RingCentral (RNG)
Market Price (2/20/2026): $31.19 | Market Cap: $2.8 BilSector: Information Technology | Industry: Application Software
RingCentral (RNG)
Market Price (2/20/2026): $31.19Market Cap: $2.8 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 24%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 21% | Weak multi-year price returns2Y Excs Rtn is -47%, 3Y Excs Rtn is -98% | Expensive valuation multiplesP/EPrice/Earnings or Price/(Net Income) is 200x |
| Attractive yieldFCF Yield is 19% | Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 12% | |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), Unified Communications as a Service (UCaaS), Show more. | Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.8% | |
| Key risksRNG key risks include [1] a weak competitive moat, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 24%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 21% |
| Attractive yieldFCF Yield is 19% |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Future of Work. Themes include Software as a Service (SaaS), Unified Communications as a Service (UCaaS), Show more. |
| Weak multi-year price returns2Y Excs Rtn is -47%, 3Y Excs Rtn is -98% |
| Expensive valuation multiplesP/EPrice/Earnings or Price/(Net Income) is 200x |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 12% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.8% |
| Key risksRNG key risks include [1] a weak competitive moat, Show more. |
Qualitative Assessment
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1. Consistent, but Moderate Financial Performance and Future Guidance.
RingCentral demonstrated consistent, albeit moderate, financial growth during the period. The company reported Q3 2025 adjusted earnings per share (EPS) of $1.13, surpassing analyst expectations of $0.83 by 36.14%. Total revenue for Q3 2025 grew 5% year-over-year to $639 million, also exceeding estimates. For Q4 2025, announced on February 19, 2026, RingCentral again beat EPS estimates with an actual $1.18 compared to an expectation of $1.14. Q4 2025 total revenue increased 5% year-over-year to $644 million. However, the full-year 2025 total revenue growth was 4.8% to $2.52 billion, and the company issued a full-year 2026 guidance for total revenue growth of 4% to 5%. This steady, rather than accelerating, growth trajectory likely contributed to a stable stock performance.
2. Mixed Analyst Sentiment and Price Targets.
Analyst ratings for RingCentral remained largely balanced, contributing to the stock's stable trend. The consensus rating for RNG was "Hold" throughout the period, with an average price target of approximately $31.46 as of February 19, 2026. While some analysts, such as Needham & Company LLC, reaffirmed "buy" ratings with a $36.00 price objective in November 2025, others like Zacks Research downgraded the stock to a "strong sell" in February 2026. Morgan Stanley also cut its price target from $31.00 to $30.00 in January 2026. This divergence in expert opinion created a neutral pressure on the stock, preventing significant movements in either direction.
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Stock Movement Drivers
Fundamental Drivers
The -2.4% change in RNG stock from 10/31/2025 to 2/19/2026 was primarily driven by a -4.2% change in the company's P/S Multiple.| (LTM values as of) | 10312025 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 30.12 | 29.39 | -2.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,456 | 2,486 | 1.2% |
| P/S Multiple | 1.1 | 1.1 | -4.2% |
| Shares Outstanding (Mil) | 91 | 90 | 0.6% |
| Cumulative Contribution | -2.4% |
Market Drivers
10/31/2025 to 2/19/2026| Return | Correlation | |
|---|---|---|
| RNG | -2.4% | |
| Market (SPY) | 0.4% | 38.2% |
| Sector (XLK) | -6.7% | 35.1% |
Fundamental Drivers
The 15.3% change in RNG stock from 7/31/2025 to 2/19/2026 was primarily driven by a 11.6% change in the company's P/S Multiple.| (LTM values as of) | 7312025 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 25.49 | 29.39 | 15.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,428 | 2,486 | 2.4% |
