Ooma (OOMA) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue grew 25% year-over-year to $81.8 million, driven by AirDial and acquisitions FluentStream and Phone.com, with strong organic growth and business segment expansion.

• Non-GAAP net income rose 73% year-over-year to $9.7 million; adjusted EBITDA increased 78% to $11.8 million.

• Core user base exceeded 1.4 million, with a 99% net dollar retention rate for subscriptions.

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

• Recent acquisitions expanded the business customer base and contributed to revenue and EBITDA growth.

Financial highlights

• Q1 total revenue: $81.8 million, up 25% year-over-year; excluding acquisitions, revenue grew 7%.

• Subscription and services revenue reached $74.6 million, representing 92% of total revenue.

• 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.

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