Loading...
•
Jun 30
RingCentral Q2 2025 Earnings Report
RingCentral announced strong second quarter 2025 financial results, with revenue at the high end of guidance, record cash flow, and positive GAAP net and operating income.
Key Takeaways
RingCentral delivered a solid second quarter, exceeding revenue guidance and achieving record free cash flow. The company reported positive GAAP net and operating income, driven by growth in subscriptions revenue and strong adoption of its AI-powered products. Key financial metrics like non-GAAP operating margin and adjusted EBITDA also saw significant year-over-year improvements.
Total revenue increased 5% year-over-year to $620 million, with subscriptions revenue growing 6% to $599 million.
GAAP operating income was $37 million, a significant improvement from a loss in the prior year, and non-GAAP operating margin expanded to 22.6%.
Net cash provided by operating activities reached $167 million, and free cash flow was a record $144 million, demonstrating strong liquidity.
The company saw rapid adoption of its AI-powered products, with AI Receptionist (AIR) tripling its customer base to over 3,000 and RingSense growing to over 3,600 customers.
RingCentral
RingCentral
RingCentral Revenue by Segment
Revenue by Segment
Subscriptions Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
RingCentral provided updated full-year 2025 guidance, reiterating revenue growth ranges while raising GAAP operating margin and free cash flow guidance. Third-quarter guidance was also provided, showing continued expected growth and margin expansion.
Positive Outlook
- Reiterating full-year subscriptions revenue growth range of 5% to 7% year-over-year.
- Raising full-year GAAP operating margin range to 4.8% to 5.5%.
- Reiterating full-year non-GAAP operating margin of approximately 22.5%, up approximately 150 basis points year-over-year.
- Increasing full-year non-GAAP EPS range to $4.20 to $4.32.
- Raising full-year free cash flow guidance to $515 million to $520 million, representing approximately 28% growth at the midpoint.
Revenue & Expenses
Visualization of income flow from segment revenue to net income