Ooma 2026 Q2 Earnings Profitability Returns as Net Income Surges 158.7%

Ooma(OOMA) reported its fiscal 2026 Q2 earnings on Sep 05th, 2025, delivering results that exceeded long-term expectations by turning a profit for the first time in 11 years. The company surpassed expectations with a net income turnaround and improved earnings per share. While no formal guidance was issued, CEO Michael Fisch expressed confidence in continued profitability and operational improvements for the remainder of the year.

Revenue
The total revenue of Ooma increased by 3.5% to $66.36 million in 2026 Q2, up from $64.13 million in 2025 Q2. Subscription and services revenue, the company’s largest revenue stream, contributed $61.14 million, reflecting steady performance from recurring income sources. Meanwhile, product and other revenue totaled $5.22 million, rounding out the total revenue figure.

Earnings/Net Income
Ooma returned to profitability with EPS of $0.05 in 2026 Q2, reversing from a loss of $0.08 per share in 2025 Q2 (162.5% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $1.25 million in 2026 Q2, representing a 158.7% positive swing from the net loss of $-2.14 million in 2025 Q2. Despite this improvement, the company has sustained losses for 11 years over the corresponding fiscal quarter, underscoring the significance of this turnaround. The strong EPS and net income figures indicate a positive shift in the company’s financial health.

Price Action
The stock price of Ooma has dropped 3.16% during the latest trading day, has dropped 3.01% during the most recent full trading week, and has jumped 11.15% month-to-date.

Post Earnings Price Action Review
While the stock experienced volatility in the short term, the month-to-date performance suggests that the market is responding positively to the earnings turnaround. The mixed performance over the last week may reflect lingering uncertainty or broader market trends, but the overall positive momentum could indicate growing investor confidence in the company’s future prospects.

CEO Commentary
CEO Michael Fisch, in his remarks, emphasized Ooma’s continued momentum in driving business transformation through its cloud-based communication solutions. He highlighted the company’s focus on small and medium-sized businesses, noting that the growing demand for remote work and digital transformation is a key growth driver. Fisch expressed optimism about Ooma Office’s expanding feature set and user adoption, positioning it as a competitive advantage in the evolving enterprise communications market. He also acknowledged challenges in the residential VoIP segment, including customer acquisition costs and regulatory uncertainty, but remained confident in the long-term value of Ooma’s product suite. Fisch reiterated the company’s commitment to innovation and customer-centric development, reinforcing a tone of cautious optimism.

Guidance
Ooma expects revenue to grow in the second half of 2026, driven by continued adoption of Ooma Office and the expansion of its residential VoIP offerings. The company is guiding to maintain a net positive cash flow from operations and is focused on optimizing costs while investing in product development. While no specific EPS target was provided, the CEO indicated confidence in maintaining profitability and improving margins through operational efficiencies and strategic pricing.

Additional News
On the same day Ooma released its earnings, Nigerian newspaper Punch reported on a range of local developments. Six individuals were arrested in Lagos for vandalizing a government road barricade, while Oyo State began constructing a 400,000-liter water tank at Ibadan Airport. In a high-profile name change, actress Temi Otedola officially dropped her father’s surname, adopting “Ajibade” as her new last name. Political tensions flared as parties clashed over a probe into Kaduna State Governor El-Rufai for alleged criminal conspiracy. Additionally, Nigeria’s Federal Government announced a tightening of border controls in response to a fresh Ebola outbreak. These developments underscore a dynamic regional landscape marked by both economic and social developments.