Ringcentral, Inc.
RNG Technology Software Application
Ringcentral, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.5 billion, up 4.78% from fiscal 2024. In the quarter to June 2026, revenue grew 5.90%, EPS grew 213.3%, free cash flow grew 24.8% and total debt fell 11.1%, each against the same quarter a year earlier. Revenue growth for ten consecutive years, operating cash flow growth for five.
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Ringcentral, Inc. (RNG) Altman Z-score
Ringcentral, Inc.'s Altman Z-score for fiscal 2025 is 0.73, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.73 | (0.16) |
| FY2024 | 0.88 | 0.39 |
| FY2023 | 0.50 | 0.73 |
| FY2022 | −0.24 | (4.72) |
| FY2021 | 4.49 | (6.66) |
| FY2020 | 11.15 | (1.23) |
| FY2019 | 12.38 | 4.56 |
| FY2018 | 7.82 | (10.03) |
| FY2017 | 17.85 | 10.05 |
| FY2016 | 7.80 | (1.71) |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.31) | — | −0.37 | |
| Retained earnings / total assets | (1.16) | — | −1.62 | |
| EBIT / total assets | 0.08 | — | 0.27 | |
| Market value of equity / total liabilities | 1.25 | — | 0.75 | |
| Sales / total assets | 1.70 | — | 1.70 | |
| Altman Z-score | Distress zone | 0.73 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Distress zone | −5.53 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| TTAN ServiceTitan Inc. compare | 19.3× |
| PEGA Pegasystems Inc. compare | 9.4× |
| DUOL Duolingo, Inc. compare | 9.0× |
| NICE Nice compare | 5.5× |
| YOU CLEAR Secure, Inc. compare | 3.1× |
| CVLT CommVault Systems, Inc. compare | 1.2× |
| RNG Ringcentral, Inc. | 0.7× |
| NAVN Navan, Inc. compare | 0.4× |
| LYFT Lyft, Inc. compare | 0.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets