% |
| Shares Outstanding (Mil) | 91 | 85 | 7.1% |
| Cumulative Contribution | 61.3% |
Market Drivers
4/30/2025 to 5/17/2026| Return | Correlation | |
|---|---|---|
| RNG | 61.3% | |
| Market (SPY) | 34.8% | 27.6% |
| Sector (XLK) | 68.8% | 24.9% |
Fundamental Drivers
The 49.2% change in RNG stock from 4/30/2023 to 5/17/2026 was primarily driven by a 28.1% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 4302023 | 5172026 | Change |
|---|---|---|---|
| Stock Price ($) | 27.51 | 41.05 | 49.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,988 | 2,547 | 28.1% |
| P/S Multiple | 1.3 | 1.4 | 3.1% |
| Shares Outstanding (Mil) | 96 | 85 | 13.0% |
| Cumulative Contribution | 49.2% |
Market Drivers
4/30/2023 to 5/17/2026| Return | Correlation | |
|---|---|---|
| RNG | 49.2% | |
| Market (SPY) | 84.7% | 39.6% |
| Sector (XLK) | 138.6% | 35.3% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RNG Return | -51% | -81% | -4% | 3% | -18% | 36% | -90% |
| Peers Return | -4% | -48% | 15% | -6% | -4% | 13% | -41% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| RNG Win Rate | 33% | 8% | 42% | 42% | 50% | 60% | |
| Peers Win Rate | 52% | 30% | 58% | 52% | 53% | 60% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| RNG Max Drawdown | -60% | -85% | -48% | -29% | -42% | -20% | |
| Peers Max Drawdown | -35% | -57% | -33% | -35% | -35% | -27% | |
| 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 5/15/2026 (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.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| 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)
AI Analysis | Feedback
RingCentral (RNG) can be described with the following analogies:- 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.
AI Analysis | Feedback
- 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.
AI Analysis | Feedback
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
AI Analysis | Feedback
nullAI Analysis | Feedback
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).
AI Analysis | Feedback
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.
AI Analysis | Feedback
```html- 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.
AI Analysis | Feedback
RingCentral operates within several significant addressable markets for its cloud-based communication and collaboration solutions. The main addressable markets for RingCentral's products and services include Unified Communications as a Service (UCaaS), Contact Center as a Service (CCaaS), and broader Cloud Communication Platforms, which also encompass digital customer engagement solutions. Here's an overview of the market sizes for RingCentral's key product areas: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.
AI Analysis | Feedback
RingCentral (RNG) is expected to drive future revenue growth over the next 2-3 years through several key initiatives: * AI-led Product Innovation and Adoption: RingCentral is significantly investing in and experiencing strong traction from its new AI-powered products, including RingCX, AIR (AI Receptionist), AVA (virtual assistant), and ACE (AI Conversation Expert). These solutions are generating new Annual Recurring Revenue (ARR), driving customer adoption, and creating incremental revenue streams. The company's AI-led multi-product strategy is contributing to overall growth, with AI-utilizing customers approaching 10% of overall ARR and pure AI ARR having almost tripled year-over-year. * Expansion of Strategic Partnerships and Global Service Provider (GSP) Channel: RingCentral is broadening its market reach and penetration through an expanding network of strategic partnerships. This includes significant integrations, such as RingCX for Salesforce Service Cloud Voice, and collaborations with global service providers like Cox Communications, Altafiber, and Spectrum Business. These partnerships are crucial for extending its market footprint and driving broader adoption of its communication and contact center solutions. * Growth in Mid-Market and Enterprise Customer Segments: The company is actively focusing on and successfully securing "million-dollar Total Contract Value (TCV) wins" within the enterprise space. RingCentral also anticipates continued growth within its mid-market customer base, suggesting a strategic emphasis on larger organizations. * Continued Strength and Growth in the Small Business (SMB) Segment: RingCentral's small business customers are identified as a robust area for growth, contributing to above-market growth and showing double-digit expansion. This sustained performance in the SMB sector remains a durable driver for the company's top-line growth.AI Analysis | Feedback
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.