| P/S Multiple | 1.0 | 1.1 | 11.6% |
| Shares Outstanding (Mil) | 91 | 90 | 1.0% |
| Cumulative Contribution | 15.3% |
Market Drivers
7/31/2025 to 2/19/2026| Return | Correlation | |
|---|---|---|
| RNG | 15.3% | |
| Market (SPY) | 8.6% | 37.1% |
| Sector (XLK) | 6.9% | 31.5% |
Fundamental Drivers
The -15.6% change in RNG stock from 1/31/2025 to 2/19/2026 was primarily driven by a -21.5% change in the company's P/S Multiple.| (LTM values as of) | 1312025 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 34.82 | 29.39 | -15.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,357 | 2,486 | 5.5% |
| P/S Multiple | 1.4 | 1.1 | -21.5% |
| Shares Outstanding (Mil) | 92 | 90 | 1.9% |
| Cumulative Contribution | -15.6% |
Market Drivers
1/31/2025 to 2/19/2026| Return | Correlation | |
|---|---|---|
| RNG | -15.6% | |
| Market (SPY) | 14.7% | 51.1% |
| Sector (XLK) | 22.1% | 48.3% |
Fundamental Drivers
The -24.7% change in RNG stock from 1/31/2023 to 2/19/2026 was primarily driven by a -45.4% change in the company's P/S Multiple.| (LTM values as of) | 1312023 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 39.03 | 29.39 | -24.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,912 | 2,486 | 30.0% |
| P/S Multiple | 2.0 | 1.1 | -45.4% |
| Shares Outstanding (Mil) | 96 | 90 | 6.0% |
| Cumulative Contribution | -24.7% |
Market Drivers
1/31/2023 to 2/19/2026| Return | Correlation | |
|---|---|---|
| RNG | -24.7% | |
| Market (SPY) | 74.7% | 45.4% |
| Sector (XLK) | 110.5% | 40.6% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RNG Return | -51% | -81% | -4% | 3% | -18% | 2% | -92% |
| Peers Return | -4% | -48% | 15% | -6% | -4% | -1% | -49% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 83% |
Monthly Win Rates [3] | |||||||
| RNG Win Rate | 33% | 8% | 42% | 42% | 50% | 50% | |
| Peers Win Rate | 52% | 30% | 58% | 52% | 53% | 30% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| RNG Max Drawdown | -53% | -85% | -29% | -21% | -39% | -14% | |
| Peers Max Drawdown | -26% | -57% | -19% | -31% | -28% | -14% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MSFT, ZM, CSCO, FIVN, EGHT. See RNG Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 2/19/2026 (YTD)
How Low Can It Go
| Event | RNG | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -94.3% | -25.4% |
| % Gain to Breakeven | 1652.1% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -44.1% | -33.9% |
| % Gain to Breakeven | 79.0% | 51.3% |
| Time to Breakeven | 35 days | 148 days |
| 2018 Correction | ||
| % Loss | -28.9% | -19.8% |
| % Gain to Breakeven | 40.6% | 24.7% |
| Time to Breakeven | 80 days | 120 days |
Compare to MSFT, ZM, CSCO, FIVN, EGHT
In The Past
RingCentral's stock fell -94.3% during the 2022 Inflation Shock from a high on 2/12/2021. A -94.3% loss requires a 1652.1% gain to breakeven.
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About RingCentral (RNG)
AI Analysis | Feedback
Here are 1-3 brief analogies to describe RingCentral (RNG):
- The Salesforce for business communications.
- Cisco, but purely for cloud-based business communication software.
- The Workday for business communications.
AI Analysis | Feedback
- RingCentral MVP™ (Message, Video, Phone): Their flagship Unified Communications as a Service (UCaaS) platform, providing a comprehensive suite of cloud-based business phone, video conferencing, and team messaging capabilities.
- RingCentral Contact Center™: A cloud-based omnichannel contact center solution designed to manage customer interactions across voice, email, chat, and social media channels efficiently.
- RingCentral Events™: A platform for managing and hosting virtual, hybrid, and in-person events, offering tools for registration, engagement, and post-event analytics.
AI Analysis | Feedback
RingCentral (symbol: RNG) primarily sells its unified communications as a service (UCaaS) solutions to other businesses (B2B), ranging from small and medium-sized businesses (SMBs) to large enterprises. The company does not primarily sell to individuals.
