Train-Track - RNG - Application Software - September 18, 2026

Why it is a Train-Track

RNG triggered a Train-Track signal on September 18, 2026, one of 50 stocks screened by that filter that day. RingCentral's fundamentals have shifted from losses to GAAP profitability, with AI products contributing 13% of ARR and billings growing faster than revenue, but growth is centered at only around 6%. It carries the trend and strength characteristics a Train-Track looks for. On relative strength, RPS120 is 95.2 and RPS250 is 94.9, placing it clearly in the leadership band the filter looks for.

How the filter reads it

Below are the dimensions the train-track formula reads, and how RNG measured on September 18, 2026.

Dimension	Reading	Result
Relative Strength	In the leadership band (RPS120 95.2 / RPS250 94.9)	Pass
Trend structure	Moving averages stacked and rising	Pass
Price position	In the upper range	Pass
Volume	Advancing on heavy volume	Pass
Signal uniqueness	First trigger in about a month	Yes

Fundamental Fact Sheet

Market Cap About USD 6.048 billion

PE (TTM) 57.94

Forward PE 12.98

ROE —

Net margin 6.17%

Revenue YoY +5.8%

Valuation metrics are from the latest snapshot; profitability and growth are trailing-twelve-month figures. These numbers are for reference only and do not constitute investment advice. Data sources and calculation methods may differ from official filings; verify independently before making any decision.

RingCentral is a US cloud business communications provider listed on the New York Stock Exchange, focused on Agentic Voice AI-driven business phone, messaging, contact center, video collaboration and team messaging, with core products including RingEX (UCaaS), RingCX (CCaaS) and an AI product matrix. Subscription revenue is about 96% of total revenue and the US contributes 82.77%. Q2 2026 revenue was USD 634 million (subscription basis, +5.83%) and net income attributable to shareholders was USD 39 million (+196.48%), marking a GAAP profitability inflection.

Growth

GAAP net income rose sequentially for four straight quarters (USD 0.13 to 0.18 to 0.23 to 0.31 to 0.39 billion), so the inflection is not single-quarter noise.
Q2 2026 free cash flow was USD 180 million (+24.8%) for a 27.4% FCF margin, with operating cash flow at 5.3 times net income.
Billings were USD 695 million, up 9.5% year on year, 3.6pt faster than revenue growth, supporting the resilience of future subscription revenue.
AI-related ARR is 13% of total ARR and has doubled year on year, with more than 11,800 paying AI Receptionist customers, up over 40% quarter on quarter.
Q2 2026 GAAP gross margin was 71.9% (+0.7pt) and Non-GAAP operating margin 23.4% (+0.8pt), a structural lift in profitability.

Business catalysts

Q3 2026 revenue guidance midpoint is USD 667 million, accelerating from USD 657 million in Q2 2026 on a sequential basis.
Full-year 2026 revenue guidance was raised to USD 2.62-2.64 billion, with the midpoint implying about 8.4% growth year on year.
Full-year 2026 guidance is Non-GAAP EPS of USD 4.85-5.01 and free cash flow of USD 590-605 million.
The quarterly dividend was raised 67% from USD 0.075 to USD 0.125 per share and was paid on 2026-08-20.

Risks

Growth is centered at only about 6%, and excluding the AI increment and USD 15 million of one-off revenue, the legacy communications business is close to zero growth.
The analysts' average target of USD 57.64 is about 19.8% below the current price of USD 71.86, and this is after guidance was raised.
The gap between the 57.94 trailing PE and the 12.98 forward PE is wide, implying EPS must grow substantially over the next twelve months.
The shareholders' deficit widened to USD 610 million and interest expense rose 13% year on year, while the company bought back USD 94 million of stock and raised the dividend 67%.
R&D expense rose 7% year on year against revenue growth of 5.8%, and the sales expense ratio held at 42%, leaving less room to squeeze margins further.
The US is 82.77% of revenue, so geographic dependence is high and international operations are too small to offset the US enterprise IT spending cycle.

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