Ringcentral (NYSE:RNG) executives used the company’s fourth-quarter 2025 earnings call to highlight record free cash flow, expanding profitability, and accelerating adoption of its agentic voice AI products, while also announcing the company’s first-ever quarterly dividend.
Q4 and full-year 2025 results
Founder, Chairman and CEO Vlad Shmunis said the company “had a strong Q4, capping a solid 2025,” and noted RingCentral met or exceeded its key operating metrics. For the full year, management reported total revenue growth of nearly 5% and subscription revenue growth of just over 5.5%.
Profitability improved as well. Agarwal reported Q4 subscription gross margin remained above 80%. Non-GAAP operating margin was 22.8% in Q4 (up more than 140 basis points year-over-year), while GAAP operating margin was 6.6% (up about 4 points year-over-year) and GAAP EPS was $0.26. Non-GAAP EPS rose more than 20% to $1.18, above the high end of guidance.
For full-year 2025, subscription gross margin was 80.5% and non-GAAP operating margin improved 150 basis points to 22.5% (or $566 million of operating profit). RingCentral posted GAAP operating margin of 4.8% and GAAP EPS of $0.48, while non-GAAP EPS grew 18% to $4.36.
Cash flow, share count, and capital returns
Management emphasized cash generation as a central theme of the call. Shmunis said RingCentral produced record free cash flow of more than $500 million in 2025, up 32% versus 2024, translating to more than $5.80 of free cash flow per share.
Agarwal provided additional detail, reporting full-year free cash flow of $530 million (a 21% margin) and free cash flow per share of $5.81, up 36% year-over-year. In Q4, RingCentral generated $126 million in free cash flow, up 13% year-over-year.
The company also highlighted equity discipline and buybacks. Shmunis said RingCentral reduced the value of new shares granted by more than 35% year-over-year, calling stock-based compensation (SBC) management “a key priority.” Agarwal said new equity grants declined 36% to approximately $160 million (about 6% of revenue), contributing to a 340 basis-point reduction in SBC as a percentage of revenue. In Q4, the company repurchased approximately 5 million shares for $135 million, and in 2025 used $334 million for share repurchases. Agarwal also said the company returned its absolute share count to 2019 levels.
With improving profitability and cash flow, RingCentral announced its first quarterly dividend of $0.075 per share. Agarwal said the move reflects confidence in future cash flows and complements share buybacks. The board also approved a $250 million increase to the repurchase plan, bringing total authorization to $500 million.
AI strategy and product adoption
Shmunis positioned RingCentral’s next phase as a shift toward becoming an “agentic voice AI company,” describing the company’s cloud communications platform as a foundation for AI-driven voice and text interactions. He said RingCentral supports tens of billions of minutes and billions of calls and SMS messages annually and argued its low-latency, high-reliability infrastructure is difficult to replicate.
Shmunis said “pure AI ARR revenues” have almost tripled year-over-year and contributed significantly to the company’s stated goal of $100 million of ARR from new products in 2025. More broadly, he and other executives pointed to rising adoption among customers paying for AI products: ARR from customers using at least one monetized AI product—what the company calls RCAI-utilizing customers—more than doubled year-over-year and is approaching 10% of overall ARR. Shmunis added these customers have higher ARPU and “net retention rates exceeding 100%.”
President and COO Kira Makagon said RingCentral’s agentic voice AI portfolio is centered on three offerings:
- AIR (AI receptionist): Handles multiple calls simultaneously, supports multilingual interactions, answers questions, schedules appointments/meetings, and routes calls; positioned as easy to set up without professional services in most cases.
- AVA (AI virtual assistant): Provides real-time assistance for human-connected calls by capturing notes and surfacing recommendations for RingEX and RingCX customers.
- ACE (AI conversation expert): Provides post-call analysis of recorded interactions for coaching, quality, and performance insights.