While RingCentral serves a vast number of direct enterprise customers globally, its major strategic customer relationships are often with large telecommunications providers and technology companies. These partners integrate and resell RingCentral's platform under their own brands or co-branded solutions, representing significant revenue channels for RingCentral by extending its reach to millions of business customers.
The following are major customer companies and strategic partners through which RingCentral delivers its services:
- AT&T (NYSE: T) - Powers AT&T Office@Hand, a leading UCaaS solution for AT&T's business customers.
- BT Group PLC (LSE: BT.A; OTC: BTGOF) - Powers BT Cloud Work with RingCentral, serving businesses in the UK and internationally.
- Telus Corporation (TSX: T; NYSE: TU) - Powers TELUS Business Connect, a key offering for Telus's business clients in Canada.
- Vodafone Group PLC (LSE: VOD; NASDAQ: VOD) - Powers Vodafone Business UC with RingCentral, expanding RingCentral's presence across Vodafone's European and global business markets.
- Mitel (Private Company) - A strategic partnership formed to provide Mitel's cloud customers with access to RingCentral's Message Video Phone (MVP) platform.
- Avaya (Private Company) - A strategic partnership to deliver Avaya Cloud Office by RingCentral, offering Avaya's customers a robust cloud communications solution.
These companies are crucial partners through which RingCentral extends its market reach and generates substantial revenue by providing its core UCaaS technology for their respective business customer bases.
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- Amazon.com, Inc. (AMZN)
- Alphabet Inc. (GOOGL)
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Vlad Shmunis, Founder, Chairman, and Chief Executive Officer
Vlad Shmunis co-founded RingCentral in 1999. Prior to RingCentral, he founded and served as CEO of Ring Zero Systems, an enterprise communications software company, which was acquired by Motorola in 1998. He holds a Bachelor's and Master's degree in Computer Science from San Francisco State University.
Vaibhav Agarwal, Deputy CFO & Chief Accounting Officer
Vaibhav Agarwal serves as the Deputy CFO & Chief Accounting Officer at RingCentral.
Mo Katibeh, President and Chief Operating Officer
Mo Katibeh joined RingCentral in January 2022 as President and Chief Operating Officer. Before joining RingCentral, he spent two decades at AT&T, where he held several senior executive roles, including Executive Vice President and Chief Product & Platform Officer, and EVP Chief Marketing Officer of AT&T Business. During his time at AT&T, he oversaw a $36 billion annual revenue stream and led significant initiatives such as one of the largest 5G and Broadband deployments globally. Forbes recognized him as one of the World's Most Influential CMOs in 2019 and 2020.
Vlad Vendrow, Co-Founder and Chief Technology Officer
Vlad Vendrow co-founded RingCentral with Vlad Shmunis in 1999. He previously worked as an engineer at RingZero and Motorola.
Srini Raghavan, Chief Product Officer
Srini Raghavan is the Chief Product Officer at RingCentral, responsible for the company's product strategy and innovation. His career includes senior roles at Five9 and Cisco, where he specialized in product management, artificial intelligence, and corporate strategy.
AI Analysis | Feedback
The key risks to RingCentral's business include intense competition, reliance on third-party services and partnerships, and concerns regarding its financial health and profitability.
- Intense Competition: RingCentral operates in a highly competitive market for Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) solutions. The company faces significant competition from major players such as Microsoft (Teams), Zoom, Cisco, 8x8, LogMeIn, Dialpad, Twilio, and Nextiva. Competitors with larger economies of scale, like Microsoft Teams, have the potential to offer more comprehensive services at lower costs, which could lead to a loss of market share for RingCentral and hinder its growth. Analysts have also noted RingCentral's lack of a strong, enduring competitive moat.
- Reliance on Third-Party Services and Partnerships: RingCentral's business relies significantly on third-party providers for delivering essential services such as video, contact center, and SMS solutions. These external dependencies include partnerships with companies like Zoom Communications, NICE Ltd., Bandwidth.com, and Microsoft. Any alterations to or termination of these partnerships could have adverse effects on RingCentral's operations and financial stability. There are also concerns that the company's reliance on high-profile deals and substantial investment in AI products could be undermined if these partnerships weaken or if the AI initiatives fail to attract a sufficient number of new customers.
