Ooma (OOMA) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue grew 25% year-over-year to $81.8 million, driven by strong contributions from AirDial, Ooma Business, and recent acquisitions FluentStream and Phone.com, which added $11.2–$11.5 million in revenue.

• Non-GAAP net income rose 73% year-over-year to $9.7 million; GAAP net income was $2.6 million, reversing a prior year loss.

• Adjusted EBITDA increased 78% year-over-year to $11.8 million.

• Business subscription and services revenue grew 38% year-over-year, now representing 69–70% of total subscription and services revenue.

• Residential user base grew for the first time in many quarters, supported by robust Telo sales and the launch of MyPhone.

Financial highlights

• Q1 total revenue: $81.8 million, up 25% year-over-year; subscription and services revenue: $74.6 million, up 24%.

• Q1 non-GAAP net income: $9.7 million; GAAP net income: $2.6 million; diluted EPS: $0.35, up from $0.20 in the prior quarter.

• Adjusted EBITDA: $11.8 million (15% of revenue), up 78% year-over-year.

• Operating cash flow (TTM): $30.3 million; free cash flow (TTM): $24.5 million; Q1 operating cash flow: $6.4 million.

• Ended Q1 with $17.2 million in cash and investments; paid down debt to $52.9–$53.5 million.

Outlook and guidance

• Q2 FY27 revenue expected between $81.6M–$82.3M; non-GAAP net income $9.4M–$9.8M; EPS $0.33–$0.34.

• FY27 revenue guidance raised to $326M–$328.5M; non-GAAP net income $37.5M–$39M; adjusted EBITDA $45M–$46.5M; EPS $1.29–$1.34.

• Business subscription revenue projected to grow ~31% over FY26; residential revenue expected flat to -1%.

• Long-term gross margin target for subscription/services is 75–78%, with overall gross margin targeted at 65–70%.

• Adjusted EBITDA margin targeted at 20–25% in the long term.