Forward-Looking Statements Non-GAAP Financial Measures In addition to disclosing estimates of financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP†), this press release contains estimates of Adjusted EBITDA in future periods. As explained in Ooma's filings with the Securities and Exchange Commission, Adjusted EBITDA represents net income before interest and otherincome, income taxes, depreciation and amortization of capital expenditures, amortization of intan ...

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].

Core Viewpoint - Ooma, Inc. has signed a definitive agreement to acquire Phone.com for approximately $23.2 million in cash, aiming to enhance its position in the small and medium-sized business (SMB) communications market [1][3][7] Acquisition Details - The acquisition is expected to close in the fourth quarter of Ooma's fiscal year 2026, pending regulatory approvals and customary closing conditions [3][4] - Phone.com is projected to generate annual revenues of $22-$23 million and adjusted EBITDA of $1.0-$1.5 million based on current run rates [4][7] - The cash purchase price reflects an approximate 1.0x revenue multiple based on Phone.com's current run rate [7] Strategic Implications - This acquisition is part of Ooma's strategy to extend its leadership in serving SMB customers and is expected to add approximately 87,000 business users [6][7] - Ooma plans to finance the acquisition through a combination of cash on hand and bank debt [4][7] - The integration of Phone.com is anticipated to create synergies and enhance Ooma's overall business value [6][7] Company Background - Phone.com, founded in 2006, serves approximately 36,000 customers and 87,000 users across North America, focusing on cloud communications for SMBs [5][6] - Ooma provides a range of communication services, including Ooma Office, which is designed for small to medium-sized businesses [11]