Here's What Key Metrics Tell Us About Ooma (OOMA) Q3 Earnings

Core Financial Performance - Ooma reported revenue of $67.63 million for the quarter ended October 2025, a year-over-year increase of 3.8% [1] - The EPS for the same period was $0.27, compared to $0.17 a year ago, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $67.58 million, resulting in a surprise of +0.06% [1] - The company delivered an EPS surprise of +22.73%, with the consensus EPS estimate being $0.22 [1] Key Metrics Analysis - Core users totaled 1.23 million, slightly below the estimated 1.24 million [4] - Premium core users were 816 thousand, compared to the average estimate of 834.5 thousand [4] - Annualized exit recurring revenue (AERR) was $243 million, below the estimated $246.87 million [4] - The net dollar subscription retention rate remained strong at 99%, matching the average estimate [4] - Revenue from products and other was $5.67 million, slightly below the estimated $5.72 million, but represented a +13.6% change year-over-year [4] - Subscription and services revenue was $61.95 million, slightly above the estimated $61.87 million, reflecting a +3% change year-over-year [4] Stock Performance - Ooma's shares have returned +1.2% over the past month, matching the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]