Ooma (OOMA) Q4 2025 earnings summary

Executive summary

• FY25 revenue reached $256.9M, up 8% year-over-year, with Q4 revenue at $65.1M, driven by business segment growth and the 2600Hz acquisition.

• FY25 non-GAAP net income was $18M, up 17% year-over-year; adjusted EBITDA was $23.3M.

• Ended FY25 with $17.9M in cash and investments, over 1.2M core users, and a 99% net dollar subscription retention rate.

• Free cash flow exceeded $20M for the year, with $8.9M spent on share repurchases.

• Focused on cloud communications for SMBs, POS replacement, wholesale platform services, and residential telephony.

Financial highlights

• Q4 revenue was $65.1M, up 6% year-over-year; FY25 revenue was $256.9M, up 8%.

• Q4 non-GAAP net income was $5.8M ($0.21/share); FY25 non-GAAP net income was $18M ($0.66/share).

• Adjusted EBITDA for FY25 was $23.3M, up from $19.8M in FY24.

• FY25 operating cash flow was $26.6M, up 117% year-over-year.

• Q4 subscription and services revenue was $60.6M, 93% of total revenue.

Outlook and guidance

• Q1 FY26 revenue expected between $64.7M–$65.1M; non-GAAP net income $5.1M–$5.4M.

• FY26 revenue guidance is $267M–$270M; non-GAAP net income $22M–$23.5M.

• Adjusted EBITDA for FY26 expected at $27.5M–$29M; non-GAAP EPS $0.77–$0.82.

• Long-term gross margin targets are 75–78% for subscription/services and 65–70% overall.

• Second half of FY26 expected to see faster growth due to AirDial installations.