Ooma (OOMA) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 revenue reached $274 million, up 7% year-over-year, with record net income, adjusted EBITDA of $34 million, and cash flow from operations, 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 AirDial installations more than doubled year-over-year in Q4.

• Four strategic initiatives for fiscal 2027 include AI solutions, AirDial expansion, acquisition integration and further M&A, and residential product innovation.

• GAAP net income for Q4 was $4.0 million, reversing a prior-year loss; non-GAAP net income was $9.4 million, up 62% year-over-year.

• Acquisitions expanded the business customer base and recurring revenue, with over 165,000 users added.

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), up from 11% a year ago; full-year adjusted EBITDA was $33.9 million, up 46% year-over-year.

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

• Annual exit recurring revenue reached $291 million, up from $227 million in FY 2025.

• Free cash flow for the year was $22 million; $10.7 million operating cash flow generated in Q4.

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 $35.5 million-$37 million.

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

• Guidance does not include cost synergies from Phone.com integration, expected in the second half of the year.

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