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- **Revenue Growth**: Q3 $67.6M (+4% YoY), FY26 guidance $270.3-270.9M.
- **Profitability**: Q3 EBITDA $8.6M (13% margin), FY26 EBITDA $32.4-32.9M.
- **Acquisitions**: FluentStream/Phone.com add $45M revenue, $10M EBITDA annually.
- **AI Strategy**: Pro Plus AI features launching Q1 2026 to boost ARPU.
- **Cash Flow**: Q3 free cash flow $5.4M, $16.2M spent on share buybacks.

**【CEO Summary Section】**
- Q3 revenue reached $67.6 million, up 4% YoY, driven by business solutions growth.
- Non-GAAP net income of $7.7 million, up 68% YoY, with adjusted EBITDA at $8.6 million (13% of revenue).
- 1.233 million core users, including 513,000 business users (42% of total), with ARPU increasing 4% to $15.8.
- Launched updated AirDial with 9 new resale partners and secured a 1,000-room hotel win.
- Acquired FluentStream and Phone.com, adding $45 million revenue and $10 million EBITDA annually.

**【CFO Financial Commentary】**
- Subscription gross margin 71.5%, product gross margin -45%, total gross margin 62%.
- Operating expenses down 4% YoY, with R&D and G&A reductions offsetting sales/marketing growth.
- Q4 guidance: $71.3-71.9 million revenue, $8.4-8.9 million non-GAAP net income.
- FY26 guidance: $270.3-270.9 million revenue, $28.2-28.7 million non-GAAP net income.
- Generated $6.9 million Q3 operating cash flow and $5.4 million free cash flow.

**【Q&A Highlights】**
- EBITDA improvement driven by R&D cost management, lower tariffs, and operating leverage.
- AirDial installations delayed due to customer timing, but bookings grew 50% YoY.
- AI features for Pro Plus tier to launch Q1 2026, targeting ARPU growth.
- FluentStream and Phone.com synergies expected to enhance profitability and scale.
- No economic sensitivity concerns in SMB segment.

Ooma, Inc. (OOMA) Q3 2026 Earnings Call Transcript

- **Record Q2 profitability**: $6.5M non-GAAP net income and $7.2M EBITDA (11% of revenue), up 59% and 27% YoY.
- **AirDial momentum**: Bookings doubled YoY, 3,000-location retail win, and 35+ partners (including Comcast, T-Mobile).
- **Business growth**: 6% YoY subscription revenue, 61% Pro/Pro Plus take rate, and $25 ARPU for AirDial.
- **Future focus**: AI-driven features, Connect 5000 launch, and 2600Hz platform expansion with Ooma IP.

**【CEO Summary Section】**
- Q2 2026 revenue reached $66.4 million, with non-GAAP net income of $6.5 million and adjusted EBITDA of $7.2 million (11% of revenue), both records.
- Business subscription and services revenue grew 6% YoY, driven by user growth and ARPU increase. AirDial bookings more than doubled YoY, with a major national retailer win for over 3,000 locations.
- Launched Connect 5000, a 5G Internet solution for small businesses, and expanded AI-driven features for Ooma Office. 2600Hz platform introduced new mobile/desktop apps and video meetings.
- Residential subscription revenue slightly down YoY but stable, with 85 ISPs now selling Telo.
- FY2026 guidance: $267-270 million revenue, with Business growth 5-6% and Residential decline 1-2%. Raised non-GAAP net income guidance to $24.5-25 million.

**【CFO Financial Commentary】**
- Q2 gross margin: 71.3% (subscription/services) and -47% (products), flat overall at 62% due to higher AirDial product revenue mix.
- Operating expenses: $35.1 million (-0.1% YoY), with R&D down 6% YoY and G&A up 4%.
- Free cash flow: $6.4 million for Q2, $20 million trailing 12 months. Share buybacks totaled $14.5 million over 4 quarters.
- Q3 guidance: $67.2-67.9 million revenue, $6-6.4 million non-GAAP net income. Full year non-GAAP net income raised to $24.5-25 million.

**【Q&A Highlights】**
- AirDial contributes meaningfully to ARR, with 9,000 new Business users Q2. 35+ partners reselling AirDial, including Comcast and T-Mobile. 2 new partners switched from competitors.
- 2600Hz platform adds Ooma IP for turnkey solutions, with wins like ServiceTitan. Long-term vision to replace legacy UCaaS platforms.
- NRR at 100% (up 1pt QoQ) due to reduced churn, stable at 99-100% going forward.
- M&A focus on small, strategic tuck-ins; share buybacks at current price sensible but not exclusive strategy.

Ooma, Inc. (OOMA) Q2 2026 Earnings Call Transcript

- **Revenue growth accelerates**: Q1 2026 revenue $65M (+4% YoY), driven by AirDial and Ooma Office expansion.
- **AirDial momentum**: 30+ resellers, 100+ Marriott properties in pipeline, Comcast partnership driving enterprise adoption.
- **Profitability improvement**: Non-GAAP net income $5.6M (+56% YoY), adjusted EBITDA $6.7M (+33% YoY).
- **Key metrics**: 61% Ooma Office Pro/Plus adoption, 500+ hotels served by Ooma Enterprise, 4 new 2600Hz customers.
- **Guidance**: FY26 revenue $267-270M, non-GAAP net income $22.5-23.5M, free cash flow $20.5M LTM.