- Financial Health and Profitability Concerns: While RingCentral has demonstrated recent improvements in profitability and free cash flow, its balance sheet still presents vulnerabilities. As of Q3 2024, the company had a net debt of $1.4 billion ($213 million in cash against $1.6 billion in total debt). Furthermore, RingCentral has more total liabilities than total assets, resulting in a shareholders' deficit. In Q3 2025, the company's Altman Z-Score of 0.59 placed it in the distress zone, suggesting a potential risk of bankruptcy within the next two years. Although RingCentral is working towards GAAP profitability in 2025 and showing increased free cash flow, it has experienced multiple years of unprofitability, and slow revenue growth coupled with unpredictable costs contribute to investment uncertainty.
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The increasing trend of businesses consolidating their communication and collaboration tools around integrated suites offered by dominant software vendors presents a clear emerging threat to RingCentral. Specifically, Microsoft's aggressive push with Teams Phone as part of its Microsoft 365 ecosystem and Zoom's rapid expansion with Zoom Phone, leveraging its ubiquitous video conferencing platform, are compelling businesses to opt for an all-in-one solution from a single provider. This trend challenges RingCentral's position as a best-of-breed, standalone UCaaS provider by reducing the perceived need for a separate vendor for voice communications when a comprehensive, integrated solution is available from a major incumbent or widely adopted collaboration platform. This shift represents a structural change in how businesses procure communication services, potentially limiting RingCentral's market share growth and customer acquisition opportunities.
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RingCentral's primary products and services address two significant market segments: Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS). The company has also expanded into AI-powered communication tools like RingCX, RingSense, and AI Receptionist.
According to RingCentral's Q2 2025 presentation, the total addressable market opportunity is stated to be $150 billion. Broader market estimates for its main product categories include:
- Unified Communications as a Service (UCaaS): The global UCaaS market size was estimated at approximately $56.75 billion to $87.39 billion in 2024. It is projected to grow to approximately $215.53 billion by 2032 or $262.37 billion by 2030. In North America, the UCaaS market accounted for over 33.98% of the global market in 2024 and was valued at $24.33 billion in 2024.
- Contact Center as a Service (CCaaS): The global CCaaS market size was valued between approximately $5.1 billion and $6.1 billion in 2024. This market is projected to reach approximately $15.4 billion by 2031, $24.78 billion by 2032, or $38.3 billion by 2035. North America held the largest share of the CCaaS market, accounting for 34.7% in 2024.
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RingCentral (NYSE: RNG) is expected to drive future revenue growth over the next 2-3 years through several key strategies:
- Accelerated Adoption and Monetization of AI-Driven Solutions: RingCentral is heavily focused on expanding its AI-led product portfolio, including offerings such as RingCX, RingSense, AIR (AI Receptionist), and ACE (AI Conversation Expert). These AI solutions are experiencing robust growth, with "pure AI annual recurring revenue" growing at a strong double-digit rate sequentially. The company aims for these AI products to exceed $100 million in annual recurring revenue (ARR) by the end of 2025 and project them to reach 10% of total revenue within two years, signifying a substantial contribution to overall growth. For example, RingCX customers grew over 150% year-over-year from Q3 2024 to Q3 2025, and ACE customers grew over 250% in the same period.
- Expansion and Deepening of Global Service Provider (GSP) Partnerships: RingCentral continues to leverage and expand its strategic partnerships with global service providers such as AT&T, Vodafone, BT, and others. This segment of the business is growing faster than the company's overall average and is characterized by predictable and recurrent revenue streams. These partnerships are crucial for increasing market reach and accelerating the adoption of new AI-powered products, as evidenced by AT&T's expanded offering of RingCX and RingSense to its customers.
- Sustained Growth and Retention within the Core Unified Communications as a Service (UCaaS) Platform: The company's core voice communications platform and overall UCaaS market remain a foundational driver of revenue. RingCentral reported continued growth in its core business with healthy new customer additions and stable monthly net retention rates exceeding 99%. Maintaining leadership in the UCaaS market, as recognized by industry analysts, underscores the durability and ongoing contribution of its core subscription services to revenue.
