RingCentral Reports Strong Q4 Profit Growth, Shares Surge 30%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy RNG?
Source: NASDAQ.COM
- Profit Turnaround: RingCentral reported a profit of $22.97 million for Q4 2025, translating to $0.26 per share, a significant turnaround from a net loss of $7.19 million in the same quarter last year, which enhances investor confidence in the company's financial health.
- Stock Surge: The company's shares surged approximately 30.95% to $38.25 on the NYSE, up $8.94 from the previous close of $29.35, reflecting a strong market reaction to its financial results.
- Revenue Growth: Total revenue for Q4 2025 reached $644.0 million, up from $615.5 million in Q4 2024, representing a 5% year-over-year growth that underscores the company's ongoing revenue expansion and solidifies its market position.
- Annual Volatility: Over the past year, RingCentral's stock has traded between $20.59 and $38.25, indicating its price volatility and the market's expectations for its future performance.
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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: 29.390
Low
27.00
Averages
31.14
High
36.00
Current: 29.390
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 Declares Quarterly Dividend of $0.075 per Share
- Quarterly Dividend Announcement: RingCentral has declared a quarterly dividend of $0.075 per share, translating to an annual yield of 0.76%, indicating the company's commitment to shareholder returns while maintaining stable cash flow.
- Dividend Payment Schedule: The dividend is set to be paid on March 16, with a record date of March 9 and an ex-dividend date also on March 9, ensuring shareholders receive their earnings promptly and reinforcing the company's relationship with investors.
- Financial Performance Overview: In its latest earnings report, RingCentral reported a GAAP EPS of $0.26, missing expectations by $0.01, while revenue of $644 million was in line with market forecasts, demonstrating the company's resilience in revenue stability.
- Future Growth Targets: RingCentral is targeting subscription revenue growth of 4.5% to 5.5% in 2026, alongside a goal of achieving $590 million in free cash flow, indicating that ongoing investments in AI are expected to drive future growth potential.
See More
RingCentral Shares Surge After Strong Q4 Earnings and Guidance
- Strong Earnings Report: RingCentral reported Q4 earnings of $1.18 per share, surpassing the analyst consensus estimate of $1.14, indicating robust profitability and boosting market confidence in its future performance.
- Sales Beat Expectations: The company posted quarterly sales of $644.033 million, exceeding the analyst consensus of $643.509 million, reflecting its competitive position and sustained customer demand in the market.
- Significant Stock Surge: Following the positive earnings report, RingCentral's stock price jumped 37.3% to $40.35 during Friday's trading session, demonstrating investor optimism regarding the company's growth prospects.
- Shareholder Return Initiatives: The company not only raised its first-quarter guidance but also initiated a quarterly dividend and expanded its share buyback program, highlighting its commitment to shareholder returns and confidence in future cash flows.
See More
RingCentral Reports Strong Q4 Profit Growth, Shares Surge 30%
- Profit Turnaround: RingCentral reported a profit of $22.97 million for Q4 2025, translating to $0.26 per share, a significant turnaround from a net loss of $7.19 million in the same quarter last year, which enhances investor confidence in the company's financial health.
- Stock Surge: The company's shares surged approximately 30.95% to $38.25 on the NYSE, up $8.94 from the previous close of $29.35, reflecting a strong market reaction to its financial results.
- Revenue Growth: Total revenue for Q4 2025 reached $644.0 million, up from $615.5 million in Q4 2024, representing a 5% year-over-year growth that underscores the company's ongoing revenue expansion and solidifies its market position.
- Annual Volatility: Over the past year, RingCentral's stock has traded between $20.59 and $38.25, indicating its price volatility and the market's expectations for its future performance.
See More
RingCentral Reports Strong Q4 2025 Earnings and Strategic AI Growth
- Revenue Growth: RingCentral reported total revenue of $2.52 billion for 2025, reflecting a 4.8% year-over-year increase, with subscription revenue rising 5.6% to $2.43 billion, indicating robust market performance and sustained customer demand.
