Ooma, Inc. announced its financial results for the fiscal second quarter ended July 31, 2025, reporting total revenue of $66.4 million, a 3% increase year-over-year. Subscription and services revenue from Ooma Business grew 6% year-over-year, driven by user growth. The company achieved record non-GAAP net income of $500,000 and record adjusted EBITDA of $7.2 million, reaching an 11% adjusted EBITDA margin.
The adjusted EBITDA margin of 11% aligns with the low end of the company's midterm target range of 11% to 14%. This improvement is attributed to enhanced operating leverage, particularly an 8% year-over-year decrease in research and development expenses. Product and other gross margin improved significantly to negative 47% from negative 70% in the prior year, due to the consumption of higher-cost components.
Ooma projects total revenue for fiscal year 2026 between $267 million and $270 million, with business subscription and services revenue expected to grow 5% to 6% over fiscal 2025. Non-GAAP net income is anticipated between $24.5 million and $25 million, and adjusted EBITDA between $28.5 million and $29 million, with an adjusted EBITDA margin close to 11% for the full year. The company also reported $19.6 million in cash and cash equivalents and zero outstanding debt as of July 31, 2025.
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