Ooma, Inc.

Q2 revenue was $83.2 million, up from $66.4 million in the prior-year quarter, for 25% year-over-year growth. Non-GAAP net income was $10.2 million, or $0.35 diluted EPS, versus $0.23 a year ago; adjusted EBITDA was $12.4 million, or 15% of revenue, up 74% year over year. Gross margin was 63% overall versus 62% a year ago; subscription and service gross margin was 72% versus 71%, and product and other gross margin was negative 25% versus negative 47%. For Q3 FY27, management guided to revenue of $83.7 million to $84.5 million, non-GAAP net income of $9.8 million to $10.2 million, and non-GAAP diluted EPS of $0.34 to $0.35. For full-year FY27, guidance was revenue of $332 million to $333.5 million, non-GAAP net income of $39.5 million to $40.3 million, adjusted EBITDA of $47.5 million to $48.3 million, and non-GAAP diluted EPS of $1.35 to $1.38.

Eric Stang framed the quarter as another strong step in a multi-pronged growth plan, saying Ooma is ahead of its original plan on both the top and bottom line. He emphasized four strategic initiatives: AirDial expansion, AI features, MyPhone, and integrating recent acquisitions, while also introducing StarDial and previewing an Investor Day on September 29. His tone was upbeat and confident, with repeated comments that the company has strong momentum and more room to expand.

Shig Hamamatsu highlighted the operating leverage behind the quarter: revenue of $83.2 million, non-GAAP net income of $10.2 million, diluted EPS of $0.35, and adjusted EBITDA of $12.4 million. He pointed to business subscription and services revenue growth of 38%, ARPU of $16.95, net dollar retention of 99%, and record operating cash flow of $13.1 million and free cash flow of $10.8 million in Q2; cash and investments ended at $17.5 million, and debt was reduced by $6.5 million to $47 million. He also said product and other gross margin improved to negative 25% and noted that excluding tariff recovery it would have been around negative 30%, while acquisition-related costs drove some of the opex increase.

Analysts focused on MyPhone adoption, AI monetization, AirDial demand, reseller traction and the rationale behind the raised outlook. Management said MyPhone is off to a strong start, helped reverse a 3,000-user decline into growth, and has a large addressable market, but still needs more promotion and retail placement. On AI, Eric Stang said Ooma AI is a natural fit for the communications workflow, expects a double-digit percentage of new customers to adopt AI this quarter, and said the next release, the Ooma AI Productivity Pack, will launch in Q3 with about 10 features. On AirDial, management said customer activity is increasing, reseller additions are progressing, and partners like T-Mobile and Comcast still have room to contribute more.