Ooma, Inc. (NYSE: OOMA ) is an American company, just over 20 years in business that's based in Sunnyvale, California. It provides cloud-based voice and communications services, offerings that include VoIP phone systems aimed at home, business, and mobileI focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity ma ...

Ooma, Inc. (NYSE: OOMA ) is an American company, just over 20 years in business that's based in Sunnyvale, California. It provides cloud-based voice and communications services, offerings that include VoIP phone systems aimed at home, business, and mobileI focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity ma ...

Ooma (OOMA) closed the last trading session at $11.88, gaining 4.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $18.63 indicates a 56.8% upside potential.The mean estimate comprises four short-term price targets with a standard deviation of $0.95. While the lowest estimate of $18.00 indicates a 51.5% increase from the current price level, the most optimistic analyst expects the ...

Financial Performance - Total revenue for the third quarter of fiscal 2026 was $67.6 million, representing a 4% year-over-year increase, primarily driven by growth in Ooma Business[94] - GAAP net income for the quarter was $1.4 million, compared to a net loss of $2.4 million in the prior year quarter, indicating operational improvement[94] - Adjusted EBITDA for the third quarter was $8.6 million, an increase from $5.7 million in the prior year quarter[94] - Total revenue for the three months ended October 31, 2025, was $67,625,000, representing a 4% increase from $65,127,000 in the same period of 2024[116] - Net income for the three months ended October 31, 2025, was $1,393,000, compared to a net loss of $2,364,000 in the same period of 2024[115] - For the nine months ended October 31, 2025, the company reported a net income of $2.5 million, a significant improvement from a net loss of $6.6 million in the same period of 2024[135] Revenue Breakdown - Subscription and services revenue from Ooma Business grew 6% year-over-year, mainly due to user growth[94] - Subscription and services revenue increased by $1,818,000 or 3% year-over-year, primarily due to an increase in AirDial lines and average revenue per core user[117] - Product and other revenue rose by $680,000 or 14% year-over-year, mainly driven by an increase in AirDial shipments[118] - Annualized exit recurring revenue (AERR) increased to $242.7 million, up from $234.0 million year-over-year, driven by a higher average revenue per core user[95] - The gross margin for subscription and services remained consistent at 70% year-over-year[122] Cash and Liquidity - As of October 31, 2025, total cash and cash equivalents were $21.7 million, up from $17.9 million as of January 31, 2025[94] - Cash provided by operating activities decreased by $1.8 million year-over-year to $16.99 million, primarily due to working capital impacts from the timing of payments[135] - Cash used in investing activities was $4.0 million, a decrease of $0.7 million year-over-year, mainly due to reduced fixed asset additions[137] - Cash used in financing activities was $9.1 million, down $5.8 million year-over-year, reflecting no repayments of borrowings under the 2023 Credit Agreement in the current period[138] - As of October 31, 2025, the company had zero outstanding borrowings under the 2023 Credit Agreement, which allows for borrowing up to $30.0 million, potentially increasing to $50.0 million[139] Expenses and Cost Management - Total operating expenses decreased by 5% to $39,437,000 for the three months ended October 31, 2025, compared to $41,556,000 in 2024[126] - Research and development expenses decreased by $2,133,000 or 15% year-over-year, primarily due to a reduction in personnel and contractor-related costs[128] Acquisitions and Growth Strategy - Ooma completed the acquisition of FluentStream for approximately $45.0 million in cash, expected to accelerate growth in Ooma Business[91] - The company anticipates subscription and services revenue growth as it expands its user base, particularly through the FluentStream acquisition[104] - The initial term loan of $45.0 million was used to finance the FluentStream acquisition, with future borrowings intended for other acquisitions and working capital[139] Customer Metrics - Core users decreased to 1,233 as of October 31, 2025, down from 1,242 a year earlier, primarily due to a decline in Ooma Residential users[95] - The net dollar subscription retention rate remained stable at 99% year-over-year, reflecting strong customer retention[95] Non-Cash Charges and Working Capital - Non-cash charges for the nine months ended October 31, 2025, totaled $21.1 million, primarily related to stock-based compensation and depreciation[135] - The company experienced an increase of $0.8 million in accounts receivable and $2.3 million in inventories due to the timing of cash collections and inventory costs[136] - Deferred revenue increased by $0.4 million, indicating growth in future revenue recognition[136]

55x earnings is probably too much to pay for a VoIP phone provider.VoIP telephone company Ooma (OOMA 9.63%) stock tumbled 11.7% through 12:35 a.m. ET Tuesday after reporting fiscal Q3 2026 earnings last night. The strange thing: Ooma beat on earnings.Analysts forecast Ooma would earn $0.22 per share on sales of $71.4 million, but Ooma actually earned $0.27. The problem wasn't Ooma's earnings, though. It was Ooma's sales, which missed badly at just $67.6 million. Ooma Q3 earningsNot all the news was bad. Oo ...

