Financial Performance - Ooma's multi-tenant SaaS platform generated $262 million in revenue with $25 million in adjusted EBITDA[7] - The company boasts an annual exit recurring revenue (AERR) of $240 million[7] - Recurring gross profit margin stands at 72%[7] - Ooma business subscription and services revenue accounted for 62% of overall subscription and services revenue in 2QF26[45] User Base and Growth - Ooma has over 1.2 million core users[7] - The net dollar subscription retention rate (NDR) is 100%[7] - The company serves customers in 32 countries[42] Market and Strategy - The worldwide hosted voice/UC public cloud (UCaaS) market is projected to reach $32 billion by 2028[26] - Ooma is targeting a >10 million line U S market opportunity in POTS (copper line) replacement[39] - Ooma's integrated growth strategy includes advertising, customer referrals, direct sales, resellers/partners, geographic expansion, and retailers, with a Net Promoter Score of 73%[41]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Fiscal Second Quarter 2026 Financial Highlights](index=1&type=section&id=Fiscal%20Second%20Quarter%202026%20Financial%20Highlights) Ooma reported strong Q2 FY2026 financial results, with revenue increasing 3% year-over-year to $66.4 million, achieving a significant turnaround in GAAP net income and substantial growth in non-GAAP net income and Adjusted EBITDA, primarily driven by subscription and services revenue Q2 FY2026 Key Financial Highlights (in millions, except EPS) | Metric | Value | YoY Change | | :-------------------------------- | :-------------------- | :--------- | | Total Revenue | $66.4 million | +3% | | Subscription and Services Revenue | $61.1 million | +2.5% (from $59.6M) | | GAAP Net Income | $1.3 million | Swing from $(2.1) million loss | | GAAP EPS (Diluted) | $0.04 | Swing from $(0.08) loss | | Non-GAAP Net Income | $6.5 million | +58.5% (from $4.1M) | | Non-GAAP EPS (Diluted) | $0.23 | +53.3% (from $0.15) | | Adjusted EBITDA | $7.2 million | +28.6% (from $5.6M) | - Subscription and services revenue increased to **$61.1 million** from **$59.6 million** in the second quarter of fiscal 2025, representing **92% of total revenue**, primarily driven by the growth of Ooma Business[5](index=5&type=chunk) - Ooma remains focused on achieving growth across its small business UCaaS, AirDial POTS replacement, and 2600Hz wholesale solutions while also improving non-GAAP net income and adjusted EBITDA year over year[4](index=4&type=chunk) [Business Outlook](index=1&type=section&id=Business%20Outlook) Ooma provided positive guidance for the third quarter of fiscal 2026 and raised its full fiscal year 2026 guidance for GAAP and non-GAAP net income and EPS, while reaffirming total revenue guidance, indicating expected continued financial improvement Q3 Fiscal 2026 Business Outlook (in millions, except per share data) | Metric | Projected Range | | :-------------------------------- | :-------------------------- | | Total Revenue | $67.2 million to $67.9 million | | GAAP Net Income | $0.9 million to $1.3 million | | GAAP Net Income per Diluted Share | $0.04 to $0.05 | | Non-GAAP Net Income | $6.0 million to $6.4 million | | Non-GAAP Net Income per Diluted Share | $0.22 to $0.23 | Full Fiscal Year 2026 Business Outlook (in millions, except per share data) | Metric | New Guidance Range | Prior Guidance Range | Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :----- | | Total Revenue | $267 million to $270 million | $267 million to $270 million | Unchanged | | GAAP Net Income | $3.5 million to $4.0 million | $0.6 million to $1.6 million | Raised | | GAAP Net Income per Diluted Share | $0.13 to $0.15 | $0.02 to $0.06 | Raised | | Non-GAAP Net Income | $24.5 million to $25.0 million | $22.5 million to $23.5 million | Raised | | Non-GAAP Net Income per Diluted Share | $0.87 to $0.89 | $0.79 to $0.83 | Raised | [Financial Statements](index=5&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of July 31, 2025, Ooma's balance