Ringcentral (NYSE:RNG) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• RingCentral reported a quarterly EPS of $0.35, significantly below analysts' expectations of $1.02, resulting in a miss of $0.67 per share.
• Following the earnings announcement, RingCentral's stock price fell by 0.19 to $23.60, amidst notable negative financial metrics including a net margin of -1.65%.
• The company has updated its Q3 2025 guidance to 1.060-1.080 EPS and its FY 2025 guidance to 4.200-4.320 EPS, indicating a potential recovery.

Ringcentral (NYSE:RNG - Get Free Report) announced its quarterly earnings results on Tuesday. The software maker reported $1.06 EPS for the quarter, beating the consensus estimate of $1.02 by $0.04, RTT News reports. Ringcentral had a negative net margin of 0.50% and a negative return on equity of 19.09%. The firm had revenue of $620.40 million during the quarter, compared to the consensus estimate of $617.90 million. During the same period last year, the firm earned $0.91 EPS. The business's quarterly revenue was up 4.6% compared to the same quarter last year. Ringcentral updated its Q3 2025 guidance to 1.060-1.080 EPS and its FY 2025 guidance to 4.200-4.320 EPS.

Ringcentral Trading Down 2.2%

NYSE:RNG traded down $0.64 during midday trading on Friday, hitting $28.48. 669,288 shares of the company traded hands, compared to its average volume of 1,429,383. The firm has a market capitalization of $2.56 billion, a P/E ratio of -203.65, a P/E/G ratio of 0.97 and a beta of 1.28. Ringcentral has a 12-month low of $20.58 and a 12-month high of $42.19. The firm's fifty day moving average is $27.21 and its 200-day moving average is $27.72.

Insider Buying and Selling

In other news, CAO Tarun Arora sold 7,776 shares of Ringcentral stock in a transaction that occurred on Friday, June 27th. The shares were sold at an average price of $28.00, for a total transaction of $217,728.00. Following the completion of the sale, the chief accounting officer owned 114,497 shares of the company's stock, valued at approximately $3,205,916. The trade was a 6.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Vaibhav Agarwal sold 14,969 shares of the firm's stock in a transaction dated Wednesday, May 21st. The shares were sold at an average price of $26.88, for a total transaction of $402,366.72. Following the transaction, the chief financial officer directly owned 153,900 shares in the company, valued at $4,136,832. This trade represents a 8.86% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 244,647 shares of company stock worth $6,531,804 over the last three months. 6.97% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Ringcentral

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Ringcentral by 2.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 261,190 shares of the software maker's stock valued at $6,467,000 after purchasing an additional 5,398 shares during the period. Woodline Partners LP lifted its holdings in Ringcentral by 14.8% in the 1st quarter. Woodline Partners LP now owns 159,474 shares of the software maker's stock valued at $3,949,000 after purchasing an additional 20,518 shares in the last quarter. Finally, Empowered Funds LLC grew its position in shares of Ringcentral by 9.0% in the first quarter. Empowered Funds LLC now owns 11,417 shares of the software maker's stock valued at $283,000 after purchasing an additional 940 shares in the last quarter. 98.61% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on RNG shares. Mizuho raised their price target on Ringcentral from $25.00 to $27.00 and gave the stock a "neutral" rating in a research report on Monday, May 12th. Needham & Company LLC initiated coverage on Ringcentral in a research report on Friday, May 9th. They issued a "buy" rating and a $36.00 price target on the stock. Jefferies Financial Group lowered their price target on Ringcentral from $30.00 to $29.00 and set a "hold" rating on the stock in a report on Wednesday. Wall Street Zen raised shares of Ringcentral from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 5th. Finally, Piper Sandler raised their price objective on Ringcentral from $25.00 to $28.00 and gave the stock a "neutral" rating in a research note on Friday, May 9th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $30.62.

About Ringcentral

RingCentral, Inc, together with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company's products include RingCentral Message Video Phone that provides a unified experience for communication and collaboration across multiple modes, including HD voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax; RingCentral Contact Center, a collaborative contact center solution that delivers AI-powered omnichannel and workforce engagement solutions with integrated RingCentral MVP; and RingCX, an AI-powered contact center that a native delivers omnichannel experience.