Is the business good?
How good a business is RNG?
RingCentral, Inc. earns 26% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
26%
Return on invested capital · cost of capital 9.0% · 17 points above what the capital costs: growth creates value
- Operating margin
- 6.3%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- Share count, year on year
- −4.4%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 12%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −9.6% |
| FY2021 | −19% |
| FY2022 | −33% |
| FY2023 | −9.0% |
| FY2024 | 0.11% |
| FY2025 | 4.8% |
Details›
- Gross margin12 months to Q1 2026
- 72%
- Operating margin12 months to Q1 2026
- 6.3%
- Net margin12 months to Q1 2026
- 3.3%
- Free cash flow margin
- 24%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $2.55B
- Free cash flow, trailing twelve months
- $601M
- Net income, trailing twelve months
- $84M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 26%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #33 of 90 by Smart Score