sheet shows a slight increase in total assets, primarily driven by higher cash and cash equivalents, while total liabilities decreased, contributing to an increase in total stockholders' equity Condensed Consolidated Balance Sheets (Amounts in thousands) | Metric | July 31, 2025 | January 31, 2025 | | :-------------------------------- | :-------------- | :--------------- | | Cash and cash equivalents | $19,558 | $17,871 | | Total current assets | $59,753 | $56,177 | | Total assets | $150,095 | $149,195 | | Total current liabilities | $50,356 | $51,660 | | Total liabilities | $61,974 | $63,917 | | Total stockholders' equity | $88,121 | $85,278 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of fiscal 2026, Ooma reported a 3.5% year-over-year increase in total revenue and a significant improvement in GAAP net income, moving from a loss to a profit, with gross profit also increasing by 4.0% year-over-year Q2 FY2026 Condensed Consolidated Statements of Operations (Three Months Ended July 31, amounts in thousands) | Metric | FY2026 | FY2025 | YoY Change | | :-------------------------- | :----- | :----- | :--------- | | Total Revenue | $66,364 | $64,129 | +3.5% | | Subscription and services | $61,139 | $59,566 | +2.6% | | Product and other | $5,225 | $4,563 | +14.5% | | Gross profit | $40,230 | $38,700 | +4.0% | | Income (loss) from operations | $916 | $(1,596) | N/A (swing to profit) | | Net income (loss) | $1,255 | $(2,137) | N/A (swing to profit) | | Diluted EPS | $0.04 | $(0.08) | N/A (swing to profit) | YTD FY2026 Condensed Consolidated Statements of Operations (Six Months Ended July 31, amounts in thousands) | Metric | FY2026 | FY2025 | YoY Change | | :-------------------------- | :----- | :----- | :--------- | | Total Revenue | $131,393 | $126,628 | +3.8% | | Net income (loss) | $1,114 | $(4,276) | N/A (swing to profit) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Ooma generated positive cash flow from operating activities in Q2 FY2026, though slightly less than the prior year, with decreased cash used in investing activities and significant cash used in financing activities due to stock repurchases Q2 FY2026 Condensed Consolidated Statements of Cash Flows (Three Months Ended July 31, amounts in thousands) | Metric | FY2026 | FY2025 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Net cash provided by operating activities | $6,361 | $7,087 | -10.2% | | Net cash used in investing activities | $(1,312) | $(1,742) | +24.7% (less cash used) | | Net cash used in financing activities | $(4,479) | $(4,608) | +2.8% (less cash used) | | Net increase in cash and cash equivalents | $570 | $737 | -22.7% | | Cash and cash equivalents, at end of period | $19,558 | $16,585 | +17.9% | YTD FY2026 Condensed Consolidated Statements of Cash Flows (Six Months Ended July 31, amounts in thousands) | Metric | FY2026 | FY2025 | YoY Change | | :-------------------------------- | :----- | :----- | :--------- | | Net cash provided by operating activities | $10,064 | $10,672 | -5.7% | | Net cash used in financing activities | $(5,842) | $(8,431) | +30.7% (less cash used) | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Purpose of Non-GAAP Measures](index=2&type=section&id=Definition%20and%20Purpose%20of%20Non-GAAP%20Measures) Ooma utilizes non-GAAP financial measures, including non-GAAP net income, EPS, gross profit, operating income, and Adjusted EBITDA, to offer investors a clearer view of its core operating performance by excluding certain non-cash or non-recurring items, serving as supplementary information not a substitute for GAAP results - Non-GAAP financial measures include non-GAAP net income, non-GAAP net income per share, non-GAAP gross profit and gross margin, non-GAAP operating income, and Adjusted EBITDA[11](index=11&type=chunk) - Adjusted EBITDA represents net income before interest and other income, income taxes, depreciation and amortization of capital expenditures, amortization of intangible assets, stock-based