RingCentral (RNG) AI Stock Analysis

• Market Cap: $2.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: 6.47%
• EPS Growth: 90.60%
• Country: US
• Employees: 4,260
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.06
• Shares Outstanding: 80,738,180
• 10 Day Avg. Volume: 1,171,500
• 30 Day Avg. Volume: 1,299,312
• 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: 1.45
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 2.27
• Enterprise Value/Ebitda: 13.53
• 1Y Price Target: $32.00
• Price Target Upside: 6.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 54 Neutral
• Price Target: $30.00 ▼(-0.40% Downside)

RingCentral's overall stock score is driven by its strong revenue growth and cash flow generation, which are positive indicators for future potential. However, significant challenges with profitability, high leverage, and a negative P/E ratio weigh heavily on the score. The technical analysis suggests a neutral trend, lacking strong directional momentum. The absence of a dividend yield further limits the stock's attractiveness from a valuation perspective.

Positive Factors

Strong Revenue Growth

RingCentral's consistent revenue growth at 13.2% TTM indicates robust demand for its cloud-based communication solutions, supporting long-term market expansion and competitive positioning.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling strategic investments and debt reduction, which are crucial for sustaining long-term business operations.

AI Product Expansion

The introduction of AI-powered products like RingCX and RingSense positions RingCentral for future growth, tapping into emerging technology trends and expanding its service offerings.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, posing risks to long-term sustainability and limiting the company's ability to invest in growth opportunities.

Profitability Challenges

Persistent profitability issues, as shown by negative net margins, could hinder RingCentral's ability to reinvest in its business and compete effectively over the long term.

Stock-Based Compensation Impact

High stock-based compensation expenses can dilute shareholder value and impact profitability, challenging the company's efforts to improve its financial health and investor appeal.

RingCentral Business Overview & Revenue Model

Company Description

RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect in North America. The company offers business cloud communications and contact center solutions based on its Message Video Phone? platform. Its products include RingCentral Office that provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; and RingCentral Engage Digital, a digital customer engagement platform that allows enterprises to interact with their customers. The company's products also comprise RingCentral Engage Voice, a cloud-based outbound/blended customer engagement platform for midsize and enterprise companies; RingCentral Video, a video meeting service which includes our RCV video and team messaging capabilities and offers video and audio conferencing, file sharing, contact, task, and calendar management. In addition, it offers RingCentral Professional, a cloud based virtual telephone service that provides inbound call answering and management services for professionals; and RingCentral Fax that provides online fax capabilities. The company serves a range of industries, including financial services, education, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. It sells its products through a network of direct sales representatives, as well as sales agents, resellers, and channel partners. RingCentral, Inc. has strategic partnerships with Alcatel-Lucent Enterprise; and Vodafone Business. The company was incorporated in 1999 and is headquartered in Belmont, California.

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 generation, but faces challenges with profitability and high leverage, indicating financial instability.

Income Statement

RingCentral has shown consistent revenue growth, with a TTM growth rate of 13.2%. However, profitability remains a challenge, as indicated by negative net profit margins and fluctuating EBIT margins. The gross profit margin is strong at over 70%, suggesting efficient cost management. Overall, while revenue is growing, the company needs to improve its profitability metrics.

Balance Sheet

The balance sheet reveals high leverage, with a negative equity position and a concerning debt-to-equity ratio of -2.60 in the TTM period. This indicates financial instability and potential risk. Return on equity is positive but misleading due to negative equity. The company needs to address its capital structure to enhance financial stability.

Cash Flow

Cash flow performance is a bright spot, with strong free cash flow growth of 14.08% in the TTM period. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to earnings. However, the free cash flow to net income ratio suggests that while cash flow is strong, profitability remains an issue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.46B	2.40B	2.20B	1.99B	1.59B	1.18B
Gross Profit	1.74B	1.69B	1.54B	1.35B	1.15B	860.05M
EBITDA	291.47M	236.58M	133.56M	-649.48M	-166.02M	58.54M
Net Income	-12.18M	-58.29M	-165.24M	-879.17M	-376.25M	-83.00M
Balance Sheet
Total Assets	1.61B	1.78B	1.94B	2.07B	2.58B	2.18B
Cash, Cash Equivalents and Short-Term Investments	168.11M	242.81M	222.19M	269.98M	267.16M	639.85M
Total Debt	647.22M	1.58B	1.59B	1.68B	1.43B	1.45B
Total Liabilities	2.09B	2.33B	2.45B	2.56B	2.04B	1.87B
Stockholders Equity	-287.14M	-550.92M	-502.57M	-482.79M	538.42M	312.25M
Cash Flow
Free Cash Flow	517.27M	400.21M	323.92M	100.87M	-232.80M	-142.88M
Operating Cash Flow	577.18M	483.28M	399.66M	191.31M	152.15M	-35.19M
Investing Cash Flow	-87.88M	-109.36M	-90.45M	-87.21M	-396.83M	-107.69M
Financing Cash Flow	-524.00M	-351.08M	-358.02M	-98.22M	-127.05M	437.59M

RingCentral Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNG, the sentiment is Positive. The current price of 30.12 is above the 20-day moving average (MA) of 28.31, above the 50-day MA of 29.68, and above the 200-day MA of 28.40, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 56.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RNG.

RingCentral Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTM	―	$3.58B	42.87	5.22%	―	-0.54%	626.94%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRCH	―	$1.57B	32.44	―	―	-7.41%	―
RNG	―	$2.73B	―	―	―	6.47%	90.60%
API	―	$331.96M	―	-3.84%	―	-3.60%	48.15%
ASAN	―	$3.32B	―	-80.55%	―	9.74%	22.36%
EGHT	―	$250.92M	―	-18.25%	―	-0.73%	67.98%

RingCentral Corporate Events

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.