RingCentral Q2 revenue beats estimates

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 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 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 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

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 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: ID:nBwb9xkq9a