Ooma (NYSE:OOMA) Announces Earnings Results, Beats Estimates By $0.02 EPS

Ooma (NYSE:OOMA) issued its quarterly earnings data on Wednesday. The technology company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.33 by $0.02, FiscalAI reports. The business had revenue of $83.23 million during the quarter, compared to analyst estimates of $81.72 million. Ooma had a net margin of 3.17% and a return on equity of 20.21%. Ooma updated its FY 2027 guidance to 1.350-1.380 EPS and its Q3 2027 guidance to 0.340-0.350 EPS.

Here are the key takeaways from Ooma’s conference call:

• Q2 results exceeded expectations: Revenue rose 25% year over year to $83.2 million, while non-GAAP net income increased 58% to $10.2 million and adjusted EBITDA grew 74% to a record $12.4 million, or 15% of revenue.
• AirDial momentum is accelerating: The POTS-replacement service grew revenue 75% year over year, with more than 40 resale partners and two additions in Q2. Management cited increasing demand as carriers sunset legacy copper lines and is targeting one to two additional resale partners per quarter.
• AI and residential products provide additional growth avenues: Ooma launched AI transcription, insights, AI Answering, and AI Receptionist, expects to introduce an AI Productivity Pack in Q3, and reported strong initial customer interest. MyPhone helped reverse historical residential-user declines, while Star Dial is expected to launch in Q3 for Starlink customers.
• Fiscal 2027 guidance was raised or strengthened: Full-year revenue is expected at $332 million-$333.5 million, including approximately 32% business subscription growth, with adjusted EBITDA projected at $47.5 million-$48.3 million and non-GAAP EPS of $1.35-$1.38.
• Cash generation and cost discipline improved: Ooma generated $13.1 million of operating cash flow and $10.8 million of free cash flow in Q2, repurchased $4.4 million of stock, and reduced debt by $6.5 million to $47 million. Management also expects further savings from Phone.com integration actions beginning in Q3.

Ooma Trading Down 0.3%

NYSE OOMA opened at $20.53 on Thursday. Ooma has a 12 month low of $9.79 and a 12 month high of $22.72. The company has a current ratio of 0.94, a quick ratio of 0.69 and a debt-to-equity ratio of 0.50. The stock’s fifty day moving average price is $20.21 and its 200-day moving average price is $17.05. The stock has a market cap of $564.58 million, a P/E ratio of 64.16 and a beta of 1.19.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. William Blair set a $24.00 price target on Ooma in a research report on Monday, August 17th. UBS Group set a $24.00 price objective on Ooma in a research report on Wednesday, May 27th. Benchmark restated a “buy” rating on shares of Ooma in a report on Monday, August 17th. Citigroup reaffirmed a “market perform” rating on shares of Ooma in a research report on Wednesday, May 27th. Finally, Lake Street Capital lifted their price target on shares of Ooma from $18.00 to $23.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $23.67.

Key Ooma News

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Quarterly earnings and revenue beat estimates. Ooma reported fiscal Q2 2027 adjusted earnings of $0.35 per share, up from $0.23 a year earlier and above the $0.33 consensus estimate. Revenue reached approximately $83.2 million, exceeding analyst expectations of about $81.7 million. Ooma Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Subscription growth strengthened the results. Total revenue increased 25% year over year to $83.2 million, while subscription and services revenue rose to $75.6 million from $61.1 million. Recurring revenue represented 91% of total revenue, supporting visibility and business-model stability. Ooma Reports Fiscal Second Quarter 2027 Financial Results
• Positive Sentiment: Management raised its fiscal 2027 outlook above consensus. Ooma now expects full-year EPS of $1.35-$1.38, versus the $1.21 analyst consensus, and revenue of $332.0-$333.5 million, compared with the $327.3 million consensus. Third-quarter guidance also exceeded expectations, with projected EPS of $0.34-$0.35 and revenue of $83.7-$84.5 million. Ooma Earnings and Guidance
• Positive Sentiment: Industry recognition may support customer acquisition. Ooma was named a top VoIP provider in the 2026 Spiceworks Voice of IT survey, potentially reinforcing its brand among business technology buyers. Ooma Named Top VoIP Provider
• Neutral Sentiment: Despite the earnings beat and raised guidance, Ooma’s stock trades at a relatively high valuation, with a P/E ratio above 60, leaving less room for disappointment if growth or margins weaken.

Insider Transactions at Ooma

In related news, Director Russell Mann sold 20,000 shares of the company’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $18.35, for a total value of $367,000.00. Following the transaction, the director owned 116,115 shares in the company, valued at $2,130,710.25. The trade was a 14.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director William D. Pearce sold 3,000 shares of the stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $17.98, for a total transaction of $53,940.00. Following the sale, the director directly owned 181,652 shares in the company, valued at $3,266,102.96. This trade represents a 1.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 118,652 shares of company stock worth $2,225,186 over the last quarter. Corporate insiders own 9.90% of the company’s stock.

Institutional Investors Weigh In On Ooma

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in Ooma by 2.4% in the 3rd quarter. Vanguard Group Inc. now owns 1,501,963 shares of the technology company’s stock valued at $18,009,000 after acquiring an additional 34,960 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of Ooma by 4.0% in the fourth quarter. JPMorgan Chase & Co. now owns 576,041 shares of the technology company’s stock worth $6,757,000 after purchasing an additional 22,125 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Ooma by 17.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 513,820 shares of the technology company’s stock worth $6,161,000 after purchasing an additional 76,088 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Ooma by 5.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 334,910 shares of the technology company’s stock valued at $3,928,000 after purchasing an additional 17,184 shares in the last quarter. Finally, Millennium Management LLC lifted its holdings in shares of Ooma by 81.6% during the first quarter. Millennium Management LLC now owns 316,564 shares of the technology company’s stock valued at $4,144,000 after purchasing an additional 142,220 shares in the last quarter. Institutional investors own 80.42% of the company’s stock.

Ooma Company Profile

Ooma, Inc, headquartered in Sunnyvale, California, is a leading provider of communication services for residential and business customers. Since its founding in 2004, Ooma has built a cloud-based platform that leverages Voice over Internet Protocol (VoIP) technology to deliver voice, video and data services over broadband networks. The company went public on the New York Stock Exchange in 2015 under the ticker OOMA and has continued to expand its service portfolio to meet evolving customer demands.

For residential users, Ooma offers an all-in-one home phone service that includes its flagship Telo device, mobile and web applications, and optional smart home security features.