RingCentral (RNG) Q3 2025 earnings summary

Executive summary

• Achieved total revenue of $639 million in Q3 2025, up 5% year-over-year, with subscription revenue of $616 million, up 6%, and ARR reaching $2.63 billion, up 6% year-over-year.

• Returned to profitability with $17.6 million net income for Q3 2025, reversing a prior year loss, and delivered record operating margins and strong free cash flow.

• AI-led products are growing in strong double digits, with the portfolio approaching $100 million in ARR by year-end and significant innovation investment.

• Expanded product portfolio and partnerships, including the acquisition of CommunityWFM and expanded AT&T collaboration, reinforcing leadership in cloud business communications.

• Recognized as a leader in the 2025 Gartner Magic Quadrant for UCaaS and by Synergy Research, with over 500,000 customers in 46 countries.

Financial highlights

• Q3 2025 total revenue: $639 million, up 5% year-over-year; subscription revenue: $616 million, up 6%; ARR: $2.63 billion.

• Non-GAAP operating margin: 22.8%, up 180 basis points year-over-year; GAAP operating margin: 4.8%.

• Non-GAAP EPS: $1.13, up 19% year-over-year; GAAP net income per diluted share: $0.19, compared to a loss of $0.09 in Q3 2024.

• Free cash flow: $130 million in Q3 2025, up 23% year-over-year; free cash flow per share: $1.41.

• Cash and cash equivalents at quarter-end: $145 million after share repurchases.

Outlook and guidance

• Q4 2025 guidance: subscription revenue of $618–$626 million, total revenue of $638–$646 million, non-GAAP operating margin of 22.8%, non-GAAP EPS of $1.12–$1.15.

• FY 2025 guidance: subscription revenue growth of 5.5%–6%, total revenue growth of 4.5%–5%, non-GAAP operating margin of ~22.5%, non-GAAP EPS of $4.29–$4.33, free cash flow of $525–$530 million, and free cash flow per share of $5.71–$5.79.

• Fully diluted share count expected to decrease to 91.5–92 million in FY25.