10-Q · June 5, 2026
Ooma's Q1 FY2027 results showcased strong growth with revenue reaching $81.1 million, a notable increase of 25% year-over-year. EPS came in at $0.09, reversing a loss from the previous year. The successful integration…
Earnings analysis · 10-Q
OOMA earnings analysis
Filed September 4, 2026 · Our reading of the company's report
The latest report
Ooma delivered strong year-over-year growth, with revenue up 25% to $83.228 million and business subscription revenue up 38%, while GAAP diluted EPS improved to $0.10 from $0.04. Gross margin was stable at 61%, but…
Read full summary
Ooma delivered strong year-over-year growth, with revenue up 25% to $83.228 million and business subscription revenue up 38%, while GAAP diluted EPS improved to $0.10 from $0.04. Gross margin was stable at 61%, but operating leverage and adjusted EBITDA growth drove a substantial improvement in profitability and operating cash flow. Liquidity is adequate based on $17.5 million of cash and $10.0 million of available borrowing capacity, although debt, rising inventory and tariff uncertainty remain important risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.1
- Segment
- Single reportable segment: total revenue was $83.228 million, up 25% year over year; subscription and services revenue was $75.579 million, up 24%, and product and other revenue was $7.649 million, up 46%.
- Segment
- Ooma Business represented approximately 70% of total revenue versus 63% in the prior-year quarter; Ooma Residential represented approximately 28% versus 35%.
What stood out
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Revenue growth accelerated
Revenue increased to $83.228 million from $66.364 million in the prior-year quarter, a 25% increase. Subscription and services revenue rose 24% to $75.579 million, while product and other revenue rose 46% to $7.649 million.
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Business mix shifted higher
Ooma Business contributed approximately 70% of total revenue versus 63% a year ago, while Ooma Residential declined to approximately 28% from 35%. Business subscription and services revenue grew 38% year over year, driven by user growth, AirDial, FluentStream and Phone.com.
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Product margin improved
Gross margin was 61% in both the current and prior-year quarters. Product and other gross margin improved to negative 25% from negative 47%, helped in part by $0.3 million of tariff refunds.
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Profitability improved materially
GAAP net income increased to $3.004 million from $1.255 million, and diluted EPS increased to $0.10 from $0.04. Adjusted EBITDA rose to $12.444 million from $7.161 million.
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Cash generation strengthened
Operating cash flow for the six months was $19.495 million versus $10.064 million in the prior-year period. After $3.762 million of capital expenditures, calculated free cash flow was $15.733 million, while inventory increased $5.237 million.
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Debt reduction supports liquidity
The company prepaid $11.5 million of term-loan borrowings during the first six months, reducing debt to $46.5 million net of issuance costs as of July 31, 2026. Management stated that $17.5 million of cash plus $10.0 million of borrowing capacity should be sufficient for at least the next 12 months.
What to watch
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Debt and variable-rate exposure
The company had $46.5 million of debt outstanding at July 31, 2026 versus no outstanding debt at July 31, 2025, and borrowings carry variable rates with an effective interest rate of 6.2%. The credit agreement also requires specified leverage, fixed-charge coverage and liquidity levels.
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Inventory and supply-chain risk
Inventory increased to $21.355 million from $16.172 million at January 31, 2026, while the company had approximately $15.3 million of non-cancelable inventory purchase commitments. Management warned that supply-chain constraints, component end-of-life and AI-related electronics demand could lead to excess or obsolete inventory.
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Tariff uncertainty remains material
The company received $0.3 million of tariff refunds during the quarter but stated that the timing and recoverability of further refunds remain uncertain. New Section 301 tariffs and potential Canadian retaliatory tariffs could increase costs, raise prices, reduce demand and pressure gross margins.
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AI investment and regulation
Research and development expense increased 24% year over year to $15.468 million, including a $0.4 million increase in license fees related to AI innovation activities. The filing added or expanded discussion of AI risks, including potential regulatory fines of up to €35 million or 7% of worldwide annual turnover under the EU AI Act.
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Retention softened
Net dollar subscription retention declined to 99% from 100% year over year. Because most service plans are monthly and customers can generally terminate without penalty, higher business-customer churn could pressure recurring revenue and increase retention costs.
Management's outlook
The 10-Q provides no new quantitative revenue or EPS guidance. The previously issued Q3 and full-year outlook was disclosed in the August 26, 2026 earnings release, including Q3 revenue of $83.7-$84.5 million and full-year revenue of $332.0-$333.5 million.
Earlier filings 4
10-K · April 3, 2026
Ooma reports multi-year revenue growth to $273.6 million in fiscal 2026 (from $256.9M in 2025 and $236.7M in 2024) driven by organic growth and two December 2025 acquisitions (FluentStream and Phone.com). Fiscal 2026…
10-Q · December 9, 2025
Ooma reported revenue of $67,625,000 for the three months ended October 31, 2025, up $2,498,000 (3.8%) year-over-year, with gross margin essentially stable at 60.2% and operating income of $1,292,000 (1.9% operating…
10-Q · September 6, 2024
Ooma reported revenue of $64.129M for the three months ended July 31, 2024, up from $58.353M a year earlier, driven by subscription growth. Despite top-line growth, gross margin compressed and operating expenses…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.