v3.26.1
Financial Statement Components
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Statement Components
Note 3. Financial Statement Components
Cash and cash equivalents consisted of the following (in thousands):
June 30, 2026December 31, 2025
Cash$105,981 $127,140 
Money market funds5,520 5,424 
Total cash and cash equivalents$111,501 $132,564 
As of June 30, 2026 and December 31, 2025, $8.4 million included in the cash balance above represents restricted cash held in the form of a bank deposit for the issuance of a foreign bank guarantee.
Accounts receivable, net consisted of the following (in thousands):
June 30, 2026December 31, 2025
Accounts receivable$301,704 $303,256 
Unbilled accounts receivable104,448 98,935 
Allowance for doubtful accounts(17,109)(18,091)
Accounts receivable, net$389,043 $384,100 
Prepaid expenses and other current assets consisted of the following (in thousands):
June 30, 2026December 31, 2025
Prepaid expenses$47,465 $43,142 
Inventory991 929 
Other current assets26,842 37,119 
Total prepaid expenses and other current assets$75,298 $81,190 
Property and equipment, net consisted of the following (in thousands):
June 30, 2026December 31, 2025
Computer hardware and software$286,864 $274,700 
Internal-use software development costs408,666 377,785 
Furniture and fixtures9,343 8,990 
Leasehold improvements11,136 10,041 
Total property and equipment, gross716,009 671,516 
Less: accumulated depreciation and amortization(525,790)(484,946)
Property and equipment, net$190,219 $186,570 
Total depreciation and amortization expense related to property and equipment was $23.0 million and $21.6 million for the three months ended June 30, 2026 and 2025, respectively, and $45.4 million and $43.3 million for the six months ended June 30, 2026 and 2025, respectively.
A summary of activity of the Company’s carrying value of goodwill during the six months ended June 30, 2026 is presented in the following table (in thousands):
Balance as of December 31, 2025$97,792 
Acquisitions (Note 7)
5,710 
Foreign currency translation adjustments(670)
Balance as of June 30, 2026$102,832 
The carrying values of intangible assets are as follows (in thousands):
June 30, 2026December 31, 2025
Weighted-Average Remaining Useful LifeCostAccumulated
Amortization		Acquired
Intangibles, Net		CostAccumulated
Amortization		Acquired
Intangibles, Net
Customer relationships
3.0 years
$65,896 $39,730 $26,166 $60,660 $34,745 $25,915 
Developed technology
0.8 years
789,034 737,844 51,190 784,130 674,635 109,495 
Total acquired intangible assets$854,930 $777,574 $77,356 $844,790 $709,380 $135,410 
Amortization expense from acquired intangible assets for the three months ended June 30, 2026 and 2025 was $34.1 million and $33.4 million, respectively, and $68.6 million and $66.7 million for the six months ended June 30, 2026 and 2025, respectively. Amortization of developed technology is included in cost of revenues and amortization of customer relationships is included in sales and marketing expenses in the Condensed Consolidated Statements of Operations.
Estimated amortization expense for acquired intangible assets for the following fiscal years is as follows (in thousands):
2026 (remaining)$48,559 
202712,307 
202810,807 
20293,964 
2030 onwards1,719 
Total estimated amortization expense$77,356 
Accrued liabilities consisted of the following (in thousands):
June 30, 2026December 31, 2025
Accrued compensation and benefits$63,425 $54,715 
Accrued sales, use, and telecom related taxes55,735 54,182 
Accrued marketing and sales commissions30,795 37,102 
Operating lease liabilities, short-term20,577 21,293 
Other accrued expenses128,846 130,341 
Total accrued liabilities$299,378 $297,633 
Deferred and Prepaid Sales Commission Costs
Amortization expense for the deferred and prepaid sales commission costs was $39.3 million and $41.1 million for the three months ended June 30, 2026 and 2025, respectively, and $78.7 million and $81.9 million for the six months ended June 30, 2026 and 2025, respectively. There was no impairment loss in relation to the deferred commissions costs capitalized for the periods presented.
The Company evaluates the recoverability of its deferred and prepaid sales commission balance whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable.
During the three months ended June 30, 2026, the Company and Avaya amended their strategic partnership arrangement pursuant to which existing Avaya Cloud Office by RingCentral (ACO) customers will transition to a RingCentral branded offering, while RingCentral will remain Avaya’s exclusive multi-tenant cloud UCaaS offering. ACO customer and partner support will also transition to RingCentral. In connection with the amendment, the Company released Avaya from certain obligations and the transaction resulted in a gain of $15 million, included in other income (expense), net in the Condensed Consolidated Statements of Operations for the three months ended June 30, 2026.