RNG

RingCentral stock has surged year to date, yet current valuation checks suggest the shares now trade closer to a fair range rather than offering an obvious discount. With mixed signals from the broader metrics and a strong run already behind it, investors are weighing how much upside is left at today’s levels. RingCentral is up 137.8% year to date, which puts more pressure on the current price to be supported by the business and cash flow outlook. The key support for the valuation is whether RingCentral can translate its communications platform into durable revenue and margin strength. At the same time, execution risk around competition and cost control may cap how much investors are willing to pay. The broader valuation checks are mixed rather than a clear bargain or clear overvaluation, with RingCentral scoring 3 out of 6 on value metrics. The issue now is whether the recent share price level for RingCentral fairly reflects its fundamentals after such a strong year to date performance. Compare RingCentral’s strong year to date run with other hand picked growth stories by scanning the 49 high quality undervalued stocks that still show solid fundamentals alongside valuation support. P/E is a useful way to check what investors are currently willing to pay for each dollar of RingCentral’s earnings. For a profitable software company like RingCentral, this helps anchor the discussion to its bottom line rather than just revenue growth stories. RingCentral trades on a P/E of 49.7x, which is higher than the broader Software industry average of 30.8x and also above the peer group average of 24.4x. On raw comparisons, the stock carries a clear premium to many listed software peers. However, a more tailored “fair” P/E ratio for RingCentral that factors in its scale, margins and risk profile sits at 54.3x. That fair multiple is slightly above where the stock trades today. This suggests a situation where the market is paying up for RingCentral, but not at a level that appears extreme compared with a more customised benchmark. On the P/E multiple, RingCentral stock currently looks roughly fairly valued rather than clearly cheap or expensive. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for RingCentral pick up where this valuation puzzle leaves off and focus on what would need to happen to growth, margins and earnings for the stock to be worth meaningfully more or less than today’s price. Each ties its number to a clear view of how RingCentral's growth, profitability and risk profile might evolve, which you can revisit as fresh financials and other updates come through. One of the top community narratives on RingCentral: 35% overvalued Read one of the top narratives on RingCentral Do you think there's more to the story for RingCentral? Head over to our Community to see what others are saying! RingCentral stock now appears roughly in line with what its P/E framework supports, rather than clearly undervalued or clearly overvalued. After the strong year-to-date move, the straightforward valuation case has faded and the market is already paying a premium to many peers. The key variable from here is whether RingCentral can translate its communications platform into consistent earnings growth and sustained margin improvement. If those fundamentals hold up, the current multiple can be reasonable. If they weaken, that premium can start to look demanding. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RNG. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Bandwidth Inc. BAND is scheduled to report second-quarter 2026 earnings before the opening bell on July 29. The Zacks Consensus Estimate for sales and earnings is pegged at $217 million and 36 cents per share, respectively. Earnings estimates for BAND for 2026 have remained static at $1.79 over the past 60 days, while those for 2027 have increased 1.5% to $2.02. Image Source: Zacks Investment Research The company delivered a trailing four-quarter earnings surprise of 8.06%, on average, beating estimates on the previous two occasions. In the last reported quarter, the company pulled off an earnings surprise of 18.75%. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for Bandwidth for the second quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Bandwidth currently has an ESP of 0.00% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. During the to-be-reported quarter, Bandwidth launched Build, a platform that enables AI agents to independently access the Bandwidth Communications Cloud for voice, messaging and authentication capabilities. The launch expands the company's AI-focused communications offerings and strengthens its position in the emerging AI agent ecosystem by enabling developers to integrate real-time communications into AI-driven applications. This is likely to have supported communications platform revenues in the second quarter of 2026, with a significant revenue impact expected as customer adoption accelerates.Bandwidth's usage-based business model is likely to have benefited from higher communications traffic during the June quarter. Growing demand for voice, messaging and authentication services across its enterprise customer base is expected to have increased platform utilization and interaction volumes, supporting usage-based communications platform revenues. Higher usage by existing customers and continued adoption of the company's cloud communications services are likely to have contributed to top-line growth during the second quarter.In the quarter under review, Bandwidth's continued investments in strengthening its communications infrastructure and expanding its global platform capabilities are likely to have enhanced service reliability and scalability for enterprise customers. The company's focus on delivering carrier-grade network performance and supporting mission-critical communications is expected to have reinforced its competitive position in the CPaaS market. These investments are likely to have improved operating efficiency and strengthened the company's ability to support increasing communications volumes, providing a solid foundation for long-term growth. Over the past year, Bandwidth shares have surged 261.9% compared with the industry’s growth of 102.9%, outperforming competitors like Twilio Inc. TWLO and RingCentral, Inc. RNG. Twilio has gained 49%, and RingCentral has rallied 87.3% over the said time frame. Image Source: Zacks Investment Research From