Filing Flows › RingCentral (RNG) › Q1 2025
RingCentral (RNG) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 9, 2025
RingCentral (RNG) reported revenue of $612M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -0.4% from the quarter before. Operating margin was 1.7%, net loss $10.3M (1.7% of revenue).
RingCentral, Q1 2025: revenue $612M (+5% year over year), operating margin 1.7%, net loss $10.3M, operating cash flow $150M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $612M | -0.4% | +5% |
| Operating profit | $10.3M | — | — |
| Net earnings | −$10.3M | — | — |
| Operating cash flow | $150M | +13% | +56% |
| Free cash flow | $130M | — | +70% |
What changed
Revenue was $612.1M in Q1 2025, up 5% year over year and roughly flat from the previous quarter. Subscriptions was the largest line at 96% of revenue. Subscriptions added $32.6M year over year (up 6%), 117% of the total change. Other declined 18%.
Gross margin was 70.5%, down 0.3 points from a year earlier. Operating profit was $10.3M, a 1.7% margin (up 3.6 points year over year). Operating expenses fell 1% while revenue rose 5%. The quarter ended with a net loss of $10.3M, wider than the previous quarter's $7.2M loss. Net interest and other expense of $14.7M was the main reason.
Operating cash flow was $149.7M (up 56% year over year). Non-cash charges added back $55.1M of depreciation and amortization and $77.9M of share-based compensation. Working capital and other items added $27.0M. After capitalized expenditures ($19.5M), free cash flow as the company reports it was $130.2M.
Questions
What was RingCentral's revenue in the first quarter 2025?
RingCentral (RNG) reported revenue of $612M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -0.4% from the quarter before.
Was RingCentral profitable in the first quarter 2025?
Operating profit was $10.3M (1.7% of revenue) and net loss $10.3M.
Source: RingCentral 10-Q on SEC EDGAR.