AI Earnings Predictions for RingCentral Inc. (RNG)

EX-99.1

2 rng-20260930x8kxex991.htm

EX-99.1

Document

Exhibit 99.1

RingCentral Announces Third Quarter 2026 Financial Results

Subscriptions revenue up 6.0%, above high end of guidance, with record GAAP and non-GAAP margins

ARR from customers utilizing a native paid AI product is approaching 15%, doubling year-over-year

Reduced gross debt to approximately $1 billion

Raising full year outlook for revenue, non-GAAP margins and free cash flow

Belmont, Calif. – October 22, 2026 – RingCentral, Inc. (NYSE: RNG), a global leader in AI-powered customer engagement, today announced financial results for the third quarter ended September 30, 2026.

Third Quarter Financial Highlights

•Subscriptions revenue increased approximately 6.0% year-over-year to $653 million.

•Total revenue increased approximately 5.9% year-over-year to $676 million.

•GAAP operating margin of 8.0%, compared to 4.8% in the prior year.

•Non-GAAP operating margin of 24.7%, up approximately 190 basis points year-over-year.

•GAAP diluted EPS of $6.50. GAAP diluted EPS, excluding the impact of valuation allowance release, was $0.28, up 47.4% year-over-year.

•Non-GAAP EPS of $1.33 compared to $1.13 last year.

•Net cash provided by operating activities of $180 million, up 18.8% year-over-year.

•Free cash flow of $157 million, up 21.0% year-over-year.

•Repurchased approximately 0.4 million shares for a total of $18 million as of the end of the quarter.

“Voice is central to the next wave of AI innovation, and RingCentral is uniquely positioned to lead this transformation,” said Vlad Shmunis, Founder, Chairman and CEO of RingCentral. “Our trusted communications platform and expanding Agentic Voice AI portfolio puts us at the front door of customer interactions. By bringing communications, contact center, and AI together, we are redefining how businesses engage with customers, turning conversations into intelligent actions, better experiences, and measurable business outcomes. We see a significant opportunity ahead as businesses embrace the next generation of AI-powered customer engagement.”

“Our third-quarter results demonstrate strong execution against our financial commitments, with durable growth, expanding operating and free cash flow margins, and improving GAAP profitability,” said Vaibhav Agarwal, Chief Financial Officer of RingCentral. “We also reached our $1 billion gross debt target ahead of schedule, further strengthening our balance sheet while returning capital to shareholders. These results underscore the strength of our financial model and our focus on driving profitable growth and long-term shareholder value.”

RingCentral Declares a Dividend

RingCentral’s Board of Directors approved a quarterly cash dividend of $0.125 per share of our outstanding capital stock, payable on November 20, 2026 to stockholders of record as of the close of business on November 6, 2026.

Financial Results for the Third Quarter 2026

•Revenue: Total revenue was $676 million for the third quarter of 2026, up from $639 million in the third quarter of 2025, representing 5.9% year-over-year growth. Subscriptions revenue of $653 million increased 6.0% year-over-year and accounted for 97% of total revenue.

•Operating Income: GAAP operating income was $54 million, compared to $31 million in the same period last year. Non-GAAP operating income was $167 million, or 24.7% of total revenue, compared to $146 million, or 22.8% of total revenue, in the same period last year.

•Adjusted EBITDA: Adjusted EBITDA was $190 million, or 28.1% of total revenue, compared to $168 million, or 26.3% of total revenue, in the same period last year.

•Net Income Per Share: GAAP diluted EPS improved to $6.50, compared to $0.19 in the same period last year. GAAP diluted EPS, excluding the impact of valuation allowance release, was $0.28, up 47.4% year-over-year. Non-GAAP diluted EPS was $1.33, compared to $1.13 per share in the same period last year. The third 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 third quarter of 2026 was $180 million, or 26.6% of total revenue, compared to $151 million, or 23.7% of total revenue, for the third quarter of 2025. Free cash flow for the third quarter of 2026 was $157 million, or 23.2% of total revenue, compared to $130 million, or 20.3% of total revenue, for the third quarter of 2025.

•Cash and Cash Equivalents: Total cash and cash equivalents at the end of the third quarter of 2026 was $110 million. Our cash balance reflects the repurchase of $18 million in shares during the third quarter of 2026 under the share repurchase plans previously authorized by our Board. We currently have approximately $309 million remaining under our total authorization.

Additional Highlights

•Launched plugins for ChatGPT and Claude, including Claude for Small Business, and MCP connectors to make voice, SMS, and chat data available in LLMs. This enables bu

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