RingCentral Announces First Quarter 2026 Financial Results

Total Revenue of $644 million, at higher end of guidance

Record GAAP operating margin of 7.8% and non-GAAP operating margin of 22.9%

ARR from customers utilizing paid AI products is over 10% of total ARR, doubling year over year

Raising full year outlook on revenue, margins and free cash flow

RingCentral, Inc. (NYSE:RNG), a global leader in AI-powered customer engagement, today announced financial results for the first quarter ended March 31, 2026.

First Quarter Financial Highlights

• Subscriptions revenue increased approximately 6% year-over-year to $623 million.
• Total revenue increased approximately 5% year-over-year to $644 million.
• GAAP operating margin of 7.8%, compared to 1.7% in the prior year.
• Non-GAAP operating margin of 22.9%, up 110 basis points year-over-year.
• GAAP EPS of $0.35 compared to $(0.11) last year.
• Net cash provided by operating activities of $164 million, up 9.6% year-over-year.
• Free cash flow of $141 million, up 8.0% year over year.
• Reduced stock-based compensation expense as a percentage of revenue by 420 basis points year-over-year.
• Repurchased approximately 2.6 million shares for a total of $81 million.
• Repaid $609 million aggregate principal amount of Convertible Senior Notes due 2026 upon maturity in March. Currently, the Company has no debt maturities due until 2030.

"We delivered another solid quarter, with revenue at the high end of our guidance, record operating margins, and strong free cash flow," said Vlad Shmunis, founder and CEO of RingCentral. "We are delivering an AI-first customer engagement platform at-scale, enabling AI and human agents to work together across every modality and device. Our native AI products continue to gain traction, with ARR from customers using at least one paid AI product standing at over 10% of total ARR, and doubling year-over-year. These results, combined with our strong R&D muscle, commitment to innovation, and scaled GTM give us confidence to raise our full year outlook on revenue, margins, and free cash flow."

RingCentral Declares a Dividend

RingCentral declared a quarterly cash dividend of $0.075 per share of its outstanding capital stock, payable on June 11, 2026 to stockholders of record as of the close of business on June 2, 2026.

Financial Results for the First Quarter 2026

• Revenue: Total revenue was $644 million for the first quarter of 2026, up from $612 million in the first quarter of 2025, representing 5% year-over-year growth. Subscriptions revenue of $623 million increased 6% year-over-year and accounted for 97% of total revenue.
• Operating Income: GAAP operating income was $50 million, compared to $10 million in the same period last year. Non-GAAP operating income was $147 million, or 22.9% of total revenue, compared to $133 million, or 21.8% of total revenue, in the same period last year.
• Adjusted EBITDA: Adjusted EBITDA was $170 million, or 26.3% of total revenue, compared to $155 million, or 25.3% of total revenue, in the same period last year.
• Net Income (Loss) Per Share: GAAP net income per diluted share improved to $0.35, compared to ($0.11) in the same period last year. Diluted non-GAAP net income per share was $1.20, compared to $1.00 per share in the same period last year. The first 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 first quarter of 2026 was $164 million, or 25.5% of total revenue, compared to $150 million, or 24.5% of total revenue, for the first quarter of 2025. Free cash flow for the first quarter of 2026 was $141 million, or 21.8% of total revenue, compared to $130 million, or 21.3% of total revenue, for the first quarter of 2025.
• Cash and Cash Equivalents: Total cash and cash equivalents at the end of the first quarter of 2026 was $117 million. Our cash balance reflects the repurchase of $81 million in shares during the first quarter of 2026 under the share repurchase plans previously authorized by our Board. We currently have approximately $418 million remaining under our total authorization.

Additional Highlights

Product Innovation

• Announced RingCentral AIR Pro™ and AIR Pro for Healthcare, a voice-first, omnichannel AI agent platform, which enables anyone to design, build, and deploy voice and digital AI agents in minutes using natural language.
• Announced the availability of Branded Messaging through Rich Communication Services (RCS) and Enterprise Branded Calling. This enables businesses to deliver rich, branded messaging and calling experiences, with verified business identities, all within the recipient's native messaging app.
• Announced expanded global messaging with SMS in UK and Australia and launched support for SMS notifications across 190 countries.
• Announced AI Receptionist (AIR) for SMS and call queues, expanding AIR into a cross-channel automation layer that spans both voice and SMS.
• Announced Customer Engagement Bundle (CEB) for Microsoft Teams, which brings lightweight contact center capabilities into the Teams environment.

GTM Highlights

• Cox Business Announced New AI-First Contact Center Solution Powered by RingCentral, which introduces an AI-first, omni-channel platform designed to help organizations modernize customer engagement.
• RingCentral announced a partnership expansion with Spectrum Business to make RingCX and AI Conversation Expert (ACE) available to Spectrum Business customers.

Industry Recognition

• RingCentral was named a Leader in the IDC MarketScape: Worldwide Communications Engagement Platforms 2026, recognized for its unified UCaaS, CCaaS, and CPaaS architecture and deep AI integration.
• RingCentral was recognized as a Leader in the Omdia Universe: Customer Engagement Platforms, 2026 report, advancing from Challenger in the prior year's report, and received a best-in-class 99% score for Vendor Execution.
• RingCentral was named a Top CCaaS Provider in Metrigy's 2026 MetriStar Report and is one of only three providers to earn a 2026 Top Provider Award for CCaaS and WEM.

Financial Outlook

Second Quarter 2026 Guidance:

• Subscriptions revenue of $628 to $633 million.
• Total revenue of $648 to $653 million.
• GAAP operating margin of 6.6% to 7.6%.
• Non-GAAP operating margin of 23.0% to 23.2%
• Non-GAAP EPS of $1.15 to $1.17 based on approximately 87.0 million fully diluted shares.
• Share-based compensation of $58 to $62 million.

Our full year 2026 guidance is:

• Raising subscriptions revenue range to $2.54 billion to $2.56 billion.
• Raising total revenue range to $2.62 billion to $2.64 billion.
• Raising GAAP operating margin of 8.9% to 9.6%.
• Raising non-GAAP operating margin of approximately 23.3% to 23.7%.
• Raising non-GAAP EPS of $4.85 to $5.01 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 $590 to $605 million.

Conference Call Details:

• What: RingCentral financial results for the first quarter of 2026 and outlook for the second quarter and full year of 2026.
• When: Thursday, May 7, 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 the contribution of our new products, and our expectations around the demand for our products. 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 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; 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, 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, change in fair-value of contingent consideration, 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 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, 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 future conversion 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.

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Investor Relations Contact:

Steven Horwitz

ir@ringcentral.com



Media Contact:

Mariana Leventis, RingCentral

Mariana.Leventis@ringcentral.com