Ooma, Inc. reported a total revenue of $273.6 million for the fiscal year ending January 31, 2026, marking a 7% increase from $256.9 million in the previous fiscal year. This growth was primarily driven by a 10% rise in subscription and services revenue from Ooma Business, which accounted for approximately 64% of total revenue. The company also benefited from the contributions of $6.1 million from its recent acquisitions of FluentStream Corp. and Phone.com, completed in December 2025. Ooma achieved a GAAP net income of $6.5 million, a significant turnaround from a net loss of $6.9 million in fiscal 2025, aided by a tax benefit related to the release of a valuation allowance.
The company experienced notable operational changes, including the addition of 164,000 core users from its acquisitions, bringing the total to approximately 1.4 million users. Ooma Business users now represent about 49% of the total core users, up from 41% the previous year. The annualized exit recurring revenue (AERR) also increased, reflecting a growing average revenue per core user. The net dollar subscription retention rate remained stable at 99%, indicating effective customer retention strategies.
Ooma's strategic developments included the completion of two significant acquisitions, which are expected to enhance its market position and accelerate growth in the business communications sector. The company financed these acquisitions through a combination of cash and a $65 million term loan, which has increased its outstanding debt to $57.9 million as of January 31, 2026. The company plans to continue investing in sales and marketing to expand its user base and enhance its product offerings, particularly in the growing market for cloud-based communications.
Looking ahead, Ooma anticipates continued growth driven by its focus on expanding its core user base and enhancing its service offerings. The company aims to leverage its acquisitions to improve its competitive position in the market. However, it also faces challenges, including potential regulatory changes and the need to manage its operational costs effectively. Ooma's management remains optimistic about sustaining profitability and growth, although it acknowledges the inherent risks associated with market competition and economic conditions.
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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