RingCentral (RNG) beats Q2 guidance on every metric, lifts full-year outlook and raises dividend 67%
RingCentral's (NYSE: RNG) second-quarter print cleared the high end of every guided metric, with total revenue of $657 million representing 5.9% year-over-year growth. The board simultaneously raised the quarterly cash…
RingCentral's (NYSE: RNG) second-quarter print cleared the high end of every guided metric, with total revenue of $657 million representing 5.9% year-over-year growth. The board simultaneously raised the quarterly cash dividend roughly 67%, to $0.125 per share, payable August 20, 2026 to stockholders of record as of August 6. The next confirmable milestone is third-quarter guidance, which the company set at $664 to $670 million in total revenue.
Q2 numbers, fully attributed
Subscriptions revenue reached $634 million, up 5.8% year over year, at 96% of total revenue. GAAP operating margin expanded to 7.7% from 6.0% in the prior-year period. Non-GAAP operating margin was 23.4%, a gain of roughly 90 basis points. Adjusted EBITDA was $177 million, or 26.9% of total revenue, against $162 million, or 26.0%, in Q2 2025.
The earnings line moved. GAAP diluted EPS came to $0.45, up from $0.14 a year ago. Non-GAAP diluted EPS was $1.22 versus $1.06. Free cash flow of $180 million grew 24.8% year over year. Operating cash flow reached $206 million, up 23.3%. RingCentral closed the quarter with $112 million in cash after buying back approximately 2.2 million shares for $94 million; roughly $326 million remains on the authorization.
AI attach rate and what it signals
Thirteen percent of annual recurring revenue now comes from customers using at least one native paid AI product, a figure that doubled year over year. CEO Vlad Shmunis pointed to the company's global voice network and customer interaction data as the foundation for its agentic positioning. CFO Vaibhav Agarwal attributed the dividend capacity to free cash flow generation, which he said gives flexibility to invest in growth and return capital to shareholders.
The setup here hinges on whether that 13% ARR attach rate continues to accelerate. A doubling is a clean number. The question is whether Q3's $643 to $649 million subscriptions range reflects new AI-driven additions or largely steady-state renewals. Those two stories look identical on the revenue line, and the tape will need more evidence to separate them.
Raised full-year outlook
RingCentral lifted full-year 2026 total revenue guidance to $2.635 to $2.646 billion and raised free cash flow guidance to $615 to $625 million. Full-year non-GAAP EPS guidance moved to $4.96 to $5.10, based on 87.0 to 86.5 million fully diluted shares. GAAP operating margin guidance for the year rose to 9.0% to 9.7%.
For Q3, non-GAAP EPS guidance stands at $1.25 to $1.30 on approximately 86.5 million diluted shares. The August 20 dividend payment date is the nearest hard catalyst on the calendar.