RingCentral Announces Third Quarter 2025 Financial Results

BELMONT, Calif.--( BUSINESS WIRE)-- RingCentral, Inc. (NYSE: RNG), a global leader in AI-powered business communications, today announced financial results for the third quarter ended September 30, 2025.

Third Quarter Financial Highlights

“We delivered a solid quarter reinforcing our leadership in cloud business voice while expanding margins and delivering strong free cash flow,” said Vlad Shmunis, founder and CEO of RingCentral. “RingCentral is building the future of intelligent business communications powered by agentic voice AI. We continue to see strong traction in our AI-led product portfolio, which is now approaching $100 million in ARR. We have recently extended our platform, and today announced an exciting suite of new AI products to cover every phase of business to consumer interaction, including AI Receptionist (AIR), AI Virtual Assistant (AVA), AI Conversation Expert (ACE), and RingWEM.”

"We are looking forward to sharing more about our product vision and AI strategy at our Investor Product Briefing Day at the New York Stock Exchange on November 5th," concluded Shmunis.

Financial Results for the Third Quarter 2025

Additional Highlights

Financial Outlook

Fourth Quarter 2025 Guidance:

As a result, our full year 2025 guidance is:

Conference Call Details:

Investor Presentation Details

An investor presentation providing additional information and analysis can be found at https://ir.ringcentral.com.

Investor Product Briefing Day: Powering the Future of Agentic Voice AI Communications

The Company will be hosting a product briefing event at the New York Stock Exchange on Wednesday, November 5th from 9:00 AM ET to 12:30 PM ET. At the event, the company will discuss RingCentral’s AI strategy and market opportunities. The event will include product demos of RingCentral’s innovative AI products and insights from customers and partners. A live webcast and replay of the event will be accessible from the investor relations section of RingCentral’s website at ir.ringcentral.com.

About RingCentral

RingCentral is a global leader in agentic voice AI–powered cloud business communications, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging. Powered by advanced AI capabilities, RingCentral AI receptionist, virtual assistant, and conversation intelligence address every phase of the conversation journey — before, during, and after each human interaction. With RingCentral, businesses can work smarter, respond faster, and connect more meaningfully with their customers. Visit ringcentral.com to learn more.

Forward-Looking Statements

This press release contains “forward-looking statements,” including but not limited to, statements regarding our future financial results, our GAAP and non-GAAP guidance, the results of the pace of our innovation and our partner networks, our expectations regarding our profitability and our non-GAAP free cash flow, our plans for capital allocation, our expectations around the contribution of our new products, our estimates and expectations regarding third parties, our ability to execute and lead in the UCaaS digital transformation market, our ability to realize the benefits from recent acquisitions, our expectations around the demand for our products, and the growth of the markets in which we compete. Forward-looking statements are subject to known and unknown risks and uncertainties, and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: our ability to attract new customers and grow at our expected rate of growth; our ability to add and retain larger and enterprise customers and enter new geographies and markets; our ability to continue to release, and gain customer acceptance of, new and improved versions of our services; our ability to compete successfully against existing and new competitors; our ability to enter into and maintain relationships with channel partners and strategic partners; our ability to realize the anticipated benefits of our strategic relationships; our ability to successfully and timely integrate, and realize the benefits of any significant acquisition we may make; our ability to manage our expenses and growth; and general market, political, economic, and business conditions, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and in other filings we make with the Securities and Exchange Commission from time to time.

All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current financial quarter.

Non-GAAP Financial Measures

Our reported financial results and financial outlook include certain Non-GAAP financial measures, including Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenue. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenue. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations excluding share-based compensation which includes related employer payroll taxes, amortization of acquisition intangibles, asset write-down charges, third-party relocation costs tied to the conflict between Russia and Ukraine and other costs including acquisition-related transaction costs and retention payments, certain litigation-related costs, impairment charges related to the abandonment of leased facilities, change in fair-value of contingent consideration, net impact of amended agreements with partners, and restructuring costs. Non-GAAP operating margin is defined as Non-GAAP income (loss) from operations divided by total GAAP revenue. Non-GAAP adjusted EBITDA is defined as Non-GAAP income (loss) from operations excluding depreciation and amortization. Non-GAAP net income (loss) is defined as GAAP net income (loss) excluding share-based compensation which includes related employer payroll taxes, amortization of acquisition intangibles, asset write-down charges, third-party relocation costs tied to the conflict between Russia and Ukraine and other costs including acquisition-related transaction costs and retention payments, certain litigation-related costs, impairment charges related to the abandonment of leased facilities, change in fair-value of contingent consideration, net impact of amended agreements with partners, loss (gain) associated with investments, intercompany remeasurement gains or losses, restructuring costs, non-cash interest expense associated with amortization of debt discount and loss (gain) on early extinguishment of debt, and the related income tax effect of these adjustments.

