Ooma Reports 3% Revenue Growth to $66.4 Million in Q2 Fiscal 2026

Ooma, Inc. reported its financial results for the second quarter of fiscal 2026, revealing a total revenue of $66.4 million, a 3% increase from $64.1 million in the same period last year. The growth was primarily driven by a 6% rise in subscription and services revenue, which reached $61.1 million, up from $59.6 million. The company also recorded a net income of $1.3 million, a significant turnaround from a net loss of $2.1 million in the prior year quarter. This improvement reflects ongoing operational enhancements and a focus on expanding its business services.

In terms of operational metrics, Ooma's core user count slightly decreased to 1,230 from 1,244 year-over-year, attributed mainly to a decline in residential users. However, the proportion of business users increased, now comprising approximately 41% of total core users. The annualized exit recurring revenue (AERR) grew to $239.7 million, up from $233.1 million, indicating a positive trend in average revenue per core user. The company maintained a net dollar subscription retention rate of 100%, suggesting stability in its subscription revenue base.

Ooma's balance sheet showed total cash and cash equivalents of $19.6 million as of July 31, 2025, an increase from $17.9 million at the end of January 2025. The company reported zero outstanding debt, consistent with its previous reporting period. Total liabilities decreased to $62.0 million from $63.9 million, while stockholders' equity rose to $88.1 million, up from $85.3 million, reflecting a positive shift in the company's financial health.

The company continues to invest in its product offerings, particularly in its Ooma Business segment, which accounted for approximately 63% of total revenue. Ooma's product and other revenue also saw a 15% increase year-over-year, driven by higher shipments of its AirDial devices. The gross margin for total revenue improved to 61%, up from 60% in the prior year, indicating better cost management and operational efficiency.

Looking ahead, Ooma remains focused on expanding its market presence and enhancing its service offerings. The company plans to leverage its existing user base to introduce additional premium services, aiming for sustained growth in both its business and residential segments. Management expressed confidence in the company's ability to navigate market challenges and capitalize on opportunities for future growth.