For Q4 FY'25, we achieved $65.1 million of revenue and $5.8 million of non-GAAP net income.
— Eric Stang
03Detailed Report
OOMA
Company OOMA
Period
Q4 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 17, 2026
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Executive Summary
Ooma delivered a solid QQ4 2025 performance with revenue of $65.1 million and non-GAAP net income of $5.8 million, marking a meaningful step up in profitability vs prior quarters. For FY2025, the company posted revenue of $256.9 million (up 8% YoY) and non-GAAP net income of $18.0 million (up 17% YoY), accompanied by over $20 million of free cash flow and $8.9 million spent on stock repurchases. Management highlighted momentum across four growth pillars: cloud communications for SMBs, POTS replacement (business and residential), wholesale platform services via 2600Hz, and residential telephony. The Q4 results reflected ongoing mix shifts toward higher-value Office Pro/ProPlus offerings (60% of new Office users), a 4% YoY increase in blended ARPU to $15.26, and a 98% net dollar subscription retention rate, underscoring recurring revenue durability despite seasonality and an expected churn headwind from a large customer (IWG).
Key Performance Indicators
Revenue
Increasing
65.10M
QoQ: -0.05% | YoY: 5.55%
Gross Profit
Increasing
39.93M
61.34% margin
QoQ: 1.69% | YoY: 10.11%
Operating Income
Increasing
-321.00K
QoQ: 85.96% | YoY: 83.15%
Net Income
Increasing
-261.00K
QoQ: 88.96% | YoY: 91.48%
EPS
Increasing
-0.01
QoQ: -106.00% | YoY: 92.00%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability metrics (Q4 2025): Revenue $65.1m; Gross profit $39.93m; gross margin 61.34%; Operating income -$0.32m; EBITDA $2.98m; Non-GAAP net income $5.8m; Non-GAAP EPS -$0.0096. YoY comparisons (full year FY2025): Revenue +8%; Gross margin stable at 63% with a higher product mix; Non-GAAP net income +17%; Free cash flow $20.2m; Operating cash flow $26.6m; Free cash flow yield improved. Balance sheet: cash $17.87m; total assets $149.20m; total liabilities $63.92m; total stockholders’ equity $85.28m; net debt negative $1.92m. Cash flow: Net cash provided by operating activities Q4 $7.84m; capital expenditures $1.70m; free cash flow $6.15m. Guidance (FY2026): Q1 revenue $64.7–$65.1m; Q1 non-GAAP net income $5.1–$5.4m; Q1 non-GAAP diluted EPS $0.18–$0.19; Full year revenue $267–$270m; non-GAAP net income $22–$23.5m; Adjusted EBITDA $27.5–$29m; non-GAAP diluted EPS $0.77–$0.82; mix: 91–92% subscription and services; Residential revenue decline 1–2%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
65.10M
5.55%
-0.05%
Gross Profit
39.93M
10.11%
1.69%
Operating Income
-321.00K
83.15%
85.96%
Net Income
-261.00K
91.48%
88.96%
EPS
-0.01
92.00%
-106.00%
Key Financial Ratios
Gross Profit Margin
Excellent
61.30%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Weak
0.00%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
0.00%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.09
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.19
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-372.98x
Negative earnings make P/E ratio not meaningful
Price to Book
Premium
4.57x
Trading at premium to book value, reflects strong intangibles or growth
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