RingCentral Announces First Dividend Amid Strong Cash Growth
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RingCentral ( (RNG) ) has issued an update.
RingCentral reported fourth-quarter and full-year 2025 results on February 19, 2026, showing total annual revenue of $2.52 billion, up 5% year over year, with subscriptions revenue rising 6% and now exceeding 95% of sales. The company expanded GAAP operating margin to 4.8% for 2025, lifted non-GAAP operating margin to 22.5%, generated record free cash flow of $530 million, and turned GAAP-operating-profitable while reducing stock-based compensation and cutting net leverage to 1.7 times.
Fourth-quarter 2025 revenue grew 5% to $644 million, with GAAP EPS improving to $0.26 from a loss a year earlier and free cash flow up 13% to $126 million. RingCentral repurchased about 5 million shares for $135 million and increased its share repurchase authorization to $500 million, signaling confidence in its cash generation and balance sheet.
The board approved the company’s first cash dividend program, declaring a quarterly dividend of $0.075 per share payable on March 16, 2026 to shareholders of record on March 9, 2026, marking a shift toward returning more capital to investors. Management emphasized a strategy of balancing disciplined growth investment with shareholder returns, highlighting plans to further improve margins, reduce leverage toward an investment-grade profile and grow free cash flow.
Operationally, RingCentral’s AI-led products reached $100 million in annual recurring revenue, with its AI Receptionist serving more than 8,000 customers and growing rapidly. The company deepened its AI capabilities through an integration with OpenAI and secured industry recognition as a leader in AI-enabled contact center workforce engagement and as a top UCaaS provider, reinforcing its competitive position in cloud communications.
Looking ahead to 2026, RingCentral guided for 4% to 5% total revenue growth, non-GAAP operating margins of roughly 23% to 23.5% and free cash flow of $580 million to $600 million, implying double-digit cash flow growth. The company also plans to reduce gross debt to $1 billion by the end of 2026, signaling continued focus on balance sheet strengthening alongside ongoing dividends and share repurchases.
The most recent analyst rating on (RNG) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on RingCentral stock, see the RNG Stock Forecast page.
Spark’s Take on RNG Stock
According to Spark, TipRanks’ AI Analyst, RNG is a Neutral.
The score is mainly supported by strong cash flow and an encouraging earnings update with expanding margins and AI-led ARR progress, but is weighed down by balance-sheet leverage/negative equity, weak current technical momentum, and a very high P/E with no dividend yield provided.
To see Spark’s full report on RNG stock, click here.
More about RingCentral
RingCentral, Inc., listed on the NYSE under ticker RNG, is a global leader in AI-powered business communications and unified communications as a service. The company provides cloud-based platforms for voice, messaging, contact center and workforce engagement, with a strong focus on AI-enabled automation, analytics and integrations for enterprise and mid-market customers worldwide.
Average Trading Volume: 1,758,438
Technical Sentiment Signal: Sell
Current Market Cap: $2.48B
For detailed information about RNG stock, go to TipRanks’ Stock Analysis page.
