Fitch Ratings upgraded RingCentral, Inc.'s Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BB' on July 9, 2025, with a Stable Outlook. The company's senior unsecured notes were also upgraded to 'BB+' from 'BB'. This upgrade reflects RingCentral's sustained focus on improving profitability in recent years.
The rating action is supported by a decline in EBITDA leverage to 2.6x as of March 2025, driven by solid revenue growth and disciplined operating expense management. Fitch expects leverage to remain at 2.0x or below by year-end 2026, indicating a strong financial trajectory.
Fitch projects RingCentral to generate at least $450 million of Fitch-defined free cash flow annually in fiscal years 2025-2027. This robust cash generation provides ample financial flexibility for investments in innovation, debt reduction, and share repurchases, further strengthening its AI-first multi-product strategy.
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