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

Ooma (NYSE:OOMA) released its quarterly earnings results on Wednesday. The technology company reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.33 by $0.02, FiscalAI reports. The business had revenue of $83.23 million during the quarter, compared to the consensus estimate 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 Stock Performance

Shares of OOMA stock opened at $20.53 on Thursday. The company has a market cap of $564.58 million, a P/E ratio of 64.16 and a beta of 1.19. The business has a 50 day moving average of $20.21 and a two-hundred day moving average of $17.05. Ooma has a 52 week low of $9.79 and a 52 week high of $22.72. The company has a quick ratio of 0.69, a current ratio of 0.94 and a debt-to-equity ratio of 0.50.

Insiders Place Their Bets

In other Ooma news, SVP Jenny C. Yeh sold 1,757 shares of the stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $22.00, for a total value of $38,654.00. Following the sale, the senior vice president directly owned 258,615 shares of the company’s stock, valued at $5,689,530. This trade represents a 0.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director William D. Pearce sold 3,000 shares of the business’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $17.98, for a total transaction of $53,940.00. Following the transaction, the director directly owned 181,652 shares of the company’s stock, valued at approximately $3,266,102.96. This trade represents a 1.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 118,652 shares of company stock worth $2,225,186. 9.90% of the stock is currently owned by insiders.

Institutional Trading of Ooma

Hedge funds have recently bought and sold shares of the company. Amundi bought a new position in Ooma in the 1st quarter worth about $387,000. AQR Capital Management LLC bought a new stake in shares of Ooma during the first quarter valued at approximately $478,000. Millennium Management LLC boosted its position 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 worth $4,144,000 after buying an additional 142,220 shares during the period. Goldman Sachs Group Inc. grew its holdings in Ooma by 4.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 248,612 shares of the technology company’s stock worth $3,254,000 after buying an additional 11,300 shares in the last quarter. Finally, Jane Street Group LLC increased its position in Ooma by 162.6% in the 1st quarter. Jane Street Group LLC now owns 34,227 shares of the technology company’s stock valued at $448,000 after acquiring an additional 21,192 shares during the period. 80.42% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several research analysts have weighed in on OOMA shares. Alliance Global Partners reissued a “buy” rating on shares of Ooma in a report on Thursday. UBS Group set a $24.00 price target on shares of Ooma in a research report on Wednesday, May 27th. William Blair set a $24.00 price target on Ooma in a research note on Monday, August 17th. Citigroup reissued a “market perform” rating on shares of Ooma in a report on Wednesday, May 27th. Finally, Lake Street Capital upped their price objective on Ooma from $18.00 to $23.00 and gave the company a “buy” rating in a research note on Wednesday, May 27th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $23.67.

Key Headlines Impacting Ooma

Here are the key news stories impacting Ooma this week:

• Positive Sentiment: Quarterly earnings and revenue beat estimates: Ooma reported adjusted earnings of $0.35 per share, above the $0.33 consensus estimate, while revenue reached approximately $83.2 million versus expectations of $81.7 million. Earnings increased from $0.23 per share a year earlier. Ooma Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Strong recurring-revenue growth: Total revenue rose 25% year over year to $83.2 million. Subscription and services revenue increased to $75.6 million from $61.1 million, representing 91% of total revenue and strengthening Ooma’s recurring-revenue profile. Ooma Reports Fiscal Second Quarter 2027 Financial Results
• Positive Sentiment: Raised guidance is above analyst expectations: Ooma forecast fiscal 2027 earnings of $1.35-$1.38 per share and revenue of $332.0-$333.5 million, exceeding consensus estimates of $1.21 and $327.3 million, respectively. Third-quarter guidance also topped expectations, with projected EPS of $0.34-$0.35 and revenue of $83.7-$84.5 million. Ooma Forecasts Fiscal 2027 EPS and Revenue
• Positive Sentiment: Brand recognition improved: Ooma was named a top VoIP provider in the 2026 Spiceworks Voice of IT survey, potentially supporting customer acquisition and enterprise credibility. Ooma Named Top VoIP Provider
• Neutral Sentiment: Investor focus remains on execution: The earnings call and preview coverage centered on whether Ooma can sustain its growth trajectory and convert the raised outlook into results. With shares trading near their 52-week high and at an elevated earnings multiple, further upside may depend on continued guidance increases and operating performance. Ooma Fiscal Q2 2027 Earnings Call Transcript

About Ooma

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.