Ooma Inc
OOMA
$12.01 2.26%
Exchange: NYSE | Sector: Communication Services | Industry: Telecommunications Services
Q2 2025
Published: Sep 6, 2024

Earnings Highlights

  • Revenue of $64.13M up 9.9% year-over-year
  • EPS of $-0.08 decreased by 852.3% from previous year
  • Gross margin of 60.3%
  • Net income of -2.14M
  • "We have been told by an incumbent local exchange carrier that they plan to resell AirDial beginning later this year. This is exciting because of the size and scope of this new partner, who we believe is one of the Top 10 largest service providers in America." - Eric Stang
OOMA
Company OOMA

Executive Summary

Ooma delivered a solid QQ2 2025 performance marked by growth in core business and the incremental contribution from 2600Hz. Revenue totaled $64.1 million, up 10% year-over-year, and non-GAAP net income reached $4.1 million, underscoring a profitable expansion of Ooma Business and the integration of 2600Hz. Strong operating cash flow of $7.1 million generated a fresh quarterly high, enabling a debt repayment of $3 million and a reduction of total debt to $8.5 million. Management highlighted progress across key initiatives including Ooma Office feature enhancements, AirDial’s upcoming reseller partner in a top-10 US ILEC, and the expansion of 2600Hz as a CPaaS wholesale platform. While profitability on a GAAP basis remained negative in Q2, the company emphasized gross margin expansion in subscription services (72%) and ongoing normalization in product gross margins as pandemic-era cost inputs are exhausted. Management raised full-year revenue and profitability guidance, signaling confidence in the multi-pronged growth engine around UCaaS, POTS replacement, and CPaaS opportunities. The combination of a durable ARR base (annual exit recurring revenue of $233 million), strong net retention (100%), and a diversified opportunity set (AirDial, 2600Hz, Ooma Office) frames an actionable longer-term upside, albeit with execution risk around large customers and transition costs intrinsic to the CPaaS ecosystem.

Key Performance Indicators

Revenue
Increasing
64.13M
QoQ: 2.61% | YoY: 9.90%
Gross Profit
Increasing
38.70M
60.35% margin
QoQ: 5.65% | YoY: 5.77%
Operating Income
Decreasing
-1.60M
QoQ: 21.26% | YoY: -26 700.00%
Net Income
Decreasing
-2.14M
QoQ: 0.09% | YoY: -888.56%
EPS
Decreasing
-0.08
QoQ: 1.35% | YoY: -852.34%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2026 66.36 0.04 +3.5% View
Q1 2026 65.03 -0.01 +4.1% View
Q4 2025 65.10 -0.01 +5.6% View
Q3 2025 65.13 0.16 +8.8% View
Q2 2025 64.13 -0.08 +9.9% View