Makagon said AIR is the company’s fastest-growing agentic voice AI offering. In Q4, AIR customer count reached 8,300, up 44% sequentially, with customers adding usage-based minute bundles. She emphasized AIR’s usage-based model can scale with customer activity and is “not subject to potential reduction in seat counts.”
ACE customer count exceeded 4,800, up 144% year-over-year, according to Makagon.
Customer examples and RingCX momentum
Makagon cited several examples of AI deployments, including a multi-specialty healthcare provider in Tennessee that expanded AIR minutes after a three-month trial that routed 100% of incoming calls properly, and PM Pediatrics, which she said is using AIR, AVA, and ACE across more than 80 locations, with AIR enabling the organization to handle 30% more patient calls.
Makagon also discussed newer packaging and contact center progress. She said RingCentral introduced the Customer Engagement Bundle (CEB) for EX in November for businesses with non-dedicated agents and crossed 1,000 customers within months of launch.
For larger contact center needs, Makagon said RingCX adoption surpassed 1,500 customers, nearly doubling year-over-year, while revenue and ARR more than doubled. She said that in Q4, over half of the company’s $1 million-plus total contract value (TCV) deals included RingCX, and more than 50% of overall RingCX deals included AI. She also highlighted RingCentral’s internal use of RingCX and its agentic voice AI products in customer support, which she said cut queue volumes by over 50%.
2026 outlook, leverage targets, and demand commentary
Looking ahead, Agarwal guided to 2026 subscription revenue growth of 4.5% to 5.5% and total revenue growth of 4% to 5%. The company expects GAAP operating margin of 8.6% to 9.6% and non-GAAP operating margin of 23% to 23.5%. Free cash flow is projected at $580 million to $600 million, with free cash flow per share of $6.67 to $6.94 based on 86.5 million to 87 million shares. Non-GAAP EPS is expected to be $4.76 to $4.97.
For Q1 2026, the company expects subscription revenue of $622 million to $625 million and total revenue of $640 million to $645 million, with GAAP operating margin of 7.1% to 8.2% and non-GAAP EPS of $1.16 to $1.19.
On capital structure, Agarwal said RingCentral reduced debt by more than $275 million in 2025 and ended the year at 1.7x net leverage. He said the company expects to use its undrawn credit facility to address a $609 million convertible maturity in March 2026, after which it has no maturities until 2030. He also reiterated a goal of reducing gross debt to $1 billion by the end of 2026 as the company pursues an investment-grade rating.
In the Q&A, Shmunis said demand remains strong across enterprise, mid-market, and SMB, with solid new logos and upsells. He noted more pricing pressure in enterprise than SMB, attributing it largely to “COVID lapping contracts,” and said the headwind is expected to subside during 2026, “entering 2027 with a clean slate.” He also said the small business segment has accelerated to double-digit growth.
Executives also discussed AI uptake by channel, with Makagon stating adoption has been good across direct and channel, and that global service providers are taking AI products to market. On the company’s use of AI models, Shmunis said RingCentral is “model agnostic” and evaluates models based on accuracy, latency, and cost effectiveness, referencing a recent integration with OpenAI’s 5.2 voice model.
Shmunis also welcomed Mahmoud ElAssir, UnitedHealth Group’s Senior Vice President and CTO, to RingCentral’s board, citing his background in AI-native platforms, cloud infrastructure, and large-scale engineering.
About Ringcentral (NYSE:RNG)
RingCentral, Inc is a leading provider of cloud-based business communications and collaboration solutions. The company’s flagship platform delivers unified communications as a service (UCaaS), integrating voice over IP (VoIP) phone systems, video conferencing, team messaging and SMS into a single, cloud-native application. In addition to its UCaaS offering, RingCentral provides contact center as a service (CCaaS) capabilities, enabling organizations to manage customer interactions across voice, email, chat and social channels from a centralized dashboard.
Founded in 1999 and headquartered in Belmont, California, RingCentral went public on the New York Stock Exchange under the ticker RNG in 2013.