- Strategic International Expansion: RingCentral is pursuing growth in new geographic markets. An example of this is the receipt of a PAN-India license, which allows the company to expand its operations across India. Such expansions open new customer bases and market opportunities, contributing to long-term revenue diversification and growth.
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Share Repurchases
- RingCentral authorized a $500 million share repurchase program in Q2 2025, with $384 million remaining under the authorization as of Q3 2025.
- Year-to-date 2025, the company repurchased $200 million of stock, including $117 million in Q3 2025 and $32 million in Q2 2025.
- Share repurchases are considered an attractive use of cash by the company to return capital to shareholders.
Share Issuance
- RingCentral is focused on reducing stock-based compensation and dilution, with new share grants decreasing year-over-year through the first three quarters of 2025.
- The full-year 2025 share-based compensation is anticipated to be between $275 million and $280 million.
- The company expects its fully diluted share count for 2025 to be approximately 92 million shares, aiming to return to 2020 levels and further reduce it in subsequent years.
Outbound Investments
- In 2025, RingCentral acquired CommunityWFM, an AI-driven workforce management solution, to enhance its CX suite and accelerate innovation.
- The company acquired the technology and engineering arm of Kindite in Q1 2021 to strengthen its security capabilities.
- In Q4 2020, RingCentral acquired DeepAffects, a conversational intelligence startup, which enabled AI-driven meeting insights and the RingSense analytics product.
Capital Expenditures
- RingCentral's capital expenditures were $25 million in 2024, $24 million in 2023, and $44 million in 2020.
- Over 50% of the company's approximately $250 million R&D spend is concentrated on its new product portfolio, particularly AI-led products.
- Capital expenditures include investments in property and equipment, as well as capitalized internal-use software.
Latest Trefis Analyses
Trade Ideas
Select ideas related to RNG.
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| 01302026 | ROP | Roper Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -13.4% | -13.4% | -13.8% |
| 01302026 | TDC | Teradata | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 17.7% | 17.7% | -8.7% |
| 01302026 | CVLT | CommVault Systems | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 2.3% | 2.3% | -5.1% |
| 01302026 | NTNX | Nutanix | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 6.2% | 6.2% | -6.3% |
| 01302026 | FICO | Fair Isaac | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -8.1% | -8.1% | -9.2% |
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 53.98 |
| Mkt Cap | 14.9 |
| Rev LTM | 3,646 |
| Op Inc LTM | 596 |
| FCF LTM | 1,259 |
| FCF 3Y Avg | 1,032 |
| CFO LTM | 1,330 |
| CFO 3Y Avg | 1,130 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.2% |
| Rev Chg 3Y Avg | 6.5% |
| Rev Chg Q | 6.2% |
| QoQ Delta Rev Chg LTM | 1.5% |
| Op Mgn LTM | 13.1% |
| Op Mgn 3Y Avg | 7.8% |
| QoQ Delta Op Mgn LTM | 0.8% |
| CFO/Rev LTM | 24.0% |
| CFO/Rev 3Y Avg | 22.9% |
| FCF/Rev LTM | 21.4% |
| FCF/Rev 3Y Avg | 20.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 14.9 |
| P/S | 3.3 |
| P/EBIT | 23.7 |
| P/E | 27.5 |
| P/CFO | 10.1 |
| Total Yield | 3.6% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 6.4% |
| D/E | 0.3 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 9.5% |
| 3M Rtn | 8.6% |
| 6M Rtn | 9.7% |
| 12M Rtn | -5.2% |
| 3Y Rtn | -0.5% |
| 1M Excs Rtn | 8.5% |
| 3M Excs Rtn | 2.8% |
| 6M Excs Rtn | 1.2% |
| 12M Excs Rtn | -19.4% |
| 3Y Excs Rtn | -72.5% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Single Segment | 2,202 | ||||
| Other | 101 | 113 | 97 | 85 | |
| Subscriptions | 1,888 | 1,482 | 1,086 | 818 | |
