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RingCentral, Inc.

RNG · Technology (services-computer processing & data preparation) · 10 years of annual accounts filed with the SEC · latest fiscal year ended 2025-12-31

Signed in, this page also says what this company is inside your own portfolio: its weight, its share of your risk, and what buying or selling some of it would change. Sign in ›

RingCentral, Inc. reported revenue of $2.5 billion in fiscal 2025, after growing 23.4% a year over the previous 9 years. Its operating margin widened from -3.4% in 2016 to 4.8%, and it earned 14.0% on its invested capital in the latest year. Of the $2.0 billion its operations generated over 10 years, 53.7% went to buybacks and 13.5% back into the business. On the accounting screens, it passes 8 of 9 Piotroski tests, its Altman Z'' of -5.56 is in the distress zone and its Beneish M-score is below the -1.78 line; 2 of the six cross-checks between its statements fire.

Revenue, fiscal 2025 2.5B +23.4% a year over 9 years
Operating margin 4.8% gross margin 71.2%
Return on invested capital 14.0% -15.6% on average over 4 years
Free cash flow after stock pay 317.7M 12.6% of revenue
Net debt ÷ EBITDA 3.3× net debt 1.1B
Piotroski F-score 8/9 tests of improvement passed

Is it growing?

Revenue and the operating income it turns into. Growth that does not reach operating income is growth bought with margin.

RevenueOperating income
Compound growth a year
3 yrs5 yrs9 yrs
Revenue+8.1%+16.3%+23.4%
Free cash flow per share+57.0%——
Shares-1.4%+0.6%—

Falling shares are buybacks: each remaining share owns more of the company.

Does it earn more than its capital costs?

Margins say how much of each sale is kept; return on invested capital says how much the business earns on the money it needs to operate. Growth only creates value when that return is above the cost of the capital.

GrossOperatingNetFree cash flow

Return on invested capital

Return on invested capital

Economic profit

Needs a cost of capital, which comes from the valuation below.

Return on equity
—
Return on assets
2.9%
Asset turnover
1.70×
Research & development
12.6% of revenue
Overheads (SG&A)
10.3% of revenue

Is the profit cash, and where does the cash go?

Net income is an accounting opinion; free cash flow is what was left in the bank after investing. Stock-based pay does not leave the bank — shareholders pay it through dilution — so it is shown taken off as well.

Net incomeFree cash flowAfter stock-based pay

Where 10 years of operating cash went, 2016–2025

2.0B generated by the business. Each band is its share of that total.

  • Reinvested in the business 14% 272.5M
  • Acquisitions 6% 116.1M
  • Dividends 0% 0
  • Share buybacks 54% 1.1B
  • Kept, or used to pay down debt 27% 545.2M

Over the same years it paid 2.2B in stock. The buybacks did not even cover what was handed out in stock.

Per share

Earnings per shareFree cash flow per shareDividend per share

Shares outstanding

Diluted shares

Debt and liquidity

Debt is not bad in itself; debt the business cannot service in a bad year is. Net debt is debt minus cash, and below zero the company holds more cash than it owes.

Net debt
Net debt ÷ EBITDA
3.3×
Interest coverage
2× operating income ÷ interest
Current ratio
0.63 current assets ÷ current liabilities
Cash conversion cycle
42 days collects in 56d, stock 0d, pays in 14d

Three classic screens of the accounts

Each asks a different question of the same statements — is it improving, does it look like a company heading for distress, do the accounts resemble ones that were manipulated. None is a verdict; each shows what moves it.

Piotroski F-score

Is the business improving? Nine yes-or-no tests, this year against last.

8of 9 tests passed
  • ProfitableReturn on assets above zero passed
  • Cash from operationsOperating cash flow above zero passed
  • Profitability improvedReturn on assets higher than a year before passed
  • Profit backed by cashOperating cash flow above net income (low accruals) passed
  • Less long-term debtLong-term debt as a share of assets fell passed
  • More liquidCurrent ratio higher than a year before failed
  • No new sharesShare count did not grow passed
  • Better gross marginGross margin higher than a year before passed
  • Sells more per assetAsset turnover higher than a year before passed

Where it misleads: it measures change, not level. An excellent business that stood still for a year scores low; a poor one recovering from a disaster scores high.

