OOMA Inc (NYSE:OOMA) Posts Mixed Q2 2026 Results with EPS Beat and Revenue Miss

Ooma Inc (NYSE:OOMA) reported fiscal second quarter 2026 results that demonstrated mixed performance relative to analyst expectations, with revenue slightly missing estimates while earnings per share significantly exceeded projections. The communications technology provider posted revenue of $66.4 million, representing a 3% year-over-year increase but falling short of the $67.7 million analysts had anticipated. Despite the revenue miss, the company delivered strong profitability with non-GAAP earnings per share of $0.23, substantially outperforming the $0.20 consensus estimate.

The market reaction appears cautiously optimistic, with shares gaining approximately 3.35% in after-hours trading following the earnings release. This positive movement suggests investors are focusing more on the earnings beat and improved profitability metrics rather than the slight revenue shortfall. The stock had shown modest gains over recent weeks, with a 9.1% increase over the past two weeks and relatively flat performance over the past month leading into the earnings announcement.

Key Financial Highlights

Revenue composition showed continued strength in the company's subscription-based model, with subscription and services revenue reaching $61.1 million, up from $59.6 million in the prior year period. This segment now represents 92% of total revenue, primarily driven by growth in Ooma Business solutions. Product and other revenue contributed $5.2 million to the total.

The company demonstrated significant improvement in profitability metrics, reporting GAAP net income of $1.3 million compared to a GAAP net loss of $2.1 million in the same quarter last year. Adjusted EBITDA reached a record $7.2 million, representing 27% year-over-year growth, while non-GAAP net income increased to $6.5 million from $4.1 million in the prior year period.

Business Outlook and Guidance

Management provided guidance for both the third quarter and full fiscal year 2026. For the upcoming quarter, Ooma expects revenue between $67.2 million and $67.9 million, which aligns closely with analyst estimates of $69.7 million. The company anticipates non-GAAP net income between $6.0 million and $6.4 million, with non-GAAP EPS projected between $0.22 and $0.23.

Full-year guidance remains unchanged for revenue, projected between $267 million and $270 million, though this falls below analyst expectations of $273.1 million. However, the company raised its full-year profitability outlook, now expecting GAAP net income between $3.5 million and $4.0 million, up from previous guidance of $0.6 million to $1.6 million. Non-GAAP net income guidance was also increased to a range of $24.5 million to $25.0 million, compared to previous expectations of $22.5 million to $23.5 million.

CEO Eric Stang highlighted the company's strong quarterly performance, noting "52% year over year growth of non-GAAP EPS and record adjusted EBITDA of $7.2 million." He emphasized the company's focus on achieving growth across small business UCaaS, AirDial POTS replacement, and 2600Hz wholesale solutions while continuing to improve profitability metrics.

The company's balance sheet remains solid, with cash and cash equivalents of $19.6 million as of July 31, 2025, up from $17.9 million at the beginning of the fiscal year. Total assets stood at $150.1 million, while stockholders' equity reached $88.1 million.

For more detailed earnings information and future estimates, readers can access additional data through the company's earnings portal.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.