RNG Q3 2026 Subscriptions revenue $653 million, Miss Guidance by $-1.91B
RNG miss prior Q3 2026 Subscriptions revenue guidance by $-1.91B. Subscriptions revenue was maintained by $0.0M to $2.563-$2.569 billion.
Guidance comparison
Guidance updates
Forward guidance
Key takeaways
Margins expanded materially across GAAP and non-GAAP measures: non-GAAP operating margin +190 bps YoY to 24.7%, adjusted EBITDA margin +180 bps to 28.1%, and GAAP operating margin +320 bps to 8.0%
Non-GAAP EPS of $1.33 was up 17.7% YoY; GAAP EPS of $6.50 was inflated by a $544.9 million discrete tax benefit from the partial release of a valuation allowance, with adjusted EPS excluding the tax benefit at $0.28, up 47.4% YoY
Free cash flow of $157 million (+21.0% YoY) and operating cash flow of $180 million (+18.8% YoY), with gross debt reduced to approximately $1 billion, reaching the company's target ahead of schedule
FY 2026 guidance was maintained across total revenue, non-GAAP operating margin, non-GAAP EPS, free cash flow, and share-based compensation; new Q4 2026 outlook issued
Capital return: board declared quarterly dividend of $0.125 per share payable November 20, 2026, with approximately $309 million remaining under the existing share repurchase authorization
AI product traction: ARR from customers utilizing the native paid AI product is approaching 15%, doubling year-over-year
Q3 2026 earnings call held October 22, 2026 at 2:00 PM PT (5:00 PM ET) with webcast at ir.ringcentral.com
Key metrics
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