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OOMA INC (OOMA)·Q2 2026 Earnings Summary

Executive Summary

  • Revenue of $66.4M, up 3% y/y, with subscription/services at $61.1M (92% of total); results exceeded S&P Global consensus revenue of ~$65.7M and non-GAAP EPS of ~$0.20 as Ooma delivered $0.23 non-GAAP EPS and record adjusted EBITDA of $7.2M .*
  • FY26 guidance raised for GAAP net income to $3.5–$4.0M and non-GAAP net income to $24.5–$25.0M, while revenue was maintained at $267–$270M; Q3 FY26 guidance implies revenue $67.2–$67.9M and non-GAAP EPS $0.22–$0.23, broadly bracketing consensus .*
  • Operating leverage drove margin resilience: GAAP gross margin ~61% and non-GAAP ~62%; adjusted EBITDA margin reached 11%, at the low end of the mid-term target range (11–14%) .
  • Execution catalysts include AirDial bookings more than doubling y/y, a new largest retail win (anticipated ~3,000 locations), and continued product innovation in 2600Hz apps and AI-driven features—building momentum into H2 .

*Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • “Record adjusted EBITDA of $7.2 million” and non-GAAP EPS growth of 52% y/y underscore improving operating leverage and profitability focus .
  • AirDial ramped strongly: “We more than doubled new bookings year over year and secured our largest customer win to date with a large national retailer… anticipate serving over 3,000 locations;” partners expanding to “approaching 35” resellers .
  • Business KPIs strengthened: core users 1.23M (+5K q/q), business users 508K (+9K q/q), ARPU $15.68 (+4% y/y), Office Pro/Pro Plus take rate 61% of new users; NRR 100% vs 99% in Q1 .

What Went Wrong

  • Product/other gross margin remains negative, albeit improving: Q2 product gross margin -47% (vs -69% LY), with heavier product mix (AirDial installs) offsetting improvements; overall gross margin flat y/y at 62% .
  • Residential subscription/services revenue declined 2% y/y; sequential churn improved, but the segment remains a headwind to mix .
  • Guidance variability reflects installation timing on AirDial (customer timing), leading to wider ranges for Q3 and full-year mix of product vs subscription/services .

Financial Results

Key Metrics by Quarter (oldest → newest)

MetricQ4 FY2025Q1 FY2026Q2 FY2026
Total Revenue ($USD Millions)$65.10 $65.03 $66.36
GAAP Diluted EPS ($)-$0.01 -$0.01 $0.04
Non-GAAP Diluted EPS ($)$0.21 $0.20 $0.23
Adjusted EBITDA ($USD Millions)$6.91 $6.67 $7.16
Gross Margin (GAAP, %)61% 62% 61%
Gross Margin (Non-GAAP, %)63% 63% 62%

Revenue Mix and Segment Detail

MetricQ2 FY2025Q1 FY2026Q2 FY2026
Subscription & Services ($USD Millions)$59.57 $60.26 $61.14
Product & Other ($USD Millions)$4.56 $4.77 $5.23
Subscription & Services (% of Total)93% 93% 92%

Margins by Category (Q2 FY2026)

CategoryMargin
Subscription & Services Gross Margin71.3%
Product & Other Gross Margin-47%
Adjusted EBITDA Margin11%

KPIs (Q2 FY2026)

KPIValue
Core Users1.230M
Business Users508K (41% of core)
ARPU (Blended Monthly)$15.68
Office Pro/Pro Plus Take Rate (New)61%
Office Users on Higher Tiers37%
Annual Exit Recurring Revenue$240M
Net Data Subscription Retention Rate100%

Results vs S&P Global Consensus (Q2 FY2026)

MetricActualConsensusBeat/Miss
Revenue ($USD Millions)$66.36 $65.72*Beat
Non-GAAP EPS ($)$0.23 $0.20*Beat

*Values retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Millions)FY2026$267–$270 $267–$270 Maintained
GAAP Net Income ($USD Millions)FY2026$0.6–$1.6 $3.5–$4.0 Raised
Non-GAAP Net Income ($USD Millions)FY2026$22.5–$23.5 $24.5–$25.0 Raised
Non-GAAP EPS ($)FY2026$0.79–$0.83 $0.87–$0.89 Raised
Adjusted EBITDA ($USD Millions)FY2026N/A$28.5–$29.0 (implied) Introduced/Updated
Total Revenue ($USD Millions)Q3 FY2026N/A$67.2–$67.9 New
GAAP Diluted EPS ($)Q3 FY2026N/A$0.04–$0.05 New
Non-GAAP Diluted EPS ($)Q3 FY2026N/A$0.22–$0.23 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY2025)Previous Mentions (Q1 FY2026)Current Period (Q2 FY2026)Trend
AI/Technology initiativesInvestment in new products; platform enhancements Continued investment; partners expanding New AI-driven features underway for SMBs; 2600Hz new desktop/mobile apps; video meetings and team chat introduced Increasing focus
Supply chain/componentsElevated component costs consumed in 1H FY25 N/AProduct GM improved as higher-cost components consumed; heavier product mix from AirDial installs flattened overall GM Improving cost profile but mix headwind
Tariffs/macroN/AN/AFY26 non-GAAP NI guidance includes ~$0.5M tariff impact Macro headwind quantified
AirDial rampPOTS replacement opportunity highlighted >30 resellers; strong partner adds Bookings doubled y/y; largest retail win (~3,000 locations); ~35 resellers; Comcast/T-Mobile/Select ramping Accelerating
2600Hz wholesaleStrategic platform and acquisition benefits Four new customer wins New apps, expanded customers; goal to add large customers; turnkey capabilities enhanced Building platform
R&D executionElevated R&D in FY25 R&D focus; stable R&D down 6% y/y; efficiency and leverage driving raised NI guidance Efficient
Residential segmentStable with telephony base Channel adds (ISPs); churn slightly reduced Sub/services -2% y/y; sequential churn improvement; ~85 ISPs Mixed

