Ooma, Inc. reported a total revenue of $67.6 million for the third quarter of fiscal 2026, reflecting a 4% increase compared to $65.1 million in the same period last year. The growth was primarily driven by a 6% rise in subscription and services revenue, which reached $62.0 million, attributed to an increase in user growth within the Ooma Business segment. The company also recorded a net income of $1.4 million, a significant turnaround from a net loss of $2.4 million in the prior year quarter, indicating improved operational efficiency.
In terms of operational metrics, Ooma's core user count slightly decreased to 1.233 million from 1.242 million year-over-year, with the decline in residential users being partially offset by an increase in business users. The annualized exit recurring revenue (AERR) grew to $242.7 million, up from $234.0 million, driven by an increase in average revenue per core user. The net dollar subscription retention rate remained stable at 99%, suggesting consistent customer retention and revenue stability.
Ooma's strategic developments included the acquisition of FluentStream Corp. for approximately $45 million, which was financed through a term loan. This acquisition is expected to enhance Ooma's business offerings and accelerate growth in the business segment. Additionally, the company has entered into a definitive agreement to acquire Phone.Com, Inc. for $23.2 million, further expanding its market presence in cloud-based communications.
The company reported total cash and cash equivalents of $21.7 million as of October 31, 2025, an increase from $17.9 million at the beginning of the fiscal year. Ooma maintained zero outstanding debt, reflecting a strong liquidity position. Looking ahead, Ooma anticipates continued growth in subscription and services revenue, particularly from its business segment, as it leverages recent acquisitions and expands its product offerings. The company remains focused on enhancing operational efficiencies and scaling its business to meet future demands.
About OOMA INC
Ooma, Inc. provides cloud-based communication services and connected solutions for business and residential customers. Its offerings include VoIP phone systems, unified communications, and POTS replacement products, serving markets in North America. The company emphasizes ease of use, high-quality voice, and integrated features, generating revenue from subscriptions, device sales, and value-added services, with a focus on customer satisfaction, innovation, and scalable platforms.
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