a valuation standpoint, Bandwidth appears to be relatively cheaper compared to the industry but trades above its mean. Going by the price-to-sales ratio, the company’s shares currently trade at 2.1 forward sales, lower than 9.2 for the industry but higher than the stock’s mean of 0.65. Image Source: Zacks Investment Research Bandwidth's long-term growth prospects remain supported by its focus on expanding its enterprise business and improving financial performance. As demand for cloud communications continues to grow, the company is expected to benefit from its scalable business model and disciplined execution. The company's ability to deliver consistent revenue growth while enhancing margins and profitability is likely to remain a key area of focus for investors.The company's strong balance sheet and disciplined capital allocation provide financial flexibility to pursue growth opportunities. Successful execution of its long-term strategy, combined with disciplined cost management and continued expansion of its enterprise business, should strengthen Bandwidth's competitive position and support long-term shareholder value. Bandwidth is steadily strengthening its position in the cloud communications market through continued innovation and consistent execution. The company's ability to adapt to evolving enterprise communication needs and capitalize on favorable industry trends should support its growth trajectory over the long term. With a solid business model, improving financial profile and a Zacks Rank #1, BAND appears to be a smart investment option at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bandwidth Inc. (BAND) : Free Stock Analysis Report Ringcentral, Inc. (RNG) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

RingCentral RNG reported second-quarter 2026 non-GAAP earnings of $1.22 per share, beating the Zacks Consensus Estimate by 4.27% and rising 15.1% year over year. Revenues of $657.01 million surpassed the consensus mark by 1.03% and increased 5.9% from the year-ago quarter.The quarter benefited from steady subscription growth, broader AI adoption and margin expansion. Total annual recurring revenues reached $2.8 billion, up 7% year over year. Subscription revenues increased 5.8% year over year to $634 million and accounted for 96% of total revenues. Other revenues were $23.36 million, up from $21.67 million a year earlier. Ringcentral, Inc. price-consensus-eps-surprise-chart | Ringcentral, Inc. Quote Monthly net retention remained above 99%, while the company served roughly 600,000 customer accounts. Management noted steady new customer additions and highlighted that the recurring revenue model continued to support durable growth. Customers using RingCentral AI products generated more than 13% of total ARR and had net retention above 100%. These customers also produced meaningfully higher average revenue per user than the rest of the customer base. Customers using two or more AI products increased more than sevenfold over the past year.AIR ended the quarter with more than 16,400 customers, up more than 400% year over year. ACE reached more than 6,300 customers, rising more than 70%, while the Customer Engagement Bundle exceeded 9,600 customers after growing more than 80% sequentially. RingCentral expanded AIR Pro with autonomous outbound outreach, multiple-intent handling and intelligent transfers to live agents with full customer context. AIR Pro also supports more than 100 prebuilt integrations across customer relationship management, scheduling, healthcare and billing systems.The company added AI-powered workflow building and natural-language analytics to AVA. It also enhanced workforce engagement tools with live screen monitoring, giving supervisors real-time visibility for compliance, coaching and productivity management. Second-quarter 2026 non-GAAP gross margin expanded 40 bps from the prior-year quarter to 77.4%.On a non-GAAP basis, research and development expenses increased 7.9% year over year to $66.6 million. Sales and marketing expenses increased 3.9% year over year to $243.7 million, while general and administrative expenses rose 7.5% year over year to $44.4 million in the reported quarter.Non-GAAP operating income rose to $154 million from $140 million. Non-GAAP operating margin rose 90 basis points to 23.4%, while adjusted EBITDA margin expanded to 26.9% from 26.0%. As of June 30, 2026, cash and cash equivalents were $112 million compared with $116.58 million as of March 31, 2026Net cash provided by operating activities increased 23.3% year over year to $206 million. Free cash flow climbed 24.8% to $180 million, representing 27.4% of revenues compared with 23.3% in the prior-year quarter.The company reduced net leverage to 1.5 times and lowered gross debt by about $130 million during the first half of 2026. RingCentral has no debt maturities until 2030. The board also raised the quarterly dividend 66.7% to 12.5 cents per share.In the second quarter of 2026, RNG repurchased about 2.2 million shares for $94 million, leaving roughly $326 million under its authorization. For the third quarter of 2026, RingCentral expects total revenues of $664-$670 million and subscription revenues of $643-$649 million. Non-GAAP operating margin is projected to be between 23.5% and 24.0%, with non-GAAP earnings of $1.25-$1.30 per share. For 2026, RNG raised total revenue guidance to $2.635-$2.646 billion and subscription revenue guidance to $2.550-$2.561 billion. The company now expects non-GAAP earnings of $4.96-$5.10 per share and a non-GAAP operating margin of 23.6%-24.0%.Free cash flow guidance was increased to $615-$625 million. GAAP operating margin is now projected to be between 9.0% and 9.7%, while stock-based compensation is expected to total $240-$245 million. Currently, RingCentral has a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Zacks Computer and Technology sector are Bandwidth BAND, Amphenol APH, and Amkor Technology AMKR. While Bandwidth and Amphenol sport a Zacks Rank #1 (Strong Buy), Amkor Technology carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Bandwidth is set to report second-quarter 2026 results on July 29. Bandwidth shares have appreciated 280.2% year to date.Amphenol is slated to report second-quarter 2026 results on July 29. Amphenol shares have gained 16.5% year to date.Amkor Technology is set to report second-quarter 2026 results on July 29. Amkor Technology shares have surged 65.5% year to date. