Ooma (OOMA) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue was $67.6 million, up 4% year-over-year, driven by business segment growth and Ooma Business performance.

• Non-GAAP net income reached $7.7 million, up 67% year-over-year; GAAP net income was $1.4 million, reversing a prior year loss.

• Adjusted EBITDA hit a record $8.6 million, up 50% year-over-year.

• Completed acquisition of FluentStream for $45 million; Phone.com acquisition for $23.2 million expected to close by late December.

• Over 1.2 million core users and 99% net dollar subscription retention rate as of October 31, 2025.

Financial highlights

• Subscription and services revenue was $62.0 million, or 91.6% of total revenue, up from $60.1 million year-over-year.

• Product and other revenue was $5.7 million, up 14% year-over-year, driven by AirDial and Telo shipments.

• Gross margin for Q3 was 60% GAAP, 62% non-GAAP, and subscription and services gross margin was 71.5%.

• Cash and cash equivalents at quarter-end were $21.7 million.

• Free cash flow for Q3 was $5.4 million; trailing 12-month free cash flow was $19 million.

Outlook and guidance

• Q4 FY2026 revenue expected at $71.3–$71.9 million, including $4.0–$4.1 million from FluentStream.

• Q4 non-GAAP net income projected at $8.4–$8.9 million; non-GAAP EPS $0.30–$0.32.

• FY2026 revenue guidance raised to $270.3–$270.9 million; non-GAAP net income $28.2–$28.7 million; Adjusted EBITDA $32.4–$32.9 million.

• Long-term gross margin target for subscription and services is 75%-78%, with overall gross margin target of 65%-70%.

• Business subscription revenue expected to grow 9% in FY26; residential to decline 1–2%.