RNG earnings call summary

Prepared Highlights

• Total revenue: ~$644M, up 5.3% YoY, at upper end of guidance (prepared).
• Subscription revenue: ~$623M, up 5.6% YoY (prepared).
• Non-GAAP operating margin: ~23%, up 110 bps YoY, at high end of guidance (CFO).
• GAAP operating margin: 7.8%, record, up >600 bps YoY (CFO).
• Free cash flow (FCF): >$140M in Q1, up 8% YoY; FCF per share $1.62, up 15.4% YoY (CFO).
• SBC as % of revenue: 9% in Q1, down ~400 bps YoY (CFO).
• Debt reduction: Reduced gross debt by ~$46M; net leverage 1.6x; no maturities until 2030 (CFO).
• Share repurchases: ~2.5M shares for $81M in Q1; $418M remaining under authorization (CFO).
• Diluted share count: ~87M, down 6% YoY (CFO).
• AI product traction: Customers using ≥1 AI product >10% of base, doubled YoY, growing double digits sequentially; ARR from key AI-utilizing customers more than doubled YoY (CEO, CFO).
• AIR paying customers: >11,800, up >40% QoQ (COO).
• ACE customers: >5,200, up 85% YoY (COO).
• RingCX customers: >1,700, up >70% YoY; >50% utilizing AI (COO).
• Customer Engagement Bundle (CEB): >5,000 customers, ~40% attach rate of paid AI products (COO).

Official Guidance

• FY2026 (raised):
  • Subscription revenue: $2.54B–$2.56B (growth 4.7%–5.5%)
  • Total revenue: $2.62B–$2.64B (growth 4.2%–5.0%)
  • GAAP operating margin: 8.9%–9.6%
  • Non-GAAP operating margin: 23.3%–23.7%
  • FCF: $590M–$605M (up 13% YoY)
  • SBC: ~$240M–$245M (~9% of revenue)
  • Diluted share count: 86.5M–87.0M (down 5% YoY)
  • Non-GAAP EPS: $4.85–$5.01 (up 13% YoY)
  • FCF per share: $6.78–$6.99 (up 18% YoY)
• Q2 2026:
  • Subscription revenue: ~$628M–$633M
  • Total revenue: ~$648M–$653M
  • GAAP operating margin: 6.6%–7.6%
  • Non-GAAP operating margin: 23.0%–23.2%
  • Non-GAAP EPS: $1.15–$1.17 (up 10% YoY)
  • SBC: ~$58M–$62M
  • Diluted share count: ~87M (down 6% YoY)

Mgmt Quotes

• "We delivered record GAAP and non-GAAP operating margins, reduced stock-based compensation, paid down debt and returned capital to shareholders, including our first ever dividend." (CEO)
• "We now expect approximately $600 million of free cash flow this year, which is approaching $7 per share that we believe is among the best in our peer group." (CEO)
• "Customers using our AI adopt more products, spend more with us and stay longer, driving higher ARPU and net retention well above 100%." (CEO)
• "We ended Q1 with more than 11,800 paying AIR customers, up more than 40% quarter-over-quarter." (COO)
• "We are now raising our full year free cash flow outlook to approximately $600 million or a 13% improvement year-over-year." (CFO)

Prepared Metrics