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RingCentral (RNG) Q2 2025 earnings results (second quarter 2025)

10-Q filed Aug 7, 2025

RingCentral (RNG) reported revenue of $620M for the second quarter 2025 (Q2 2025), +5% from a year earlier and +1% from the quarter before. Operating margin was 6.0%, net earnings $13.2M (2.1% of revenue).

Revenue$620M
Year over year+5%
Quarter over quarter+1%
Operating margin6.0%
Net earnings$13.2M

RingCentral, Q2 2025: revenue $620M (+5% year over year), operating margin 6.0%, net earnings $13.2M, operating cash flow $167M. The chart follows the revenue to costs, profit and cash.

Q2 2025AmountQ/QY/Y
Revenue$620M+1%+5%
Gross profit$441M+2%+6%
Operating profit$37.0M+257%—
Net earnings$13.2M——
Operating cash flow$167M+12%+32%
Free cash flow$144M—+33%

What changed

Revenue was $620.4M in Q2 2025, up 5% year over year and up 1% from the previous quarter. Subscriptions was the largest line at 97% of revenue. Subscriptions added $31.7M year over year (up 6%), 115% of the total change. Other declined 16%.

Gross margin was 71.2%, up 1.0 points from a year earlier. Operating profit was $37.0M, a 6.0% margin (up 6.9 points year over year). Operating expenses fell 4% while revenue rose 5%. Net earnings were $13.2M. The effective tax rate was 15.8%.

Operating cash flow was $167.4M (up 32% year over year), 1269% of net earnings. Non-cash charges added back $54.9M of depreciation and amortization and $63.5M of share-based compensation. Working capital and other items added $35.8M. After capitalized expenditures ($23.0M), free cash flow as the company reports it was $144.4M.

Questions

What was RingCentral's revenue in the second quarter 2025?

RingCentral (RNG) reported revenue of $620M for the second quarter 2025 (Q2 2025), +5% from a year earlier and +1% from the quarter before.

Was RingCentral profitable in the second quarter 2025?

Operating profit was $37.0M (6.0% of revenue) and net earnings $13.2M.

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Source: RingCentral 10-Q on SEC EDGAR.