Ooma (OOMA) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue reached $66.4 million, up 3%-3.5% year-over-year, driven by business segment growth and AirDial momentum.

• Record non-GAAP net income of $6.5 million and adjusted EBITDA of $7.2 million, with GAAP net income at $1.3 million.

• Adjusted EBITDA margin hit 10.8%-11%, the highest to date.

• Over 1.2 million users served, with business user metrics and ARPU improving year-over-year.

• AirDial bookings more than doubled year-over-year, with a major national retailer win and expansion to nearly 35 partner resellers.

Financial highlights

• Subscription and services revenue was $61.1 million (92% of total revenue), up 3%-6% year-over-year; product and other revenue was $5.2 million, up 15% due to AirDial.

• Blended ARPU increased 4% year-over-year to $15.68, with business ARPU ~$24 and residential ARPU ~$10.

• Net dollar subscription retention rate was 100%, up from 99% in Q1.

• Subscription/services gross margin was 70%-72%; total gross margin was 61%-62%.

• Operating cash flow for Q2 was $6.4 million; cash and equivalents at quarter-end were $19.6 million.

Outlook and guidance

• Q3 FY26 revenue expected between $67.2 million and $67.9 million; non-GAAP net income between $6 million and $6.4 million.

• Full-year FY26 revenue guidance unchanged at $267 million-$270 million; non-GAAP net income guidance raised to $24.5 million-$25 million.

• Non-GAAP diluted EPS for FY26 expected at $0.87-$0.89.

• Business subscription revenue growth projected at 5%-6% for the year; residential subscription revenue to decline 1%-2%.

• Long-term gross margin target for subscription/services is 75%-78%; adjusted EBITDA margin targeted at 20%-25%.