Executive Summary
Ooma reported QQ2 2026 revenue of $66.364 million, up 3.5% year over year and 2.1% quarter over quarter, supported by strength in the business/subscription mix and a rapidly expanding Airdial platform. The company achieved a record non-GAAP net income of $6.5 million and record adjusted EBITDA of $7.2 million, representing 11% of revenue, underscoring improved operating leverage as the company transitions toward higher-margin, subscription-heavy revenue. Management highlighted accelerating Airdial bookings, a large national retailer win, and a growing partner ecosystem (nearly 35 resellers) as catalysts for second-half momentum. The quarterly results also benefited from favorable cost discipline, with non-GAAP net income up 59% YoY and ongoing R&D efficiency helping lift profitability while keeping reinvestment in AI and platform enhancements intact.
Key Performance Indicators
QoQ: 1 707.02% | YoY:157.39%
QoQ: 990.07% | YoY:158.73%
QoQ: 555.00% | YoY:156.52%
Key Insights
Revenue: $66.364 million in Q2 2026, up 3.5% YoY and 2.05% QoQ. Gross profit: $40.23 million; gross margin 60.62% (vs. 60.60% in prior year). Operating income: $0.916 million; operating margin 1.38%. EBITDA: $4.393 million; adjusted EBITDA: $7.2 million (11% of revenue). Net income (GAAP): $1.256 million; net income margin 1.89%. Non-GAAP net income: $6.5 million; non-GAAP diluted EPS: $0.23. Revenue composition: Subscription and services $61.1 million (92% of total); product and other $5.2 mill...
Financial Highlights
Revenue: $66.364 million in Q2 2026, up 3.5% YoY and 2.05% QoQ. Gross profit: $40.23 million; gross margin 60.62% (vs. 60.60% in prior year). Operating income: $0.916 million; operating margin 1.38%. EBITDA: $4.393 million; adjusted EBITDA: $7.2 million (11% of revenue). Net income (GAAP): $1.256 million; net income margin 1.89%. Non-GAAP net income: $6.5 million; non-GAAP diluted EPS: $0.23. Revenue composition: Subscription and services $61.1 million (92% of total); product and other $5.2 million. ARPU: $15.68; core users: 1.23 million; business users: 508k (41% of core). ARR: $240 million (up 3% YoY). Operating cash flow: $6.36 million; free cash flow: $5.05 million; trailing twelve months FCF: $20 million. Balance sheet: cash and investments $19.6 million; total debt $11.59 million; net debt position: -$7.97 million; cash at end of period $19.56 million. Shares: diluted weighted-average shares ~28.22 million. Share repurchases: $5.927 million in the last four quarters. Guidance for Q3 and F2026: Q3 revenue $67.2-$67.9 million; non-GAAP net income $6.0-$6.4 million; non-GAAP EPS $0.22-$0.23. Full-year 2026 revenue guidance unchanged at $267-$270 million; non-GAAP net income $24.5-$25.0 million; adjusted EBITDA $28.5-$29.0 million; non-GAAP diluted EPS $0.87-$0.89. Tariffs modestly impact earnings by ~ $0.5 million. Strategic focus remains Airdial expansion, higher ARPU via Ooma Office enhancements, and extending 2,600 Hertz as a wholesale platform.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
66.36M |
3.49% |
2.05% |
| Gross Profit |
40.23M |
3.95% |
0.05% |
| Operating Income |
916.00K |
157.39% |
1 707.02% |
| Net Income |
1.26M |
158.73% |
990.07% |
| EPS |
0.05 |
156.52% |
555.00% |
Management Commentary
Key management insights and operational themes from the QQ2 2026 earnings call. - Strategy and growth engines: Airdial momentum is accelerating bookings and customer wins, with Eric Stang noting a large national retailer win and rollout to over 3,000 locations, and plans to expand partner resellers to ~35+. The company remains focused on leveraging Airdial alongside the Office suite and 2,600 Hertz as long-term growth platforms. - Product and platform advancements: Connect 5,000 (5G Internet with voice-prioritized traffic) is being introduced to strengthen Ooma Office offerings; 2,600 Hertz gains include mobile/desktop apps and video meetings (with plans to bring Ooma IP onto the platform for turnkey usability). - Customer mix and monetization: Office Pro/Pro Plus take rate rose to 61% of new Office users (vs. 58% YoY); ARPU increased 4% YoY to $15.68, driven by higher mix of business users. ARR stood at $240 million, up 3% YoY, with 100% net data subscription retention in Q2. - Operational efficiency and profitability: Q2 non-GAAP net income rose 59% YoY to $6.5 million; adjusted EBITDA was $7.2 million (11% of revenue). Management stressed R&D efficiency and disciplined S&M spend (~27% of revenue) as levers to expand margins, reiterating a path toward higher EBITDA in 2027. - Market and partnerships: The vendor emphasized a growing partner ecosystem including 35 resellers and continued collaborations with T-Mobile; ISPs refer Telo devices with ~85 active ISPs. - Outlook and execution: Management indicated continued momentum in Airdial, Office ARPU expansion, and wholesale platform strength, with guidance underscoring continued revenue growth and profitability in the back half of the year.
Airdial ramped well in Q2. We more than doubled new bookings year over year and secured our largest customer win to date with a large national retailer.
— Eric Stang
Adjusted EBITDA for the quarter was a record $7.2 million or 11% of total revenue and grew 27% over the prior year quarter.
— Shig Hamamatsu
Forward Guidance
Outlook assessment based on QQ2 2026 guidance and management commentary. Near-term visibility remains positive given the acceleration in Airdial bookings, expansion into larger customers, and the 2,600 Hertz roadmap to integrate turnkey solutions. Q3 guidance implies continued moderate top-line growth (~1-2% sequentially implied by $67.2–$67.9m vs. $66.364m in Q2) and continued profitability with non-GAAP net income of $6.0–$6.4m and EPS of $0.22–$0.23. For FY2026, revenue guidance is unchanged at $267–$270m, with non-GAAP net income raised to $24.5–$25.0m and adjusted EBITDA of $28.5–$29.0m (implying EBITDA margin around 10.6–10.8% on a full-year basis, approaching the mid-term target). Tariffs are conservatively embedded in the guidance at roughly $0.5m impacting net income, suggesting that the company can maintain leverage as volumes and ARPU expand. Key factors for investors to monitor include: (1) Airdial net-new bookings trajectory and the pace of customer ramp across the 3,000+ location rollout; (2) the contribution of 2,600 Hertz to platform monetization and the pace of turnkey solution adoption; (3) ERP of ARPU mix changes as Office Pro/Pro Plus penetration grows; (4) potential macro headwinds or regulatory shifts affecting small business IT budgets; (5) progress of M&A tuck-ins or tuck-in opportunities that fit strategic criteria without diluting profitability.