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ringcentral, Inc. (RNG) : Free Stock Analysis Report Amphenol Corporation (APH) : Free Stock Analysis Report Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report Bandwidth Inc. (BAND) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in RingCentral, Inc.? Here are five stocks we like better. RingCentral beat second-quarter guidance across revenue, operating margin and free cash flow, with total revenue of about $657 million and free cash flow of $180 million, up 25% year over year. The company raised full-year outlooks for subscription revenue, total revenue, operating margin and free cash flow, and it lifted its quarterly dividend to $0.125 per share, signaling confidence in cash generation. AI products are gaining traction, with paid AI products now representing about 13% of ARR, while AIR and ACE customer counts surged; management also highlighted expanded partnerships with NiCE and Avaya to support growth. RingCentral’s Cash Flow Hit a Record—And It’s Fueling Bigger Returns RingCentral (NYSE:RNG) reported second-quarter 2026 results that exceeded the high end of its guidance across revenue, operating margin and free cash flow metrics, while management highlighted growing adoption of its artificial intelligence products and announced an increase to the company’s quarterly dividend. Founder, Chairman and CEO Vlad Shmunis said the company’s performance reflected a multi-year effort to improve profitability and cash generation while repositioning RingCentral around “agentic voice AI.” He said the company is seeking to become an “intelligence layer” where AI agents and human agents work together to manage customer interactions. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? It's RingCentral (NYSE: RNG) You Want In Your 2021 Portfolio, Not Zoom (NASDAQ: ZM) “We delivered another strong quarter, exceeding the high end of guidance across all key metrics,” Shmunis said. He added that total revenue, subscription revenue, GAAP operating margin and non-GAAP operating margin all surpassed expectations. CFO Vaibhav Agarwal said total revenue in the quarter was approximately $657 million, up 5.9% year over year. Subscription revenue was approximately $634 million, up 5.8% from the prior year. Both measures came in above the high end of the company’s guidance. → 3 Photonics Companies Making Quantum Tech Possible Agarwal said customer trends remained healthy, citing steady new customer additions and monthly net retention above 99%. He said the company’s recurring revenue model continues to be supported by the “mission-critical role” RingCentral’s platform plays for customers. RingCentral also expanded profitability in the quarter. Subscription gross margin remained above 80%, while non-GAAP operating margin reached 23.4%, up nearly 90 basis points year over year and above guidance. GAAP operating margin was 7.7%, improving by more than 170 basis points from the year-ago period. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Stock-based compensation as a percentage of revenue declined about 150 basis points year over year to 9% in the second quarter. Agarwal said RingCentral remains on track for stock-based compensation to be approximately 9% of revenue in 2026, down 180 basis points from 2025. RingCentral generated $180 million of free cash flow in the quarter, up 25% year over year. Agarwal attributed the increase to operating performance, efficiency gains and working capital improvements, including certain one-time benefits from customer and partner prepayments. The company raised its full-year free cash flow outlook to a midpoint of $620 million, or more than 23% of revenue. For the full year, RingCentral now expects free cash flow per share of $7.07 to $7.23, up 23% year over year. Management also announced that RingCentral’s board approved an increase in the quarterly dividend to $0.125 per share. Agarwal said the dividend increase reflects confidence in the company’s cash flow durability and is part of a balanced capital allocation strategy that also includes investment in innovation, debt reduction and share repurchases. During the quarter, RingCentral reduced overall debt by approximately $85 million and lowered net leverage to 1.5 times. In the first half of 2026, the company reduced gross debt by about $130 million. Management said RingCentral remains on track to reduce gross debt to $1 billion by the end of 2026. Agarwal also noted that the company has no maturities until 2030 and maintains $355 million of undrawn credit capacity. RingCentral repurchased approximately 2.2 million shares during the quarter for about $94 million. At quarter-end, approximately $326 million remained under the company’s repurchase authorization. Diluted share count declined 6% year over year to roughly 87 million shares. Executives emphasized AI adoption as a key theme of the quarter. Shmunis said annual recurring revenue from customers using at least one of RingCentral’s native paid AI products now represents about 13% of ARR, doubling year over year. He said those customers have net retention “well above 100%” and meaningfully higher average revenue per user than the rest of the customer base. RingCentral ended the second quarter with more than 16,000 paying AIR, or AI Receptionist, customers, up 400% year over year. ACE, the company’s AI Conversation Expert product, had more than 6,300 customers, growing more than 70% year over year. ARR from AI-led new products grew nearly 60% during the first half of the year, according to Shmunis. President and COO Kira Makagon said customers accelerated adoption of RingCentral AI during the quarter. She cited VGM Group, a national post-acute healthcare organization, which deployed RingCentral’s AIR, AVA and ACE products on top of RingEX. Makagon said AIR recovered 45% of calls previously lost to abandonment for that customer, AVA eliminated manual note-taking and ACE provided call visibility and coaching. Makagon said AIR has been enhanced with spam blocking filters and lead capture capabilities that sync with Salesforce, HubSpot and Zoho. Based on a recent customer survey, she said AIR customers reduced missed call rates from an average of 20% to close to zero. RingCentral’s Customer Engagement Bundle, or CEB, also saw growth. Shmunis said CEB now serves more than 9,600 customers and grew more than 80% sequentially. The bundle adds lightweight