| Total | 2,202 | 1,988 | 1,595 | 1,184 | 903 |
| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Single Segment | -199 | ||||
| Total | -199 |
| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Single Segment | -165 | ||||
| Total | -165 |
Price Behavior
| Market Price | $29.39 | |
| Market Cap ($ Bil) | 2.6 | |
| First Trading Date | 09/27/2013 | |
| Distance from 52W High | -9.4% | |
| 50 Days | 200 Days | |
| DMA Price | $28.36 | $28.23 |
| DMA Trend | up | down |
| Distance from DMA | 3.6% | 4.1% |
| 3M | 1YR | |
| Volatility | 46.6% | 52.1% |
| Downside Capture | 98.66 | 154.04 |
| Upside Capture | 138.47 | 127.56 |
| Correlation (SPY) | 31.7% | 50.9% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.33 | 0.98 | 1.35 | 1.78 | 1.37 | 1.62 |
| Up Beta | 5.50 | 3.14 | 1.86 | 2.75 | 1.39 | 1.33 |
| Down Beta | 0.11 | 0.14 | 1.08 | 1.54 | 1.29 | 1.26 |
| Up Capture | -12% | 35% | 77% | 157% | 116% | 650% |
| Bmk +ve Days | 11 | 22 | 34 | 71 | 142 | 430 |
| Stock +ve Days | 9 | 22 | 32 | 66 | 121 | 364 |
| Down Capture | 272% | 174% | 172% | 154% | 133% | 112% |
| Bmk -ve Days | 9 | 19 | 27 | 54 | 109 | 321 |
| Stock -ve Days | 11 | 19 | 29 | 59 | 127 | 381 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | -13.4% | 52.4% | -0.11 | - |
| Sector ETF (XLK) | 16.4% | 27.5% | 0.53 | 48.2% |
| Equity (SPY) | 13.0% | 19.4% | 0.51 | 51.1% |
| Gold (GLD) | 71.2% | 25.5% | 2.08 | -3.0% |
| Commodities (DBC) | 7.3% | 16.9% | 0.25 | 11.7% |
| Real Estate (VNQ) | 6.4% | 16.7% | 0.20 | 32.7% |
| Bitcoin (BTCUSD) | -30.2% | 44.9% | -0.66 | 27.8% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | -41.7% | 59.9% | -0.66 | - |
| Sector ETF (XLK) | 16.1% | 24.8% | 0.59 | 49.8% |
| Equity (SPY) | 13.4% | 17.0% | 0.62 | 50.9% |
| Gold (GLD) | 22.0% | 17.1% | 1.05 | 6.6% |
| Commodities (DBC) | 11.0% | 19.0% | 0.47 | 7.2% |
| Real Estate (VNQ) | 4.8% | 18.8% | 0.16 | 41.7% |
| Bitcoin (BTCUSD) | 6.9% | 57.1% | 0.34 | 23.8% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RNG | |
|---|---|---|---|---|
| RNG | 5.8% | 53.8% | 0.32 | - |
| Sector ETF (XLK) | 23.2% | 24.2% | 0.87 | 49.4% |
| Equity (SPY) | 15.8% | 17.9% | 0.76 | 46.3% |
| Gold (GLD) | 15.0% | 15.6% | 0.80 | 5.5% |
| Commodities (DBC) | 8.7% | 17.6% | 0.41 | 10.1% |
| Real Estate (VNQ) | 6.8% | 20.7% | 0.29 | 32.9% |
| Bitcoin (BTCUSD) | 67.7% | 66.7% | 1.07 | 16.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/19/2026 | |||
| 11/3/2025 | -8.2% | -9.5% | -2.2% |
| 8/5/2025 | 27.0% | 17.8% | 29.3% |
| 5/8/2025 | 3.9% | 5.0% | 2.8% |
| 2/20/2025 | -5.9% | -7.1% | -12.6% |
| 11/7/2024 | -2.1% | -5.3% | 7.6% |
| 8/1/2024 | 5.4% | 0.9% | -0.4% |
| 5/7/2024 | 14.6% | 25.6% | 16.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 10 | 10 |
| # Negative | 11 | 13 | 13 |
| Median Positive | 6.4% | 13.0% | 13.9% |
| Median Negative | -3.8% | -9.5% | -13.4% |
| Max Positive | 30.1% | 35.1% | 29.3% |
| Max Negative | -23.4% | -27.0% | -37.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2025 | 11/05/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/09/2025 | 10-Q |
| 12/31/2024 | 02/26/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/07/2024 | 10-Q |
| 12/31/2023 | 02/22/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/07/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 02/23/2023 | 10-K |
| 09/30/2022 | 11/09/2022 | 10-Q |
| 06/30/2022 | 08/08/2022 | 10-Q |
| 03/31/2022 | 05/10/2022 | 10-Q |
| 12/31/2021 | 03/01/2022 | 10-K |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Shenkan, Amy Guggenheim | Direct | Sell | 1052026 | 28.99 | 1,402 | 40,644 | 733,360 | Form | |
| 2 | Theis, Robert I | Direct | Sell | 1052026 | 27.75 | 2,805 | 77,825 | 715,127 | Form | |
| 3 | Makagon, Kira | President and COO | Direct | Sell | 12292025 | 29.22 | 6,495 | 189,784 | 9,822,654 | Form |
| 4 | Arora, Tarun | Chief Accounting Officer | Direct | Sell | 12122025 | 30.60 | 2,597 | 79,479 | 2,697,253 | Form |
