Executive Summary

Ooma delivered a clean beat in Q1 FY26: revenue $65.0M vs $64.8M consensus* and non-GAAP diluted EPS $0.20 vs $0.18 consensus*, with 48% YoY EPS growth and 33% YoY adjusted EBITDA growth . Profitability outperformed the top end of guidance, while revenue grew 4% YoY and was near the high end of guidance .
Guidance was reaffirmed on FY26 revenue ($267–$270M) and raised on the low end for non-GAAP net income ($22.5–$23.5M), incorporating ~$0.5M tariff impact; Q2 FY26 revenue guided to $65.5–$66.1M and non-GAAP EPS $0.20–$0.21 .
Strategic catalysts strengthened: Comcast launched as an AirDial reseller; AirDial reseller base now exceeds 30; Marriott certification progressing with >100 properties in pipeline; 2600Hz closed four new customers in the quarter .
Headwinds include residual churn from IWG/Regis weighing on user counts, negative product gross margins (albeit improving), and timing uncertainty on AirDial ramp with larger partners; management characterized UCaaS demand as “steady,” with accelerating AirDial interest .

What Went Well and What Went Wrong

What Went Well

AirDial commercialization and channel expansion: “this partner of ours is Comcast, and they launched AirDial on schedule… we now exceed 30 reseller partners for AirDial” .
Hospitality momentum: “we now serve more than 500 hotels across North America” and Marriott-certified pipeline “more than 100 Marriott properties” .
Profitability traction: non-GAAP net income $5.6M (above guidance) and adjusted EBITDA $6.7M; CEO: “results included 48% YoY growth of non-GAAP EPS and 33% YoY growth of adjusted EBITDA” .

What Went Wrong

User churn and mix drift: core users declined sequentially to 1.225M, primarily due to IWG seat reductions; business users fell to 499k (41% of core) .
Product gross margin remained negative, though improving: product and other GM was -41% (vs -67% LY), reflecting higher AirDial installations and the heavier product mix .
Guidance cadence still cautious on AirDial timing; management emphasized early-stage rollouts with larger partners and elongated sales cycles, keeping near-term visibility limited .

Financial Results

Headline P&L and Profitability (oldest → newest)

Metric	Q3 FY25	Q4 FY25	Q1 FY26
Revenue ($M)	$65.13	$65.10	$65.03
Subscription & Services Rev ($M)	$60.14	$60.55	$60.26
Product & Other Rev ($M)	$4.99	$4.55	$4.77
GAAP Net Income (Loss) ($M)	$(2.36)	$(0.26)	$(0.14)
GAAP EPS	$(0.09)	$(0.01)	$(0.01)
Non-GAAP Net Income ($M)	$4.56	$5.82	$5.64
Non-GAAP Diluted EPS	$0.17	$0.21	$0.20
Adjusted EBITDA ($M)	$5.71	$6.91	$6.67
GAAP Gross Margin %	60%	61%	62%
Non-GAAP Gross Margin %	62%	63%	63%

Q1 FY26 Results vs S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($M)	$64.82*	$65.03	+$0.21 (+0.3%)*
Non-GAAP Diluted EPS	$0.18*	$0.20	+$0.02 (+10.2%)*

Values marked with * retrieved from S&P Global.

Revenue Mix and Margins (oldest → newest)

Metric	Q3 FY25	Q4 FY25	Q1 FY26
S&S Gross Margin %	72%	72%	72%
Product & Other Gross Margin %	-56%	-55%	-41%
S&S as % of Revenue	92%	93%	93%

KPIs and Operating Metrics (oldest → newest)

KPI	Q3 FY25	Q4 FY25	Q1 FY26
Core Users (M)	1.242	1.234	1.225
Business Users (M)	0.504	0.503	0.499
Business Users % of Core	41%	41%	41%
ARPU ($/mo)	$15.14	$15.26	$15.37
Office Pro/Pro Plus Take Rate (new users)	60%	60%	61%
Office Users on Higher Tiers (overall)	33%	34%	36%
Net Dollar Subscription Retention	99%	98%	99%
Annual Exit Recurring Revenue ($M)	$234	$234	$234

Note: ARR YoY growth was cited as 3% in Q4 FY25 and 33% in Q1 FY26 ; this is a discrepancy likely due to transcription/context. Management’s Q4 commentary (3% YoY) appears more consistent with stable ARR of $234M QoQ.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q2 FY26	N/A	$65.5–$66.1	New
Product Rev ($M)	Q2 FY26	N/A	$4.8–$5.2	New
Non-GAAP Net Income ($M)	Q2 FY26	N/A	$5.6–$5.9	New
Non-GAAP Diluted EPS	Q2 FY26	N/A	$0.20–$0.21	New
Revenue ($M)	FY26	$267–$270	$267–$270	Maintained
Non-GAAP Net Income ($M)	FY26	$22.0–$23.5	$22.5–$23.5 (includes ~$0.5M tariffs)	Raised low end
Non-GAAP Diluted EPS	FY26	$0.77–$0.82	$0.79–$0.83	Raised low end

