Ooma (OOMA) Q2 2027 earnings summary

Executive summary

• Q2 revenue reached $83.2 million, up 25% year-over-year, driven by business segment growth and contributions from recent acquisitions, including FluentStream and Phone.com.

• Non-GAAP net income was $10.2 million, up 58% year-over-year; adjusted EBITDA was $12.4 million, up from $7.2 million a year ago.

• Core subscription users exceeded 1.4 million, with a 99% net dollar retention rate for the trailing four quarters as of July 31, 2026.

• Key growth initiatives include AirDial expansion, new AI solutions, MyPhone launch, and leveraging acquisitions.

• Integration of FluentStream and Phone.com is progressing, with expected positive bottom-line impact starting Q3.

Financial highlights

• Total revenue for the quarter was $83.2 million, up 25% year-over-year; subscription and services revenue was $75.6 million, or 91% of total revenue.

• Product and other revenue was $7.6 million, up 46% year-over-year, driven by AirDial installations and MyPhone shipments.

• Gross margin for subscription/services was 70–72%; overall gross margin was 61–63%.

• Record free cash flow of $30.2 million for the trailing 12 months.

• Cash and investments stood at $17.5 million at quarter-end; outstanding debt reduced to $46.5–$47 million.

Outlook and guidance

• Q3 revenue expected between $83.7 million and $84.5 million; non-GAAP net income between $9.8 million and $10.2 million.

• Full year fiscal 2027 revenue guidance is $332 million to $333.5 million, with business subscription revenue growth of ~32%.

• Non-GAAP net income for fiscal 2027 expected between $39.5 million and $40.3 million; adjusted EBITDA between $47.5 million and $48.3 million.

• Non-GAAP diluted EPS for fiscal 2027 expected between $1.35 and $1.38.

• Long-term gross margin targets are 75–78% for subscription/services and 65–70% overall; adjusted EBITDA margin targeted at 20–25%.