contact center features to RingEX, including call queues, shared SMS inboxes and analytics. RingCentral announced an expanded partnership with NiCE under which NiCE will begin marketing and selling RingEX in combination with CXone, while RingCentral continues to offer NiCE CXone to its customers. Shmunis described the arrangement as a “symmetrical, mutually reinforcing partnership” between the two companies. In response to an analyst question, Shmunis said the expanded NiCE relationship could give RingCentral access to NiCE’s enterprise customer base, where NiCE has a strong position in contact center software. He said RingCentral Contact Center powered by NiCE has historically been more mid-market by logo count, while NiCE has large enterprise accounts. RingCentral also said it restructured its relationship with Avaya. Shmunis said RingCentral will remain Avaya’s exclusive multi-tenant cloud UCaaS offering, while existing Avaya Cloud Office customers and partners will transition directly to the RingCentral platform and brand. For fiscal 2026, RingCentral raised its subscription revenue outlook to $2.55 billion to $2.561 billion, representing growth of 5.1% to 5.5%. Total revenue is now expected to be $2.635 billion to $2.646 billion, representing growth of 4.8% to 5.2%. The company expects full-year GAAP operating margin of 9% to 9.7%, non-GAAP operating margin of approximately 23.6% to 24%, and non-GAAP earnings per share of $4.96 to $5.10. RingCentral also said it now expects to reach its 20% GAAP operating margin target within two to three years, one year ahead of its prior schedule. For the third quarter, RingCentral guided for subscription revenue of $643 million to $649 million and total revenue of $664 million to $670 million. The company expects third-quarter GAAP operating margin of 7.2% to 8.6%, non-GAAP operating margin of 23.5% to 24%, and non-GAAP earnings per share of $1.25 to $1.30. Management said AI adoption, margin expansion and free cash flow generation remain central to RingCentral’s strategy. “We believe RingCentral is well-positioned to continue compounding shareholder value,” Agarwal said. RingCentral, Inc is a leading provider of cloud-based business communications and collaboration solutions. The company’s flagship platform delivers unified communications as a service (UCaaS), integrating voice over IP (VoIP) phone systems, video conferencing, team messaging and SMS into a single, cloud-native application. In addition to its UCaaS offering, RingCentral provides contact center as a service (CCaaS) capabilities, enabling organizations to manage customer interactions across voice, email, chat and social channels from a centralized dashboard. Founded in 1999 and headquartered in Belmont, California, RingCentral went public on the New York Stock Exchange under the ticker RNG in 2013. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "RingCentral Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Total Revenue: Approximately $657 million, up 5.9% year-over-year. Subscription Revenue: Approximately $634 million, up 5.8% year-over-year. Non-GAAP Operating Margin: 23.4%, up nearly 90 basis points year-over-year. GAAP Operating Margin: 7.7%, improving by more than 170 basis points year-over-year. Free Cash Flow: $180 million, up 25% year-over-year. Gross Debt Reduction: Reduced by approximately $85 million in the quarter. ARR from AI Products: Grew nearly 60% during the first half of the year. Dividend Increase: Quarterly dividend increased to $0.125 per share. Share Repurchase: Approximately 2.2 million shares repurchased, using approximately $94 million. Subscription Gross Margin: Stable above 80%. Stock-Based Compensation (SBC): Declined to 9% of revenue, down approximately 150 basis points year-over-year. Net Leverage: Lowered to 1.5x. Full Year Free Cash Flow Outlook: Raised to $620 million at the midpoint. Q3 '26 Subscription Revenue Guidance: $643 million to $649 million. Q3 '26 Total Revenue Guidance: $664 million to $670 million. Q3 '26 GAAP Operating Margin Guidance: 7.2% to 8.6%. Q3 '26 Non-GAAP EPS Guidance: $1.25 to $1.30, up 13% year-over-year. Warning! GuruFocus has detected 4 Warning Signs with RNG. Is RNG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. RingCentral Inc (NYSE:RNG) exceeded the high end of guidance across all key metrics, including total revenue, subscription revenue, and operating margins. The company announced an increase in its quarterly dividend to $0.125 per share, reflecting confidence in its financial performance. RingCentral Inc (NYSE:RNG) is making significant progress in reducing stock-based compensation (SBC) to a target range of 3% to 4% of total revenue. The company is on track to reduce gross debt to $1 billion by the end of the year, strengthening its financial profile. RingCentral Inc (NYSE:RNG) is investing over $0.25 billion annually in R&D to expand its AI-powered customer engagement portfolio, positioning itself as a leader in the AI-native space. Despite strong performance, the company faces risks and uncertainties that could impact future results, as highlighted in their forward-looking statements. The subscription gross margin, while stable, came in slightly below expectations, indicating potential cost pressures. The company's AI products, while gaining traction, are still early in their lifecycle and may face challenges in achieving widespread adoption. RingCentral Inc (NYSE:RNG) is experiencing competitive pressures in the UCaaS and CCaaS markets, which could impact growth. The restructuring of the relationship with Avaya may present transitional challenges as existing customers and partners move to the RingCentral platform. Q: Can you provide more detail on how the recent expansion with AirPro will impact the economics of a typical Ring CX transaction? A: Vladimir Shmunis, CEO, explained that AirPro is part of RingCentral's transformation towards an AI-led company. AI is becoming integral to their offerings, allowing them to charge extra for it at a good margin. The combined solution saves customer time and money by reducing the need for human agents and empowering those that remain. AI and human agents work together, learning from each other, which is a unique advantage for RingCentral. Q: How should investors think about the incremental revenue opportunity and channel economics with the expanded partnership with NICE? A: Vladimir Shmunis, CEO, stated that