# Ringcentral (RNG.US)

Canonical: https://gigainvestors.com/s/RNG

Analysis as of: 2026-10-16T07:31:37.773Z. Financial observations: FY2010–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $79.94 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 8

- Operating margin variation: 1.56×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.05×

- FY2018: -0.02×

- FY2019: -0.05×

- FY2020: -0.10×

- FY2021: -0.19×

- FY2022: -0.33×

- FY2023: -0.09×

- FY2024: 0.00×

- FY2025: 0.05×

- LTM to Jun 2026: 0.07×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -13.3%

- ROIC, second-lowest year: -19.7%

- Typical minus recent gross margin: 1.7 pp

- Typical gross margin (annual median): 72.3%

- Recent gross margin (lower of latest and 3-year median): 70.6%

- Years with nonpositive capital: 2

- Capital spending / revenue: 5.0%

- ROIC including acquisitions, ten-year median: -14.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -14.1%

- FY2017: -12.5%

- FY2018: -15.0%

- FY2019: -4.6%

- FY2020: -8.3%

- FY2021: -16.3%

- FY2022: -59.0%

- FY2023: -19.7%

- FY2024: 0.3%

- FY2025: 14.7%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.0B

- Net income, five-year total: -$1.4B

- Return on incremental invested capital: 87.0%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 5.8 pp

- Working capital / revenue, final three-year average: 14.5%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$596M

- FY2022: -$723M

- FY2023: -$7.0M

- FY2024: $81M

- FY2025: $236M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -14.1% vs 0.3%

- Per-share earnings: -0.40 to -0.63 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.7%

- Ordinary dilution, 5-year annual growth: 0.6%

- Market cap gain: $1.1B

- Cumulative retained earnings: -$1.5B

- Diluted shares, 10-year annual growth: 2.7%

- Diluted shares, 5-year annual growth: 0.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.23

- Per-share value, starting three-year median: -$0.40

- Per-share value, ending three-year median: -$0.63

- Buybacks concentrated in cheaper years (correlation): -0.02

- Average buyback yield: 3.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $116M

- Cumulative net income, 10 years: -$1.7B

- ROIC, first three-year median: -14.1%

- ROIC, last three-year median: 0.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: -$0.40

- FY2017: -$0.34

- FY2018: -$0.33

- FY2019: -$0.64

- FY2020: -$0.94

- FY2021: -$4.10

- FY2022: -$9.23

- FY2023: -$1.74

- FY2024: -$0.63

- FY2025: $0.48

### accounting: fail

- restructuring or one-time charges in at least three of five years

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -38.7%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 4

- Stock compensation / operating cash flow: 43.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 14.23×

- Accounting red flags: 2

Chart: Sloan accruals; fiscal year observations.

- FY2016: -23.4%

- FY2017: -22.1%

- FY2018: -11.0%

- FY2019: -8.2%

- FY2020: -2.2%

- FY2021: -20.5%

- FY2022: -51.6%

- FY2023: -29.0%

- FY2024: -30.4%

- FY2025: -38.7%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 67% since Oct 2021 · "RingCentral's Profitability, FCF Improve; Growth Still Constrained by Enterprise Renewals, Morgan Stanley Says" (finance.yahoo.com, Nov 2025) · sales +2.7%

Story as of 2026-10-16T09:59:30.961Z; price observation 2026-10-15.

- 2025-08-06: RingCentral raises 2025 free cash flow outlook to $520M while expanding AI-driven product suite ([seekingalpha.com](https://seekingalpha.com/news/4479405-ringcentral-raises-2025-free-cash-flow-outlook-to-520m-while-expanding-ai-driven-product?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-04: RNG Q3 Deep Dive: AI Product Growth Offsets Cautious Outlook for Next Quarter ([finance.yahoo.com](https://finance.yahoo.com/news/rng-q3-deep-dive-ai-134616650.html))

- 2026-02-20: Update: RingCentral Q4 Earnings, Sales Rise; Q1 EPS Guidance Beats; Shares Jump Over 37% ([finance.yahoo.com](https://finance.yahoo.com/news/ringcentral-q4-earnings-sales-rise-153209407.html))

