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Sep 30
RingCentral Q3 2025 Earnings Report
RingCentral reported strong third-quarter 2025 financial results, exceeding revenue guidance and achieving record operating margins.
Key Takeaways
RingCentral delivered a solid third quarter, with total revenue reaching $639 million, a 5% year-over-year increase. The company achieved a GAAP operating margin of 4.8% and a non-GAAP operating margin of 22.8%, marking significant improvements. Net cash provided by operating activities increased by 19% to $151 million, and free cash flow grew by 23% to $130 million, demonstrating strong liquidity and cash generation.
Total revenue reached $639 million, up 5% year-over-year, meeting the high end of guidance.
Non-GAAP operating margin expanded by 180 basis points year-over-year to 22.8%, indicating improved profitability.
Net cash provided by operating activities was $151 million, a 19% increase from the prior year.
Free cash flow grew by 23% year-over-year to $130 million, with the full-year outlook raised to over $525 million.
RingCentral
RingCentral
RingCentral Revenue by Segment
Revenue by Segment
Subscriptions Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
RingCentral provided a positive outlook for the fourth quarter and full year 2025, with expectations for continued revenue growth, margin expansion, and strong free cash flow. The company is raising its full-year free cash flow outlook to over $525 million.
Positive Outlook
- Fourth quarter total revenue guidance of $638 million to $646 million.
- Fourth quarter non-GAAP operating margin expected to be 22.8%, up approximately 145 basis points year-over-year.
- Full year 2025 total revenue growth of approximately 4.5% to 5.0% year-over-year.
- Full year 2025 non-GAAP operating margin of approximately 22.5%, up approximately 150 basis points year-over-year.
- Full year 2025 free cash flow guidance raised to $525 million to $530 million, representing a 420 bps YoY free cash flow margin expansion.
Challenges Ahead
- No specific negative forward guidance points were highlighted in the report.
Revenue & Expenses
Visualization of income flow from segment revenue to net income