Non-GAAP free cash flow is defined as GAAP net cash provided by (used in) operating activities adjusted for capital expenditures including purchases of property and equipment and capitalized internal-use software. We believe information regarding Non-GAAP free cash flow provides useful information to investors in understanding and evaluating the strength of liquidity and available cash. Non-GAAP free cash flow margin is defined as Non-GAAP free cash flow divided by total GAAP revenues.

We have included Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue in this press release because they are key measures used by us to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short and long-term operational plans. In particular, the exclusion of certain expenses and cash flow items in calculating Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, and Non-GAAP free cash flow margin provide useful measure for period-to-period comparisons of our business.

We have provided certain revenue-related information adjusted for constant currency to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency rate fluctuations. To present this information, current period results in currencies other than United States dollars are converted into United States dollars at the average exchange rate prevailing for the period being compared to for growth rate calculations presented, rather than the actual exchange rates in effect during that period.

Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income (loss) from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share, Non-GAAP free cash flow, Non-GAAP free cash flow margin, and constant currency revenue are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered alongside other financial performance measures.

For a reconciliation of our forecasted non-GAAP operating margin and free cash flow, see “Reconciliation of Forecasted Operating Margin GAAP Measures to Non-GAAP Measures.” We have not reconciled our forecasted non-GAAP EPS to its respective forecasted GAAP measure because we do not provide guidance on it. We do not provide guidance on forecasted GAAP EPS because of the inherent uncertainty and complexity involved in forecasting the intercompany remeasurement gain (loss), gain (loss) associated with investments, gain (loss) on early debt conversions, and provision (benefit) from income taxes, which could be significant reconciling items between the non-GAAP and respective GAAP measures. The intercompany remeasurement gain (loss) is affected by the movement in various exchange rates relative to the U.S. Dollar, which is difficult to predict and subject to constant change. We do not provide guidance on gain (loss) associated with investments as it is based on future share prices, which are difficult to predict and subject to inherent uncertainties. We do not provide guidance on gain (loss) on debt early conversions as it is based on future conversion requests, future share prices, and interest rates, which are difficult to predict and are subject to inherent uncertainties. We do not provide guidance on forecasted GAAP tax rates as we do not forecast discrete tax items as they are difficult to predict. The provision (benefit) from income taxes, excluding discrete items, is expected to have an immaterial impact to our GAAP EPS. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2025, we have determined the projected non-GAAP tax rate to be 22.5%. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measure is not available without unreasonable effort.

Reconciliations of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included in this press release.

Our reported results also include our annualized exit monthly recurring subscriptions (ARR), including on a constant currency basis, as well as Net Monthly Subscriptions Dollar Retention Rate. To present ARR on a constant currency basis, ARR in currencies other than United States dollars are converted into United States dollars at the closing exchange rate prevailing for the period being compared to for growth rate calculations presented, rather than the closing exchange rates for the current period. We define our ARR as our monthly recurring subscriptions (MRR) multiplied by 12. Our MRR equals the monthly value of all customer recurring charges contracted at the end of a given month. We believe this metric is a leading indicator of our anticipated subscriptions revenue. We define our Net Monthly Subscription Dollar Retention Rate as (i) one plus (ii) the quotient of Dollar Net Change divided by Average Monthly Recurring Subscriptions. We calculate dollar net change as the quotient of (i) the difference of our monthly recurring subscriptions at the end of a period minus our monthly recurring subscriptions at the beginning of a period minus our monthly recurring subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our average monthly recurring subscriptions as the average of the monthly recurring subscriptions at the beginning and end of the measurement period.