the partnership with NICE opens up their enterprise installed base to RingCentral. NICE is a well-known enterprise player, and the partnership strengthens RingCentral's market positioning, particularly in the enterprise segment. The collaboration is expected to become a meaningful new channel for RingCentral, leveraging complementary AI assets. Q: How do you see AI evolving and expanding the TAM for RingCentral? A: Vladimir Shmunis, CEO, noted that AI is driving more customers to buy AI products from RingCentral, with revenue from these products doubling year-over-year. AI products are more sticky, with net retention over 100%. RingCentral is investing heavily in AI, with over $250 million annually in R&D, and expects AI to be a major growth and margin tailwind. Q: Can you discuss the capital allocation strategy, particularly regarding investing to reaccelerate growth? A: Vaibhav Agarwal, CFO, emphasized a balanced approach to capital allocation, focusing on improving free cash flow per share. The strategy includes investing in growth, particularly in AI innovation, reducing debt, and returning capital to shareholders through buybacks and dividends. The strong free cash flow supports these priorities without compromising growth. Q: Are you seeing an increase in usage or new customer wins due to AI, and could this accelerate the migration to the cloud? A: Vladimir Shmunis, CEO, confirmed that AI is increasing engagement, with usage of minutes and text messages growing faster than revenue or seat growth. AI helps connect more calls, reducing dropped calls and improving customer interactions. AI is also a significant factor in new sales, with over half of new sales including AI, indicating its role in accelerating cloud migration. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

RingCentral (RNG) came out with quarterly earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.27%. A quarter ago, it was expected that this cloud-based phone system provider for small businesses would post earnings of $1.17 per share when it actually produced earnings of $1.2, delivering a surprise of +2.56%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. RingCentral, which belongs to the Zacks Internet - Software and Services industry, posted revenues of $657.01 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.03%. This compares to year-ago revenues of $620.4 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. RingCentral shares have added about 30.4% since the beginning of the year versus the S&P 500's gain of 9.6%. While RingCentral has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for RingCentral was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.25 on $662.96 million in revenues for the coming quarter and $4.91 on $2.63 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software and Services is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Sabre (SABR), another stock in the same industry, has yet to report results for the quarter ended June 2026. This provider of technology services to the travel industry is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sabre's revenues are expected to be $695.43 million, up 1.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ringcentral, Inc. (RNG) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cloud communications provider RingCentral (NYSE:RNG) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 5.9% year on year to $657 million. Guidance for next quarter’s revenue was better than expected at $667 million at the midpoint, 0.6% above analysts’ estimates. Its non-GAAP profit of $1.22 per share was 4% above analysts’ consensus estimates. Is now the time to buy RingCentral? Find out in our full research report. Revenue: $657 million vs analyst estimates of $650.5 million (5.9% year-on-year growth, 1% beat) Adjusted EPS: $1.22 vs analyst estimates of $1.17 (4% beat) Adjusted EBITDA: $177 million vs analyst estimates of $176.1 million (26.9% margin, in line) The company slightly lifted its revenue guidance for the full year to $2.64 billion at the midpoint from $2.63 billion Management raised its full-year Adjusted EPS guidance to $5.03 at the midpoint, a 2% increase Operating Margin: 7.7%, up from 6% in the same quarter last year Free Cash Flow Margin: 27.4%, up from 21.8% in the previous quarter Billings: $695 million at quarter end, up 9.5% year on year Market Capitalization: $3.16 billion “We delivered another strong quarter, exceeding the high end of guidance across all key metrics while accelerating our transformation into an Agentic Voice AI leader,” said Vlad Shmunis, RingCentral’s Founder, Chairman and CEO. Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE:RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services. A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, RingCentral grew its sales at a 13.5% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the software sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded. We at StockStory place the most emphasis on long-term growth, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. RingCentral’s recent performance shows its demand has slowed as its annualized revenue growth of 5.8% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. This quarter, RingCentral reported year-on-year revenue growth of 5.9%, and its $657 million of revenue exceeded Wall Street’s estimates by 1%. Company management is currently guiding for a 4.4% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 4.1% over the next 12 months, a slight deceleration versus the last two years. This projection doesn’t excite us and suggests its products and services will face some demand challenges. ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice. Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. RingCentral’s billings came in at $695 million in Q2, and over the last four quarters, its growth was underwhelming as it averaged 6.5% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in acquiring/retaining customers. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. It’s relatively expensive for RingCentral to acquire new customers as its CAC payback period checked in at 1,809.3 months this quarter. The company’s slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low. We enjoyed seeing RingCentral beat analysts’ billings expectations this quarter. We were also glad its full-year EPS guidance exceeded Wall Street’s estimates. Overall, this print had some key positives. The stock traded up 3.3% to $39.84 immediately following the results. RingCentral put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

