Overview

* RingCentral ( RNG ) Q3 revenue grows 5% yr/yr, beating analyst expectations

* Company repurchased $117 mln of stock in Q3, reflecting strong cash flow

* Free cash flow rises 23% yr/yr, boosting financial outlook

Outlook

* RingCentral ( RNG ) raises 2025 free cash flow outlook of $525 mln to $530 mln

* Company sees Q4 2025 total revenue of $638 mln to $646 mln

* RingCentral expects Q4 2025 non-GAAP EPS of $1.12 to $1.15

Result Drivers

* SUBSCRIPTION REVENUE - Subscription revenue increased 6% yr/yr to $616 mln, driving overall revenue growth

* OPERATING MARGINS - Improved GAAP operating margin to 4.8% from 0.5% last yr, reflecting cost management

* AI PRODUCT EXPANSION - Launched new AI products, including AI Receptionist and AI Virtual Assistant, enhancing product portfolio

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $638.65 $635.56

Revenue mln mln (16

Analysts

)

Q3 Net $17.55

Income mln

Q3 Gross $458.32

Profit mln

Q3 $30.80

Income mln

from

Operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for RingCentral Inc ( RNG ) is $32.00, about 5.9% above its October 31 closing price of $30.12

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)