RingCentral Announces Third Quarter 2026 Financial Results
RingCentral beat the high end of guidance with Q3 subscriptions revenue of $653 million, up 6.0% year-over-year, and total revenue of $676 million, up 5.9%. Margins hit records: GAAP operating margin reached 8.0% and non-GAAP 24.7%, while free cash flow grew 21% to $157 million. ARR from customers using a native paid AI product is approaching 15% of total, doubling year-over-year. The company reduced gross debt to approximately $1 billion ahead of schedule, repurchased $18 million of stock, and declared a $0.125 quarterly dividend.
Key figures
- Eps
- $6.50 GAAP diluted ($0.28 ex-valuation-allowance release); $1.33 non-GAAP
- Revenue
- 676000000
- Guidance
- FY26 total revenue raised to $2.650B-$2.657B; subscriptions $2.563B-$2.569B; non-GAAP operating margin ~24.0-24.2%; non-GAAP EPS $5.07-$5.12; free cash flow $620-$630M. Q4: total revenue $673-$680M, non-GAAP EPS $1.32-$1.37
- Revenue Yoy
- 5.9%
- Fcf
- 157000000
- Fcf yoy
- 21.0%
- Gross debt
- $1 billion (approx.)
- Ai arr share
- approaching 15%, doubling year-over-year
- Adjusted ebitda
- 190000000
- Buyback quarter
- $18 million (0.4 million shares)
- Dividend per share
- $0.125 quarterly
- Operating cash flow
- 180000000
- Cash and equivalents
- 110000000
- Gaap operating margin
- 8.0%
- Subscriptions revenue
- 653000000
- Non gaap operating margin
- 24.7%
- Subscriptions revenue yoy
- 6.0%
- Remaining buyback authorization
- $309 million
AI analysis
Red flags2 · Pro
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.