Compared to Estimates, RingCentral (RNG) Q4 Earnings: A Look at Key Metrics

Core Insights - RingCentral reported revenue of $644.03 million for Q4 2025, a year-over-year increase of 4.8% and an EPS of $1.18 compared to $0.98 a year ago, exceeding the Zacks Consensus Estimate of $642.29 million by 0.27% [1] - The company delivered an EPS surprise of 3.69%, with the consensus EPS estimate being $1.14 [1] Financial Performance Metrics - Gross Margin - Non-GAAP Other was reported at -10.6%, below the four-analyst average estimate of -9.5% [4] - Gross Margin - Non-GAAP Subscriptions was 80.4%, slightly below the four-analyst average estimate of 80.6% [4] - Subscription revenues reached $622.22 million, surpassing the four-analyst average estimate of $621.84 million, reflecting a year-over-year change of 5.5% [4] - Revenues from Other segments were $21.82 million, exceeding the average estimate of $20.44 million, but showing a year-over-year decline of 12.2% [4] Stock Performance - Shares of RingCentral have returned 14.1% over the past month, contrasting with the Zacks S&P 500 composite's decline of 0.8% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]