TABLE 1

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

September 30, 2025

December 31, 2024

Assets

Current assets

Cash and cash equivalents

145,371

242,811

Accounts receivable, net

381,448

386,252

Deferred and prepaid sales commission costs

171,044

182,615

Prepaid expenses and other current assets

64,634

59,444

Total current assets

762,497

871,122

Property and equipment, net

186,121

180,650

Operating lease right-of-use assets

33,443

46,463

Deferred and prepaid sales commission costs, non-current

263,586

325,198

Goodwill

98,087

82,986

Acquired intangibles, net

169,577

258,526

Other assets

15,872

14,928

Total assets

1,529,183

1,779,873

Liabilities, Temporary Equity, and Stockholders’ Deficit

Current liabilities

Accounts payable

36,646

21,866

Accrued liabilities

282,835

283,799

Current portion of long-term debt, net

623,798

181,252

Deferred revenue

262,078

261,882

Total current liabilities

1,205,357

748,799

Long-term debt, net

633,112

1,347,881

Operating lease liabilities

16,887

29,733

Other long-term liabilities

8,133

4,930

Total liabilities

1,863,489

2,131,343

Temporary equity

Series A convertible preferred stock

199,449

Stockholders’ deficit

Common stock

Additional paid-in capital

1,201,588

1,215,377

Accumulated other comprehensive income (loss)

1,648

(8,881

)

Accumulated deficit

(1,737,000

)

(1,757,424

)

Total stockholders’ deficit

(533,755

)

(550,919

)

Total liabilities, temporary equity and stockholders’ deficit

1,529,183

1,779,873

TABLE 2

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except per share data)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues

Subscriptions

615,821

582,970

1,804,661

1,707,515

Other

22,834

25,795

66,448

78,368

Total revenues

638,655

608,765

1,871,109

1,785,883

Cost of revenues

Subscriptions

153,938

150,864

457,821

442,621

Other

26,388

29,320

81,905

84,712

Total cost of revenues

180,326

180,184

539,726

527,333

Gross profit

458,329

428,581

1,331,383

1,258,550

Operating expenses

Research and development

79,908

84,144

239,430

244,422

Sales and marketing

281,558

276,976

820,041

819,193

General and administrative

66,056

64,170

193,802

207,902

Total operating expenses

427,522

425,290

1,253,273

1,271,517

Income (loss) from operations

30,807

3,291

78,110

(12,967

)

Other income (expense), net

Interest expense

(13,940

)

(16,393

)

(46,521

)

(48,668

)

Other income (expense)

179

1,073

(3,239

)

12,820

Other expense, net

(13,761

)

(15,320

)

(49,760

)

(35,848

)

Gain (loss) before income taxes

17,046

(12,029

)

28,350

(48,815

)

(Benefit from) provision for income taxes

(513

)

(4,176

)

7,926

2,285

Net income (loss)

17,559

(7,853

)

20,424

(51,100

)

Net income (loss) per common share

Basic

0.19

(0.09

)

0.23

(0.55

)

Diluted

0.19

(0.09

)

0.22

(0.55

)

Weighted-average number of shares used in computing net income (loss) per share

Basic

90,141

91,892

90,619

92,590

Diluted

91,964

91,892

92,311

92,590

TABLE 3

RINGCENTRAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

Nine Months Ended

September 30,

2025

2024

Cash flows from operating activities

Net income (loss)

20,424

(51,100

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

166,402

167,557

Share-based compensation

206,049

258,607

11,440

—

Amortization of deferred and prepaid sales commission costs

123,003

120,685

Amortization of debt discount and issuance costs

3,553

3,112

Loss on early extinguishment of debt

4,988

—

Reduction of operating lease right-of-use assets

18,684

15,329

Provision for bad debt

13,605

4,852

Other

(3,062

)

(11,762

)

Changes in assets and liabilities:

Accounts receivable

(7,298

)

(36,219

)

Deferred and prepaid sales commission costs

(78,136

)

(99,238

)

Prepaid expenses and other assets

(1,196

)

15,592

Accounts payable

12,500

(17,473

)

Accrued and other liabilities

(4,852

)

