RingCentral Inc ( (RNG) ) has released its Q2 earnings. Here is a breakdown of the information RingCentral Inc presented to its investors.
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RingCentral Inc., a leader in AI-powered business communications, operates in the technology sector, offering solutions for contact centers, conversational intelligence, video, and hybrid events. In its latest earnings report for the second quarter of 2025, RingCentral reported revenue at the high end of its guidance, achieving record cash flow and positive GAAP net and operating income. The company also announced the promotion of Vaibhav Agarwal to Chief Financial Officer.
RingCentral’s financial performance in the second quarter of 2025 was marked by a 6% year-over-year increase in subscriptions revenue to $599 million and a 5% increase in total revenue to $620 million. The company achieved a GAAP operating margin of 6.0% and a GAAP net income margin of 2.1%, reflecting a significant improvement from the previous year. Additionally, RingCentral reported a 31.7% increase in net cash provided by operating activities, amounting to $167 million, and a 32.7% increase in free cash flow to $144 million.
Strategically, RingCentral has been focusing on expanding its AI-powered portfolio, with its AI Receptionist (AIR) tripling its customer base to over 3,000 in the last quarter. The company also extended its partnership with NiCE, enhancing its integrated AI-powered cloud telephony and contact center suite. Furthermore, RingCentral’s multi-product approach is on track to achieve $100 million in new product ARR by the end of 2025.
Looking ahead, RingCentral’s management remains optimistic, reiterating its full-year guidance for subscriptions and total revenue growth, while raising its GAAP operating margin and free cash flow guidance. The company is poised to capitalize on the large market opportunity across UCaaS, CCaaS, and its expanding AI portfolio, aiming to drive the next chapter of success with a focus on innovation and strategic capital allocation.