Ooma, Inc.

What they do

Ooma offers SaaS and unified communications platforms for businesses of all sizes, including Ooma Office, Ooma Enterprise, Ooma AirDial, 2600Hz, FluentStream, Phone.com, and OnSIP. For residential customers, it provides PureVoice high-definition voice services, Ooma Telo, and mobile integration. Revenue comes from monthly subscriptions and services, plus product sales of on-premise devices like Ooma AirDial.

Revenue drivers

• Ooma Business subscriptions — Primary growth driver; subscription and services revenue grew 38% year-over-year in Q1 FY2027, supported by user growth and the FluentStream and Phone.com acquisitions.
• Ooma AirDial — POTS replacement device for analog phone lines; sales accelerated in Q1 FY2027, with new features announced to enhance differentiation.
• FluentStream and Phone.com — Acquired December 2025; contributed $11.5 million revenue in Q1 FY2027, including $11.2 million of business subscription revenue; added 165,000 core users.
• Ooma Residential — Includes Ooma Telo basic and premier services and Telo LTE; contributes subscription revenue, though smaller than business segment.

Recent performance

In Q1 FY2027 (quarter ended April 30, 2026), Ooma reported revenue of $81.1 million, up 25% year-over-year, with subscription and services revenue of $74.6 million (92% of total). GAAP net income was $2.6 million ($0.09 diluted EPS), versus a net loss of $0.1 million a year ago. Adjusted EBITDA reached $11.8 million, up from $6.7 million. Core users totaled 1,420,000 as of April 30, 2026, up from 1,225,000 a year earlier. Annualized exit recurring revenue (AERR) was $294.6 million, versus $234.0 million a year prior.

Strategy

Management targets four market segments: cloud communications for smaller businesses, POTS replacement for business and residential, wholesale platform services, and residential telephony. In Q1 FY2027, Ooma launched Ooma AI to assist Ooma Office customers with communications management and introduced MyPhone, a kid-safe residential phone service. The company continues to integrate the FluentStream and Phone.com acquisitions, expecting further contributions. Management also emphasized acceleration of AirDial sales and growing organic Ooma Business revenue.

Risks

• Customer churn and acquisition costs — Customers can cancel subscriptions without penalty, and failure to attract new users cost-effectively could impact financial performance.
• Service interruptions and security — Disruptions or data breaches could harm reputation, cause significant costs, and impair ability to sell services.
• SMB concentration — A significant portion of revenue comes from small and medium-sized businesses, which may have limited resources to weather economic downturns or inflation.
• Acquisition integration risk — The FluentStream and Phone.com acquisitions may divert management attention, fail to achieve expected synergies, or result in dilution.

Outlook

For Q2 FY2027 (ending July 31, 2026), Ooma expects revenue of $81.6-$82.3 million and GAAP net income of $2.7-$3.1 million. For full fiscal year 2027, it expects revenue of $326.0-$328.5 million, GAAP net income of $10.5-$12.0 million, and non-GAAP net income of $37.5-$39.0 million. Management expects continued accelerating AirDial demand and further contributions from the acquisitions.