(24,461

)

Deferred revenue

(298

)

18,709

Operating lease liabilities

(17,368

)

(13,796

)

Net cash provided by operating activities

468,438

350,394

Cash flows from investing activities

Purchases of property and equipment

(22,113

)

(18,617

)

Capitalized internal-use software

(42,242

)

(40,858

)

Cash paid for business combination, net of cash acquired

(20,754

)

(26,291

)

Purchases of intangible assets

—

(2,540

)

Net cash used in investing activities

(85,109

)

(88,306

)

Cash flows from financing activities

Proceeds from issuance of stock in connection with stock plans

9,064

10,000

Payments for taxes related to net share settlement of equity awards

(8,307

)

(5,333

)

Payments for repurchases of common stock

(199,036

)

(244,996

)

Payments for the settlement of convertible notes

(161,326

)

—

Repayments of principal on term loan

(63,875

)

(15,000

)

Repurchases of principal on senior notes

(53,903

)

—

Payments for fees on long-term debt

(6,637

)

(4,308

)

Repayments for financing obligations

(633

)

(3,085

)

Payments for contingent consideration

—

(10,345

)

Net cash used in financing activities

(484,653

)

(273,067

)

Effect of exchange rate changes

3,884

1,436

Net decrease in cash, cash equivalents, and restricted cash

(97,440

)

(9,543

)

Cash, cash equivalents, and restricted cash

Beginning of period

242,811

222,195

End of period

145,371

212,652

TABLE 4

RINGCENTRAL, INC.

RECONCILIATION OF OPERATING INCOME (LOSS)

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Revenues

Subscriptions

615,821

582,970

1,804,661

1,707,515

Other

22,834

25,795

66,448

78,368

Total revenues

638,655

608,765

1,871,109

1,785,883

Cost of revenues reconciliation

GAAP Subscriptions cost of revenues

153,938

150,864

457,821

442,621

Share-based compensation

(3,384

)

(5,536

)

(11,529

)

(18,028

)

Amortization of acquired intangibles

(32,100

)

(31,376

)

(94,547

)

(99,228

)

Third-party relocation and other costs, net

(32

)

—

(126

)

(49

)

Restructuring costs

(407

)

(313

)

(1,375

)

(572

)

Non-GAAP Subscriptions cost of revenues

118,015

113,639

350,244

324,744

GAAP Other cost of revenues

26,388

29,320

81,905

84,712

Share-based compensation

(987

)

(1,919

)

(3,794

)

(5,995

)

Amortization of acquired intangibles

(83

)

(21

)

(251

)

(65

)

Restructuring costs

—

(400

)

(716

)

(748

)

Non-GAAP Other cost of revenues

25,318

26,980

77,144

77,904

Gross profit and gross margin reconciliation

Non-GAAP Subscriptions

80.8

80.5

80.6

81.0

Non-GAAP Other

(10.9

(4.6

(16.1

0.6

Non-GAAP Gross profit

77.6

76.9

77.2

77.5

Operating expenses reconciliation

GAAP Research and development

79,908

84,144

239,430

244,422

Share-based compensation

(16,093

)

(20,033

)

(48,782

)

(59,644

)

Third-party relocation and other costs, net

(328

)

(732

)

(844

)

(2,277

)

Restructuring costs

(1,578

)

(1,056

)

(4,474

)

(2,829

)

Non-GAAP Research and development

61,909

62,323

185,330

179,672

As a % of total revenues non-GAAP

9.7

10.2

9.9

10.1

GAAP Sales and marketing

281,558

276,976

820,041

819,193

Share-based compensation

(27,214

)

(35,528

)

(89,148

)

(104,028

)

Amortization of acquired intangibles

(2,368

)

(2,055

)

(6,478

)

(3,798

)

Asset write-down charges

(11,440

)

—

(11,440

)

—

Third-party relocation and other costs, net

(182

)

—

(999

)

(332

)

Restructuring costs

(328

)

(2,028

)

(4,241

)

(4,639

)

Non-GAAP Sales and marketing

240,026

237,365

707,735

706,396

As a % of total revenues non-GAAP

37.6

39.0

37.8

39.6

GAAP General and administrative

66,056

64,170

193,802

207,902

Share-based compensation

(18,282

)