Altman Z''-score

Does the balance sheet look like those of companies that went bankrupt?

-5.56distress zone
  • Working capital ÷ assets -0.31 × 6.56-2.01
  • Retained earnings ÷ assets -1.16 × 3.26-3.77
  • Operating income ÷ assets 0.08 × 6.72+0.55
  • Equity ÷ liabilities -0.31 × 1.05-0.33

Where it misleads: buybacks. A company that returns so much cash that its equity turns small or negative sinks the last two ratios without being anywhere near bankruptcy. Banks and insurers do not fit the model at all.

Beneish M-score

Do the accounts resemble those of companies that manipulated their earnings?

-4.36below the -1.78 line
  • Receivables vs sales 0.95+0.87
  • Gross margin slipping 0.99+0.52
  • Soft assets 0.87+0.35
  • Sales growth 1.05+0.93
  • Slower depreciation 1.01+0.12
  • Overheads vs sales 0.93-0.16
  • Profit not in cash -0.39-1.81
  • Leverage rising 1.06-0.35

Where it misleads: fast growth and acquisitions. Sales growth carries a heavy weight, so a company growing 50% a year scores like a suspect without having done anything. It is a screen from a 1999 study, not an accusation.

Where the statements disagree

Cross-checks between the income statement, the balance sheet and the cash flow for the latest year, each with the benign reading and the worrying one.

Capital spending (30M) is well below depreciation (223M).

Benign

Mature assets, or a business that has become less capital-intensive.

Worrying

Under-investing: today's profit is being held up by consuming tomorrow's capacity.

Net debt is 3.3 times EBITDA.

Benign

A stable sector with predictable cash flows and comfortable maturities.

Worrying

Little room if earnings fall; the maturity schedule is what to check.

What is it worth, under which assumptions?

A company is worth the cash it will generate, brought back to today. This model projects revenue with growth that fades over the years, applies a free cash flow margin, and discounts the result at the cost of capital. Every assumption says where it came from, and all of them can be changed.

Revenue
M $

revenue of fiscal 2025

%

revenue grew +16.3% a year over the last 5 years; it fades to the terminal rate by the last year

yrs

ten years for growth to fade to the terminal rate

Cash from each sale
%

free cash flow to the firm after stock-based pay ÷ revenue, last 3 fiscal years together

%

the margin in year ten; by default the business keeps today's

The long run
%

growth forever after year ten, below the risk-free rate: no company outgrows the economy forever

The discount rate
%

10-year US Treasury par yield (U.S. Treasury), 2026-09-28

not measured on this public page, which uses only public filings: 1.0 assumes it moves like the market. Sign in to measure it from prices

%

the extra return demanded for holding shares; it cannot be measured, and 4–6% is the common range

%

interest expense ÷ debt = 4.6%, kept between the risk-free rate and +8 points

%

effective rate in the last fiscal year, 22.8%, kept within 0–35%

The price
$

Type the price you see at your broker. It is used only for the reverse questions: what that price implies.

Back to the defaults

SEC from the filings Treasury the 10-year yield measured from prices assumption cannot be measured yours you changed it

With a free cash flow margin at or below zero in year ten, the business never generates cash for its owners and a DCF says nothing useful. Set a positive margin for year ten to see what it would take.

What it has filed lately

The last twelve months at the SEC, most important first: annual and quarterly reports, events, large holders and insiders.

Results 2026-07-23
Reported results
Quarterly 2026-07-23
Quarterly report
Quarterly 2026-05-11
Quarterly report
Results 2026-05-07
Reported results
Annual 2026-02-27
Annual report
Results 2026-02-19
Reported results; published other information
Event 2026-01-05
Published the results of a shareholder vote
Quarterly 2025-11-05
Quarterly report
Estimatein 40d
Results for the period ending 2026-09-29

What its own directors and officers did

Every Form 4 filed in the last twelve months, read line by line: 6 filings by 4 people. Open-market purchases and sales are counted apart from awards, option exercises and shares withheld for taxes.

