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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.

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Guidance comparison

Subscriptions revenueQ3 2026
$653 millionGuide $2.566 billion (FY 2026) | miss | $-1.91B | -74.6%
Total revenueQ3 2026
$676 millionGuide $2.6535 billion (FY 2026) | miss | $-1.98B | -74.5%
GAAP operating marginQ3 2026
8.0%Guide 9.4% (FY 2026) | miss | -1.4 pts
Non-GAAP operating marginQ3 2026
24.7%Guide 24.1% (FY 2026) | beat | +0.6 pts
Non-GAAP EPSQ3 2026
$1.33Guide $5.095 (FY 2026) | miss | $-3.76 | -73.9%

Guidance updates

Subscriptions revenueFY 2026
$2.563-$2.569 billionPrior $2.563-$2.569 billion | maintained | $0.0M
Total revenueFY 2026
$2.650-$2.657 billionPrior $2.650-$2.657 billion | maintained | $0.0M
GAAP operating marginFY 2026
9.2%-9.6%Prior 9.2%-9.6% | maintained | 0.0 pts
Non-GAAP operating marginFY 2026
24.0%-24.2%Prior 24.0%-24.2% | maintained | 0.0 pts
Non-GAAP EPSFY 2026
$5.07-$5.12Prior $5.07-$5.12 | maintained | $0.00
Share-based compensationFY 2026
$240-$245 millionPrior $240-$245 million | maintained | $0.0M

Forward guidance

Subscriptions revenueQ4 2026
$653 million - $659 million
Total revenueQ4 2026
$673 million - $680 million
GAAP operating marginQ4 2026
13.3% - 14.7%
Non-GAAP operating marginQ4 2026
25.0% - 25.5%
Non-GAAP EPSQ4 2026
$1.32 - $1.37
Share-based compensationQ4 2026
$57 million - $62 million
Subscriptions revenueFY 2026
$2.563 billion - $2.569 billion

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

Total revenueQ3 2026
$676 million+5.9%
Subscriptions revenueQ3 2026
$653 million+6.0%
GAAP operating marginQ3 2026
8.0%+320 bps
Non-GAAP operating marginQ3 2026
24.7%+190 bps
GAAP diluted EPSQ3 2026
$6.50
Non-GAAP EPSQ3 2026
$1.33+17.7%
Net cash from operationsQ3 2026
$180 million+18.8%
Free cash flowQ3 2026
$157 million+21.0%

Primary source

TickerStar generated this brief from an official company, investor-relations, earnings-call, or regulatory source. Review the primary material before making an investment decision.

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