- 2026-05-21: RingCentral AIR Expansion And Growing Adoption Meet Valuation Gap Narrative ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ringcentral-air-expansion-growing-adoption-051344687.html))

- 2026-07-24: RingCentral (RNG) Soars 27% After Crushing Q2 Estimates, Boosts Dividends 67% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ringcentral-rng-soars-27-crushing-180220094.html))

- 2026-09-21: RingCentral Sees AI Driving Upsell, Growth and Stronger Customer Retention ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/ringcentral-sees-ai-driving-upsell-120202841.html))

### Sales · FY2025–2026

sales +2.7%; source https://www.sec.gov/Archives/edgar/data/1384905/000138490526000021/rng-20251231.htm; observed 2026-02-27.

- FY2017: $502M 

- FY2018: $674M 

- FY2019: $903M 

- FY2020: $1.2B 

- FY2021: $1.6B 

- FY2022: $2.0B 

- FY2023: $2.2B 

- FY2024: $2.4B 

- FY2025: $2.5B 

- FY2026: $2.6B 

### Gross margin · FY2025

gross margin 71.2%; source https://www.sec.gov/Archives/edgar/data/1384905/000138490526000021/rng-20251231.htm; observed 2026-02-27.

- FY2016: 75.7% 

- FY2017: 75.8% 

- FY2018: 76.7% 

- FY2019: 74.4% 

- FY2020: 72.7% 

- FY2021: 71.9% 

- FY2022: 67.7% 

- FY2023: 69.8% 

- FY2024: 70.6% 

- FY2025: 71.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 2.5 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1384905/000138490526000021/rng-20251231.htm (filed 2026-02-27); FY2025: revenue 2515142000; grossProfit 1791136000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RNG.US: 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.

### Why customers stay

Margins ranged from 69.8% to 71.2% during 2023–25; it lost 13.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 69.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 70.6%.

- Source: https://www.sec.gov/Archives/edgar/data/1384905/000138490526000021/rng-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = 71.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,-0.1413332230356675],[2017,-0.12512775693662095],[2018,-0.14994618564796638],[2019,-0.04647088747794506],[2020,-0.0833920391517129],[2021,-0.16270430259427748],[2022,-0.5904318181818182],[2023,-0.1967604571597516],[2024,0.0030021562920316824],[2025,0.14678781491038836]]; median -0.13323048998614423. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 8.8% of cash earnings; earns 87% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: growth capex 0; upkeep 83068000; cash acquisitions 26291000; owner earnings 81253000. Growth capex plus acquisitions / owner earnings = 0.32356959127662976.

- Source: https://www.sec.gov/Archives/edgar/data/1384905/000138490526000021/rng-20251231.htm (filed 2026-02-27); FY2025: growth capex 0; upkeep 30104000; cash acquisitions 20754000; owner earnings 235890000. Growth capex plus acquisitions / owner earnings = 0.08798168637924457.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Incremental return on capital 0.8703967923989013, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,0],[2017,0],[2018,449457000],[2019,14666000],[2020,36717000],[2021,21549000],[2022,0],[2023,1140200000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1384905/000138490526000021/rng-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 334446000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RNG.US SharesStats.PercentInsiders = 1.048 percentage points; cache date 2026-10-16.

### What the price says

The price is 2.9 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Closing price 79.94 USD; reporting-to-trading FX 1; FY2025 annual sales per share 27.574078540574913; price multiple 2.8990995975575133. FY2025 cash earnings/share 2.5861161663779684. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $20.70 per share