compensation and related taxes, litigation costs, restructuring costs and gain on note conversion[11](index=11&type=chunk) - These non-GAAP measures are presented to provide investors with additional information regarding financial results and core business operations, facilitating a meaningful comparison of the company's core operating results across periods, but should not be considered a substitute for GAAP financial information[13](index=13&type=chunk)[15](index=15&type=chunk) [Reconciliation of Non-GAAP Financial Measures (Guidance)](index=2&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20(Guidance)) Ooma provides a reconciliation of its GAAP net income and EPS guidance to non-GAAP figures for the third fiscal quarter and the full fiscal year 2026, primarily adjusting for stock-based compensation, amortization of intangible assets, and litigation costs Q3 FY2026 Guidance Reconciliation (Three Months Ending October 31, 2025, in millions, except per share data) | Metric | GAAP | Stock-based comp. & related taxes | Amortization of intangible assets | Litigation costs | Non-GAAP | | :-------------------------- | :--------- | :-------------------------------- | :-------------------------------- | :--------------- | :--------- | | Net Income | $0.9-$1.3 | $3.7 | $1.4 | — | $6.0-$6.4 | | Net Income per Share | $0.04-$0.05 | $0.13 | $0.05 | — | $0.22-$0.23 | Full FY2026 Guidance Reconciliation (Fiscal Year Ending January 31, 2026, in millions, except per share data) | Metric | GAAP | Stock-based comp. & related taxes | Amortization of intangible assets | Litigation costs | Non-GAAP | | :-------------------------- | :--------- | :-------------------------------- | :-------------------------------- | :--------------- | :--------- | | Net Income | $3.5-$4.0 | $15.0 | $5.6 | $0.4 | $24.5-$25.0 | | Net Income per Share | $0.13-$0.15 | $0.53 | $0.20 | $0.01 | $0.87-$0.89 | [Reconciliation of Non-GAAP Financial Measures (Actuals)](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20(Actuals)) Ooma provides detailed reconciliations of GAAP to non-GAAP gross profit, operating income, net income, diluted EPS, and Adjusted EBITDA for the three and six months ended July 31, 2025 and 2024, illustrating the impact of adjustments such as stock-based compensation and amortization of intangible assets Q2 FY2026 Non-GAAP Reconciliation (Three Months Ended July 31, 2025, amounts in thousands) | Metric | GAAP | Stock-based comp. & related taxes | Amortization of intangible assets | Litigation costs | Non-GAAP | | :-------------------------- | :----- | :-------------------------------- | :-------------------------------- | :--------------- | :------- | | Gross profit | $40,230 | $228 | $708 | — | $41,166 | | Operating income | $916 | $3,708 | $1,406 | $83 | $6,113 | | Net income | $1,255 | $3,708 | $1,406 | $83 | $6,452 | | Diluted EPS | $0.04 | $0.13 | $0.05 | $0.01 | $0.23 | | Adjusted EBITDA | $7,161 | (reconciled from GAAP Net Income with multiple adjustments) | | | | Q2 FY2025 Non-GAAP Net Income & EPS (Three Months Ended July 31, 2024, amounts in thousands) | Metric | GAAP | Stock-based comp. & related taxes | Amortization of intangible assets | Litigation costs | Non-GAAP | | :-------------------------- | :----- | :-------------------------------- | :-------------------------------- | :--------------- | :------- | | Net income | $(2,137) | $4,627 | $1,471 | $95 | $4,056 | | Diluted EPS | $(0.08) | $0.17 | $0.05 | $0.01 | $0.15 | | Adjusted EBITDA | $5,635 | (reconciled from GAAP Net Income with multiple adjustments) | | | | [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Ooma hosted a conference call and live webcast on August 26, 2025, to discuss its financial results, with details provided for accessing the call and an archived webcast available online for 12 months - A conference call and live webcast for analysts and investors was held at 5:00 p.m., Eastern time on August 26, 2025[8](index=8&type=chunk) - Access details for the