Ooma (OOMA) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 revenue reached $64.1 million, up 10% year-over-year, driven by Ooma Business and 2600Hz contributions.

• Non-GAAP net income was $4.1 million, with record Adjusted EBITDA of $5.6 million and cash flow from operations at $7.1 million.

• GAAP net loss was $2.1 million, compared to net income of $0.3 million last year, reflecting increased investments.

• Major new partnerships include a top 10 ILEC for AirDial and Ooma Telo, and expanded T-Mobile and US Cellular relationships.

• 2600Hz platform saw expanded customer interest and a major customer upsell, with further launches expected.

Financial highlights

• Subscription and services revenue was $59.6 million (93% of total), up from $54.7 million last year.

• Business subscription and services revenue grew 15% year-over-year; excluding 2600Hz, growth was 9%.

• Adjusted EBITDA was $5.6 million (9% of revenue), a company record.

• Cash and investments stood at $16.6 million at quarter-end, with $8.5 million in debt.

• Annual exit recurring revenue reached $233 million, up 8% year-over-year.

Outlook and guidance

• Q3 FY2025 revenue expected between $64.2 million and $64.6 million; non-GAAP net income $4.1–$4.3 million.

• Full-year FY2025 revenue guidance raised to $254–$255.5 million, with non-GAAP net income of $15.7–$16.2 million.

• Adjusted EBITDA for FY2025 projected at $21.5–$22 million; non-GAAP EPS $0.57–$0.59.

• GAAP net loss for FY2025 expected at $7.7–$8.2 million due to non-recurring items and investments.

• Business subscription revenue expected to grow 13% for the year; residential to decline 1%.