Q2 2026 Ooma Inc Earnings Call Transcript
Key Points
- Ooma Inc (OOMA) reported strong Q2 financial results with revenue growing to $66.4 million, setting records for non-GAAP net income at $6.5 million and adjusted EBITDA at $7.2 million.
- The company achieved its highest adjusted EBITDA as a percentage of revenue at 11%, reaching the low end of its midterm target range of 11% to 14%.
- Ooma Inc (OOMA) saw growth in business user metrics, including user growth net of churn, average revenue per user, and annual exit recurring revenue.
- The introduction of the Connect 5000, a 5G Internet solution, is expected to strengthen Ooma Inc (OOMA)'s offerings for smaller-sized businesses.
- AirDial bookings more than doubled year-over-year, with significant customer wins, including a large national retailer, and expansion of reseller partnerships to nearly 35 partners.
- Residential subscription and services revenue declined by 2% year-over-year.
- Product and other gross margin remained negative at 47%, although improved from the previous year's negative 69%.
- The company's total gross margin remained flat at 62% due to a heavier mix of product revenue from increased AirDial installations.
- Ooma Inc (OOMA) faces variability in revenue due to the timing of AirDial installations, which can be affected by customer schedules.
- Despite strong performance, the company maintains a conservative revenue growth outlook of 5% to 6% for business subscriptions, indicating potential challenges in sustaining higher growth rates.
Hello, and welcome to Ooma, Inc.'s second-quarter fiscal year 2026 financial results conference call. (Operator Instructions)
I would now like to turn the conference over to Matt. You may begin.
Thank you, Tawanda. Good day, everyone, and welcome to the fiscal second quarter 2026 earnings call of Ooma, Inc. My name is Matt Robison, Ooma's Director of IR and Corporate Development.
On the call with me today are Ooma's CEO, Eric Stang; and CFO, Shig Hamamatsu. After the market closed today, Ooma issued its fiscal second-quarter 2026 earnings press release. This release is also available on the company's website, ooma.com. This call is being webcast live and is accessible from a link on the Events and Presentations page of the Investor Relations section of our website. This link will be active for replay of this call for one year.
During today's presentation, our executives will make forward-looking statements within the meaning of the federal securities laws. Forward
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