Management Commentary

  • “Our results included 52% year over year growth of non-GAAP EPS and record adjusted EBITDA of $7.2 million… we remain focused on achieving growth across our small business UCaaS, AirDial POTS replacement, and 2600Hz wholesale solutions while also improving non-GAAP net income and adjusted EBITDA year over year.” — Eric Stang, CEO .
  • “Currently, we are at 11% adjusted EBITDA as a percent of revenue, our highest to date and now already at the low end of our mid term target range model of 11% to 14%.” — Eric Stang .
  • “Business subscription and services revenue grew 6% year over year… product and other revenue… up 15% year over year due to growth in AirDial installations.” — Shig Hamamatsu, CFO .
  • “Updated non-GAAP net income guidance for fiscal twenty twenty six includes the impact of approximately $500,000 of tariffs.” — Shig Hamamatsu .

Q&A Highlights

  • AirDial’s contribution to ARR and user adds is increasing; business-side user adds of +9K q/q with a “good chunk” from AirDial; bookings more than doubled y/y .
  • Reseller ramp: ~35 resellers; Comcast orders progressing; T-Mobile “never been stronger”; Select ramping; expectation to add more resellers in Q3 .
  • Capital allocation and M&A: ~$4.5M buybacks in Q2; tuck-in M&A remains a focus but disciplined on price and fit; buybacks deemed sensible at current share price .
  • Guidance variability: ranges reflect installation timing on AirDial in H2; not driven by churn assumptions .
  • Largest retail win: won alongside T-Mobile; rollout through H2; AirDial ARPU modeling at ~$25 per line per month .
  • 2600Hz strategy: adding Ooma IP for stronger turnkey solutions; targeting large bespoke customers (e.g., ServiceTitan) and later smaller players; multiple new customers in year .
  • NRR improved to 100% largely from better churn and absence of large IWG churn seen in Q1; expect NRR in 99–100% band .
  • IWG/Regus outlook: stable after rollouts completed .

Estimates Context

  • Q2 FY2026 beat: revenue $66.36M vs ~$65.72M consensus; non-GAAP EPS $0.23 vs ~$0.20 consensus, reflecting operating leverage and mix .*
  • Q3 FY2026 guidance: revenue $67.2–$67.9M vs ~$67.58M consensus; non-GAAP EPS $0.22–$0.23 vs ~$0.22 consensus—guidance brackets consensus on both top and bottom lines .*
  • FY2026 raised bottom-line guidance (GAAP and non-GAAP) suggests upward estimate revisions for EPS and EBITDA, while revenue maintained implies changes driven by margin/opex efficiencies and tariff assumption .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Strong beat on both revenue and non-GAAP EPS, with record adjusted EBITDA and 11% margin, signals improving profitability trajectory even with heavier product mix from AirDial installs .
  • AirDial momentum is a clear growth catalyst (bookings doubled y/y; major retail rollout; reseller ecosystem broadening with carriers), supporting H2 acceleration potential .
  • FY26 guidance raise on GAAP and non-GAAP net income—despite maintained revenue—highlights R&D leverage, disciplined S&M spend, and quantified tariff impact (~$0.5M) .
  • Subscription/services mix remains above 90%, but near-term product mix from installations can flatten gross margin; medium-term margin expansion tied to services mix and cost reductions in hardware .
  • Business KPIs strengthen (ARPU +4% y/y; higher-tier take rate at 61%; NRR 100%), positioning Ooma for durable growth in SMB UCaaS and wholesale .
  • 2600Hz enhancements and AI feature development broaden addressable market, with potential for larger customers and improved turnkey offerings in 2026 .
  • Near-term trading: positive setup from estimate beat and raised FY26 EPS/EBITDA guidance; watch H2 installation timing and AirDial rollout pace as potential stock catalysts .

Additional Relevant Press Releases (Q2 FY2026 Context)

  • 2600Hz introduced DesktopComm and MobileComm apps to strengthen turnkey capabilities for UCaaS/CCaaS/CPaaS resellers .
  • AirDial expanded Remote Device Management features (SSO, bulk device add, porting status, mobile optimization), enabling large-scale POTS replacement deployments .
Note: Ooma furnished its Q2 FY2026 press release via Form 8-K (Item 2.02), including detailed financial statements and non-GAAP reconciliations **[1327688_0001327688-25-000005_ooma-20250826.htm:1]** **[1327688_0001327688-25-000005_ooma-ex99_1.htm:0]** **[1327688_0001327688-25-000005_ooma-ex99_1.htm:6]**.