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OOMA
Earnings call · Jul 2026 (Q2 FY27)

OOMA Q2 FY27 earnings call OOMA

Aug 26, 2026 Source

Executive summary

Ooma Q2 FY27 — Strong Growth and Profitability Driven by Airdial and New Residential Products

Ooma delivered a strong Q2 FY27, exceeding original plans on both top and bottom lines, driven by accelerating Airdial expansion, new AI features, and the successful launch of MyPhone. The company is focused on continued profitability improvements and capitalizing on market inflection points in POTS replacement and AI-driven UCaaS solutions. Management also announced an upcoming Investor Day to provide a more comprehensive outlook.

Highlights

5

  • Total revenue grew 25% year-over-year to $83.2 million in Q2 FY27.

  • Non-GAAP net income increased 58% year-over-year to $10.2 million.

  • Adjusted EBITDA grew 74% year-over-year to $12.4 million, reaching 15% of revenue.

  • Business subscription and services revenue grew 38% year-over-year.

  • Residential user base increased by over 3,000 users in Q2, reversing historical decline.

Concerns

2

  • Business user growth was negatively impacted by 4,000 user churn from IWG.

  • A small one-time user count correction in other areas also negatively impacted business user growth.

Guidance & targets

CategoryTargetConfidence
Total Revenue
$83.7 million to $84.5 million
high materiality
High
Non-GAAP Net Income
$9.8 million to $10.2 million
medium materiality
High
Non-GAAP Diluted EPS
$0.34 and $0.35
high materiality
High
Total Revenue
$332 million to $333.5 million
high materiality
High
Business Subscription and Services Revenue Growth
approximately 32%
medium materiality
High
Residential Subscription Revenue Growth
flat to an increase of 1%
medium materiality
High
Revenue Mix (Subscription and Services)
91% to 92%
low materiality
High
Non-GAAP Net Income
$39.5 million to $40.3 million
high materiality
High
Adjusted EBITDA
$47.5 million to $48.3 million
high materiality
High
Non-GAAP Diluted EPS
$1.35 to $1.38
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Business Subscription and Services
Driven by user growth, ARPU growth for Ooma Business, and additions of FluentStream and Phone.com. Grew 8% year-over-year excluding the impact of acquisitions.
—38%——
Residential Subscription and Services
Saw two consecutive quarters of user growth in the first half of fiscal 2027.
—relatively flat——
Total Subscription and Services
Compared to $61.1 million or 92% of total revenue in the prior year quarter.
Percentage of total revenue: 91%
$75.6 million———
Product and Other
Driven by growth of Airdial installations and initial shipments of MyPhone. Airdial installations increased 50% over the prior quarter.
$7.6 million46%——

Orderbook & backlog

Annual Exit Recurring Revenue $299 million Q2 FY27

25% YoY

Product announcements

ProductTypeDetails
AI Transcriptionlaunch
AI Insightslaunch
AI Answering Servicelaunch
AI Receptionistlaunch
UMA AI Productivity Pack (Phase 1)roadmap
MyPhone by Oomalaunch
StarDiallaunch

Deals & partnerships

Thrive Strategic partnership to introduce solutions to each other's customers and integrate Ooma Office with Thrive's CRM (Keep).

Thrive provides small business marketing and CRM solutions, excelling in verticals prime for Ooma. Joint marketing activities intend to launch in September.

Fluent Stream and Phone.com Integration of previously acquired UCaaS players to capture synergies and leverage Ooma's AI developments and marketing capabilities.

Actions taken late in Q2 FY27 to capture additional synergies. Ooma is actively working to leverage its AI developments for their benefit and strengthen the Phone.com brand.

Risks & headwinds

Business user churn from IWG Q2 FY27

4,000 users

Small one-time user count correction Q2 FY27

small

What to watch in Q3 FY27

Airdial Reseller Additions

next quarter
Current Over 40 total, 2 added in Q2 FY27
Target 1-2 new partners

Why it matters

Adding new resale partners is key to expanding Airdial's reach and capitalizing on the growing POTS replacement market.

Looking forward, it is our goal to add one to two new Airedale resale partners every quarter.

Q&A highlights

Can you discuss early adoption trends, customer feedback, lessons learned for MyPhone, and the long-term market opportunity?

MyPhone is off to a great start since its June launch, driving a 3,000 user increase in residential users this quarter. The long-term opportunity is significant, with 20 million US households with young children and growing awareness about limiting early cell phone use. Ooma is promoting it and expects in-store retail presence soon.

“This past quarter we grew 3,000 users, and the bulk of that swing is driven by my phone. But we think it has a lot farther to go. There's 20 million households in the US with young children and several organizations talking a lot about the importance of keeping kids off of social media and cell phone use until they reach a certain age.”

asked by Alinda Lee · answered by Eric Stang

2 min read 6 chapters

Detailed narrative

Airdial Expansion and Market Opportunity

Airdial, Ooma's POTS replacement solution, continues to be the fastest-growing segment, with services revenue up 75% year-over-year in Q2. The company added two new Airdial resale partners, including a Verizon Platinum partner, bringing the total to over 40. Management aims to add 1-2 new partners each quarter and highlighted a competitive win with a large hospital system purchasing nearly 200 Airdial lines. The market for POTS replacement is expanding, with an estimated 8 million lines still needing replacement.

New AI Features and Monetization Strategy

Ooma launched several new AI features in Q2, including AI transcription and AI insights for its ProPlus service tier, and standalone AI Answering and AI Receptionist services. These new offerings are designed to significantly increase revenue per account and per user, with standalone services priced from $15 to $50+ per month. Customer reaction has been strong, driving interest in the ProPlus tier. Ooma plans to release its 'UMA AI Productivity Pack' in Q3, featuring approximately 10 business productivity applications.

MyPhone and StarDial Residential Initiatives

MyPhone by Ooma, a residential landline solution for children, launched in Q2 and contributed to a reversal of the historical residential user decline, adding over 3,000 users. It is now sold online at five major retailers and is expected to be in-store at one retailer this fall, with a Canada launch planned for Q3. Ooma also announced StarDial, a new residential solution designed to complement Starlink, leveraging Ooma's adaptive redundancy for high-quality calls over satellite internet. StarDial is also expected to be carried by a major retailer in-store late this fall.

Acquisition Integration and Future M&A

Ooma continues to integrate its recent acquisitions, Fluent Stream and Phone.com, capturing additional synergies in late Q2 that are expected to positively impact Q3 results. The company is leveraging its AI developments and marketing capabilities for the acquired brands. Ooma remains committed to pursuing further acquisitions of smaller UCaaS players to grow its SMB user base and achieve scale economies, provided suitable opportunities at the right valuation are found.

Strong Financial Performance and Profitability Focus

Ooma reported strong Q2 financial results, with non-GAAP net income up 58% and Adjusted EBITDA up 74% year-over-year, reaching 15% of revenue. The company generated record operating cash flow of $13.1 million and free cash flow of $10.8 million in Q2. Management emphasized its focus on operating leverage, optimizing sales and marketing spend, and realizing acquisition synergies to drive further increases in profitability, with a solid track record of improving profitability over the past six quarters.

Investor Day Announcement

Ooma announced plans to host an Investor Day at the New York Stock Exchange on September 29, which will also be webcast. Senior management will present a more in-depth overview of Ooma's strategy and outlook, including details on the AI roadmap, Airdial partners, and the success of MyPhone and StarDial, followed by a Q&A session.

AI-generated summary of the company's earnings call. Not investment advice.