Ooma Reports 25% Revenue Growth to $83.2 Million in Latest Quarter

Ooma, Inc. reported significant financial growth in its latest quarterly filing, with total revenue reaching $83.2 million for the three months ended July 31, 2026, marking a 25% increase from $66.4 million in the same period last year. This growth was primarily driven by a 38% rise in subscription and services revenue, which totaled $75.6 million, up from $61.1 million. The company attributed this increase to the expansion of its Ooma Business segment and contributions from its recent acquisitions of FluentStream and Phone.com, which collectively generated $22.4 million in revenue during the first half of fiscal 2027.

In terms of profitability, Ooma reported a net income of $3.0 million for the second quarter, compared to $1.3 million in the prior year, reflecting improved operational efficiency. The company’s gross profit also increased to $51.0 million, with a consistent gross margin of 61%. Adjusted EBITDA for the quarter was $12.4 million, up from $7.2 million year-over-year, indicating a strong operational performance. The company’s total cash and cash equivalents decreased to $17.5 million from $20.1 million at the beginning of the fiscal year, primarily due to prepayments on term loan borrowings.

Ooma's operational metrics showed a positive trend, with core users increasing to 1,427, up from 1,230 a year earlier. The annualized exit recurring revenue (AERR) also rose to $298.9 million, reflecting a growing average revenue per core user. However, the net dollar subscription retention rate slightly decreased to 99%, down from 100% in the previous year, indicating a need for continued focus on customer retention strategies.

The company has been actively expanding its market presence through strategic acquisitions, having completed the purchases of FluentStream and Phone.com in December 2025. These acquisitions are expected to enhance Ooma's service offerings and customer base. Additionally, Ooma has been investing in research and development, with expenses in this area increasing by 24% year-over-year, reflecting its commitment to innovation and service enhancement.

Looking ahead, Ooma anticipates continued growth driven by its expanding user base and the integration of its recent acquisitions. The company plans to maintain its focus on enhancing its product offerings and improving operational efficiencies to support its growth trajectory. Ooma's management remains optimistic about the future, citing the potential for increased revenue from both its business and residential segments as it continues to scale its operations.