phone call required registration, and the webcast was available on Ooma's Events & Presentations page[9](index=9&type=chunk) - An archived version of the webcast will be available on the Ooma investor relations site for 12 months following the call[10](index=10&type=chunk) [Disclosure Information](index=3&type=section&id=Disclosure%20Information) Ooma uses the investor relations section of its website to fulfill its disclosure obligations under Regulation FD, advising investors to monitor this channel in addition to other public communications - Ooma uses the investor relations section on its website as a means of complying with its disclosure obligations under Regulation FD[16](index=16&type=chunk) - Investors should monitor Ooma's investor relations website in addition to following press releases, SEC filings, and public conference calls and webcasts[16](index=16&type=chunk) [Legal Notice Regarding Forward-Looking Statements](index=3&type=section&id=Legal%20Notice%20Regarding%20Forward-Looking%20Statements) This press release contains forward-looking statements, particularly in the 'Business Outlook' and CEO's quotes, which are subject to inherent risks and uncertainties that could cause actual results to differ materially, and the company disclaims any obligation to update these statements, except as required by law - The press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, identifiable by words such as 'believes', 'expects', 'may', 'will', 'should', etc[17](index=17&type=chunk) - Forward-looking statements inherently involve known and unknown risks, uncertainties, and other factors which may cause actual results, performance, or achievements to differ materially from anticipated future results[17](index=17&type=chunk) - Ooma disclaims any obligation to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law[17](index=17&type=chunk)[18](index=18&type=chunk) [About Ooma, Inc.](index=4&type=section&id=About%20Ooma%2C%20Inc.) Ooma, founded in 2003, is a provider of advanced communications services for businesses and consumers, offering solutions like Ooma Office, AirDial, 2600Hz, and Ooma Telo, and currently serves over 1.2 million users - Ooma (NYSE: OOMA) delivers phone, messaging, video, and advanced communications services for businesses and consumers, founded in 2003[19](index=19&type=chunk) - Key offerings include Ooma Office for small to medium-sized businesses, Ooma AirDial for POTS replacement, Ooma 2600Hz for wholesale solutions, and Ooma Telo for residential consumers[19](index=19&type=chunk) - Ooma's solutions currently power more than **1.2 million users**[19](index=19&type=chunk) [Investor and Media Contacts](index=4&type=section&id=Investor%20and%20Media%20Contacts) Contact information for Ooma's Investor Relations and Corporate Communications departments is provided for inquiries - Investor Contact: Matthew S. Robison, Director of IR and Corporate Development, ir@ooma.com, (650) 300-1480[20](index=20&type=chunk) - Media Contact: Mike Langberg, Director of Corporate Communications, press@ooma.com, (650) 566-6693[20](index=20&type=chunk)

Core Viewpoint - Ooma, Inc. is set to release its second-quarter earnings results, with analysts expecting an increase in earnings per share and revenue compared to the previous year [1]. Financial Performance - Analysts anticipate Ooma will report quarterly earnings of 20 cents per share, up from 15 cents per share in the same period last year [1]. - The projected quarterly revenue is $65.72 million, compared to $64.13 million a year earlier [1]. Stock Performance - Ooma shares experienced a decline of 0.5%, closing at $11.98 on Monday [2]. Analyst Ratings - Citizens Capital Markets analyst Patrick Walravens reiterated a Market Perform rating on March 5, 2025, with an accuracy rate of 60% [4]. - Northland Capital Markets analyst Michael Latimore maintained an Outperform rating and raised the price target from $16 to $18 on December 5, 2024, with an accuracy rate of 63% [4].