| 5 | Makagon, Kira | President and COO | Direct | Sell | 12012025 | 28.11 | 14,798 | 415,913 | 9,819,056 | Form |
RNG Trade Sentinel
Core Investment Debate
AI Growth Engine vs. Core Business Commoditization
BULL VIEW
The rapid adoption of new AI products and strong FCF generation will reignite growth, expand margins, and prove the pivot to a higher-value communications platform is working.
CORE TENSION
Can the new, high-growth AI product portfolio (~$100M ARR) become substantial enough to offset the structural deceleration and competitive pressure on the core multi-billion dollar UCaaS business?
PREVAILING SENTIMENT
Annual Recurring Revenue (ARR) growth slowed to 6% YoY in Q3 2025, and Q4 2025 revenue guidance fell below analyst expectations, confirming the deceleration thesis currently outweighs the AI story.
BEAR VIEW
The core business is being commoditized by Microsoft's bundling strategy. The new AI revenue stream is too small to meaningfully alter the decelerating top-line growth narrative (currently 4-6%).
| Timeline | Event & Metric To Watch |
|---|---|
Late February 2026 (Est. Feb 19, 2026) | Q4 2025 Earnings Call & FY26 Guidance Watch: FY26 revenue growth guidance and commentary on Net Revenue Retention (NRR). Is the core business stabilizing or decelerating further? |
March 10-12, 2026 | Competitor Product Launch at Enterprise Connect 2026 Watch: Launch of advanced AI features or aggressive pricing bundles by Microsoft or Zoom that directly challenge RNG's new product portfolio. |
Anytime | Microsoft Teams Phone Announcement Watch: Any announcements of deeper bundling of Teams Phone within Microsoft 365 or significant feature enhancements that close the gap with RNG. |
Ongoing (Next 6 months) | Sustained High Interest Rates Watch: The 10-Year Treasury Yield. A sustained break and hold above 4.5% would pressure valuations for high-duration growth stocks. |
| Date | Event | Stock Impact |
|---|---|---|
2025-08-05 | Q2 2025 Earnings Details: The stock surged following the release of Q2 2025 earnings. The strong positive market reaction suggests the company delivered a significant beat on revenue and/or earnings and provided upbeat guidance. | Surged +27.0% $23.62 -> $29.99 |
2025-08-13 | Post-Earnings Momentum Details: The stock surged on high volume, continuing its strong upward momentum following the positive Q2 earnings release a week prior, suggesting strong institutional buying interest. | Surged +7.9% $27.82 -> $30.03 |
2025-09-08 | Six-Month High Reached Details: Stock reached its highest point in the trailing six-month period, closing at $32.44 amidst a period of positive momentum following its strong Q2 earnings report. | Modest 1.6% gain $31.94 -> $32.44 |
2025-09-29 | Market Sentiment Shift Details: The stock fell sharply over two trading days with no specific company news, suggesting a broader market or sector-specific sentiment shift against growth software stocks. | Fell notably by -7.7% $30.70 -> $28.34 |
2025-11-03 | Q3 2025 Earnings & Weak Guidance Details: Despite beating Q3 estimates, the company's stock plummeted after providing Q4 revenue guidance below expectations and lowering the top end of its full-year 2025 growth forecast. | Plummeted -8.3% (reaction over T+1) $30.12 -> $29.94 |
2025-12-01 | C-Suite Insider Stock Sales Cluster Details: A cluster of open-market sales by top executives, including the CEO and CFO, occurred in November and December 2025, signaling potential low insider confidence in the near-term outlook. | Modest 2.1% gain $28.24 -> $28.83 |
Position Sizing
0.5% - 1.5%
CONSERVATIVE
High volatility, bearish sentiment, expensive valuation, and a contested moat with medium visibility warrant a conservative position size. The core business faces structural challenges and intense competition from Microsoft, making the investment highly speculative despite nascent AI upside.
