Navigating Contradictions: Insights from UCaaS's Q1 2026 Earnings Call on Demand, AirDial, and Churn Impacts

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Strong Financial Performance and Profitability:
- Ooma, Inc. reported revenue of $65 million for Q1 FY2026, with a 4% year-over-year growth, and non-GAAP net income of $5.6 million, exceeding the top end of their range.
- The growth in revenue was driven by the expansion of AirDial and new reseller partners, while the improved profit reflects operational efficiencies.

Growth in AirDial and Reseller Partners:
- AirDial, Ooma's business POTS replacement solution, saw significant expansion with a major cable company, Comcast, launching its reselling in Q1.
- The company now has over 30 reseller partners, contributing to AirDial's momentum and anticipated growth.

Improved Retention and Demand Environment:
- Ooma's net dollar subscription retention rate for the quarter was 99%, as other businesses offset the anticipated decline in Regus subscriptions.
- The demand environment for Ooma Office and Enterprise remained steady, while AirDial showed accelerating demand due to increasing prices and the need for replacement solutions.

Product Revenue and Customer Wins:
- Product revenue for Q1 was $4.8 million, driven by growth in AirDial installations and new customer wins, particularly in Ooma's wholesale platform services.
- The company closed four new customers for 2600Hz in Q1, indicating increased interest in their platform services.