(22,092

)

(57,970

)

(77,374

)

Third-party relocation and other costs, net

(148

)

(463

)

(2,870

)

(4,691

)

Restructuring costs

(153

)

(1,049

)

(1,563

)

(1,838

)

Non-GAAP General and administrative

47,473

40,566

131,399

123,999

As a % of total revenues non-GAAP

7.4

6.7

7.0

6.9

Income (loss) from operations reconciliation

GAAP income (loss) from operations

30,807

3,291

78,110

(12,967

)

Share-based compensation

65,960

85,108

211,223

265,069

Amortization of acquired intangibles

34,551

33,452

101,276

103,091

Asset write-down charges

11,440

—

11,440

—

Third-party relocation and other costs, net

690

1,195

4,839

7,349

Restructuring costs

2,466

4,846

12,369

10,626

Non-GAAP Income from operations

145,914

127,892

419,257

373,168

Non-GAAP Operating margin

22.8

21.0

22.4

20.9

Adjusted EBITDA reconciliation

Depreciation and amortization

21,869

21,131

65,126

64,466

Non-GAAP Adjusted EBITDA

167,783

149,023

484,383

437,634

As a % of total revenues non-GAAP

26.3

24.5

25.9

24.5

TABLE 5

RINGCENTRAL, INC.

RECONCILIATION OF NET INCOME (LOSS)

GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except per share data) (Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net income (loss) reconciliation

GAAP net income (loss)

17,559

(7,853

)

20,424

(51,100

)

Share-based compensation

65,960

85,108

211,223

265,069

Amortization of acquired intangibles

34,551

33,452

101,276

103,091

Asset write-down charges

11,440

—

11,440

—

Third-party relocation and other costs, net

1,426

2,274

6,115

929

Restructuring costs

2,466

4,846

12,369

10,626

Amortization of debt discount and extinguishment costs

1,172

1,098

8,541

3,112

Income tax expense effects

(30,677

)

(29,995

)

(77,420

)

(72,868

)

Non-GAAP net income

103,897

88,930

293,968

258,859

Reconciliation between GAAP and non-GAAP weighted average shares used in computing basic and diluted net income (loss) per common share:

Weighted average number of shares used in

computing basic net income (loss) per share

90,141

91,892

90,619

92,590

Effect of dilutive securities

1,823

—

1,692

—

GAAP weighted average shares used in

computing GAAP diluted net income (loss) per share

91,964

91,892

92,311

92,590

Effect of dilutive securities

—

1,952

—

2,308

Non-GAAP weighted average shares used in

computing non-GAAP diluted net income per share

91,964

93,844

92,311

94,898

Diluted net income (loss) per share

GAAP net income (loss) per share

0.19

(0.09

)

0.22

(0.55

)

Non-GAAP net income per share

1.13

0.95

3.18

2.73

TABLE 6

RINGCENTRAL, INC.

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

GAAP MEASURES TO NON-GAAP FREE CASH FLOW MEASURES

(Unaudited, in thousands)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Net cash provided by operating activities

151,362

127,219

468,438

350,394

Capitalized expenditures

(21,840

)

(21,774

)

(64,355

)

(59,475

)

Non-GAAP free cash flow

129,522

105,445

404,083

290,919

Non-GAAP free cash flow margin

20.3

17.3

21.6

16.3

TABLE 7

RINGCENTRAL, INC.

RECONCILIATION OF FORECASTED OPERATING MARGIN AND FREE CASH FLOW

GAAP MEASURES TO NON-GAAP MEASURES

(Unaudited, in millions)

Q4 2025

FY 2025

Low Range

High Range

Low Range

High Range

GAAP income from operations

119

126

GAAP operating margin

6.5

7.5

4.8

5.0

Share-based compensation

280

275

Amortization of acquired intangibles

137

Third-party relocation and other costs, net

—

Restructuring costs

—

Non-GAAP income from operations

146

147

565

567

Non-GAAP operating margin

22.8

22.5

FY 2025

Low Range

High Range

GAAP net cash provided by operating activities

610

615

Capitalized expenditures

(85

)

(85

)

Non-GAAP free cash flow

525

530