Bought on the open market—none in the period
Sold on the open market$5.4M12 sale(s) by 4 insider(s)
Under pre-arranged plans100%of the sales followed a 10b5-1 plan set months earlier
Other lines51 awards · 0 option exercises · 4 tax withholdings
DateWhoWhatSharesPriceValueHolds after
14 Sep 2026 Makagon KiraPresident and COO Sold on the open market · pre-arranged plan 36,185 $70.11 $2.5M 245,385
9 Sep 2026 Arora TarunChief Accounting Officer Sold on the open market · pre-arranged plan 1,493 $69.69 $104,043 68,371
9 Sep 2026 Arora TarunChief Accounting Officer Sold on the open market · pre-arranged plan 2,679 $70.74 $189,507 65,692
3 Sep 2026 Arora TarunChief Accounting Officer Sold on the open market · pre-arranged plan 954 $77.00 $73,458 69,864
3 Sep 2026 Shmunis VladimirCEO and Chairman Sold on the open market · pre-arranged plan 245 $75.36 $18,463 190,026
3 Sep 2026 Shmunis VladimirCEO and Chairman Sold on the open market · pre-arranged plan 7,774 $76.45 $594,338 182,252
3 Sep 2026 Shmunis VladimirCEO and Chairman Sold on the open market · pre-arranged plan 3,146 $77.00 $242,245 179,106
2 Sep 2026 Shmunis VladimirCEO and Chairman Sold on the open market · pre-arranged plan 8,064 $72.35 $583,455 190,784
2 Sep 2026 Shmunis VladimirCEO and Chairman Sold on the open market · pre-arranged plan 513 $72.76 $37,325 190,271
2 Sep 2026 Agarwal VaibhavChief Financial Officer Sold on the open market · pre-arranged plan 7,046 $72.10 $508,024 146,700
2 Sep 2026 Shmunis VladimirCEO and Chairman Sold on the open market · pre-arranged plan 1,270 $70.32 $89,309 204,557
2 Sep 2026 Shmunis VladimirCEO and Chairman Sold on the open market · pre-arranged plan 5,709 $71.21 $406,538 198,848
1 Sep 2026 Makagon KiraPresident and COO Shares withheld for taxes 13,260 $70.77 $938,410 281,570
1 Sep 2026 Agarwal VaibhavChief Financial Officer Shares withheld for taxes 7,302 $70.77 $516,763 153,746
1 Sep 2026 Shmunis VladimirCEO and Chairman Shares withheld for taxes 27,681 $70.77 $2.0M 205,827
1 Sep 2026 Arora TarunChief Accounting Officer Shares withheld for taxes 4,323 $70.77 $305,939 70,818
1 Sep 2026 Shmunis VladimirCEO and Chairman Received as an award 3,437 — — 233,508

A Form 4 says what happened, when, how many shares and at what price. It does not say why: a sale can be diversification, a tax bill or a plan fixed months earlier, and an award is pay, not a purchase. Nothing here is a reason to buy or sell anything.

Which large funds report holding it

From the Form 13F of the 28 institutions followed on this site, as of the end of their last reported quarter. A 13F is filed up to 45 days later and shows only long positions in US-listed shares.