(Bloomberg) -- Intel Corp. is expected to report strong second-quarter earnings after the market close Thursday, but even blowout results likely won’t be enough to reverse the stock’s July slide. Most Read from Bloomberg Retina Chip Designed to Restore Sight to Go on Sale in Europe Hegseth Turns to UNC, Virginia Tech After Dropping Ivy League Apple Plans Overhaul of MacBooks, iMac in Push to Meet AI Demand Trump’s 100% Generic Drug Duty Threatens US Low-Cost Supply Apple to Launch ‘Upgrade’ Device Leasing Program With Klarna to Spur Sales The shares are down 27% this month, putting them among the 10 worst performers in the S&P 500 Index, after soaring 278% in the first half for the third-best performance in the broad equities benchmark. The move comes as investors are suddenly selling this year’s winners and souring on chipmakers in particular. The Philadelphia Stock Exchange Semiconductor Index, or SOX, has lost 13% this month and briefly sank into a bear market last week before recovering somewhat. “How investors feel about the semiconductor space is going to call what Intel does here more than what Intel tells you,” said Matt Bryson of Wedbush Securities. “The stock move has been more of a sentiment shift necessarily than being supported by kind of real shifts in earnings power.” Wall Street expects Intel to post a 12% increase in second-quarter revenue to $14.4 billion and earnings of 12 cents per share, reversing a loss of 67 cents a year ago. Gross margins are projected to be about 39%, up from nearly 30% in the same quarter last year. “It’s not that Intel hasn’t gotten better,” Bryson said. “Just it hasn’t gotten better at the same rate that the stock has gotten better.” Intel shares have gained 178% in 2026, putting them on pace for their best year ever in data going back to 1983. That’s the second-strongest showing in the SOX, which has risen 75% this year and is heading for its best annual performance since 2003. The stock took off in early April and kept running, eventually eclipsing its dot-com era high, as the company joined Elon Musk’s Terafab project, issued a blockbuster forecast and President Donald Trump touted a deal with Apple Inc. to design and produce chips in the US. But enthusiasm for semiconductors is starting to fizzle as investors grow concerned about how long the heavy spending on artificial intelligence can last. And that pessimism is now looming over Intel’s results. During its earnings call on Wednesday, Alphabet Inc., one of the biggest AI spenders, raised its outlook for capital expenditures this year to between $195 billion and $205 billion from its previous expectation of $180 billion to $190 billion. Last week’s disappointing market reaction to a strong print from Taiwan Semiconductor Manufacturing Co., the main chipmaker for Nvidia Corp., demonstrates the challenges facing Intel’s stock heading into this report. TSMC increased its revenue and spending outlooks for the year, reflecting confidence in demand for chips and data centers in 2027 and beyond. And yet the company’s American depositary receipts fell. Of course, Intel’s report is likely to offer encouraging signs for investors. There’s strong demand from data center operators for central processing unit chips, known as CPUs, which Intel makes, to the point where there are concerns about whether supply can keep up. Wall Street is also hoping Intel will name more clients for its foundry business, with analysts closely watching its capital expenditures for clues that it has secured new customers. In addition, positive updates on a deal with Apple or the Terafab commitment could give the shares a boost, according to Kim Forrest, founder and chief investment officer of Bokeh Capital Partners. “If those announcements still feel like they’re going forward in the timeline originally outlined, I think the stock reacts well in the shorter term,” she said. The shares got a lift Tuesday when the company confirmed that it will cut jobs in its data center group as part of its effort to reduce costs. But even with healthy earnings and shares well off a record high, Intel may not have much more room to rise because it’s gotten too expensive. The stock is priced at about 74 times earnings over the next 12 months, an extreme premium to its 10-year average of 22. That’s the third highest multiple in the semiconductor index, blowing away rivals like Nvidia, which is priced at less than 20 times forward earnings, and Broadcom Inc. at 23 times. The SOX trades at 23 times projected earnings, and the S&P 500 is at 20 times. “This is a stock where the market is getting ahead of itself, at least on the valuation side,” said Thomas George, portfolio manager at Grizzle Investment Management, which owns Intel shares. “The added hurdle for Intel is its own demanding valuation.” Tech Chart of the Day Top Tech Stories Alphabet raised its capital spending forecast to as much as $205 billion this year, reigniting concerns about a lack of fiscal discipline in the race to dominate artificial intelligence. Tesla Inc.’s profit tumbled despite a strong quarter for its automotive business, pressuring Elon Musk’s plan to refocus the electric vehicle maker on artificial intelligence and robots. Uber Technologies Inc. said it has cut 10% of jobs within its customer service operations as part of a broader effort to simplify its ranks and “embrace artificial intelligence.” Micron Technology Inc. recently gave Tesla Inc. a “significant allocation” of memory chips, according to Elon Musk, helping meet the automaker’s demand for an increasingly precious commodity. International Business Machines Corp. cut its full-year sales outlook, including for its closely watched software unit, after reporting a dip in demand for its mainframe business. Earnings Due Earnings Postmarket: --With assistance from Neil Campling, Subrat Patnaik and David Watkins. Most Read from Bloomberg Businessweek The Bitcoin Slump Is Crushing Companies That Stockpiled Tokens How China’s ‘Temu Range Rover’ Became Britain’s Top-Selling Car Van Leeuwen’s Path From a Single Ice Cream Truck to a Dessert Giant Credit Card Holders Are Using ‘Friendly Fraud’ to Get Back at Retailers For Software Engineers, the AI Reckoning Is Already Here ©2026 Bloomberg L.P.