Earnings Call Themes & Trends

Topic	Q3 FY25 (prior-2)	Q4 FY25 (prior-1)	Q1 FY26 (current)	Trend
AirDial channel & partners	Signed a top-tier national cable reseller; >20 partners; Frontier named; aggregator/CLEC for business+residential	Cable launch expected in March; Marriott certification announced; momentum but cautious on ramp timing	Comcast named and launched; >30 resellers; large-deal funnel building	Accelerating channel scale; visibility still developing
Hospitality	Growing wins; hotel momentum	Marriott brand certification (exclusive POTS replacement)	>500 hotels on platform; >100 Marriott properties in pipeline	Building vertical traction
2600Hz (Wholesale/CPaaS)	ServiceTitan launched; wins including Europe; modern API platform	Investment focus; larger impact next FY vs this FY	Four new customers (most ever in a quarter)	Validating platform; revenue impact lagged
Margins & OpEx discipline	Record adj. EBITDA; progress toward double-digit margins	Adjusted EBITDA ~11% in Q4; FY26 margin ambition ~11%	Non-GAAP NI/EBITDA above top end; subs GM ~72% stable	Margin execution on track
Macro/demand	Solid, seasonal caution into Q4	Q1 UCaaS demand steady; AirDial demand accelerating	Reiterated: steady UCaaS, faster AirDial	UCaaS steady; AirDial up
Tariffs	—	FY26 non-GAAP NI includes ~$0.5M tariffs	No discernible demand impact; included in guide	Managed headwind
IWG/Regis churn	Q3: half of H2 seat reductions; ongoing churn commentary	Q4: more churn expected then stabilizing	Last two quarters ~12k–13k lines churned; largely behind now	Headwind fading

Management Commentary

“Ooma delivered a solid Q1, with $65.0 million in revenue and $5.6 million of non-GAAP net income… 48% year over year growth of non-GAAP EPS and 33% year over year growth of adjusted EBITDA.” — Eric Stang, CEO .
“This partner of ours is Comcast, and they launched AirDial on schedule… we now exceed 30 reseller partners for AirDial.” — Eric Stang, CEO .
“We closed four new customers [on 2600Hz], which is our most ever in one quarter.” — Eric Stang, CEO .
“Non-GAAP net income was $5.6 million, above our guidance range… Business subscription and services revenue grew 6% year-over-year… ARPU increased 4% YoY to $15.37.” — Shig Hamamatsu, CFO .

Q&A Highlights

Retention and churn: NRR improved to 99% (from 98% in Q4) as non-Regis businesses offset anticipated Regis churn; last two quarters saw ~12–13k lines churn at Regis, largely matching prior guidance and mostly behind them .
Demand environment: UCaaS demand steady, while AirDial demand clearly accelerating as pricing and copper line shutdowns prompt action .
Gross margins: Subscription & services GM expected to remain ~72% near term, with potential improvement later in the year as capacity investments normalize .
2600Hz trajectory and disclosure: Still low single-digit % of total revenue; more granular disclosure considered when 10–15% of revenue .
Profit trajectory: Management sees room for adjusted EBITDA margin materially above current levels over time given 72% subscription margins and lower future R&D intensity across mature solutions .

Estimates Context

Q1 FY26 beat S&P Global consensus on revenue ($65.03M vs $64.82M*) and non-GAAP diluted EPS ($0.20 vs $0.18*) . Values marked with * retrieved from S&P Global.
Implications: modest revenue beat (~0.3%) but a more notable EPS beat (~10%), reflecting operating leverage and disciplined OpEx; estimate revisions may move up slightly on profitability while revenue stays near prior run-rate given reiterated FY26 revenue outlook .

Key Takeaways for Investors

AirDial inflection building: Comcast launch, >30 resellers, improving product GM, and growing enterprise/government pipeline are key catalysts likely to drive H2-weighted momentum .
Profitability trajectory intact: non-GAAP EPS and EBITDA outperformed, FY26 non-GAAP NI low end raised despite tariff headwind; subscription GM steady at ~72% .
UCaaS steady, verticals expanding: SMB Office premium mix rising (61% of new users) and hospitality momentum (>500 hotels; Marriott pipeline) support mix/ARPU gains .
Residual churn fading: IWG/Regis reductions largely behind, aiding stabilization of users/NRR near 99% .
Watch the bridge from bookings to revenue: large-deal sales cycles and partner ramp timing remain the gating factor; trajectory likely back-half weighted given installation-to-revenue lag .
2600Hz optionality: growing customer count validates platform; revenue impact likely more material next fiscal year as implementations mature .
Risk checks: product mix can pressure GAAP gross margin if AirDial installations spike quickly; tariffs (~$0.5M) embedded in FY26 guide; execution with new partners is critical .

Sources: Q1 FY26 8‑K and press release and exhibits ; Q1 FY26 earnings call transcript ; Q4 FY25 press release and call ; Q3 FY25 press release and call . Values marked with * retrieved from S&P Global.

OOMA INC (OOMA)·Q1 2026 Earnings Summary