Ringcentral Inc logo

Ringcentral Inc(RNG)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 43 days
PROFIT SINCE LAST BUY
+34.06% ▲
LAST CLOSE
$76.16
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for RNG

09/25/2026: RNG (1-star) has a low Upturn Star Rating. Not recommended to BUY.

RingCentral is a leading provider of cloud-based communications and contact center solutions that help businesses collaborate and manage customer interactions. The company has a solid position in the UCaaS market, supported by strong channel partnerships and a deep integration ecosystem. Its primary growth opportunity lies in leveraging AI across its product suite to increase value for existing enterprise clients. However, the company faces significant competitive risks from large software incumbents that bundle communication tools. With a recent pivot toward operational efficiency, RingCentral aims to achieve sustainable profitability, making it an option primarily for growth-oriented investors monitoring its execution against intensified competition.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company has shifted toward profitability but growth rates have moderated from historical peaks.
Momentum investorWeak fitThe stock has experienced significant volatility and is not currently showing sustained upward momentum.
Value investorMixed fitValuation multiples have compressed, potentially offering value if earnings growth accelerates.
Dividend investorWeak fitRingCentral does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitThe company carries significant execution and competitive risks, leading to higher-than-average volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is sensitive to interest rate changes and shifts in growth expectations for software companies.
Valuation riskMediumInvestors must weigh the company's improved profitability against its historical growth premiums.
Competition risk (AI competition)HighLarge platform providers are aggressively integrating AI features that compete directly with RingCentral's core offerings.
Business qualityMediumWhile the platform is sticky, the intense competitive landscape puts pressure on long-term margins.
Dividend incomeLow / noneThere is no expectation of dividend payments in the near future.
Execution riskMedium / highThe company must successfully manage its pivot to profitability while maintaining its competitive edge.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -27.67%
Avg. Invested days 31
Today’s Advisory Consider higher Upturn Star rating
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Upturn Advisory Performance Upturn Advisory Performance icon 1.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
RNG receives a 4-star rating, supported by solid unit economics, solid company fundamentals, and solid analyst coverage. The rating is constrained by limited analyst upside.

Company Fundamentals

★★★★★
RNG has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+174.4%) and strong cash generation (FCF margin 23.4%) are partially offset by moderate revenue growth (+4.8%), soft profitability (net margin 1.7%), modest insider ownership of 1.10%.

Financial Health Rating

★★★★★
RNG's financial health is supported by solid cash strength, including free-cash-flow generation (23.4% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is RNG's strongest growth driver at +174.4% FY2025 versus FY2024 (strong, 5 stars). By comparison, free-cash-flow growth (+46.8%, strong) is also strong, while revenue growth (+4.8%, moderate) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 119.0% and approximately 98.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.10% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 13.41%
Capital World Investors 13.27%
Vanguard Portfolio Management, LLC 8.66%
Ameriprise Financial Inc 6.71%
LSV Asset Management 4.76%

Unit Economics (Per $1K Revenue)

★★★★★
RNG generates approximately $712 of gross profit, $50 of operating income, and $234 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 22.84%

Quantitative Style Profile

★★★★★
RNG has a liquid profile. Valuation that is moderately attractive rather than deeply discounted is the primary drawback.

Style Classification

Quality Focused

Small / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 6.36B USD
Price to earnings Ratio 60.93
1Y Target Price 57.64
Price to earnings Ratio 60.93
1Y Target Price 57.64
Volume (30-day avg) 1.5M shares
Beta 1.15
52 Weeks Range 24.01 - 81.90
Updated Date 09/26/2026
52 Weeks Range 24.01 - 81.90
Updated Date 09/26/2026
Dividends yield (FY) 0.19%
Basic EPS (TTM) 1.25

How Company Makes Money

Business areaWhat it includesRetail investor read
Subscription RevenueRecurring fees from RingCentral MVP and RingCX cloud platform users.This is the primary source of steady income for the company.
Services and OtherProfessional services, implementation fees, and training.These revenues support long-term adoption of the platform.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 60.93
Forward PE 14.29
Enterprise Value 7.67B
Price to Sales(TTM) 2.46
Enterprise Value 7.67B
Price to Sales(TTM) 2.46
Enterprise Value to Revenue 2.97
Enterprise Value to EBITDA 18.75
Shares Outstanding 73.74M
Shares Floating 72.61M
Shares Outstanding 73.74M
Shares Floating 72.61M
Percent Insiders 1.1
Percent Institutions 118.97

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Ringcentral Inc

Exchange NYSE
Headquarters Belmont, CA, United States
IPO Launch date 2013-09-27
Co-Founder, CEO & Executive Chairman Mr. Vladimir G. Shmunis
Sector Technology
Industry Software - Application
Full time employees 7378
Full time employees 7378

RingCentral, Inc., an agentic voice AI"powered cloud business communication services provider, delivering an integrated platform for business phone, SMS, contact center, workforce engagement management, video collaboration, and messaging. The company's products include RingEX, a AI-powered unified communications as a service platform for collaboration across voice, messaging, and video; RingCentral Contact Center, a contact center solution that delivers AI-powered omni-channel and workforce engagement solutions; RingCentral Customer Engagement Bundle, a comprehensive solution that includes phone, messaging, and SMS for businesses; and RingCX, a contact center as a service solution for AI-powered customer engagement with CRM integrations. It also offers artificial intelligence (AI) solutions, such as AI Receptionist, a voice AI agent that automates and handles inbound communication; AI Virtual Assistant, which provides real time call and meeting summaries, capturing key points, open questions and action items; AI-based Quality Management, an automated conversation evaluation platform to identify compliance risks, coaching opportunities, and performance insights; AI Agent Assist, a real-time AI guidance for agents; AI Supervisor Assist, a real-time AI insights and recommendations for supervisors; and RingCentral Events, a virtual and hybrid events platform for multi-session conferences, branded experiences, registration, and attendee networking with AI-powered engagement tools. It serves a range of industries, including healthcare, financial and professional services, retail, state and local government, education, legal services, real estate, technology, insurance, construction and hospitality, and others. The company sells its products to enterprise customers, and small and medium-sized businesses through resellers and distributors, partners, and global service providers. RingCentral, Inc. was incorporated in 1999 and is headquartered in Belmont, California.