Latest Trefis Analyses
Trade Ideas
Select ideas related to RNG.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | PLTR | Palantir Technologies | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | 0.0% |
| 04102026 | ADSK | Autodesk | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 8.5% | 8.5% | 0.0% |
| 04102026 | BSY | Bentley Systems | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.2% | 4.2% | 0.0% |
| 04102026 | ENPH | Enphase Energy | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 5.7% | 5.7% | 0.0% |
| 04102026 | BL | BlackLine | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 3.2% | 3.2% | -3.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 70.60 |
| Mkt Cap | 16.6 |
| Rev LTM | 3,708 |
| Op Inc LTM | 642 |
| FCF LTM | 1,232 |
| FCF 3Y Avg | 1,085 |
| CFO LTM | 1,310 |
| CFO 3Y Avg | 1,182 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.0% |
| Rev Chg 3Y Avg | 5.6% |
| Rev Chg Q | 7.2% |
| QoQ Delta Rev Chg LTM | 1.8% |
| Op Inc Chg LTM | 142.3% |
| Op Inc Chg 3Y Avg | 84.7% |
| Op Mgn LTM | 14.7% |
| Op Mgn 3Y Avg | 9.1% |
| QoQ Delta Op Mgn LTM | 0.4% |
| CFO/Rev LTM | 23.7% |
| CFO/Rev 3Y Avg | 22.8% |
| FCF/Rev LTM | 21.0% |
| FCF/Rev 3Y Avg | 20.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 16.6 |
| P/S | 3.8 |
| P/Op Inc | 24.1 |
| P/EBIT | 22.0 |
| P/E | 27.0 |
| P/CFO | 10.9 |
| Total Yield | 3.6% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 7.2% |
| D/E | 0.2 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 16.5% |
| 3M Rtn | 18.7% |
| 6M Rtn | 20.0% |
| 12M Rtn | 24.4% |
| 3Y Rtn | 33.9% |
| 1M Excs Rtn | 13.7% |
| 3M Excs Rtn | 10.3% |
| 6M Excs Rtn | 8.8% |
| 12M Excs Rtn | -0.4% |
| 3Y Excs Rtn | -42.0% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Single Segment | 2,400 | 2,202 | |||
| Other | 101 | 113 | 97 | ||
| Subscriptions | 1,888 | 1,482 | 1,086 | ||
| Total | 2,400 | 2,202 | 1,988 | 1,595 | 1,184 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Single Segment | 3 | -199 | |||
| Total | 3 | -199 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Single Segment | -58 | -165 | |||
| Total | -58 | -165 |
Price Behavior
| Market Price | $41.05 | |
| Market Cap ($ Bil) | 3.5 | |
| First Trading Date | 09/27/2013 | |
| Distance from 52W High | -14.0% | |
| 50 Days | 200 Days | |
| DMA Price | $39.66 | $31.81 |
| DMA Trend | up | up |
| Distance from DMA | 3.5% | 29.1% |
| 3M | 1YR | |
| Volatility | 96.6% | 66.7% |
| Downside Capture | 147.52 | 172.67 |
| Upside Capture | 217.51 | 171.45 |
| Correlation (SPY) | 16.4% | 29.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.30 | 0.69 | 1.46 | 1.41 | 1.58 | 1.52 |
| Up Beta | 0.16 | 0.36 | 0.52 | 1.27 | 1.51 | 1.24 |
| Down Beta | -15.27 | -2.37 | -0.79 | 0.18 | 1.19 | 0.98 |
| Up Capture | 199% | 182% | 400% | 278% | 254% | 977% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 13 | 23 | 35 | 67 | 134 | 374 |
| Down Capture | 1042% | 144% | 149% | 142% | 143% | 112% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 9 | 20 | 29 | 58 | 118 | 374 |
[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 | 47.8% | 66.3% | 0.83 | - |
| Sector ETF (XLK) | 51.7% | 20.5% | 1.93 | 25.1% |
| Equity (SPY) | 27.4% | 12.1% | 1.71 | 28.0% |
| Gold (GLD) | 42.5% | 26.8% | 1.30 | -5.3% |
