RingCentral (RNG) investor relations material

Executive summary

• Q1 2026 revenue reached $644 million, up 5.3% year-over-year, with subscription revenue at $623 million, up 5.6% year-over-year, both at the high end of guidance.

• Achieved record GAAP operating margin of 7.8% (up over 600 basis points) and non-GAAP operating margin of 22.9% (up 110 basis points) year-over-year.

• Non-GAAP EPS increased to $1.20, while GAAP EPS improved to $0.35 from $(0.11) last year.

• AI-led products are driving higher ARPU and net retention, with ARR from paid AI products now exceeding 10% of total ARR, doubling year-over-year.

• Platform recognized as a leader in 2026 IDC MarketScape, Omdia Universe, and other analyst reports for customer engagement platforms.

Financial highlights

• Adjusted EBITDA was $170 million (26.3% of revenue), up from $155 million (25.3%) year-over-year.

• Free cash flow for Q1 was $141 million (21.8% of revenue), up 8% year-over-year; free cash flow per share was $1.62, up 15.4%.

• Annualized recurring revenue (ARR) reached $2.7 billion, up 7% year-over-year.

• SBC as a percentage of revenue declined 400–420 basis points year-over-year to 9% in Q1.

• Net cash from operating activities was $164 million (25.5% of revenue), up 9.6% year-over-year.

Outlook and guidance

• Q2 2026 guidance: total revenue $648–$653 million; subscription revenue $628–$633 million; non-GAAP operating margin 23.0–23.2%; non-GAAP EPS $1.15–$1.17.

• FY26 guidance: subscription revenue $2.54–$2.56 billion, total revenue $2.62–$2.64 billion, GAAP operating margin 8.9%–9.6%, non-GAAP margin 23.3%–23.7%, free cash flow $590–$605 million, non-GAAP EPS $4.85–$5.01.

• Estimated FY26 free cash flow per share is $6.89; non-GAAP EPS estimated at $4.93.