Revenue growth has decelerated to 5.3% in 2026Q1, while operating margins remain thin at 7.8% due to high SG&A expenses consuming the majority of gross profit.
| 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 | 2.55B | 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 % | 4.9% | 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 | 722.99M | 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 | 1.82B | 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 % | 71.62% | 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 | 1.66B | 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 | 1.35B | 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 | 316.72M | 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 | -1000K | 0 | 0 | 0 | 283.69M | 0 | 0 | 0 | 0 | 1.49M | -2.38M | -1.31M | -1.03M | 274K | 32K | 109K |
| Operating Income | 165.92M | 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 % | 6.51% | 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 | 375.77M | 391.14M | 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 % | 14.75% | 15.55% | 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 % | 53.42% | 73.63% | 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) | 209.85M | 264.92M | 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 | 154.8M | 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 | -29.36M | -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 | 29.36M | 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 | -71.2M | -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 | 94.72M | 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 % | 3.72% | 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 | 10.38M | 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 % | 10.96% | 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 | 84.34M | 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 % | 3.31% | 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 % | 310.2% | 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) | 84.34M | 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) | 0.97 | 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 % | 315.84% | 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 | 86.99M | 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 | 84.66M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
High Customer Acquisition Costs
As reported in recent financial filings, RingCentral's year-over-year revenue growth has decelerated to 4.78%, signaling a transition from a high-growth disruptor to a mature utility that struggles to expand its enterprise footprint in an increasingly crowded market dominated by bundled collaboration platforms like Microsoft Teams.
The consistent decline in quarterly growth rates suggests that the company's reliance on legacy partner channels is yielding diminishing returns. Investors should monitor whether the current revenue trajectory reflects a permanent saturation of the North American enterprise market or merely a temporary lull in large-scale digital transformation projects.
Based on the provided income statement data, RingCentral's operating margin of 5.02% indicates that the company has failed to achieve meaningful operating leverage, as SG&A expenses continue to consume the vast majority of gross profit generated by its recurring subscription-based business model.
Despite reaching a scale of over $2.5 billion in TTM revenue, the company's inability to significantly widen its operating margin suggests that customer acquisition costs remain structurally high. This lack of scalability implies that the business model may be more dependent on continuous, expensive partner incentives than previously anticipated by the market.
According to historical income statement data, RingCentral's net income remains highly sensitive to stock-based compensation, which frequently exceeds $60 million per quarter, effectively masking the true economic cost of operations and diluting the value of earnings for common shareholders in the process.
The narrow net margin of 1.73% suggests that the company's reported profitability is fragile and highly susceptible to non-operating adjustments. Analysts should view the recent shift toward positive net income with caution, as it appears heavily reliant on accounting treatments rather than a fundamental improvement in core operational efficiency.
As indicated by the financial data, RingCentral's reliance on third-party distribution partners creates a significant risk, as any potential reduction in these incentive payments could lead to a rapid loss of market share or a spike in direct sales costs to maintain current revenue levels.
Short-sellers may focus on the company's thin operating margins as evidence that the moat is built on unsustainable partner subsidies rather than genuine product differentiation. If the competitive landscape forces further price concessions, the company may find itself trapped between declining margins and the high cost of maintaining its complex, carrier-grade infrastructure.
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.