| Commodities (DBC) | 45.4% | 18.5% | 1.88 | -2.3% |
| Real Estate (VNQ) | 11.5% | 13.5% | 0.56 | 11.7% |
| Bitcoin (BTCUSD) | -23.7% | 41.8% | -0.54 | 20.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | -30.9% | 62.7% | -0.34 | - |
| Sector ETF (XLK) | 22.0% | 24.8% | 0.78 | 47.0% |
| Equity (SPY) | 13.6% | 17.1% | 0.63 | 48.6% |
| Gold (GLD) | 19.4% | 17.9% | 0.88 | 4.9% |
| Commodities (DBC) | 10.9% | 19.4% | 0.45 | 7.5% |
| Real Estate (VNQ) | 2.9% | 18.8% | 0.06 | 39.8% |
| Bitcoin (BTCUSD) | 7.2% | 55.9% | 0.34 | 23.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | 8.5% | 55.3% | 0.37 | - |
| Sector ETF (XLK) | 25.0% | 24.4% | 0.92 | 48.0% |
| Equity (SPY) | 15.5% | 17.9% | 0.74 | 44.9% |
| Gold (GLD) | 13.0% | 16.0% | 0.67 | 5.6% |
| Commodities (DBC) | 8.3% | 17.9% | 0.38 | 9.9% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.21 | 31.8% |
| Bitcoin (BTCUSD) | 67.4% | 66.9% | 1.06 | 16.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/7/2026 | 0.5% | -13.3% | |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 10 | 11 |
| # Negative | 11 | 14 | 12 |
| Median Positive | 6.0% | 13.0% | 16.2% |
| Median Negative | -3.8% | -9.8% | -14.6% |
| 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 |
|---|---|---|
| 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 |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Makagon, Kira | President and COO | Direct | Sell | 4282026 | 40.27 | 5,870 | 236,364 | 9,531,662 | Form |
| 2 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 4222026 | 43.00 | 953 | 40,979 | 3,205,177 | Form |
| 3 | Shenkan, Amy Guggenheim | Direct | Sell | 4032026 | 37.92 | 1,264 | 47,937 | 1,161,908 | Form | |
| 4 | Theis, Robert I | Direct | Sell | 4032026 | 37.89 | 2,529 | 95,820 | 1,264,113 | Form | |
| 5 | Makagon, Kira | President and COO | Direct | Sell | 3272026 | 35.79 | 44,840 | 1,604,713 | 8,681,520 | Form |
RNG Trade Sentinel
AVOID (Score 1-2)
CONVICTION RATIONALE
The probability-adjusted skew is well below 1.0x, indicating an unfavorable risk/reward profile. The primary reason is the high probability (70%) assigned to the downside scenario, driven by the 'ERODING' competitive trajectory. The structural threat from Microsoft's bundling strategy to the core business is a high-impact risk that is not adequately compensated for by the potential upside from the nascent AI product cycle.
STOCK ARCHETYPE
Turnaround / Deep ValueRingCentral exhibits the classic traits of a turnaround story. Its core business growth has decelerated dramatically to low single-digits, facing structural competitive threats. However, it maintains high free cash flow conversion and is attempting a strategic pivot to a new, high-growth AI product portfolio. The investment thesis is not based on past momentum but on the successful execution of this strategic shift.
INVESTMENT THESIS
The primary long thesis for RingCentral is the successful pivot from its maturing, commoditized core UCaaS business to a higher-value, AI-driven communications platform. This involves upselling its existing customer base and acquiring new customers with differentiated AI products, leading to a re-acceleration of revenue growth and an expansion in average revenue per user (ARPU).
