Ooma Reports Record Q2 Profit Growth, Raises FY2026 Guidance

Ooma reported Q2 2026 revenue of $66.4mln, up 3.5% YoY, and a record non-GAAP net income of $6.5mln, up 59% YoY. The company's adjusted EBITDA margin rose to 11%. Airdial bookings drove Ooma's business revenue, with nearly 35 Airdial resellers and a national US retailer deploying to over 3,000 locations. Ooma's adjusted EBITDA rose 27% YoY to $7.2mln, with non-GAAP net income driven by improving operating leverage and a disciplined cost structure. The company updated its full-year non-GAAP net income guidance to $24.5mln to $25mln for FY2026.

Ooma Inc. (NYSE: OOMA) reported its second quarter 2026 earnings on August 26, 2025, with notable improvements in revenue and profitability. The company's Q2 2026 revenue reached $66.4 million, up 3.5% year over year (YoY), and the non-GAAP net income surged to a record $6.5 million, marking a 59% YoY increase [1].

A key driver of Ooma's performance was the growth in Airdial bookings, which contributed significantly to business revenue. The company now partners with nearly 35 Airdial resellers, up from previous periods, and secured its largest customer to date—a national U.S. retailer deploying Airdial across over 3,000 locations [1].

Ooma's adjusted EBITDA margin rose to 11%, reflecting enhanced operational efficiency. The adjusted EBITDA increased by 27% YoY to $7.2 million, driven by improving operating leverage, R&D efficiency, and a disciplined cost structure [1]. The company's gross margin remained stable at 62%, while sales and marketing expenses rose 2% YoY to $18 million, and research and development expenses declined 6% YoY to $11.5 million [1].

The company also updated its full-year non-GAAP net income guidance to $24.5 million to $25.0 million for FY2026, raising its prior expectations [1]. This positive outlook is supported by the projected growth in business subscription and services revenue, which is expected to grow by 5% to 6% for FY2026 on a non-GAAP basis, while residential revenue is projected to decline by 1% to 2% [1].

Investors responded positively to Ooma's strong performance, with the stock trading at 14 times the next 12-month earnings, up from a P/E of 15 three months ago [2]. The current average analyst rating on the shares is "buy," with a breakdown of recommendations showing 5 "strong buy" or "buy," 1 "hold," and no "sell" or "strong sell" recommendations [2]. The median 12-month price target for Ooma Inc. is $17.75, about 32.5% above its August 25 closing price of $11.98 [2].

Ooma's strategic priorities for the remainder of FY2026 include capitalizing on Airdial expansion, enhancing Ooma Office for higher average revenue per user (ARPU), and scaling its wholesale platform 2,600 Hertz, while further cost efficiency gains are anticipated through the second half of the fiscal year [1].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXB9AB9F:0-telecom-firm-ooma-meets-q2-revenue-estimates-raises-fy-net-income-guidance/
[2] https://www.mitrade.com/insights/news/live-news/article-8-1071133-20250827