Ooma, Inc. (NYSE:OOMA) is a leading smart communications platform that caters to both businesses and consumers. The company is renowned for its voice over IP (VoIP) solutions, aiming to boost communication efficiency. Competing with other service providers in the communication sector, Ooma focuses on innovation and exceptional customer service to sustain its market position.On December 8, 2025, Ooma disclosed its earnings per share (EPS) of $0.05, falling short of the anticipated $0.22. Ooma's revenue for t ...

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Ooma (OOMA) reported $67.63 million in revenue for the quarter ended October 2025, representing a year-over-year increase of 3.8%. EPS of $0.27 for the same period compares to $0.17 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $67.58 million, representing a surprise of +0.06%. The company delivered an EPS surprise of +22.73%, with the consensus EPS estimate being $0.22.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...

Ooma (OOMA) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +22.73%. A quarter ago, it was expected that this internet phone service provider would post earnings of $0.2 per share when it actually produced earnings of $0.23, delivering a surprise of +15%.Over the last four quarters, t ...

Financial Data and Key Metrics Changes - Revenue for Q3 2026 reached $67.6 million, a 4% year-over-year increase, with annual exit recurring revenue at $242.7 million, also up 4% year-over-year [8][17] - Non-GAAP net income increased to $7.7 million, a 68% year-over-year growth, and adjusted EBITDA rose to $8.6 million, representing 13% of total revenue, up from 11% in Q2 and 10% in Q1 [8][22] - Total operating expenses decreased to $34.2 million, down $1.4 million year-over-year, with sales and marketing expenses at 26% of total revenue [20][21] Business Line Data and Key Metrics Changes - Business subscription and services revenue accounted for 63% of total subscription and services revenue, up from 61% in the prior year quarter, with a 6% year-over-year growth [17][18] - Residential subscription and services revenue declined by 1% year-over-year [18] - The company added nine new resale partners in Q3, marking the strongest quarter to date for partner additions [10] Market Data and Key Metrics Changes - The company ended Q3 with 1,233,000 core users, a slight increase from 1,230,000 in Q2, with business users making up 42% of total core users [19] - The average revenue per user (ARPU) increased by 4% year-over-year to $15.82, driven by a higher mix of business users [19] Company Strategy and Development Direction - The company is focused on growth through acquisitions, having recently closed the acquisition of FluentStream and expecting to close on Phone.com soon, which will add over 165,000 users and $45 million in revenue annually [12][17] - The strategy includes leveraging synergies from acquisitions to enhance profitability and expand market reach, particularly in the small and medium-sized business segment [12][13] - The company plans to launch AI solutions early next year, enhancing its service offerings and targeting larger businesses [9][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, citing strong customer engagement and a healthy pipeline for future installations despite some delays [40][66] - The company does not foresee economic sensitivity impacting its SMB business, indicating a stable operating environment [66] Other Important Information - The company generated $6.9 million in operating cash flow and $5.4 million in free cash flow during Q3, with total cash and investments at $21.7 million [22][23] - The company plans to use free cash flow to pay down acquisition-related debt more quickly [24] Q&A Session Summary Question: What drives the expected increase in profitability for fiscal Q4? - Management highlighted operating leverage, optimized sales and marketing spend, and lower-than-expected tariff impacts as key factors contributing to improved profitability [32] Question: What are the synergy expectations from the FluentStream and Phone.com acquisitions? - Management expects modest cost-side synergies from FluentStream and anticipates more significant overlaps and synergies with Phone.com post-acquisition [35][36] Question: What caused the guidance adjustment for the legacy business? - The adjustment was primarily due to delays in AirDial installations, reflecting the engagement with larger opportunities that require longer deployment times [40][41] Question: How does the company plan to integrate FluentStream? - The company intends to leverage FluentStream's existing strengths while optimizing operations and exploring vendor relationship opportunities [45][46] Question: What are the competitive dynamics in the hospitality sector? - The company is replacing legacy on-site PBX systems with its cloud solutions, maintaining a stable competitive landscape [73]