Overview

* RingCentral Q2 2025 revenue rises 5% yr/yr, beating analyst expectations

* GAAP net income margin improves to 2.1%

* Co promotes Vaibhav Agarwal to Chief Financial Officer

Outlook

* RingCentral ( RNG ) sees Q3 total revenue of $631 mln to $639 mln

* Company raises full-year free cash flow guidance to $515 mln to $520 mln

* RingCentral ( RNG ) expects Q3 non-GAAP EPS of $1.06 to $1.08

* Company raises full-year GAAP operating margin to 4.8% to 5.5%

Result Drivers

* AI ADOPTION - Co attributes growth to increased adoption of AI-powered products, including AI Receptionist, which tripled its customer base

* UCaaS AND CCaaS LEADERSHIP - RingCentral ( RNG ) cites leadership in UCaaS and momentum in CCaaS as key drivers of Q2 performance

* PARTNERSHIP EXTENSION - Extended partnership with NiCE expected to enhance AI-powered customer experiences

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $620.40 $617.80

Revenue mln mln (16

Analysts

)

Q2 Net $13.19

Income mln

Q2 Gross $441.45

Profit mln

Q2 $36.96

Income mln

from

Operatio

ns

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 13 "hold" and 1 "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 $30.00, about 20.7% above its August 4 closing price of $23.79

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(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.)