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RingCentral RNG Business Segments — Operating margin as % of revenue

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Other financials

Income statement

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Revenue$657.0M+5.9%
Gross profit$472.3M+7.0%
Operating income$50.3M+36.0%
Net income$39.1M+196%
EPS (diluted)$0.45+221%

Balance sheet

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Cash & equivalents$106.0M-34.9%
Total debt$1.2B-10.6%
Total equity-$610.4M-25.4%
Total assets$1.4B-14.0%

Cash flow

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Operating cash flow$206.4M+23.3%
CapEx$10.6M+18.2%
Free cash flow$195.8M+23.6%

Valuation

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Market cap$5.18B+91.1%
Enterprise value$6.24B+62.0%
P/E47×
P/S+0.9×

Profitability

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Gross margin71.8%+1.1pp
Operating margin6.7%+4.0pp
Net margin4.3%+3.9pp
FCF margin24.7%+2.3pp

Returns & leverage

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Return on equity-402.5%
Debt / equity
Current ratio1.1×+0.5×

Where this comes from

Reported directly by RingCentral in its filing.

Tagged under the XBRL concept rng:OperatingRevenueMarginPercentage.

The source filing: RingCentral’s 10-Q, filed July 23, 2026.

Filed
Jul 23, 2026, 5:10 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001384905-26-000046
Line itemThree Months Ended June 30, 2026Three Months Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Depreciation and amortization57,08654,921113,997109,982
Other segment items (1)492,509465,045975,104933,819
Income from operations50,28536,963100,31347,303
Operating margin as % of revenue7.7%6.0%7.7%3.8%
Other income (expense), net
Interest expense(18,672)(16,466)(33,477)(32,581)
Other income (expense) (2)10,638(4,820)9,524(3,418)
Other income (expense), net(8,034)(21,286)(23,953)(35,999)

Item 1. Financial Statements (unaudited)

FAQ

What is RingCentral's business segments — operating margin as % of revenue?
RingCentral (RNG) reported business segments — operating margin as % of revenue of 7.7% in Q2 2026.
How has RingCentral's business segments — operating margin as % of revenue changed year-over-year?
RingCentral's business segments — operating margin as % of revenue increased by 28.3% year-over-year, from 6% to 7.7%.
What is the long-term trend for RingCentral's business segments — operating margin as % of revenue?
Over 3 years (2022 to 2025), RingCentral's business segments — operating margin as % of revenue has grown at a -26.3% compound annual growth rate (CAGR), from -32.7% to 13.1%.
What does business segments — operating margin as % of revenue mean?
Expresses operating income as a percentage of total segment revenue to measure the efficiency of the segment's cost structure. A higher margin indicates better control over operating expenses relative to the revenue generated.

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