Here's Why RingCentral (RNG) is a Strong Value Stock
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RingCentral, Inc. delivers sophisticated cloud-based software-as-a-service (SaaS) solutions designed to empower businesses across North America to communicate, collaborate, and connect seamlessly. These ...
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Est. EPS $1.28 · Revenue $667.32M · 9 analysts
Est. EPS $1.28
Est. EPS $1.35 · Revenue $672.54M · 9 analysts
Est. EPS $5.03 · Revenue $2.64B · 7 analysts
$0.15 per share
$0.15 per share
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $2.5B | +4.8% | +2.0% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $43.4M | +174.4% | +27.8% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +71.2% | +0.9% | -0.4% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +5.0% | +4412.0% | -1.4% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +1.7% | +171.0% | +25.3% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $587.3M | +46.8% | +14.4% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +23.4% | +40.1% | +12.2% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | -252.0% | +12.1% | +7.7% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 0.49x | -57.8% | +24.3% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $1.5B | -16.8% | -2.8% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 0.48 vs 4.33 | -88.9% | 0.45 vs 1.28 | -64.7% |
| Revenue Surprise | $2.5B vs $2.5B | +0.1% | $657.0M vs $667.3M | -1.5% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 28, 2026 | Arora Tarun | officer: Chief Accounting Officer | Class A Common Stock | D | 4,568 | $69.60 |
| Aug 25, 2026 | Arora Tarun | officer: Chief Accounting Officer | Class A Common Stock | D | 675 | $67.45 |
| Aug 21, 2026 | Arora Tarun | officer: Chief Accounting Officer | Class A Common Stock | D | 1,876 | $65.26 |
| Aug 21, 2026 | Agarwal Vaibhav | officer: Chief Financial Officer | Class A Common Stock | D | 4,044 | $65.07 |
| Aug 20, 2026 | Arora Tarun | officer: Chief Accounting Officer | Class A Common Stock | D | 3,747 | $65.58 |
Operator: Good day, and welcome to the RingCentral First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note today's event is being recorded. I'd now like to turn the conference over to Al Petrie, Investor Relations for Ring Energy. Please go ahead. Al Petrie: Good afternoon, and welcome to RingCentral's First Quarter 2026 Conference Call. Joining me today are Vlad Shmunis, Founder, Chairman and CEO; Kira Makagon, President and COO; and Vaibhav Agarwal, CFO. Our remarks today include forward-looking statements regarding the company's business operations, financial performance and outlook. These statements are subject to risks and uncertainties, some of which are beyond our control and are not guarantees of future performance. Actual results may differ materially from our forward-looking statements, and we undertake no obligation to update these statements after this call. If the call is replayed after today, the information presented may not contain current or accurate information. For a complete discussion of the risks and uncertainties related to our business, please refer to the information contained in our filings with the Securities and Exchange Commission as well as today's earnings release. Unless otherwise indicated, all measures that follow are non-GAAP with year-over-year comparisons. A reconciliation of all GAAP to non-GAAP results is provided with our earnings release and in the slide presentation, which you can find under the Financial Results section at ir.ringcentral.com. With that, I'll turn the call over to Vlad. Vladimir Shmunis: Good afternoon, and thank you for joining us. We are off to a strong start to the year as we delivered another solid quarter with total revenue at the high end of our guidance. Importantly, we are also making meaningful progress in the quality of our operating model. We delivered record GAAP and non-GAAP operating margins, reduced stock-based compensation, paid down debt and returned capital to shareholders, including our first ever dividend. These are important milestones and reflect the business that is becoming more efficient, more profitable and more durable over time. As to free cash flows, we now expect approximately $600 million of free cash flow this year, which is approaching $7 per share that we believe is among the best in our peer group. Moving forward, we plan to continue to reduce SBC with a path towards our medium-term target of 3% to 4% of revenue. And we are steadily building toward our goal of 20% GAAP operating margin in the next 3 to 4 years. Our strong financial performance is rooted in operational discipline that is underpinned by our unwavering commitment to innovation and a strong competitive position. As one of the original cloud-native SaaS providers, we revolutionized customer communications by taking it from on-prem legacy infrastructure to the multi-tenant cloud. On the strength of that innovation, we've built a $2.7 billion ARR business that is …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Vladimir G. Shmunis | Co-Founder, Chief Executive Officer & Executive Chairman | USD 1,076,959 | Male | 1961 | Active |
Kira Makagon | President & Chief Operating Officer | USD 1,043,094 | Female | 1963 | Active |
Vaibhav Agarwal | Chief Financial Officer | USD 1,037,434 | Male | 1977 | Active |
John H. Marlow | Chief Administrative Officer, SVP of Corporate Development, General Counsel & Secretary | USD 964,711 | Male | 1969 | Active |
Vlad Vendrow | Co-Founder & Chief Technology Officer | — | Male | — | Active |
Tarun Arora | Chief Accounting Officer | — | Male | 1979 | Active |
Steven Horwitz | Vice President of Investor Relations | — | Male | — | Active |
Akshay Srivastava | Executive VP and General Manager of Direct & Channel | — | Male | — | Active |
Carson Hostetter | Executive Vice President and GM of CX & AI | — | Male | — | Active |
Homayoun Razavi | Executive Vice President & GM of Global Service Providers | — | Male | — | Active |
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.

The disposition involved 5,623 shares with a total estimated transaction value of ~$368,138. The activity reduced the insider's direct equity position by 7%.

Great Lakes Advisors LLC purchased a new position in shares of RingCentral, Inc. (NYSE: RNG) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 10,491 shares of the software maker's stock, valued at approximately $409,000. A number of other large investors have also

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The transactions involved 3,437 shares with an estimated total value of ~$223,000 based on a weighted average execution price of $64.77 per share. The disposal reduced the executive's direct equity holdings by 2%.
