Ooma reported a solid Q3 FY2026 with modest revenue growth and meaningful profitability expansion on a non-GAAP basis, underscored by strong cash generation and notable strategic progress. Revenue totaled $67.6 million, up 4% YoY, and annual exit recurring revenue (ARR) reached $242.7 million, up 4% YoY, reflecting continued strength in business subscriptions and services. Management highlighted an uptick in profitability, delivering non-GAAP net income of $7.7 million and Adjusted EBITDA of $8.6 million, representing a 13% EBITDA margin as a share of revenue, driven by operating leverage, disciplined R&D spend, and channel optimization. The quarterly performance occurred alongside Oomaβs active M&A agenda, including FluentStream closing in December 2025 and the pending phone.com acquisition. Management framed FluentStream as a near-term contributor with potential synergies primarily in vendor relationships and cross-sell opportunities (AirDial), while signaling broader scale advantages and upside from phone.com post-close, particularly in e-commerce and go-to-market efficiency. A forthcoming AI roadmap is expected to roll out early next year, targeting higher-tier Pro and Pro Plus offerings and enhanced productivity for SMB customers. The quarter also featured operational milestones such as nine new AirDial resale partners (the strongest quarter to date) and a Las Vegas hospitality win (nearly 1,000 rooms) for Ooma Enterprise. Looking ahead, Q4 revenue guidance is $71.3β$71.9 million (including FluentStream) and non-GAAP net income of $8.4β$8.9 million, with full-year FY2026 revenue guidance raised to $270.3β$270.9 million and non-GAAP net income of $28.2β$28.7 million. Theε
¬εΈβs balance sheet remains cash-rich with $21.7 million of cash and equivalents and a net cash position, aided by ongoing free cash flow generation. Overall, Ooma presents a growth-plus-profitability thesis anchored in a scalable UCaaS platform, strategic acquisitions, and an expanding enterprise-focused product suite, though execution risk remains tied to integration cadence and eventual realization of synergies.