Revenue growth decelerated to 5.9% in 2026Q3 ($676.0M) from 9.9% in 2024Q2, yet gross margin expanded 290 basis points to 73.1% and operating margin improved from -0.9% to 8.0%, suggesting favorable mix shift toward higher-margin subscriptions.
RingCentral, Inc. (RNG) annual income statement — 15-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Sales/Revenue | 2.62B | 2.52B | 2.4B | 2.2B | 1.99B | 1.59B | 1.18B | 902.86M | 673.62M | 501.53M | 379.72M | 296.23M | 219.89M | 160.5M | 114.53M | 78.88M |
| Revenue Growth % | 5.46% | 4.78% | 8.99% | 10.77% | 24.68% | 34.73% | 31.1% | 34.03% | 34.31% | 32.08% | 28.19% | 34.72% | 37% | 40.15% | 45.2% | - |
| Cost of Goods Sold | 730.15M | 724.01M | 705.51M | 664.29M | 641.73M | 448.37M | 323.61M | 231.04M | 157.13M | 121.27M | 92.21M | 87.27M | 76.77M | 61.52M | 44.9M | 33M |
| COGS % of Revenue | - | 28.79% | 29.39% | 30.16% | 32.27% | 28.12% | 27.34% | 25.59% | 23.33% | 24.18% | 24.28% | 29.46% | 34.91% | 38.33% | 39.21% | 41.83% |
| Gross Profit | 1.89B | 1.79B | 1.69B | 1.54B | 1.35B | 1.15B | 860.05M | 671.82M | 516.5M | 380.25M | 287.51M | 208.96M | 143.11M | 98.99M | 69.62M | 45.88M |
| Gross Margin % | 72.15% | 71.21% | 70.61% | 69.84% | 67.73% | 71.88% | 72.66% | 74.41% | 76.67% | 75.82% | 75.72% | 70.54% | 65.09% | 61.67% | 60.79% | 58.17% |
| Gross Profit Growth % | - | 5.68% | 10.19% | 14.22% | 17.46% | 33.29% | 28.02% | 30.07% | 35.83% | 32.26% | 37.59% | 46.01% | 44.58% | 42.17% | 51.75% | - |
| Operating Expenses | 1.69B | 1.66B | 1.69B | 1.74B | 2B | 1.45B | 973.29M | 717.49M | 532.93M | 407.53M | 313.46M | 239.89M | 188.32M | 140.02M | 103.45M | 59.72M |
| OpEx % of Revenue | - | 66.2% | 70.5% | 78.87% | 100.39% | 90.81% | 82.23% | 79.47% | 79.11% | 81.26% | 82.55% | 80.98% | 85.64% | 87.24% | 90.33% | 75.71% |
| Selling, General & Admin | 1.36B | 1.35B | 1.36B | 1.4B | 1.35B | 1.14B | 783.8M | 581.13M | 431.89M | 332.38M | 247.95M | 186.97M | 143.74M | 106.62M | 79M | 47.52M |
| SG&A % of Revenue | - | 53.6% | 56.78% | 63.62% | 67.9% | 71.39% | 66.22% | 64.37% | 64.11% | 66.27% | 65.3% | 63.12% | 65.37% | 66.43% | 68.98% | 60.24% |
| Research & Development | 330.14M | 316.99M | 329.32M | 335.85M | 362.26M | 309.74M | 189.48M | 136.36M | 101.04M | 75.15M | 65.51M | 52.92M | 44.58M | 33.4M | 24.45M | 12.2M |
| R&D % of Revenue | - | 12.6% | 13.72% | 15.25% | 18.22% | 19.42% | 16.01% | 15.1% | 15% | 14.98% | 17.25% | 17.87% | 20.28% | 20.81% | 21.35% | 15.47% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 283.69M | 0 | 0 | 0 | 0 | 1.49M | -2.38M | -1.31M | -1.03M | 274K | 32K | 109K |
| Operating Income | 202.32M | 126.23M | 2.67M | -198.81M | -649.48M | -301.79M | -113.24M | -45.67M | -16.44M | -27.27M | -25.95M | -30.93M | -45.2M | -41.03M | -33.83M | -13.84M |
| Operating Margin % | 7.72% | 5.02% | 0.11% | -9.03% | -32.66% | -18.92% | -9.57% | -5.06% | -2.44% | -5.44% | -6.83% | -10.44% | -20.56% | -25.56% | -29.54% | -17.54% |
| Operating Income Growth % | - | 4627.72% | 101.34% | 69.39% | -115.21% | -166.5% | -147.92% | -177.9% | 39.74% | -5.1% | 16.1% | 31.57% | -10.17% | -21.3% | -144.43% | - |
| EBITDA | 429.12M | 348.83M | 225.28M | 35.13M | -402.91M | -176.49M | -37.63M | -7.8M | 6.84M | -11.06M | -11.29M | -17.46M | -34.83M | -32.05M | -27.64M | -10.29M |
