Ooma Reports Fiscal Third Quarter 2026 Financial Results

Core Insights - Ooma, Inc. reported strong financial results for the fiscal third quarter ended October 31, 2025, with revenue of $67.6 million and non-GAAP net income of $7.7 million, reflecting a year-over-year growth of 64% in non-GAAP diluted EPS and a record adjusted EBITDA of $8.6 million, which grew 50% year-over-year [4][7]. Financial Performance - Total revenue for the third quarter was $67.6 million, representing a 4% increase year-over-year. Subscription and services revenue rose to $62.0 million from $60.1 million in the same quarter of the previous fiscal year, accounting for 92% of total revenue, primarily driven by growth in Ooma Business [7]. - GAAP net income was $1.4 million, or $0.05 per diluted share, compared to a GAAP net loss of $2.4 million, or $0.09 per basic and diluted share, in the third quarter of fiscal 2025. Non-GAAP net income was $7.7 million, or $0.27 per diluted share, compared to $4.6 million, or $0.17 per diluted share in the prior year [7][24]. - Adjusted EBITDA for the quarter was $8.6 million, up from $5.7 million in the third quarter of fiscal 2025 [7]. Business Outlook - For the fourth quarter of fiscal 2026, Ooma expects total revenue in the range of $71.3 million to $71.9 million, including an expected contribution from FluentStream of $4.0 million to $4.1 million. Non-GAAP net income is projected to be between $8.4 million and $8.9 million, with non-GAAP net income per diluted share expected to be in the range of $0.30 to $0.32 [8]. - For the full fiscal year 2026, total revenue is anticipated to be between $270.3 million and $270.9 million, including the contribution from FluentStream, compared to prior guidance of $267.0 million to $270.0 million. Non-GAAP net income is expected to be between $28.2 million and $28.7 million, with non-GAAP net income per diluted share projected to be between $1.00 and $1.02 [8]. Strategic Initiatives - The company has recently completed the acquisition of FluentStream and is on track to complete the acquisition of Phone.com in late December. These acquisitions are viewed as significant opportunities to enhance shareholder value and are expected to contribute positively to Ooma's adjusted EBITDA, cash flow, and revenue growth [4].