Group 1 - Ooma (OOMA) is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 33.3% [1] - Revenues are anticipated to be $65.73 million, which is a 2.5% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the past 30 days, indicating stability in analysts' projections [1] Group 2 - The consensus estimate for 'Revenue- Product and other' is $4.73 million, showing a change of +3.7% from the prior-year quarter [4] - 'Revenue- Subscription and services' is projected to reach $60.99 million, indicating a change of +2.4% from the previous year [4] - The estimate for 'Core users' is 1.23 million, slightly down from 1.24 million a year ago [4] Group 3 - The 'Net dollar subscription retention rate' is projected to be 99.0%, down from 100.0% in the same quarter last year [5] - Analysts predict 'Annualized exit recurring revenue (AERR)' will reach $242.91 million, compared to $233.00 million in the same quarter of the previous year [5] - Over the past month, Ooma shares have decreased by 6.7%, while the Zacks S&P 500 composite has increased by 1.7% [5]

Industry Overview - The Zacks Communication - Components industry is facing challenges due to raw material price volatility, high capital expenditure for infrastructure upgrades, and geopolitical conflicts, which have negatively impacted profitability [1][4][5] - The industry primarily includes companies providing telecom products and services for scalable network architecture, video solutions, and broadband access equipment [3] Current Challenges - High operating costs are driven by a shortage of chips, increased raw material prices, and technological obsolescence, which have escalated operational expenses [7] - Demand erosion is occurring as customers shift to lower-priced alternatives due to increased fees for network upgrades, compounded by trade tensions affecting business credibility [5][6] Future Prospects - Despite current challenges, companies like Corning, Viavi Solutions, and Ooma are expected to benefit from rising demand for scalable infrastructure driven by IoT, fiber densification, and 5G rollout [2][16][20] - The industry is adapting to a software-driven, data-centric approach, enhancing cloud architecture and user experience, positioning itself for growth in cloud networking [6] Performance Metrics - The Zacks Communication - Components industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector, with a 66.1% increase over the past year compared to 20% and 28.9% for the S&P 500 and sector, respectively [11] - The industry currently trades at a trailing 12-month price-to-book (P/B) ratio of 4.13X, lower than the S&P 500's 7.37X and the sector's 10.68X [14] Company Highlights - **Corning**: Experienced a 69.1% stock surge over the past year, with a long-term earnings growth expectation of 18.2% and a focus on innovative optical connectivity products [16][17] - **Viavi Solutions**: Gained 35% in the past year, with a 27.8% upward revision in current earnings estimates, benefiting from the transition to 5G networks [20][21] - **Ooma**: Achieved a 31.5% stock increase, focusing on small business customers and delivering an earnings surprise of 18% on average in the trailing four quarters [25][26]

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Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $65.0 million, representing a 4% year-over-year increase, primarily driven by growth in Ooma Business[78]. - Total revenue for the three months ended April 30, 2025, was $65.029 million, a 4% increase from $62.499 million in the same period of 2024[99]. - Subscription and services revenue from Ooma Business grew 6% year-over-year, mainly due to user growth[78]. - Subscription and services revenue increased by $1.9 million or 3% year-over-year, driven by an increase in AirDial lines and average revenue per core user[100]. - Product and other revenue rose by $0.7 million or 16% year-over-year, primarily due to increased AirDial shipments[101]. Financial Metrics - Adjusted EBITDA for the first quarter was $6.7 million, compared to $5.0 million in the prior year quarter[78]. - The net dollar subscription retention rate remained stable at 99% year-over-year, indicating strong customer retention[81]. - Total gross margin improved to 62%, up from 61% in the prior year quarter[78]. - Gross profit for total revenue was $40.209 million, reflecting a 5% increase from $38.115 million in the prior year[102]. - The gross margin for subscription and services remained consistent at 70% year-over-year[103]. Operating Expenses - Operating expenses for the first quarter totaled $40.3 million, slightly down from $40.9 million in the prior year quarter[98]. - Operating expenses decreased by 1% year-over-year to $40.266 million, with research and development expenses down by 10%[105]. Cash Position - As of April 30, 2025, total cash and cash equivalents were $19.0 million, up from $17.9 million as of January 31, 2025[78]. - As of April 30, 2025, the company had $19.0 million in cash and cash equivalents, sufficient to meet cash needs for at least the next 12 months[109]. - Net cash provided by operating activities was $3.703 million, an increase of $0.1 million year-over-year[110]. - Cash used in investing activities was $1.223 million, a decrease of $0.2 million compared to the previous year[113]. User Metrics - Core users decreased to 1,225 as of April 30, 2025, down from 1,239 a year earlier, with Ooma Business users now comprising approximately 41% of total core users[79]. - Annualized exit recurring revenue (AERR) grew to $234.0 million, up from $227.6 million year-over-year, driven by an increase in average revenue per core user[79][80]. Debt and Financing - The company entered into a secured revolving credit facility allowing borrowing up to $30.0 million, potentially increased to $50.0 million[115]. Net Loss - GAAP net loss narrowed to $0.1 million, compared to a net loss of $2.1 million in the prior year quarter, reflecting operational improvements[78].