- 2016-11: $21.55 per share

- 2016-12: $20.60 per share

- 2017-01: $23.35 per share

- 2017-02: $26.70 per share

- 2017-03: $28.30 per share

- 2017-04: $31.95 per share

- 2017-05: $34.10 per share

- 2017-06: $36.55 per share

- 2017-07: $34.80 per share

- 2017-08: $42.35 per share

- 2017-09: $41.75 per share

- 2017-10: $42.15 per share

- 2017-11: $47.15 per share

- 2017-12: $48.40 per share

- 2018-01: $54.30 per share

- 2018-02: $62.65 per share

- 2018-03: $63.50 per share

- 2018-04: $67.05 per share

- 2018-05: $75.75 per share

- 2018-06: $70.35 per share

- 2018-07: $73.75 per share

- 2018-08: $93.15 per share

- 2018-09: $93.05 per share

- 2018-10: $77.73 per share

- 2018-11: $82.90 per share

- 2018-12: $82.44 per share

- 2019-01: $92.44 per share

- 2019-02: $105.29 per share

- 2019-03: $107.80 per share

- 2019-04: $116.37 per share

- 2019-05: $119.85 per share

- 2019-06: $114.92 per share

- 2019-07: $141.98 per share

- 2019-08: $141.13 per share

- 2019-09: $125.66 per share

- 2019-10: $161.52 per share

- 2019-11: $172.47 per share

- 2019-12: $168.67 per share

- 2020-01: $205.58 per share

- 2020-02: $235.75 per share

- 2020-03: $211.91 per share

- 2020-04: $228.53 per share

- 2020-05: $274.25 per share

- 2020-06: $285.01 per share

- 2020-07: $290.27 per share

- 2020-08: $290.77 per share

- 2020-09: $274.61 per share

- 2020-10: $258.34 per share

- 2020-11: $297.05 per share

- 2020-12: $378.97 per share

- 2021-01: $372.92 per share

- 2021-02: $378.16 per share

- 2021-03: $297.88 per share

- 2021-04: $318.95 per share

- 2021-05: $262.47 per share

- 2021-06: $290.58 per share

- 2021-07: $267.27 per share

- 2021-08: $252.26 per share

- 2021-09: $217.50 per share

- 2021-10: $243.78 per share

- 2021-11: $215.98 per share

- 2021-12: $187.35 per share

- 2022-01: $176.49 per share

- 2022-02: $130.84 per share

- 2022-03: $117.21 per share

- 2022-04: $84.85 per share

- 2022-05: $63.14 per share

- 2022-06: $52.26 per share

- 2022-07: $49.49 per share

- 2022-08: $43.04 per share

- 2022-09: $39.96 per share

- 2022-10: $35.52 per share

- 2022-11: $37.06 per share

- 2022-12: $35.40 per share

- 2023-01: $39.03 per share

- 2023-02: $33.04 per share

- 2023-03: $30.67 per share

- 2023-04: $27.56 per share

- 2023-05: $34.70 per share

- 2023-06: $32.73 per share

- 2023-07: $41.36 per share

- 2023-08: $30.93 per share

- 2023-09: $29.63 per share

- 2023-10: $26.58 per share

- 2023-11: $28.46 per share

- 2023-12: $33.95 per share

- 2024-01: $33.89 per share

- 2024-02: $33.42 per share

- 2024-03: $34.74 per share

- 2024-04: $29.62 per share

- 2024-05: $34.20 per share

- 2024-06: $28.20 per share

- 2024-07: $35.05 per share

- 2024-08: $33.33 per share

- 2024-09: $31.63 per share

- 2024-10: $36.01 per share

- 2024-11: $37.63 per share

- 2024-12: $35.01 per share

- 2025-01: $34.82 per share

- 2025-02: $28.45 per share

- 2025-03: $24.76 per share

- 2025-04: $25.50 per share

- 2025-05: $25.93 per share

- 2025-06: $28.35 per share

- 2025-07: $25.49 per share

- 2025-08: $30.51 per share

- 2025-09: $28.34 per share

- 2025-10: $30.12 per share

- 2025-11: $28.24 per share

- 2025-12: $28.88 per share

- 2026-01: $25.88 per share

- 2026-02: $36.45 per share

- 2026-03: $37.19 per share

- 2026-04: $40.22 per share

- 2026-05: $43.31 per share

- 2026-06: $38.98 per share

- 2026-07: $55.62 per share

- 2026-08: $69.62 per share

- 2026-09: $74.70 per share

- 2026-10: $79.94 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1384905/000138490526000021/rng-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.