Ringcentral (NYSE:RNG) Releases Q3 2025 Earnings Guidance

Key Points

• RingCentral has issued new guidance for Q3 2025, projecting an EPS of 1.060-1.080 and revenue between $631 million and $639 million, slightly surpassing consensus estimates.
• After the earnings announcement, RingCentral's stock fell to $23.60, with significant trading volume of 1,764,788 shares, reflecting a recent trend of analyst downgrades and altered price targets.
• Insider trading activity has been notable, with CEO Vladimir Shmunis selling nearly 95,000 shares recently, indicating potential shifts in confidence among company leadership.

Ringcentral (NYSE:RNG - Get Free Report) issued an update on its third quarter 2025 earnings guidance on Tuesday morning. The company provided EPS guidance of 1.060-1.080 for the period, compared to the consensus EPS estimate of 1.069. The company issued revenue guidance of $631.0 million-$639.0 million, compared to the consensus revenue estimate of $637.5 million. Ringcentral also updated its FY 2025 guidance to 4.200-4.320 EPS.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. Mizuho increased 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. Jefferies Financial Group reduced their target price on Ringcentral from $30.00 to $29.00 and set a "hold" rating on the stock in a report on Wednesday. Wells Fargo & Company cut their price objective on Ringcentral from $30.00 to $22.00 and set an "underweight" rating on the stock in a report on Tuesday, April 22nd. Morgan Stanley reduced their target price on Ringcentral from $40.00 to $29.00 and set an "equal weight" rating for the company in a research note on Wednesday, April 16th. Finally, UBS Group cut their target price on Ringcentral from $33.00 to $32.00 and set a "neutral" rating on the stock in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, four have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, Ringcentral has an average rating of "Hold" and a consensus price target of $30.62.

Ringcentral Stock Down 4.2%

NYSE RNG traded down $1.27 on Thursday, reaching $28.73. The company had a trading volume of 1,620,345 shares, compared to its average volume of 1,423,430. The stock has a market capitalization of $2.58 billion, a PE ratio of -203.16, a price-to-earnings-growth ratio of 0.77 and a beta of 1.28. The firm's 50 day moving average price is $27.15 and its 200 day moving average price is $27.76. Ringcentral has a 12 month low of $20.58 and a 12 month high of $42.19.

Ringcentral (NYSE:RNG - Get Free Report) last posted its earnings results on Tuesday, August 5th. The software maker reported $1.06 earnings per share for the quarter, topping analysts' consensus estimates of $1.02 by $0.04. 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 for the quarter, compared to the consensus estimate of $617.90 million. During the same period in the previous year, the firm posted $0.91 EPS. The business's quarterly revenue was up 4.6% on a year-over-year basis. On average, research analysts expect that Ringcentral will post 1.29 EPS for the current year.

Insider Activity

In related news, CEO Vladimir Shmunis sold 54,899 shares of the stock in a transaction on Thursday, May 22nd. The shares were sold at an average price of $26.44, for a total transaction of $1,451,529.56. Following the sale, the chief executive officer directly owned 552,820 shares of the company's stock, valued at approximately $14,616,560.80. This represents a 9.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP John H. Marlow sold 19,442 shares of the firm's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $26.43, for a total transaction of $513,852.06. Following the sale, the senior vice president owned 333,006 shares of the company's stock, valued at approximately $8,801,348.58. The trade was a 5.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 244,647 shares of company stock valued at $6,531,804 in the last three months. Corporate insiders own 6.97% of the company's stock.

Institutional Trading of Ringcentral

Institutional investors have recently modified their holdings of the stock. Empowered Funds LLC boosted its position in shares of Ringcentral by 9.0% during the 1st quarter. Empowered Funds LLC now owns 11,417 shares of the software maker's stock worth $283,000 after purchasing an additional 940 shares in the last quarter. Woodline Partners LP boosted 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 worth $3,949,000 after acquiring an additional 20,518 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Ringcentral by 2.1% during the 1st 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 acquiring an additional 5,398 shares in the last quarter. Hedge funds and other institutional investors own 98.61% of the company's stock.

Ringcentral Company Profile

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.