RingCentral Sets 2026 Revenue and Cash-Flow Outlook

The Tip Desk · October 27, 2026 · 3 min read

Subscriptions revenue reached $653 million, above the high end of guidance, as the company provided its full-year 2026 outlook.

RingCentral, Inc. (RNG), a global leader in AI-powered customer engagement, reported third-quarter subscriptions revenue of $653 million, up 6.0% from a year earlier and above the high end of its guidance.

Total revenue was $676 million, matching the 5.9% year-over-year growth rate the company posted in the second quarter. Subscriptions accounted for 97% of the total.

GAAP operating margin expanded to 8.0% from 4.8% a year earlier, continuing a sequential rise from 7.7% in the second quarter. Non-GAAP operating margin was 24.7%, up about 190 basis points year-over-year after a 90-basis-point year-over-year expansion in the prior quarter. GAAP operating income was $54 million, compared with $31 million a year earlier. Non-GAAP operating income was $167 million. Adjusted EBITDA was $190 million, or 28.1% of revenue.

GAAP diluted earnings were $6.50 a share, including a valuation-allowance release. Excluding that item, GAAP diluted EPS was $0.28, up 47.4% year-over-year. Non-GAAP diluted EPS was $1.33, compared with $1.13 a year earlier.

ARR from customers using a native paid AI product approached 15% of total ARR, doubling year-over-year, up from 13% in the second quarter. Founder, Chairman and CEO Vlad Shmunis said voice is central to the next wave of AI innovation and that the company’s communications platform and Agentic Voice AI portfolio put it at the front door of customer interactions.

The company launched plugins for ChatGPT and Claude, including Claude for Small Business, and MCP connectors to make voice, SMS, and chat data available in large language models. It expanded a partnership with the Golden State Warriors, signed Digital Island as its first New Zealand partner for Agentic Voice AI, and signed Allnet.Italia as a wholesale partner in Italy.

Free cash flow was $157 million, up 21.0% year-over-year, after a 24.8% year-over-year increase in the second quarter. Net cash provided by operating activities was $180 million. Cash and cash equivalents were $110 million at quarter-end. The company repurchased about 0.4 million shares for $18 million, leaving about $309 million remaining under its authorization.

Gross debt was reduced to approximately $1 billion, reaching the company’s target ahead of schedule, Chief Financial Officer Vaibhav Agarwal said. The board approved a quarterly cash dividend of $0.125 a share, payable November 20, 2026.

For the fourth quarter, RingCentral guides subscriptions revenue of $653 million to $659 million and total revenue of $673 million to $680 million. GAAP operating margin is guided at 13.3% to 14.7%, non-GAAP operating margin at 25.0% to 25.5%, and non-GAAP EPS at $1.32 to $1.37 on about 88.7 million fully diluted shares. Share-based compensation is guided at $57 million to $62 million.

The company’s full-year 2026 outlook calls for subscriptions revenue of $2.563 billion to $2.569 billion and total revenue of $2.650 billion to $2.657 billion. GAAP operating margin is now guided at 9.2% to 9.6% and non-GAAP operating margin at about 24.0% to 24.2%. Non-GAAP EPS is guided at $5.07 to $5.12 on 87.5 million fully diluted shares. Free cash flow guidance is $620 million to $630 million. Full-year share-based compensation is $240 million to $245 million.