| EBITDA Margin % | 16.37% | 13.87% | 9.39% | 1.59% | -20.26% | -11.07% | -3.18% | -0.86% | 1.01% | -2.21% | -2.97% | -5.9% | -15.84% | -19.97% | -24.13% | -13.05% |
| EBITDA Growth % | 36.14% | 54.84% | 541.29% | 108.72% | -128.29% | -369.06% | -382.09% | -214.16% | 161.81% | 2.02% | 35.36% | 49.85% | -8.65% | -15.98% | -168.49% | - |
| D&A (Non-Cash Add-back) | 226.8M | 222.6M | 222.61M | 233.94M | 246.56M | 125.29M | 75.61M | 37.87M | 23.27M | 16.21M | 14.66M | 13.47M | 10.38M | 8.98M | 6.19M | 3.55M |
| EBIT | 196.63M | 116.52M | 13.97M | -120.85M | -869.25M | -309.34M | -32.78M | -36.43M | -9.96M | -3.85M | -28.33M | -32.24M | -46.24M | -40.76M | -33.8M | -13.73M |
| Net Interest Income | -34.76M | -60.28M | -65M | -36M | -4.81M | -64.38M | -49.28M | -20.51M | -16.1M | -99K | -746K | -1.12M | -2.01M | -5.38M | -1.5M | -158K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 34.76M | 60.28M | 65M | 36M | 4.81M | 64.38M | 49.28M | 20.51M | 16.1M | 99K | 746K | 1.12M | 2.01M | 5.38M | 1.5M | 158K |
| Other Income/Expense | -70.06M | -69.99M | -49.9M | 41.97M | -224.58M | -71.94M | 31.18M | -11.27M | -9.63M | 1.39M | -3.12M | -2.43M | -3.04M | -5.11M | -1.47M | -49K |
| Pretax Income | 132.26M | 56.24M | -47.23M | -156.84M | -874.05M | -373.72M | -82.06M | -56.94M | -26.06M | -25.88M | -29.07M | -33.36M | -48.24M | -46.14M | -35.3M | -13.89M |
| Pretax Margin % | 5.05% | 2.24% | -1.97% | -7.12% | -43.96% | -23.43% | -6.93% | -6.31% | -3.87% | -5.16% | -7.66% | -11.26% | -21.94% | -28.75% | -30.82% | -17.61% |
| Income Tax | -530.14M | 12.85M | 11.06M | 8.39M | 5.11M | 2.53M | 934K | -3.33M | 140K | 258K | 236K | -1.26M | 97K | -45K | 92K | 15K |
| Effective Tax Rate % | -400.83% | 22.84% | -23.43% | -5.35% | -0.58% | -0.68% | -1.14% | 5.85% | -0.54% | -1% | -0.81% | 3.79% | -0.2% | 0.1% | -0.26% | -0.11% |
| Net Income | 662.4M | 43.39M | -58.29M | -165.24M | -879.17M | -376.25M | -83M | -53.61M | -26.2M | -26.14M | -29.31M | -32.1M | -48.34M | -46.1M | -35.39M | -13.9M |
| Net Margin % | 25.27% | 1.73% | -2.43% | -7.5% | -44.22% | -23.59% | -7.01% | -5.94% | -3.89% | -5.21% | -7.72% | -10.84% | -21.98% | -28.72% | -30.9% | -17.63% |
| Net Income Growth % | 4904.53% | 174.44% | 64.73% | 81.2% | -133.67% | -353.34% | -54.82% | -104.58% | -0.24% | 10.81% | 8.69% | 33.6% | -4.86% | -30.26% | -154.55% | - |
| Net Income (Continuing) | 662.4M | 43.39M | -58.29M | -165.24M | -879.17M | -376.25M | -83M | -53.61M | -26.2M | -4.2M | -29.31M | -32.1M | -48.34M | -46.1M | -35.39M | -13.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.55 | 0.48 | -0.63 | -1.74 | -9.23 | -4.10 | -0.94 | -0.64 | -0.33 | -0.34 | -0.40 | -0.46 | -0.72 | -0.75 | -0.67 | -0.26 |
| EPS Growth % | 5300% | 176.19% | 63.79% | 81.15% | -125.12% | -336.17% | -46.88% | -93.94% | 2.94% | 15% | 13.04% | 36.11% | 4% | -11.94% | -157.69% | - |
| EPS (Basic) | - | 0.50 | -0.63 | -1.74 | -9.23 | -4.10 | -0.94 | -0.64 | -0.33 | -0.34 | -0.40 | -0.46 | -0.72 | -0.75 | -0.67 | -0.26 |
| Diluted Shares Outstanding | 87.69M | 87.96M | 92.11M | 94.91M | 95.24M | 91.74M | 88.68M | 83.13M | 79.5M | 76.28M | 72.99M | 70.07M | 66.82M | 61.42M | 52.72M | 53.07M |
| Basic Shares Outstanding | 83.86M | 86.11M | 92.11M | 94.91M | 95.24M | 91.74M | 88.68M | 83.13M | 79.5M | 76.28M | 72.99M | 70.07M | 66.82M | 61.42M | 52.72M | 53.07M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying RNG stock.