- The new AI product portfolio is on track to exceed $100 million in Annual Recurring Revenue (ARR) by the end of 2025, demonstrating strong initial market adoption.
- The number of AI Receptionist (AIR) customers nearly doubled in a single quarter, growing from over 3,000 in Q2 2025 to over 5,800 in Q3 2025.
- Management has identified the ~$65B AI-driven CX and conversational intelligence market as its key expansion TAM, representing a significant growth runway outside its core saturated market.
PRIMARY RISK
The most significant risk is the structural threat posed by Microsoft's strategy of bundling Teams with the ubiquitous Microsoft 365 suite. This creates a powerful 'good enough' alternative at a low incremental cost, structurally limiting RingCentral's ability to win new customers, retain existing ones without discounting, and maintain pricing power on its core product.
- Microsoft is the dominant player in the mid-market, a core segment for RingCentral, due to its bundled TCO efficiency.
- Overall company ARR growth has decelerated to 6% YoY, indicating the core business slowdown is the dominant factor.
- The market reacted negatively to Q4 2025 guidance that fell below expectations, showing high investor sensitivity to top-line growth deceleration.
| KPI | Threshold | Rationale |
|---|---|---|
| New AI Product ARR | Sequential growth >25% | This is the leading indicator for the Alpha Driver. Strong sequential growth is required to prove the pivot is gaining enough scale to matter. |
| Total ARR Growth (YoY) | Stabilization above 5% and inflection upwards | Monitors the race between the declining core business and the growing AI portfolio. A failure to stabilize and re-accelerate indicates the Anti-Alpha is winning. |
| Non-GAAP Operating Margin | Sustained above 22% | While growth is the main debate, management's ability to maintain discipline and expand margins provides a downside buffer and demonstrates strong operational control. |
AI Growth Engine vs. Core Business Commoditization
BULL VIEW
The rapid adoption of new AI products and strong FCF generation will reignite growth, expand margins, and prove the pivot to a higher-value communications platform is working.
CORE TENSION
Can the new, high-growth AI product portfolio (~$100M ARR) become substantial enough to offset the structural deceleration and competitive pressure on the core multi-billion dollar UCaaS business?
PREVAILING SENTIMENT
Annual Recurring Revenue (ARR) growth slowed to 6% YoY in Q3 2025, and Q4 2025 revenue guidance fell below analyst expectations, confirming the deceleration thesis currently outweighs the AI story.
BEAR VIEW
The core business is being commoditized by Microsoft's bundling strategy. The new AI revenue stream is too small to meaningfully alter the decelerating top-line growth narrative (currently 4-6%).
