RingCentral (RNG) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 190.3
• Beta (1Y): 1.59
• Revenue Growth: 5.45%
• EPS Growth: N/A
• Country: US
• Employees: 4,260
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.13
• Shares Outstanding: 80,738,180
• 10 Day Avg. Volume: 1,723,303
• 30 Day Avg. Volume: 1,438,831
• PEG Ratio: 0.87
• Price to Book (P/B): -5.85
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 8.06
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 2.24
• Enterprise Value/Ebitda: 65.40
• 1Y Price Target: $31.83
• Price Target Upside: 18.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $32.00 ▲(18.83% Upside)

RingCentral's overall stock score is driven by strong financial performance in revenue growth and cash flow, alongside positive technical indicators. However, profitability challenges and a negative valuation impact the score. The earnings call provided a positive outlook with AI product expansion and strategic partnerships, but highlighted some growth challenges.

Positive Factors

AI Product Momentum

The growth of AI products indicates a strong strategic focus on innovation, enhancing RingCentral's competitive edge and long-term revenue potential.

Free Cash Flow Growth

Strong free cash flow growth enhances financial flexibility, enabling reinvestment in growth initiatives and debt reduction, supporting long-term stability.

Strategic Partnerships

Expanding partnerships with major players like AT&T strengthens market position and broadens customer reach, supporting sustainable growth.

Negative Factors

High Leverage

High leverage limits financial flexibility and increases risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Profitability Concerns

Persistent profitability challenges could hinder long-term financial health, affecting the company's ability to sustain operations and invest in future growth.

Stock-Based Compensation Impact

High stock-based compensation dilutes shareholder value and can strain financial resources, affecting long-term profitability and investor returns.

RingCentral Business Overview & Revenue Model

Company Description

RingCentral, Inc. is a leading provider of cloud-based communications and collaboration solutions for businesses of all sizes. Founded in 1999 and headquartered in Belmont, California, the company operates primarily in the telecommunications and software sectors. RingCentral offers a range of products and services, including voice over Internet Protocol (VoIP) phone systems, video conferencing, team messaging, and integrated contact center solutions. Their flagship product, RingCentral Office, combines various communication tools into a single platform, enabling seamless connectivity and collaboration for remote and on-site teams.

How the Company Makes Money

RingCentral generates revenue primarily through subscription-based services, charging businesses for access to its cloud-based communication and collaboration tools. The company offers various pricing tiers that cater to different business needs, which typically include monthly or annual subscription fees. Key revenue streams include the sale of its RingCentral Office packages, additional features and integrations, and premium services such as advanced analytics and enhanced security. Furthermore, strategic partnerships with telecommunications providers and technology companies enhance its offerings and expand its customer base, contributing positively to its earnings. The company also benefits from upselling opportunities as customers scale their communication needs.

RingCentral Financial Statement Overview

Summary

RingCentral shows strong revenue growth and cash flow management, but struggles with profitability and financial stability due to high leverage and negative equity. Improvements in profitability and leverage are crucial for future financial health.

Income Statement

RingCentral has shown consistent revenue growth, with a TTM increase of 1.217% and a strong gross profit margin of 70.75%. However, the company struggles with profitability, as indicated by a negative net profit margin of -0.50% in the TTM. Despite improvements in EBIT and EBITDA margins, profitability remains a concern.

Balance Sheet

The balance sheet reveals high leverage, with a negative debt-to-equity ratio of -2.25 in the TTM, indicating financial instability. The negative stockholders' equity suggests potential risks, although there is a slight improvement in return on equity to 2.82% in the TTM.

Cash Flow

Cash flow metrics are a strong point for RingCentral, with a significant free cash flow growth rate of 7.91% in the TTM. The operating cash flow to net income ratio is healthy at 0.47, and the free cash flow to net income ratio is robust at 0.90, indicating efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.49B	2.40B	2.20B	1.99B	1.59B	1.18B
Gross Profit	1.77B	1.69B	1.54B	1.35B	1.15B	860.05M
EBITDA	60.49M	236.58M	113.09M	-622.68M	-184.05M	42.83M
Net Income	13.24M	-58.29M	-165.24M	-879.17M	-376.25M	-83.00M
Balance Sheet
Total Assets	1.53B	1.78B	1.94B	2.07B	2.58B	2.18B
Cash, Cash Equivalents and Short-Term Investments	145.37M	242.81M	222.19M	269.98M	267.16M	639.85M
Total Debt	1.30B	1.58B	1.59B	1.68B	1.45B	1.46B
Total Liabilities	1.86B	2.33B	2.45B	2.56B	2.24B	1.87B
Stockholders Equity	-334.31M	-550.92M	-502.57M	-482.79M	338.97M	312.25M
Cash Flow
Free Cash Flow	558.15M	400.21M	323.92M	100.87M	-244.68M	-142.88M
Operating Cash Flow	601.32M	483.28M	399.66M	191.31M	152.15M	-35.19M
Investing Cash Flow	-106.16M	-109.36M	-90.45M	-87.21M	-396.83M	-107.69M
Financing Cash Flow	-562.67M	-351.08M	-358.02M	-98.22M	-127.05M	437.59M

RingCentral Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNG, the sentiment is Negative. The current price of 26.93 is below the 20-day moving average (MA) of 28.40, below the 50-day MA of 29.38, and below the 200-day MA of 28.24, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 39.24 is Neutral, neither overbought nor oversold. The STOCH value of 9.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNG.

RingCentral Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTM	78 Outperform	$3.33B	33.38	6.51%	―	1.47%	1077.70%
RNG	63 Neutral	$2.44B	190.32	―	―	5.45%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
API	53 Neutral	$324.48M	―	-3.84%	―	-3.60%	48.15%
ASAN	52 Neutral	$3.09B	―	-80.55%	―	9.74%	22.36%
EGHT	48 Neutral	$266.19M	―	-4.88%	―	0.25%	92.10%
PRCH	45 Neutral	$1.11B	43.93	―	―	-2.13%	―

RingCentral Corporate Events

RingCentral Reports Strong Q3 2025 Financial Results

RingCentral Inc., a global leader in AI-powered business communications, offers a comprehensive platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging services.

RingCentral Refinances Credit Agreement with New Facilities

On September 11, 2025, RingCentral, Inc. entered into an Amendment and Restatement Agreement to refinance its existing credit agreement. This Restated Credit Agreement includes a $280 million revolving loan facility, a $310 million initial term loan facility, and a $650 million delayed draw term loan facility. The proceeds from these loans will be used for repaying existing loans, funding acquisitions, share repurchases, and other corporate purposes. The agreement also includes provisions for prepayments and adjustments to maturity dates based on the company’s financial metrics, impacting its liquidity management and financial strategy.

The most recent analyst rating on (RNG) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on RingCentral stock, see the RNG Stock Forecast page.

RingCentral Earnings Call: Strong Growth and Strategic Expansion

RingCentral’s Latest Earnings Call: A Positive Outlook with Strategic Growth

RingCentral’s Strong Q2 2025 Performance and Strategic Growth

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.