For fiscal year 2025, RingCentral, Inc. (RNG) reported total revenue of $2.52B. This represents a 3088.7% increase compared to $78.9M in 2011.
RingCentral, Inc. (RNG) is profitable, generating $43.4M in net income for the fiscal year ending 2025 with a net profit margin of 1.7%.
RingCentral, Inc. (RNG) reported an operating income of $126.2M, resulting in an operating profit margin of 5.0%. This margin reflects the operational efficiency of the business before interest and taxes.
RingCentral, Inc. (RNG) generated $1.79B in gross profit for the year, representing a gross profit margin of 71.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SBC outpaces operating income
Metrics are mathematically derived from official filings.
Revenue Growth Settling Into Mid-Single Digits
As reported in RingCentral's quarterly income statements, revenue growth has decelerated from 9.9% in 2024Q2 to 5.9% in 2026Q3, while quarterly revenue still expanded from $592.9M to $676.0M. The trajectory suggests a maturing UCaaS seat market where growth increasingly depends on ARPU upsell.
Sequential growth has held in a tight 4.6%-5.9% band for eight straight quarters, which reads as stability rather than momentum and frames RNG as a maturity-stage asset rather than a compounder. Management's raised guidance of $664M-$670M for the next quarter implies the deceleration is not accelerating, but the persistent gap versus high-growth SaaS peers warrants testing whether CCaaS and AI attach rates can re-accelerate the top line.
Gross Margin Climb Suggests Favorable Mix Shift
According to RingCentral's reported figures, gross margin expanded from 70.2% in 2024Q2 to 73.1% in 2026Q3, a 290-basis-point improvement, as COGS grew only 2.8% against a 14.0% revenue increase over the same ten quarters. This suggests rising contribution from higher-margin CCaaS and AI-attached subscriptions.
COGS has been nearly flat in dollar terms, moving from $176.7M to $181.7M while revenue added $83.1M, implying fixed data-center and carrier termination costs are being absorbed across a larger base — a classic sign of software-like scale economics. However, the 73.1% gross margin still sits well below pure-play SaaS peers, which suggests carrier termination fees remain a structural cap; investors should verify whether the recent expansion reflects durable mix shift or renegotiated channel economics.
Operating Leverage Emerging, If Belatedly
RingCentral's income statement shows operating income rising from -$5.4M in 2024Q2 to $53.9M in 2026Q3, lifting operating margin from -0.9% to 8.0%, while R&D and SG&A grew only 9.5% against 14.0% revenue growth. The gap suggests genuine, if delayed, operating leverage.
SG&A still consumes $352.4M, or roughly 52% of quarterly revenue, so the margin recovery appears driven by opex growing slower than the top line rather than by a structurally leaner go-to-market model. Because SBC of $64.7M is embedded within those opex lines, reported leverage may be overstated; on a fully-loaded basis, the incremental profitability of the last ~$83M of quarterly revenue looks thinner than the headline operating income swing implies.
Q3 Net Income Distorted by Non-Operating Item
RingCentral's reported Q3 2026 net income of $569.7M against $676.0M of revenue implies an 84.3% net margin, wildly inconsistent with the 8.0% operating margin earned that quarter. The anomaly appears to reflect a large non-operating item rather than operational performance and warrants scrutiny.
Stripping the apparent below-the-line gain, 2026Q2 net income of $39.1M on $657.0M of revenue implies a normalized net margin near 6%, which is coherent with the operating result and suggests core earnings power is far more modest than the headline figure. The $64.7M SBC charge in 2026Q3 — larger than that quarter's operating income — further indicates that adjusted EPS metrics may be obscuring meaningful ongoing dilution to common holders.
Post-Q1-2025 Turnaround Anchored in Expense Discipline
The clearest inflection in RingCentral's income statement arrived after 2025Q1, when a $10.3M net loss on a 1.7% operating margin gave way to six consecutive profitable quarters ending with 8.0% operating margin in 2026Q3. Rising gross margin and restrained SG&A appear to have driven the reversal.
SG&A grew just 3.1% from $341.8M in 2024Q2 to $352.4M in 2026Q3 while revenue grew 14.0%, suggesting the inflection was expense-discipline-led rather than demand-led — an important distinction for durability. If that interpretation holds, the margin's staying power hinges on opex restraint persisting even as R&D climbs to $88.1M per quarter to fund the company's AI-voice repositioning.
Earnings Quality Masked by SBC and One-Offs
Skeptics would note that RingCentral's $64.7M of stock-based compensation in 2026Q3 exceeds its $53.9M operating income, meaning reported profitability depends heavily on excluding a recurring, dilutive expense. Coupled with 5.9% growth, the 8.0% operating margin may overstate true economic earnings.
On a shareholder-cost view where SBC is treated as real compensation, RNG's operating result would sit near or below breakeven, which challenges the narrative that the company has achieved durable operating leverage. Combined with a 1.73%-style thin net margin historically and a net income line now swinging on non-operating items, the multiple investors pay for 'earnings' may be built on a fragile base that warrants further investigation.