Ringcentral (NYSE:RNG) Updates FY 2025 Earnings Guidance

Key Points

• RingCentral has issued its FY 2025 earnings guidance, predicting earnings per share between $4.200 and $4.320, slightly above the consensus estimate of $4.208.
• The company also projects a revenue of $2.5 billion, in line with analyst expectations, and has updated its Q3 2025 EPS forecast to range from $1.060 to $1.080.
• Stock performance shows shares of RingCentral falling to $23.60, with a market capitalization of $2.12 billion and a variety of analyst ratings, including a consensus rating of "Hold."

Ringcentral (NYSE:RNG - Get Free Report) issued an update on its FY 2025 earnings guidance on Tuesday. The company provided EPS guidance of 4.200-4.320 for the period, compared to the consensus EPS estimate of 4.208. The company issued revenue guidance of $2.5 billion-$2.5 billion, compared to the consensus revenue estimate of $2.5 billion. Ringcentral also updated its Q3 2025 guidance to 1.060-1.080 EPS.

Ringcentral Stock Performance

Shares of RNG stock traded down $0.61 during trading hours on Friday, hitting $28.51. 669,288 shares of the company were exchanged, compared to its average volume of 1,429,383. Ringcentral has a fifty-two week low of $20.58 and a fifty-two week high of $42.19. The firm has a market cap 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. The company has a 50 day simple moving average of $27.21 and a two-hundred day simple moving average of $27.72.

Ringcentral (NYSE:RNG - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The software maker reported $1.06 earnings per share for the quarter, topping the consensus estimate of $1.02 by $0.04. The business had revenue of $620.40 million for the quarter, compared to analysts' expectations of $617.90 million. Ringcentral had a negative return on equity of 19.09% and a negative net margin of 0.50%. The business's revenue was up 4.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.91 earnings per share. As a group, sell-side analysts expect that Ringcentral will post 1.29 EPS for the current fiscal year.

Analyst Ratings Changes

A number of brokerages recently weighed in on RNG. Wells Fargo & Company decreased 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. Wedbush lowered their price objective on shares of Ringcentral from $38.00 to $30.00 and set a "neutral" rating for the company in a report on Friday, May 9th. Mizuho increased their target price on shares of Ringcentral from $25.00 to $27.00 and gave the company a "neutral" rating in a report on Monday, May 12th. Jefferies Financial Group decreased their target price on shares of Ringcentral from $30.00 to $29.00 and set a "hold" rating on the stock in a research report on Wednesday. Finally, Needham & Company LLC began coverage on shares of Ringcentral in a research report on Friday, May 9th. They set a "buy" rating and a $36.00 price target for the company. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, four have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $30.62.

Insider Buying and Selling at Ringcentral

In related news, COO Kira Makagon sold 21,185 shares of Ringcentral stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $27.69, for a total transaction of $586,612.65. Following the completion of the sale, the chief operating officer owned 413,131 shares of the company's stock, valued at $11,439,597.39. The trade was a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Vaibhav Agarwal sold 14,969 shares of the company's stock in a transaction on Wednesday, May 21st. The shares were sold at an average price of $26.88, for a total transaction of $402,366.72. Following the completion of the sale, 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 ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 244,647 shares of company stock valued at $6,531,804. Corporate insiders own 6.97% of the company's stock.

Institutional Trading of Ringcentral

Several large investors have recently made changes to their positions in RNG. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Ringcentral by 2.1% in 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 buying an additional 5,398 shares during the period. Woodline Partners LP raised its stake in shares of 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 acquiring an additional 20,518 shares during the period. Finally, Empowered Funds LLC lifted its holdings in shares of Ringcentral by 9.0% in the 1st quarter. Empowered Funds LLC now owns 11,417 shares of the software maker's stock worth $283,000 after acquiring an additional 940 shares during the last quarter. 98.61% of the stock is currently owned by hedge funds and other institutional investors.

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.