Diversification Alternatives
Stock Conviction
AVOID (Score 1-2)
CONVICTION RATIONALE
The probability-adjusted skew is well below 1.0x, indicating an unfavorable risk/reward profile. The primary reason is the high probability (70%) assigned to the downside scenario, driven by the 'ERODING' competitive trajectory. The structural threat from Microsoft's bundling strategy to the core business is a high-impact risk that is not adequately compensated for by the potential upside from the nascent AI product cycle.
STOCK ARCHETYPE
Turnaround / Deep ValueRingCentral exhibits the classic traits of a turnaround story. Its core business growth has decelerated dramatically to low single-digits, facing structural competitive threats. However, it maintains high free cash flow conversion and is attempting a strategic pivot to a new, high-growth AI product portfolio. The investment thesis is not based on past momentum but on the successful execution of this strategic shift.
INVESTMENT THESIS
The primary long thesis for RingCentral is the successful pivot from its maturing, commoditized core UCaaS business to a higher-value, AI-driven communications platform. This involves upselling its existing customer base and acquiring new customers with differentiated AI products, leading to a re-acceleration of revenue growth and an expansion in average revenue per user (ARPU).
- The new AI product portfolio is on track to exceed $100 million in Annual Recurring Revenue (ARR) by the end of 2025, demonstrating strong initial market adoption.
- The number of AI Receptionist (AIR) customers nearly doubled in a single quarter, growing from over 3,000 in Q2 2025 to over 5,800 in Q3 2025.
- Management has identified the ~$65B AI-driven CX and conversational intelligence market as its key expansion TAM, representing a significant growth runway outside its core saturated market.
PRIMARY RISK
The most significant risk is the structural threat posed by Microsoft's strategy of bundling Teams with the ubiquitous Microsoft 365 suite. This creates a powerful 'good enough' alternative at a low incremental cost, structurally limiting RingCentral's ability to win new customers, retain existing ones without discounting, and maintain pricing power on its core product.
- Microsoft is the dominant player in the mid-market, a core segment for RingCentral, due to its bundled TCO efficiency.
- Overall company ARR growth has decelerated to 6% YoY, indicating the core business slowdown is the dominant factor.
- The market reacted negatively to Q4 2025 guidance that fell below expectations, showing high investor sensitivity to top-line growth deceleration.
| KPI | Threshold | Rationale |
|---|---|---|
| New AI Product ARR | Sequential growth >25% | This is the leading indicator for the Alpha Driver. Strong sequential growth is required to prove the pivot is gaining enough scale to matter. |
| Total ARR Growth (YoY) | Stabilization above 5% and inflection upwards | Monitors the race between the declining core business and the growing AI portfolio. A failure to stabilize and re-accelerate indicates the Anti-Alpha is winning. |
| Non-GAAP Operating Margin | Sustained above 22% | While growth is the main debate, management's ability to maintain discipline and expand margins provides a downside buffer and demonstrates strong operational control. |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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