**【CEO Summary Section】**
- Q1 2026 revenue reached $65 million, up 4% YoY, driven by AirDial growth and Ooma Office/Enterprise expansion. Non-GAAP net income was $5.6 million, exceeding guidance.
- AirDial signed major partner Comcast, with over 30 resellers and 100+ Marriott properties in pipeline. Ooma Office Pro/Plus adoption hit 61% of new users.
- Ooma Enterprise now serves 500+ hotels, and 2600Hz platform won 4 new customers in Q1.

**【CFO Financial Commentary】**
- Q1 GAAP revenue: $65M (62% from business subs/services). Non-GAAP net income: $5.6M ($0.20 EPS), +56% YoY. Adjusted EBITDA: $6.7M (10.3% of revenue).
- Gross margin: 72% (subs/services), 63% overall (flat YoY). Operating expenses: $35.4M (+1% YoY), with R&D down 6% via efficiency gains.
- FY26 guidance: $267-270M revenue, $22.5-23.5M non-GAAP net income. Free cash flow: $20.5M LTM.

**【Q&A Key Takeaways】**
- NRR improved to 99% (from 98% Q4), driven by non-Regus business. Regus churn of ~12,000 seats fully offset.
- AirDial adoption accelerating; Comcast sales pipeline includes large enterprise and gov deals.
- 2600Hz platform wins CPaaS deals, but revenue contribution remains <10%.
- Gross margin expected to stabilize at 72% near-term, with potential improvement in H2.
- Tariffs (~$500K FY26) minimal impact on margins or sales cycles.
- 2026 targets: 5-6% business subs growth, 1-2% decline in residential subs.

**【Financial Highlights】**
- ARPU: $15.37 (+4% YoY). Annual exit ARR: $234M (+33% YoY). Free cash flow: $3.7M Q1, $20.5M LTM.
- Product revenue: $4.8M (+17% YoY) due to AirDial installations. Operating cash flow: $3.7M (seasonally low due to bonus payout).

Ooma, Inc. (OOMA) Q1 2026 Earnings Call Transcript

- **Revenue Resilience**: Q4 revenue $65.1M (+6% YoY), FY25 free cash flow $20.2M (+230% YoY).
- **Strategic Wins**: Marriott AirDial certification, 282-user Ooma Office deal, Frost & Sullivan POTS leader award.
- **Profitability Boost**: Non-GAAP net income $5.8M (Q4) vs $4.8M guidance; FY26 net income $22-23.5M (+22-31%).
- **Growth Drivers**: AI/Call Center features, LTE bundles, 2600Hz platform expansion, Marriott/POTS replacement pipeline.
- **Risks**: Partner implementation delays (AirDial), IWG churn stabilization, macroeconomic SMB cautiousness.

**【CEO Summary Section】**
- **Q4 FY25 Results**: Revenue of $65.1M (+6% YoY), non-GAAP net income of $5.8M. Full-year revenue grew 8% to $256.9M, with non-GAAP net income up 17% to $18M.
- **Market Segment Focus**: 
  - **Cloud Communications**: 34% of Ooma Office users on premium tiers; new call center and AI features planned.
  - **POTS Replacement**: AirDial certified by Marriott, Frost & Sullivan named leader; Q4 product revenue up 22% YoY.
  - **Wholesale Services**: 2600Hz platform wins small customers; long-term growth potential as legacy platforms sunset.
  - **Residential Telephony**: Stable with 1M+ core users; exploring LTE bundle opportunities.
- **FY26 Outlook**: Business subscription growth 5-6%, cautious on AirDial partner ramp timing.

**【CFO Financial Commentary】**
- **Q4 Financials**: Subscription gross margin 72%, total gross margin 63%. Operating expenses flat YoY at $35.1M, driven by R&D efficiency.
- **Free Cash Flow**: $20.2M for FY25 (+230% YoY). Debt paid off; $8.9M stock buybacks.
- **Q1 FY26 Guidance**: Revenue $64.7-65.1M, non-GAAP net income $5.1-5.4M. FY26 non-GAAP net income $22-23.5M (+22-31% YoY).

**【Q&A Key Highlights】**
- **SMB Market Strength**: Despite Q4 seasonality, SMB sales remain strong; 60% of new Office users opt for premium tiers.
- **AirDial Rollout**: Large cable partner launch delayed to March; Marriott certification opens 5,000+ properties.
- **IWG Churn**: Q1 sees final IWG reductions; stable after Q1 with potential public sector growth.
- **2600Hz Growth**: Minimal FY26 impact; major wins expected to drive FY27 revenue.
- **Resale Partners**: Target 2-3 new partners/QTR; 20+ active AirDial resellers.


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