Ooma 2026 Q1 Earnings Strong Performance as Net Income Improves 93%
Daily EarningsTuesday, Jun 10, 2025 5:05 am ET

Ooma (OOMA) reported its fiscal 2026 Q1 earnings on June 9th, 2025. The company exceeded expectations with a 93.4% improvement in net income compared to the previous year. also provided in-line guidance, projecting a positive outlook for both the upcoming quarter and the full fiscal year 2026. The CEO emphasized ongoing investments in new products and market expansion, which are expected to sustain profitable growth. Overall, these results reflect Ooma's strategic focus on strengthening its market position.
Revenue
The total revenue of Ooma increased by 4.0% to $65.03 million in 2026 Q1, up from $62.50 million in 2025 Q1.
Earnings/Net Income
Ooma narrowed losses to $0.01 per share in 2026 Q1 from a loss of $0.08 per share in 2025 Q1 (87.5% improvement). Meanwhile, the company successfully narrowed its net loss to $-141,000 in 2026 Q1, reducing losses by 93.4% compared to the $-2.14 million net loss reported in 2025 Q1. The company showed a positive EPS trend with losses significantly reduced.
Post-Earnings Price Action Review
The strategy of buying OOMA when revenue misses and holding for 30 days appears speculative, given the mixed short-term performance and risks associated with relying solely on revenue misses for trading decisions. Despite a slight revenue miss, Ooma's EPS of $0.20 surpassed forecasts, suggesting the market favors earnings beats over revenue misses in the short term. The stock experienced a 0.82% increase in after-hours trading, indicating investor confidence. However, holding the stock for 30 days introduces risks as market sentiment can change rapidly. Historical data on OOMA's performance post-revenue miss is limited, making it challenging to evaluate the strategy's success. Investors should consider the company's financial health, market position, and growth prospects beyond immediate earnings reactions. Ooma's strong growth in non-GAAP net income and adjusted EBITDA may support its value in the short term. A more robust strategy might involve setting stop-loss levels, diversifying portfolios, and considering long-term growth potential. While the initial reaction to Ooma's earnings report was positive, investors should weigh risks against potential long-term growth and consider comprehensive risk management.
CEO Commentary
“Ooma performed well in Q4, delivering $65.1 million in revenue and $5.8 million of non-GAAP net income,” said Eric Stang, Chief Executive Officer of Ooma. “For our full fiscal year 2025, year over year we grew revenue by 8%, non-GAAP net income by 17%, and cash flow from operations by 117%. We achieved this growth while investing significantly in new products and market expansion, and we believe we enter FY26 in a strong position with leading solutions in each of the four segments we target. Overall, our focus is to continue driving profitable growth.”
Guidance
For the first quarter of fiscal 2026, Ooma expects total revenue in the range of $64.7 million to $65.1 million, with GAAP net loss projected between ($0.2) million to $0.1 million, and non-GAAP net income anticipated between $5.1 million to $5.4 million. For the full fiscal year 2026, the company guides total revenue between $267 million to $270 million, with GAAP net income expected to be between $0.4 million to $1.9 million, and non-GAAP net income projected between $22.0 million to $23.5 million.
Additional News
Recently, Ooma has been active in strategic M&A and corporate restructuring efforts. Notably, Jane Street Group LLC reduced its position in Ooma by 67.9% in the fourth quarter, while other institutional investors like Vanguard Group Inc. increased their stakes, reflecting varied investor sentiment. Additionally, Ooma's Chief Accounting Officer, Namrata Sabharwal, sold a portion of her shares in early June, adjusting her holdings in the company. These moves highlight ongoing investor interest and internal adjustments within Ooma, potentially impacting future strategic directions and financial performance.
Revenue
The total revenue of Ooma increased by 4.0% to $65.03 million in 2026 Q1, up from $62.50 million in 2025 Q1.
Earnings/Net Income
Ooma narrowed losses to $0.01 per share in 2026 Q1 from a loss of $0.08 per share in 2025 Q1 (87.5% improvement). Meanwhile, the company successfully narrowed its net loss to $-141,000 in 2026 Q1, reducing losses by 93.4% compared to the $-2.14 million net loss reported in 2025 Q1. The company showed a positive EPS trend with losses significantly reduced.
Post-Earnings Price Action Review
The strategy of buying OOMA when revenue misses and holding for 30 days appears speculative, given the mixed short-term performance and risks associated with relying solely on revenue misses for trading decisions. Despite a slight revenue miss, Ooma's EPS of $0.20 surpassed forecasts, suggesting the market favors earnings beats over revenue misses in the short term. The stock experienced a 0.82% increase in after-hours trading, indicating investor confidence. However, holding the stock for 30 days introduces risks as market sentiment can change rapidly. Historical data on OOMA's performance post-revenue miss is limited, making it challenging to evaluate the strategy's success. Investors should consider the company's financial health, market position, and growth prospects beyond immediate earnings reactions. Ooma's strong growth in non-GAAP net income and adjusted EBITDA may support its value in the short term. A more robust strategy might involve setting stop-loss levels, diversifying portfolios, and considering long-term growth potential. While the initial reaction to Ooma's earnings report was positive, investors should weigh risks against potential long-term growth and consider comprehensive risk management.
CEO Commentary
“Ooma performed well in Q4, delivering $65.1 million in revenue and $5.8 million of non-GAAP net income,” said Eric Stang, Chief Executive Officer of Ooma. “For our full fiscal year 2025, year over year we grew revenue by 8%, non-GAAP net income by 17%, and cash flow from operations by 117%. We achieved this growth while investing significantly in new products and market expansion, and we believe we enter FY26 in a strong position with leading solutions in each of the four segments we target. Overall, our focus is to continue driving profitable growth.”
Guidance
For the first quarter of fiscal 2026, Ooma expects total revenue in the range of $64.7 million to $65.1 million, with GAAP net loss projected between ($0.2) million to $0.1 million, and non-GAAP net income anticipated between $5.1 million to $5.4 million. For the full fiscal year 2026, the company guides total revenue between $267 million to $270 million, with GAAP net income expected to be between $0.4 million to $1.9 million, and non-GAAP net income projected between $22.0 million to $23.5 million.
Additional News
Recently, Ooma has been active in strategic M&A and corporate restructuring efforts. Notably, Jane Street Group LLC reduced its position in Ooma by 67.9% in the fourth quarter, while other institutional investors like Vanguard Group Inc. increased their stakes, reflecting varied investor sentiment. Additionally, Ooma's Chief Accounting Officer, Namrata Sabharwal, sold a portion of her shares in early June, adjusting her holdings in the company. These moves highlight ongoing investor interest and internal adjustments within Ooma, potentially impacting future strategic directions and financial performance.

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