| Timeline | Event & Metric To Watch |
|---|---|
Late February 2026 (Est. Feb 19, 2026) | Q4 2025 Earnings Call & FY26 Guidance Watch: FY26 revenue growth guidance and commentary on Net Revenue Retention (NRR). Is the core business stabilizing or decelerating further? |
March 10-12, 2026 | Competitor Product Launch at Enterprise Connect 2026 Watch: Launch of advanced AI features or aggressive pricing bundles by Microsoft or Zoom that directly challenge RNG's new product portfolio. |
Anytime | Microsoft Teams Phone Announcement Watch: Any announcements of deeper bundling of Teams Phone within Microsoft 365 or significant feature enhancements that close the gap with RNG. |
Ongoing (Next 6 months) | Sustained High Interest Rates Watch: The 10-Year Treasury Yield. A sustained break and hold above 4.5% would pressure valuations for high-duration growth stocks. |
| Date | Event | Stock Impact |
|---|---|---|
2025-08-05 | Q2 2025 Earnings Details: The stock surged following the release of Q2 2025 earnings. The strong positive market reaction suggests the company delivered a significant beat on revenue and/or earnings and provided upbeat guidance. | Surged +27.0% $23.62 -> $29.99 |
2025-08-13 | Post-Earnings Momentum Details: The stock surged on high volume, continuing its strong upward momentum following the positive Q2 earnings release a week prior, suggesting strong institutional buying interest. | Surged +7.9% $27.82 -> $30.03 |
2025-09-08 | Six-Month High Reached Details: Stock reached its highest point in the trailing six-month period, closing at $32.44 amidst a period of positive momentum following its strong Q2 earnings report. | Modest 1.6% gain $31.94 -> $32.44 |
2025-09-29 | Market Sentiment Shift Details: The stock fell sharply over two trading days with no specific company news, suggesting a broader market or sector-specific sentiment shift against growth software stocks. | Fell notably by -7.7% $30.70 -> $28.34 |
2025-11-03 | Q3 2025 Earnings & Weak Guidance Details: Despite beating Q3 estimates, the company's stock plummeted after providing Q4 revenue guidance below expectations and lowering the top end of its full-year 2025 growth forecast. | Plummeted -8.3% (reaction over T+1) $30.12 -> $29.94 |
2025-12-01 | C-Suite Insider Stock Sales Cluster Details: A cluster of open-market sales by top executives, including the CEO and CFO, occurred in November and December 2025, signaling potential low insider confidence in the near-term outlook. | Modest 2.1% gain $28.24 -> $28.83 |
Position Sizing
0.5% - 1.5%
CONSERVATIVE
High volatility, bearish sentiment, expensive valuation, and a contested moat with medium visibility warrant a conservative position size. The core business faces structural challenges and intense competition from Microsoft, making the investment highly speculative despite nascent AI upside.
Diversification Alternatives
RingCentral is transitioning from a growth-focused UCaaS provider to a mature, profitable platform emphasizing free cash flow and shareholder returns, driven by AI product adoption and operational efficiency.
Filter all news through the lens of AI-driven ARPU expansion and sustainable, profitable growth, rather than top-line growth at all costs.
Subscription revenue growth accelerating above the 4.5-5.5% guided range; ARR from AI-utilizing customers growing >100% YoY; Non-GAAP operating margin expanding beyond 23.5%; Free cash flow per share growth exceeding 15%.
Stagnation or decline in Net Monthly Subscription Dollar Retention Rate (currently >99%); market share loss to Microsoft Teams in the enterprise segment; failure to meet debt reduction target of $1B by end of 2026; reversal of GAAP profitability.
Minor quarterly revenue beats/misses within the guided range; stock price fluctuations related to general market sentiment for software stocks; announcements of new feature enhancements that are not directly monetizable AI products.
Repricing Catalyst
The market is re-rating RingCentral based on its successful pivot to profitability and capital returns. This is driven by the adoption of new, monetized AI products which now account for nearly 10% of total ARR and are growing rapidly. The company's ability to generate over $580M in FCF for FY2026 and initiate a dividend signals a new phase of financial maturity.
Unified Communications & Collaboration Subscriptions
$0.6B TTM (97% of Total) · 80.5% MarginWhat It Is
RingCentral MVP (Message, Video, Phone), RingCentral Contact Center, RingCX, RingSense for Sales, AI-powered add-ons.
Who Pays & How
Businesses of all sizes, from SMBs to large enterprises, pay to replace legacy on-premise PBX phone systems with a single cloud platform for all communications. This lowers IT overhead and supports a mobile/hybrid workforce. Strategic partners like AT&T, BT, and TELUS co-brand and sell the service to their business customers.
Competition
Other (Hardware & Services)
$0.0B TTM (3% of Total) · % MarginWhat It Is
Sales of pre-configured phones and professional services for implementation.
Who Pays & How
Customers pay for physical desk phones compatible with the cloud service and for professional services to assist with large-scale deployments or complex integrations.
Competition
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.