- Record Cash Flow: The company generated over $500 million in free cash flow in 2025, up 32% from the previous year, which not only enhances financial flexibility but also supports future investments and shareholder returns.
- AI Product Strategy: The company's AI annual recurring revenue (ARR) nearly tripled year-over-year, accounting for about 10% of total ARR, demonstrating that rapid adoption of AI products is driving customer retention and revenue growth, further solidifying RingCentral's competitive position in the market.
- Shareholder Return Plan: The Board approved an increase in the share repurchase plan to $500 million, reflecting confidence in future cash flows, while also announcing a quarterly dividend of $0.075 per share for the first time, aimed at enhancing shareholder value and attracting more investor interest.
See More
RingCentral Reports Q4 Net Income Growth and Dividend Initiation
- Net Income Recovery: RingCentral reported a net income of $22.97 million for Q4 2025, translating to $0.26 per share, a significant turnaround from a net loss of $7.19 million in the same quarter last year, indicating a marked improvement in profitability.
- Revenue Growth: The total revenue for Q4 reached $644 million, representing a 5% year-over-year increase, with subscription revenue of $622.2 million growing by 6% and accounting for 97% of total revenue, highlighting sustained growth in the company's core business.
- Cash Dividend Program: The Board approved a cash dividend program, declaring a quarterly cash dividend of $0.075 per share, payable on March 16, 2026, which reflects the company's confidence in future cash flows and commitment to shareholder returns.
- Future Outlook: For 2026, RingCentral anticipates total revenue growth of approximately 4% to 5%, with adjusted earnings projected between $4.76 and $4.97 per share, showcasing a positive outlook for the company's performance ahead.
See More
RingCentral Q4 Earnings Highlights
- Earnings Performance: RingCentral reported Q4 GAAP EPS of $0.26, missing estimates by $0.01, while revenue reached $644 million, reflecting a 4.7% year-over-year growth, indicating the company's stability in the market.
- Operating Margin Improvement: The GAAP operating margin improved to 6.6% from 2.5% last year, with non-GAAP operating margin rising to 22.8%, up 140 basis points, demonstrating significant progress in cost control and operational efficiency.
- Cash Flow Growth: The net cash provided by operating activities was $149 million, a 12% year-over-year increase, while free cash flow reached $126 million, up 13%, providing strong support for future investments and shareholder returns.
- Stock Buyback and AI Growth: RingCentral repurchased approximately 5 million shares for a total of $135 million, and the annual recurring revenue (ARR) from customers using at least one monetized AI product more than doubled year-over-year, showcasing the strong revenue-driving impact of AI products.
See More
RingCentral Declares Quarterly Dividend of $0.075 per Share
- Quarterly Dividend Announcement: RingCentral has declared a quarterly dividend of $0.075 per share, translating to an annual yield of 0.76%, indicating the company's commitment to shareholder returns while maintaining stable cash flow.
- Dividend Payment Schedule: The dividend is set to be paid on March 16, with a record date of March 9 and an ex-dividend date also on March 9, ensuring shareholders receive their earnings promptly and reinforcing the company's relationship with investors.
- Financial Performance Overview: In its latest earnings report, RingCentral reported a GAAP EPS of $0.26, missing expectations by $0.01, while revenue of $644 million was in line with market forecasts, demonstrating the company's resilience in revenue stability.
- Future Growth Targets: RingCentral is targeting subscription revenue growth of 4.5% to 5.5% in 2026, alongside a goal of achieving $590 million in free cash flow, indicating that ongoing investments in AI are expected to drive future growth potential.
See More
RingCentral Shares Surge After Strong Q4 Earnings and Guidance
- Strong Earnings Report: RingCentral reported Q4 earnings of $1.18 per share, surpassing the analyst consensus estimate of $1.14, indicating robust profitability and boosting market confidence in its future performance.
- Sales Beat Expectations: The company posted quarterly sales of $644.033 million, exceeding the analyst consensus of $643.509 million, reflecting its competitive position and sustained customer demand in the market.
- Significant Stock Surge: Following the positive earnings report, RingCentral's stock price jumped 37.3% to $40.35 during Friday's trading session, demonstrating investor optimism regarding the company's growth prospects.
