RingCentral Beats Q4 EPS, Initiates $0.075 Dividend, $500M Buyback
RingCentral posted Q4 adjusted EPS of $1.18, beating estimates by 4% and revenue of $644 million, up 4.8% year-over-year. The company initiated a $0.075 quarterly dividend, expanded its buyback to $500 million and guided Q1 EPS of $1.16–1.19, above analysts’ forecasts.
1. Q4 Financial Results
RingCentral delivered adjusted EPS of $1.18 in the fourth quarter, topping the $1.14 consensus and rising 20% year-over-year. Revenue reached $644 million, up 4.8%, while Q1 guidance projects EPS of $1.16–1.19 versus $1.10 expected and revenue of $640–645 million.
2. Dividend and Share Repurchase
The board approved RingCentral’s first quarterly cash dividend of $0.075 per share, payable March 16 to shareholders of record on March 9, and signaled ongoing quarterly payouts subject to conditions. The company also boosted its share repurchase authorization to $500 million.
3. Cash Flow Strength and AI Adoption
For 2025, RingCentral generated $617 million in operating cash flow, up 28% year-over-year, and $530 million in free cash flow, up 32%. The company repurchased about 5 million shares for $135 million in Q4, and annual recurring revenue from monetized AI offerings more than doubled to nearly 10% of total ARR.