RingCentral (RNG) Q4 2025 earnings summary

Executive summary

• Achieved $2.52 billion in total revenue for 2025, up 5% year-over-year, with over 500,000 customers in 46 countries and a >99% monthly net retention rate.

• AI-driven products contributed nearly 10% of ARR, more than doubling year-over-year, with strong adoption and sequential growth in new product customers.

• Record free cash flow of $530 million, up 32% year-over-year, and positive GAAP operating margin.

• Initiated first-ever quarterly dividend of $0.075 per share and expanded share repurchase authorization to $500 million.

• AI-led transformation is a strategic priority, with agentic voice AI products driving higher ARPU, retention, and customer value.

Financial highlights

• FY25 total revenue grew 4.8% to $2.52 billion; subscription revenue up 5.6% to $2.43 billion.

• Q4 2025 total revenue was $644 million, up 4.8% year-over-year; subscription revenue was $622 million, up 5.5%.

• Q4 non-GAAP operating margin reached 22.8%, up 140 bps year-over-year; GAAP operating margin 6.6%.

• Non-GAAP EPS for 2025 grew 18% to $4.36; GAAP EPS $0.48; Q4 non-GAAP EPS was $1.18, up 21% year-over-year.

• Record free cash flow of $530 million, up 32% year-over-year, representing a 21% margin.

Outlook and guidance

• 2026 guidance: subscription revenue growth of 4.5%-5.5%, total revenue growth of 4%-5%.

• GAAP operating margin expected at 8.6%-9.6%; non-GAAP margin 23%-23.5%.

• Free cash flow guidance of $580-$600 million, up 11% at midpoint; free cash flow per share $6.67-$6.94.

• Non-GAAP EPS expected at $4.76-$4.97, up 11% at midpoint.

• Targeting 20% GAAP operating margin and 3%-4% SBC as % of revenue in 3-4 years.