Ooma (OOMA) Q4 2026 earnings summary

Executive summary

• Achieved record Q4 and fiscal 2026 results, with revenue of $273.6 million (up 7% year-over-year), adjusted EBITDA of $33.9 million (up 46%), and strong cash flow, driven by organic growth and acquisitions of FluentStream and Phone.com.

• Core subscription users exceeded 1.4 million, with a 99% net dollar retention rate, and business users accounted for 49% of total core users.

• AirDial installations and sales reached record levels, more than doubling year-over-year, supported by new reseller partners and robust Ooma Telo sales stabilizing the residential user base.

• Introduced new AI solutions for Ooma Office and announced the upcoming MyPhone product for families.

• GAAP net income for Q4 was $4.0 million, reversing a prior-year loss; non-GAAP net income for the year was $29.2 million, up 62% year-over-year.

Financial highlights

• Q4 revenue was $74.6 million, up 15% year-over-year; full-year revenue reached $273.6 million, up 7%.

• Q4 adjusted EBITDA was $11.5 million (15% of revenue); full-year adjusted EBITDA was $33.9 million, up from $23.3 million.

• Q4 non-GAAP net income was $9.4 million, up 62% year-over-year; full-year non-GAAP net income was $29.2 million.

• Q4 free cash flow was $9.1 million; full-year free cash flow was $22 million.

• Subscription and services gross margin held steady at 72%; total gross margin was 63%.

Outlook and guidance

• Fiscal 2027 revenue expected between $321 million and $325 million, with business subscription revenue growth of ~30% and residential revenue to decline 1-2%.

• Fiscal 2027 adjusted EBITDA projected at $43 million-$44.5 million; non-GAAP net income expected at $35.5 million-$37 million.

• Q1 fiscal 2027 revenue guidance is $79.6 million-$80.4 million; non-GAAP net income $8.8 million-$9.2 million.

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

• Sales & marketing and R&D expenses are expected to decline as a percentage of revenue over the next 1-2 years.