Ooma Shares Surge on Strong Quarterly Performance and Raised Outlook

Ooma Inc. has captured significant investor interest following the release of its impressive quarterly earnings. The communication technology provider demonstrated robust operational strength, posting results that exceeded prior-year performance and prompting an upward revision to its full-year profit guidance.

Robust Financial Metrics Drive Momentum

For the quarter ended July 31, the company reported total revenue of $66.4 million, marking a 3% year-over-year increase. A critical component of this growth was the rise in subscription and service revenue, which reached $61.1 million. This segment now constitutes 92% of total revenue, highlighting the company’s successful transition to a stable, recurring revenue model.

Profitability metrics showed particularly strong advancement. Ooma achieved a record non-GAAP net income of $6.5 million, representing a substantial 52% increase compared to the same period last year. Furthermore, adjusted EBITDA climbed 27% to $7.2 million. These figures point to significantly enhanced operational efficiency and more effective cost management strategies.

• Q2 FY2026 Revenue: $66.4 Million
• Non-GAAP Net Income: $6.5 Million (+52% YoY)
• Adjusted EBITDA: $7.2 Million (+27% YoY)
• Annual Recurring Revenue (ARR): $240 Million

Strategic Focus on Business Solutions

The company’s enterprise division continues to be its primary growth engine. Ooma now serves 508,000 business users and is gaining considerable traction with its AirDial product. AirDial, designed as a modern replacement for legacy plain old telephone service (POTS) lines, has seen its bookings more than double year-over-year.

Should investors sell immediately? Or is it worth buying Ooma?

A significant validation of this strategy came in the form of a major contract with a large national retailer, which is expected to encompass deployments across more than 3,000 locations. This strategic emphasis on high-value business solutions is actively shaping a stronger financial trajectory for the company.

Confident Outlook and Revised Guidance

Reflecting the positive quarterly outcome, Ooma’s management team expressed confidence in its near-term prospects. Revenue guidance for the third quarter is projected to be between $67.2 million and $67.9 million. The full-year revenue outlook for fiscal 2026 remains unchanged at a range of $267 million to $270 million.

However, the company raised its full-year non-GAAP net income forecast to between $24.5 million and $25.0 million. This upward revision to the profit outlook, despite maintaining the same revenue expectations, serves as a direct testament to improved operational leverage and disciplined financial stewardship.