Ooma(OOMA) - 2026 Q2 - Quarterly Results

Executive Summary & Highlights Fiscal Second Quarter 2026 Financial Highlights 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] - 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] Business Outlook 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 Condensed Consolidated Balance Sheets 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 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 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 Definition and Purpose of Non-GAAP Measures 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] - 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] - 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][15] Reconciliation of Non-GAAP Financial Measures (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) 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 Conference Call Information 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] - Access details for the phone call required registration, and the webcast was available on Ooma's Events & Presentations page[9] - An archived version of the webcast will be available on the Ooma investor relations site for 12 months following the call[10] Disclosure Information 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] - Investors should monitor Ooma's investor relations website in addition to following press releases, SEC filings, and public conference calls and webcasts[16] Legal Notice Regarding Forward-Looking Statements 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] - 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] - 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][18] About Ooma, Inc. 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] - 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] - Ooma's solutions currently power more than 1.2 million users[19] Investor and Media Contacts 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] - Media Contact: Mike Langberg, Director of Corporate Communications, press@ooma.com, (650) 566-6693[20]