Total revenue up 5.9%; GAAP and non-GAAP margins and EPS all above high end of guidance 13% of ARR is now from customers utilizing a native paid AI product, doubling year-over-year Raising quarterly dividend by approximately 67% to $0.125 per share Raising full year outlook on revenue, GAAP and non-GAAP margins and free cash flow BELMONT, Calif., July 23, 2026--(BUSINESS WIRE)--RingCentral, Inc. (NYSE: RNG), a global leader in AI-powered customer engagement, today announced financial results for the second quarter ended June 30, 2026. Second Quarter Financial Highlights Subscriptions revenue increased approximately 5.8% year-over-year to $634 million. Total revenue increased approximately 5.9% year-over-year to $657 million. GAAP operating margin of 7.7%, compared to 6.0% in the prior year. Non-GAAP operating margin of 23.4%, up approximately 90 basis points year-over-year. GAAP EPS of $0.45 compared to $0.14 last year. Non-GAAP EPS of $1.22 compared to $1.06 last year. Net cash provided by operating activities of $206 million, up 23.3% year-over-year. Free cash flow of $180 million, up 24.8% year-over-year. Reduced stock-based compensation expense as a percentage of revenue by 150 basis points year-over-year. Repurchased approximately 2.2 million shares for a total of $94 million. "We delivered another strong quarter, exceeding the high end of guidance across all key metrics while accelerating our transformation into an Agentic Voice AI leader," said Vlad Shmunis, RingCentral’s Founder, Chairman and CEO. "Customers using at least one paid AI product now represent approximately 13% of ARR, having doubled year-over-year. This is a reflection of the growing value of our AI portfolio. Powered by our global voice network, rich customer interaction data, and ability to orchestrate AI and human agents, RingCentral is uniquely positioned to lead the future of customer engagement." "RingCentral is in a unique position, with a strong recurring core business, a widening moat, increasing momentum from AI-led products, and a financial profile that continues to strengthen," said Vaibhav Agarwal, RingCentral’s CFO. "We are growing revenues, driving operating efficiencies, and generating high-quality free cash flow, which gives us the flexibility to invest in growth, strengthen the balance sheet, and return capital to shareholders, positioning us for long-term growth to compound free cash flow and create meaningful long-term shareholder value." RingCentral Declares a Dividend RingCentral’s Board of Directors approved an increase in the Company's quarterly cash dividend by approximately 67% from $0.075 to $0.125 per share of our outstanding capital stock, payable on August 20, 2026 to stockholders of record as of the close of business on August 6, 2026. Financial Results for the Second Quarter 2026 Revenue: Total revenue was $657 million for the second quarter of 2026, up from $620 million in the second quarter of 2025, representing 5.9% year-over-year growth. Subscriptions revenue of $634 million increased 5.8% year-over-year and accounted for 96% of total revenue. Operating Income: GAAP operating income was $50 million, compared to $37 million in the same period last year. Non-GAAP operating income was $154 million, or 23.4% of total revenue, compared to $140 million, or 22.6% of total revenue, in the same period last year. Adjusted EBITDA: Adjusted EBITDA was $177 million, or 26.9% of total revenue, compared to $162 million, or 26.0% of total revenue, in the same period last year. Net Income Per Share: GAAP net income per diluted share improved to $0.45, compared to $0.14 in the same period last year. Diluted non-GAAP net income per share was $1.22, compared to $1.06 per share in the same period last year. The second quarters of 2026 and 2025 each reflected a non-GAAP tax rate of approximately 22.5%. Cash Flow: Net cash provided by operating activities for the second quarter of 2026 was $206 million, or 31.4% of total revenue, compared to $167 million, or 27.0% of total revenue, for the second quarter of 2025. Free cash flow for the second quarter of 2026 was $180 million, or 27.4% of total revenue, compared to $144 million, or 23.3% of total revenue, for the second quarter of 2025. Cash and Cash Equivalents: Total cash and cash equivalents at the end of the second quarter of 2026 was $112 million. Our cash balance reflects the repurchase of $94 million in shares during the second quarter of 2026 under the share repurchase plans previously authorized by our Board. We currently have approximately $326 million remaining under our total authorization. Additional Highlights Expanded AIR Pro with agentic AI capabilities in RingCX, including native AI agents embedded directly into customer engagement workflows, autonomous AI-powered outbound outreach, and intelligent handoffs that seamlessly transfer conversations to live agents with full customer context. Enhanced AVA (AI Virtual Assistant) with AI-powered Workflow Builder and conversational analytics, enabling users to create RingCX workflows using natural language and instantly retrieve reports, metrics, and operational insights through simple prompts. Advanced RingWEM capabilities with Live Screen Monitoring, giving supervisors real-time visibility into agent interactions and the ability to coach agents live, improving quality management, compliance, and workforce performance. RingCentral named to TIME’s list of America’s Best Companies 2026. The ranking recognizes U.S. companies demonstrating excellence in employee satisfaction, financial performance, and sustainability transparency. Nucleus Research named RingCX a Leader in its CCaaS Technology Value Matrix, recognizing RingCentral's AI, workforce engagement, and embedded contact center investments. Aragon Research named RingCX a Leader in its Intelligent Contact Center for SMB Globe report, specifically citing the OpenAI partnership as positioning RingCentral to lead the shift toward agentic voice AI across the full customer interaction lifecycle. ISG named RingCentral a Leader in its Collaborative AI Suites Buyers Guide — and a category leader in AI Capabilities specifically. Metrigy gave RingCentral Top Provider recognition in its 2026 MetriStar Award for UCaaS, based on direct customer ratings — with high scores in voice quality, platform integrations, and ease of use. Financial Outlook Third Quarter 2026 