Ooma (OOMA) FY Conference Summary Company Overview - Ooma is a provider of communication services, specifically cloud telephone service and Unified Communications as a Service (UCaaS) [3][4] - The company operates in four segments: residential phone service, small business phone service, enterprise solutions, and wholesale platforms [17][26] Financial Performance - Ooma reported total revenue of $259 million for the last four quarters, with a year-over-year growth of 7% [5] - Adjusted EBITDA for the same period was $25 million, reflecting a 24% increase [5] - Annual exit recurring revenue (ARR) stands at $234 million, with a retention rate of 72% [6] - The company has a high gross margin of 72% on subscription revenue and a total gross margin of 63% [35] User Metrics - Ooma has over 1.2 million core users, with a monthly average revenue per user (ARPU) of approximately $15 [6][13] - Business ARPU is reported at over $23, while residential ARPU is around $19 [34] Market Opportunities - There are an estimated 6 million businesses in North America with 1 to 20 employees, with about half yet to transition to cloud solutions, presenting a significant market opportunity [16] - The company is targeting the replacement of copper lines, with an estimated 10 million lines in the U.S. being phased out [17][18] Product Segments - **Residential Product Line**: Ranked number one by Consumer Reports, offering affordable phone services [9][15] - **Small Business Solutions**: Ooma Office allows small businesses to access powerful communication features at a low cost, catering to their unique needs [10][12] - **Enterprise Solutions**: Focused on verticals like hospitality, with over 500 hotels in North America using Ooma's services [11] - **AirDial**: A solution for replacing copper lines, designed to maintain existing equipment while providing advanced features [19][22] Strategic Partnerships - Ooma has signed over 30 resellers for AirDial, including major partners like T-Mobile and Comcast, enhancing market reach [22] - The company has a significant partnership with Marriott, certifying Ooma AirDial for all their properties, which includes over 5,000 locations in North America [51] Growth Strategy - Ooma aims to reach 300,000 lines for AirDial, which could generate an additional $100 million in recurring revenue annually [23] - The company is focused on acquiring small business user bases through strategic acquisitions, typically targeting businesses with $10 million to $25 million in revenue [38] Financial Outlook - Ooma expects to improve adjusted EBITDA margins to 11% by Q4 of the current year, with a long-term goal of reaching 20% to 25% in the next four to five years [43] - The company plans to continue using free cash flow for stock buybacks, having spent $12 million in the last twelve months [39][40] Conclusion - Ooma is positioned in a growing market with a strong financial foundation, focusing on differentiated solutions in the cloud communications space, particularly through its unique offerings like AirDial and the 2,600 Hertz platform [59]

Core Viewpoint - Ooma (OOMA) has shown an 8.8% increase in stock price over the past four weeks, with a mean price target of $18.30 indicating a potential upside of 34.1% from the current price of $13.65 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $1.10, where the lowest estimate is $17 (24.5% increase) and the highest is $20 (46.5% increase) [2] - A low standard deviation suggests a high degree of agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about Ooma's earnings prospects, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] - The Zacks Consensus Estimate for the current year has risen by 6.2% over the past month, with three estimates increasing and no negative revisions [12] Zacks Rank and Investment Potential - Ooma holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement [13]

Company Performance - Ooma reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and up from $0.14 per share a year ago, representing an earnings surprise of 11.11% [1] - The company posted revenues of $65.03 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.32%, and an increase from $62.5 million year-over-year [2] - Ooma has consistently surpassed consensus EPS estimates over the last four quarters [2] Future Outlook - The sustainability of Ooma's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $66.09 million, and for the current fiscal year, it is $0.78 on revenues of $267.67 million [7] - The estimate revisions trend for Ooma is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Communication - Components industry, to which Ooma belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry outlook can significantly affect stock performance [5][8]