FundSharesValueShare of the fundSince the quarter before
Coatue 30 Jun 2026 411,351 $16.0M 0.0% Unchanged
Norges Bank (Norway's sovereign fund) 30 Jun 2026 38,706 $1.5M 0.0% New

All the funds and what they reported ›

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Every figure, year by year

10 fiscal years · 30 measures
2016201720182019202020212022202320242025
Size
Revenue380.4M503.6M673.6M902.9M1.2B1.6B2.0B2.2B2.4B2.5B
Revenue growth—+32.4%+33.8%+34.0%+31.1%+34.7%+24.7%+10.8%+9.0%+4.8%
Operating income-12.9M-5.3M-16.4M-45.7M-113.2M-301.8M-649.5M-198.8M2.7M120.6M
Net income-16.2M-4.2M-26.2M-53.6M-83.0M-376.2M-879.2M-165.2M-58.3M43.4M
Margins
Gross margin75.8%75.9%76.7%74.4%72.7%71.9%67.7%69.8%70.6%71.2%
Operating margin-3.4%-1.1%-2.4%-5.1%-9.6%-18.9%-32.7%-9.0%0.1%4.8%
Net margin-4.3%-0.8%-3.9%-5.9%-7.0%-23.6%-44.2%-7.5%-2.4%1.7%
Free cash flow margin4.1%4.3%6.7%4.1%-6.7%7.7%8.0%17.1%19.1%23.4%
R&D ÷ revenue17.2%14.9%15.0%15.1%16.0%19.4%18.2%15.2%13.7%12.6%
SG&A ÷ revenue14.6%14.4%15.3%15.7%16.9%17.8%14.7%15.1%11.1%10.3%
Cash
Free cash flow15.5M21.7M45.0M37.1M-78.8M123.2M158.6M376.1M458.3M587.3M
Stock-based pay30.8M42.1M68.1M101.4M189.6M358.0M386.0M426.7M339.1M269.7M
Free cash flow after stock pay-15.4M-20.4M-23.1M-64.3M-268.4M-234.8M-227.4M-50.5M119.2M317.7M
Free cash flow to the firm-12.6M-26.0M-65.2M-49.6M-109.3M-253.4M-520.8M-61.9M147.9M293.8M
Free cash flow ÷ net income-1.0×-5.2×-1.7×-0.7×0.9×-0.3×-0.2×-2.3×-7.9×13.5×
Capex ÷ revenue3.7%3.9%4.0%3.1%3.7%1.8%1.6%1.1%1.0%1.2%
Returns
Return on invested capital-7.3%—————-56.5%-20.1%0.3%14.0%
Return on equity-9.9%-1.8%-8.3%-7.2%-26.9%-111.0%————
Return on assets-6.4%-1.2%-2.9%-3.7%-3.8%-14.6%-42.4%-8.5%-3.3%2.9%
Asset turnover1.5×1.4×0.8×0.6×0.5×0.6×1.0×1.1×1.3×1.7×
Economic profit——————————
Per share
Earnings per share———$-0.64$-0.94$-4.10$-9.23$-1.74$-0.63$0.48
Free cash flow per share———$0.45$-0.89$1.34$1.67$3.96$4.98$6.44
Dividend per share——————————
Payout ratio——————————
Book value per share———$8.97$3.48$3.69$-5.07$-5.30$-5.98$-6.45
Diluted shares———83.1M88.7M91.7M95.2M94.9M92.1M91.2M
Balance sheet
Net debt-145.5M—————1.4B1.3B1.3B1.1B
Net debt ÷ EBITDA-81.1×—————-3.4×37.7×5.7×3.3×
Interest coverage-17.2×-53.9×-1.0×-2.2×-2.3×-4.7×-135.1×-5.5×0.0×2.1×
Current ratio1.8×2.1×3.5×1.9×2.1×1.2×1.2×1.3×1.2×0.6×
Cash conversion cycle (days)-21228-1-6122324842
Scores
Piotroski F-score—542233878
Altman Z''0.312.373.321.400.73-1.24-4.28-3.04-3.03-5.56
Beneish M—-1.94-2.15-1.14-2.34-3.04-6.11-3.75-3.88-4.36

Accounts from the company's own SEC filings; lines some companies do not report are shown as a dash rather than estimated. The risk-free rate is the 10-year US Treasury yield. A DCF is a way of making assumptions explicit, not a forecast: it states what the company would be worth if the assumptions held. The scores are screens that point where to look, not verdicts. Nothing here is a recommendation to buy or sell.