- Shareholder Return Initiatives: The company not only raised its first-quarter guidance but also initiated a quarterly dividend and expanded its share buyback program, highlighting its commitment to shareholder returns and confidence in future cash flows.
See More
RingCentral Reports Strong Q4 Profit Growth, Shares Surge 30%
- Profit Turnaround: RingCentral reported a profit of $22.97 million for Q4 2025, translating to $0.26 per share, a significant turnaround from a net loss of $7.19 million in the same quarter last year, which enhances investor confidence in the company's financial health.
- Stock Surge: The company's shares surged approximately 30.95% to $38.25 on the NYSE, up $8.94 from the previous close of $29.35, reflecting a strong market reaction to its financial results.
- Revenue Growth: Total revenue for Q4 2025 reached $644.0 million, up from $615.5 million in Q4 2024, representing a 5% year-over-year growth that underscores the company's ongoing revenue expansion and solidifies its market position.
- Annual Volatility: Over the past year, RingCentral's stock has traded between $20.59 and $38.25, indicating its price volatility and the market's expectations for its future performance.
See More
RingCentral Reports Strong Q4 2025 Earnings and Strategic AI Growth
- Revenue Growth: RingCentral reported total revenue of $2.52 billion for 2025, reflecting a 4.8% year-over-year increase, with subscription revenue rising 5.6% to $2.43 billion, indicating robust market performance and sustained customer demand.
- Record Cash Flow: The company generated over $500 million in free cash flow in 2025, up 32% from the previous year, which not only enhances financial flexibility but also supports future investments and shareholder returns.
- AI Product Strategy: The company's AI annual recurring revenue (ARR) nearly tripled year-over-year, accounting for about 10% of total ARR, demonstrating that rapid adoption of AI products is driving customer retention and revenue growth, further solidifying RingCentral's competitive position in the market.
- Shareholder Return Plan: The Board approved an increase in the share repurchase plan to $500 million, reflecting confidence in future cash flows, while also announcing a quarterly dividend of $0.075 per share for the first time, aimed at enhancing shareholder value and attracting more investor interest.
See More
RingCentral Reports Q4 Net Income Growth and Dividend Initiation
- Net Income Recovery: RingCentral reported a net income of $22.97 million for Q4 2025, translating to $0.26 per share, a significant turnaround from a net loss of $7.19 million in the same quarter last year, indicating a marked improvement in profitability.
- Revenue Growth: The total revenue for Q4 reached $644 million, representing a 5% year-over-year increase, with subscription revenue of $622.2 million growing by 6% and accounting for 97% of total revenue, highlighting sustained growth in the company's core business.
- Cash Dividend Program: The Board approved a cash dividend program, declaring a quarterly cash dividend of $0.075 per share, payable on March 16, 2026, which reflects the company's confidence in future cash flows and commitment to shareholder returns.
- Future Outlook: For 2026, RingCentral anticipates total revenue growth of approximately 4% to 5%, with adjusted earnings projected between $4.76 and $4.97 per share, showcasing a positive outlook for the company's performance ahead.
See More
RingCentral Q4 Earnings Highlights
- Earnings Performance: RingCentral reported Q4 GAAP EPS of $0.26, missing estimates by $0.01, while revenue reached $644 million, reflecting a 4.7% year-over-year growth, indicating the company's stability in the market.
- Operating Margin Improvement: The GAAP operating margin improved to 6.6% from 2.5% last year, with non-GAAP operating margin rising to 22.8%, up 140 basis points, demonstrating significant progress in cost control and operational efficiency.
- Cash Flow Growth: The net cash provided by operating activities was $149 million, a 12% year-over-year increase, while free cash flow reached $126 million, up 13%, providing strong support for future investments and shareholder returns.
- Stock Buyback and AI Growth: RingCentral repurchased approximately 5 million shares for a total of $135 million, and the annual recurring revenue (ARR) from customers using at least one monetized AI product more than doubled year-over-year, showcasing the strong revenue-driving impact of AI products.
See More
