RingCentral, Inc. (RNG) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 04 2025
0mins
Should l Buy RNG?
Source: SeekingAlpha
Subscription Revenue $616 million, up 6% year-over-year. This growth reflects the durability of the core business and increasing traction from AI-led products.
Total Revenue $639 million, up 5% year-over-year. This was at the high end of guidance, driven by the core business and AI-led product growth.
Operating Margin 22.8%, up 180 basis points year-over-year. This improvement was due to hiring discipline, extended use of offshoring, vendor consolidation, and increasing use of AI internally.
Free Cash Flow $130 million, up 23% year-over-year. This increase was driven by efficiency gains and disciplined working capital management.
Subscription Gross Margin Approximately 81%, reflecting strong operational efficiency.
Non-GAAP EPS $1.13 per diluted share, up 19% year-over-year. This was driven by improved profitability and reduced stock-based compensation.
Stock-Based Compensation (SBC) 11% of revenue, a 350 basis points improvement year-over-year. This reduction was achieved through offshoring and use of AI.
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Analyst Views on RNG
Wall Street analysts forecast RNG stock price to rise
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 28.400
Low
27.00
Averages
31.14
High
36.00
Current: 28.400
Low
27.00
Averages
31.14
High
36.00
About RNG
RingCentral, Inc. is a provider of artificial intelligence (AI)-powered cloud business communications, contact center, video and hybrid event solutions. It has an AI-powered multi-product portfolio including unified communications as a service (UCaaS), contact center as a service (CCaaS), video and events, and RingSense AI solutions. Its multi-product portfolio includes RingEX, RingCentral Contact Center, RingCX, RingCentral Artificial Intelligence Solutions, and RingCentral Events. RingCentral Contact Center is a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions integrated with RingEX. RingCX is its next-generation CCaaS solution, delivering an AI-powered customer engagement solution with customer relationship management (CRM) integrations and a broad ecosystem of integrated partner solutions. RingCentral Events solutions enable businesses to host virtual, hybrid, and in-person events with AI-powered engagement tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RINGCENTRAL STOCK RISES 4.8% FOLLOWING INCLUSION IN S&P SMALLCAP 600 INDEX
- Stock Performance: RINGCENTRAL shares have increased by 4.8%.
- Index Inclusion: The company has joined the S&P Small Cap 600 Index.
See More
RingCentral Added to S&P SmallCap 600 Index
- Index Change: RingCentral (RNG) will be added to the S&P SmallCap 600 index prior to trading on February 12, 2026, replacing Hillenbrand (HI), which is expected to enhance RNG's market visibility and liquidity, potentially attracting more investor interest.
- Acquisition Deal: Hillenbrand is being acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at approximately $32.00 per share, implying an enterprise value of about $3.8 billion, which will provide significant returns to Hillenbrand's shareholders and may impact its future market positioning.
- Product Outlook: RingCentral shows promise with new product launches and is willing to invest at low price points, indicating confidence in future growth, which may attract value-seeking investors.
- Operating Leverage Effect: The operating leverage effect at RingCentral remains in play, suggesting potential for improved efficiency and profitability, which could further enhance financial performance and strengthen market competitiveness.
See More
RingCentral to Replace Hillenbrand in S&P SmallCap 600 Index
- Index Change: RingCentral (RNG) will be added to the S&P SmallCap 600 Index effective February 12, 2026, replacing Hillenbrand (HI), which is expected to enhance RingCentral's visibility and market recognition among investors.
- Acquisition Impact: Lone Star Funds is acquiring Hillenbrand, with the deal expected to close soon, which may affect Hillenbrand's market performance and its position within the small-cap index.
- Market Reaction: This change could prompt investors to reassess RingCentral, particularly in the information technology sector, likely attracting more capital inflows into the stock and further driving its price upward.
- Importance of S&P Index: S&P Dow Jones Indices is the largest index provider globally, and RingCentral's inclusion will increase its visibility among global investors, enhancing its competitive position in the market.
See More
RingCentral to Replace Hillenbrand in S&P SmallCap 600 Index
- Index Change: RingCentral will replace Hillenbrand in the S&P SmallCap 600 effective February 12, 2026, which is expected to enhance RingCentral's market visibility and potentially attract more investor interest.
- Acquisition Context: Lone Star Funds is acquiring Hillenbrand, with the deal expected to close soon, which may impact Hillenbrand's stock performance and market positioning.
- Industry Impact: The addition of RingCentral will further strengthen the representation of the information technology sector within the small-cap index, reflecting ongoing market interest and investment enthusiasm for technology companies.
- Investor Confidence: As the largest global index provider, changes by S&P Dow Jones Indices typically influence investor asset allocation strategies, and RingCentral's inclusion may enhance its trust and appeal among investors.
See More
RingCentral Appoints AI Expert Mahmoud ElAssir to Board of Directors
- Leadership Enhancement: RingCentral's appointment of Mahmoud ElAssir to its Board brings over 20 years of technology and AI transformation experience across telecommunications, financial services, and healthcare, providing strategic guidance for the company's next growth phase.
- Technical Expertise: As CTO at UnitedHealth Group, ElAssir leads over 8,000 technologists in modernizing a complex enterprise technology environment, executing a large-scale migration to public cloud while embedding AI to enhance system resilience and speed.
- Customer Interaction Optimization: He oversees a customer engagement platform supporting 80,000 agents and handling over 300 million calls annually, driving real-time intelligence and automation to improve reliability in customer-agent interactions, thereby strengthening RingCentral's competitive edge.
