$RNG

RingCentral, Inc.

CIK:0001384905|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Total revenues	$ 657,011	$ 620,398	$ 1,301,210	$ 1,232,454
Cost of revenues
Total cost of revenues	184,702	178,950	364,132	359,400
Gross profit	472,309	441,448	937,078	873,054
Operating expenses
Research and development	82,801	77,539	164,514	159,522
Sales and marketing	274,907	263,585	547,750	538,483
General and administrative	64,316	63,361	124,501	127,746
Total operating expenses	422,024	404,485	836,765	825,751
Income from operations	50,285	36,963	100,313	47,303
Other income (expense), net
Interest expense	(18,672)	(16,466)	(33,477)	(32,581)
Other income (expense)	10,638	(4,820)	9,524	(3,418)
Other expense, net	(8,034)	(21,286)	(23,953)	(35,999)
Income before income taxes	42,251	15,677	76,360	11,304
Provision for income taxes	3,136	2,484	6,627	8,439
Net income	$ 39,115	$ 13,193	$ 69,733	$ 2,865
Net income per common share
Basic (in dollars per share)	$ 0.47	$ 0.15	$ 0.83	$ 0.03
Diluted (in dollars per share)	$ 0.45	$ 0.14	$ 0.80	$ 0.03
Weighted-average number of shares used in computing net income per share
Basic (in shares)	84,049	90,710	84,354	90,861
Diluted (in shares)	86,619	92,056	86,803	92,488
Subscriptions
Revenues
Total revenues	$ 633,649	$ 598,728	$ 1,256,815	$ 1,188,840
Cost of revenues
Total cost of revenues	159,504	150,788	313,912	303,883
Other
Revenues
Total revenues	23,362	21,670	44,395	43,614
Cost of revenues
Total cost of revenues	$ 25,198	$ 28,162	$ 50,220	$ 55,517

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income	$ 69,733	$ 2,865
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	113,997	109,982
Share-based compensation	111,796	141,350
Amortization of deferred and prepaid sales commission costs	78,716	81,863
Amortization of debt discount and issuance costs	1,605	2,381
Loss on early extinguishment of debt	6,409	4,988
Reduction of operating lease right-of-use assets	11,832	12,706
Provision for bad debt	6,813	8,008
Other	4,510	(386)
Changes in assets and liabilities:
Accounts receivable	(8,841)	(12,907)
Deferred and prepaid sales commission costs	(58,806)	(52,172)
Prepaid expenses and other assets	6,152	(2,461)
Accounts payable	(7,830)	43,443
Accrued and other liabilities	21,328	(11,984)
Deferred revenue	26,111	1,111
Operating lease liabilities	(13,045)	(11,711)
Net cash provided by operating activities	370,480	317,076
Cash flows from investing activities
Purchases of property and equipment	(17,135)	(14,544)
Capitalized internal-use software	(32,507)	(27,971)
Cash paid for business combination, net of cash acquired	(7,929)	0
Net cash used in investing activities	(57,571)	(42,515)
Cash flows from financing activities
Proceeds from issuance of stock in connection with stock plans	9,978	9,064
Payments for taxes related to net share settlement of equity awards	(15,532)	(3,571)
Payments for repurchases of common stock	(174,985)	(81,787)
Payment of dividends	(12,774)	0
Proceeds from issuance of long-term debt	600,000	0
Payments for the settlement of convertible notes	(609,065)	(161,326)
Repurchases of principal on senior notes	(105,000)	(53,903)
Repayments of principal on term loan	(23,135)	(60,000)
Payments for fees on long-term debt	(868)	(1,631)
Repayments of financing obligations	(633)	(633)
Payments for contingent consideration	(889)	0
Net cash used in financing activities	(332,903)	(353,787)
Effect of exchange rate changes	(1,069)	4,528
Net decrease in cash, cash equivalents, and restricted cash	(21,063)	(74,698)
Cash, cash equivalents, and restricted cash
Beginning of period	132,564	242,811
End of period	111,501	168,113
Supplemental disclosure of cash flow data:
Cash paid for interest, net of interest rate swap	34,810	30,041
Cash paid for income taxes, net of refunds	7,002	8,326
Non-cash investing and financing activities
Equipment and capitalized internal-use software purchased and unpaid at period end	3,334	5,116
Indemnity holdback consideration	4,094	0
Contingent consideration	$ 1,900	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 111,501	$ 132,564
Accounts receivable, net	389,043	384,100
Deferred and prepaid sales commission costs	157,371	167,304
Prepaid expenses and other current assets	75,298	81,190
Total current assets	733,213	765,158
Property and equipment, net	190,219	186,570
Operating lease right-of-use assets	40,518	30,855
Deferred and prepaid sales commission costs, non-current	227,909	252,504
Goodwill	102,832	97,792
Acquired intangibles, net	77,356	135,410
Other assets	9,318	13,166
Total assets	1,381,365	1,481,455
Current liabilities
Accounts payable	21,676	27,677
Accrued liabilities	299,378	297,633
Current portion of long-term debt, net	46,269	624,216
Deferred revenue	295,340	269,122
Total current liabilities	662,663	1,218,648
Long-term debt, net	1,074,377	629,580
Operating lease liabilities	23,468	14,372
Other long-term liabilities	31,767	7,525
Total liabilities	1,792,275	1,870,125
Commitments and contingencies (Note 9)
Series A convertible preferred stock	199,449	199,449
Stockholders’ deficit
Common stock	8	9
Additional paid-in capital	1,043,421	1,123,447
Accumulated other comprehensive income	3,286	2,458
Accumulated deficit	(1,657,074)	(1,714,033)
Total stockholders’ deficit	(610,359)	(588,119)
Total liabilities, temporary equity and stockholders’ deficit	$ 1,381,365	$ 1,481,455