Guidance: Subscriptions revenue of $643 to $649 million. Total revenue of $664 to $670 million. GAAP operating margin of 7.2% to 8.6%. Non-GAAP operating margin of 23.5% to 24.0% Non-GAAP EPS of $1.25 to $1.30 based on approximately 86.5 million fully diluted shares. Share-based compensation of $63 to $67 million. Our full year 2026 guidance is: Raising subscriptions revenue range to $2.550 billion to $2.561 billion. Raising total revenue range to $2.635 billion to $2.646 billion. Raising GAAP operating margin to 9.0% to 9.7%. Raising non-GAAP operating margin to approximately 23.6% to 24.0%. Raising non-GAAP EPS of $4.96 to $5.10 based on 87.0 to 86.5 million fully diluted shares. Share-based compensation of $240 to $245 million. Raising free cash flow guidance of $615 to $625 million. Conference Call Details: What: RingCentral financial results for the second quarter of 2026 and outlook for the third quarter and full year of 2026. When: Thursday, July 23, 2026 at 2:00PM PT (5:00PM ET). Dial-in: 1-888-349-0093 from the United States; 1-412-317-5201 internationally Webcast: https://ir.ringcentral.com (live and replay). Investor Presentation Details An investor presentation providing additional information and analysis can be found at https://ir.ringcentral.com. About RingCentral RingCentral is a global leader in AI–powered customer engagement, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging. Powered by advanced AI capabilities, RingCentral delivers intelligence at 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, our expectations around our platform and the contribution of our new products, and the payment of dividends. 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 develop and continue to release, and gain customer acceptance of, new and improved versions of our services; our use of AI technologies to help drive future growth; 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; factors affecting the payment of dividends; 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 income from operations, Non-GAAP operating margin, Non-GAAP adjusted EBITDA, Non-GAAP net income, Non-GAAP net income per diluted share, Non-GAAP free cash flow and Non-GAAP free cash flow margin. Non-GAAP subscriptions gross margin is defined as Non-GAAP subscriptions gross profit divided by GAAP subscriptions revenues. Non-GAAP subscriptions gross profit is defined as GAAP subscriptions revenues less Non-GAAP subscriptions cost of revenues. Non-GAAP subscriptions cost of revenues is defined as GAAP subscriptions cost of revenues adjusted for share-based compensation which includes related employer payroll taxes, amortization of acquired intangibles, third-party relocation and other costs and restructuring costs. Non-GAAP other gross margin is defined as Non-GAAP other gross profit divided by GAAP other revenues. Non-GAAP other gross profit is defined as GAAP other revenues less Non-GAAP other cost of revenues. Non-GAAP other cost of revenues is defined as GAAP other cost of revenues adjusted for share-based compensation which includes related employer payroll taxes, amortization of acquired intangibles and restructuring costs. Non-GAAP income from operations is defined as GAAP income from operations excluding share-based compensation which includes related employer payroll taxes, amortization of acquired 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, certain litigation-related costs, impairment charges related to abandoned internal-use software, change in fair-value of contingent consideration, one-time expenses related to strategic consulting services, other cost-reduction and productivity initiatives, and restructuring costs. Non-GAAP operating margin is defined as Non-GAAP income from operations divided by total GAAP revenue. Non-GAAP adjusted EBITDA is defined as Non-GAAP income from operations excluding depreciation and amortization. Non-GAAP net income is defined as GAAP net income (loss) excluding share-based compensation which includes related employer payroll taxes, amortization of acquired 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, certain litigation-related costs, impairment charges related to abandoned internal-use software, change in fair-value of contingent consideration, net impact of amended agreements with partners, loss (gain) associated with investments, intercompany remeasurement gains or losses, one-time expenses related to strategic consulting services, other cost-reduction and productivity initiatives, 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 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 from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income , Non-GAAP net income per diluted share, Non-GAAP free cash flow and Non-GAAP free cash flow margin 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 from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income, Non-GAAP net income 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. Although Non-GAAP subscriptions gross margin, Non-GAAP other gross margin, Non-GAAP operating margin, Non-GAAP income from operations, Non-GAAP adjusted EBITDA, Non-GAAP net income, Non-GAAP net income per diluted share, Non-GAAP free cash flow and Non-GAAP free cash flow margin 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 and Free Cash Flow 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 extinguishment, and provision (benefit) from income taxes including the affect and timing of release of valuation allowance related to our deferred tax assets in certain jurisdictions, 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 early debt extinguishments as these are based on timing of future settlement requests 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. We utilized a projected long-term tax rate in our computation of the non-GAAP income tax provision. For fiscal 2026, 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), as well as Net Monthly Subscriptions Dollar Retention Rate. 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. © 2026 RingCentral, Inc. All rights reserved. RingCentral, RingCentral Contact Center and the RingCentral logo are trademarks of RingCentral, Inc. View source version on businesswire.com: https://www.businesswire.com/news/home/20260723424331/en/ Contacts Investor Relations Contact: Steven [email protected] Media Contact: Mariana Leventis, [email protected]