- Future Vision: ElAssir emphasizes that AI is now central to communication platform design, and with his experience, RingCentral aims to accelerate innovation in its AI-native communications platform to meet future customer and employee interaction needs.
See More
Dow Jones Closes Above 49,000 for First Time as Tech Stocks Rally
- Record Dow Close: The Dow Jones Industrial Average rose by 0.99% to close at 49,462.08, marking a significant boost in market confidence and reflecting investor optimism about economic recovery.
- Tech Stock Surge: Palantir Technologies jumped on analyst upgrades, showcasing strong market enthusiasm for agentic AI, which further propelled the overall performance of tech stocks.
- Rising Metal Demand: Amid geopolitical uncertainty and AI-driven demand, safe-haven assets like gold, silver, and copper are nearing their highs, indicating a shift in investor behavior.
- Growth Expectations: While Goldman Sachs predicts continued growth into 2026, concerns about a slowing pace remain, prompting investors to closely monitor upcoming labor data reports to assess economic sustainability.
See More
RINGCENTRAL STOCK RISES 4.8% FOLLOWING INCLUSION IN S&P SMALLCAP 600 INDEX
- Stock Performance: RINGCENTRAL shares have increased by 4.8%.
- Index Inclusion: The company has joined the S&P Small Cap 600 Index.
See More
RingCentral Added to S&P SmallCap 600 Index
- Index Change: RingCentral (RNG) will be added to the S&P SmallCap 600 index prior to trading on February 12, 2026, replacing Hillenbrand (HI), which is expected to enhance RNG's market visibility and liquidity, potentially attracting more investor interest.
- Acquisition Deal: Hillenbrand is being acquired by an affiliate of Lone Star Funds in an all-cash transaction valued at approximately $32.00 per share, implying an enterprise value of about $3.8 billion, which will provide significant returns to Hillenbrand's shareholders and may impact its future market positioning.
- Product Outlook: RingCentral shows promise with new product launches and is willing to invest at low price points, indicating confidence in future growth, which may attract value-seeking investors.
- Operating Leverage Effect: The operating leverage effect at RingCentral remains in play, suggesting potential for improved efficiency and profitability, which could further enhance financial performance and strengthen market competitiveness.
See More
RingCentral to Replace Hillenbrand in S&P SmallCap 600 Index
- Index Change: RingCentral (RNG) will be added to the S&P SmallCap 600 Index effective February 12, 2026, replacing Hillenbrand (HI), which is expected to enhance RingCentral's visibility and market recognition among investors.
- Acquisition Impact: Lone Star Funds is acquiring Hillenbrand, with the deal expected to close soon, which may affect Hillenbrand's market performance and its position within the small-cap index.
- Market Reaction: This change could prompt investors to reassess RingCentral, particularly in the information technology sector, likely attracting more capital inflows into the stock and further driving its price upward.
- Importance of S&P Index: S&P Dow Jones Indices is the largest index provider globally, and RingCentral's inclusion will increase its visibility among global investors, enhancing its competitive position in the market.
See More
RingCentral to Replace Hillenbrand in S&P SmallCap 600 Index
- Index Change: RingCentral will replace Hillenbrand in the S&P SmallCap 600 effective February 12, 2026, which is expected to enhance RingCentral's market visibility and potentially attract more investor interest.
- Acquisition Context: Lone Star Funds is acquiring Hillenbrand, with the deal expected to close soon, which may impact Hillenbrand's stock performance and market positioning.
- Industry Impact: The addition of RingCentral will further strengthen the representation of the information technology sector within the small-cap index, reflecting ongoing market interest and investment enthusiasm for technology companies.
- Investor Confidence: As the largest global index provider, changes by S&P Dow Jones Indices typically influence investor asset allocation strategies, and RingCentral's inclusion may enhance its trust and appeal among investors.
See More
RingCentral Appoints AI Expert Mahmoud ElAssir to Board of Directors
- Leadership Enhancement: RingCentral's appointment of Mahmoud ElAssir to its Board brings over 20 years of technology and AI transformation experience across telecommunications, financial services, and healthcare, providing strategic guidance for the company's next growth phase.
- Technical Expertise: As CTO at UnitedHealth Group, ElAssir leads over 8,000 technologists in modernizing a complex enterprise technology environment, executing a large-scale migration to public cloud while embedding AI to enhance system resilience and speed.
- Customer Interaction Optimization: He oversees a customer engagement platform supporting 80,000 agents and handling over 300 million calls annually, driving real-time intelligence and automation to improve reliability in customer-agent interactions, thereby strengthening RingCentral's competitive edge.
- Future Vision: ElAssir emphasizes that AI is now central to communication platform design, and with his experience, RingCentral aims to accelerate innovation in its AI-native communications platform to meet future customer and employee interaction needs.
See More
Dow Jones Closes Above 49,000 for First Time as Tech Stocks Rally
- Record Dow Close: The Dow Jones Industrial Average rose by 0.99% to close at 49,462.08, marking a significant boost in market confidence and reflecting investor optimism about economic recovery.
- Tech Stock Surge: Palantir Technologies jumped on analyst upgrades, showcasing strong market enthusiasm for agentic AI, which further propelled the overall performance of tech stocks.
- Rising Metal Demand: Amid geopolitical uncertainty and AI-driven demand, safe-haven assets like gold, silver, and copper are nearing their highs, indicating a shift in investor behavior.
- Growth Expectations: While Goldman Sachs predicts continued growth into 2026, concerns about a slowing pace remain, prompting investors to closely monitor upcoming labor data reports to assess economic sustainability.
See More
