Brief: RingCentral Q2 Revenue USD 620.398 Million Vs. IBES Estimate USD 617.8 Million

RingCentral

05/08/2025 21:05

Overview

RingCentral Q2 2025 revenue rises 5% yr/yr, beating analyst expectations

GAAP net income margin improves to 2.1%

Co promotes Vaibhav Agarwal to Chief Financial Officer

Outlook

RingCentral sees Q3 total revenue of $631 mln to $639 mln

Company raises full-year free cash flow guidance to $515 mln to $520 mln

RingCentral expects Q3 non-GAAP EPS of $1.06 to $1.08

Company raises full-year GAAP operating margin to 4.8% to 5.5%

Result Drivers

AI ADOPTION - Co attributes growth to increased adoption of AI-powered products, including AI Receptionist, which tripled its customer base

UCaaS AND CCaaS LEADERSHIP - RingCentral cites leadership in UCaaS and momentum in CCaaS as key drivers of Q2 performance

PARTNERSHIP EXTENSION - Extended partnership with NiCE expected to enhance AI-powered customer experiences

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$620.40 mln
$617.80 mln (16 Analysts)
Q2 Net Income
$13.19 mln
Q2 Gross Profit
$441.45 mln
Q2 Income from Operations
$36.96 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for RingCentral Inc is $30.00, about 20.7% above its August 4 closing price of $23.79

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBwb9xkq9a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)