Business customers now make up a growing majority of Ooma's subscription revenue. Management highlighted strengthening business user metrics, Airdial's accelerated bookings, and expanded partner ecosystem, with product and other revenue growing 15% year over year in Q2 FY2026 largely attributed to increased Airdial installations.
Cyborg Score Rationale
Ooma reported Q2 FY2026 revenue of $66.4 million up 3.5% year over year, with record non-GAAP net income of $6.5 million up 59% year over year and adjusted EBITDA margin rising to 11%. Q3 delivered 64% year over year growth of non-GAAP diluted EPS and record adjusted EBITDA of $8.6 million, which grew 50% year over year. Strong margin expansion and profitability growth indicate solid execution.
Top Insights
Airdial landed its largest customer to date, a national U.S. retailer deploying to over 3,000 locations.
Business subscription and services revenue represented 62% of total subscription revenue, up from 60% in the previous quarter, and grew 66% year over year, while residential subscription revenue declined by 2% year over year.
Blended average revenue per user (ARPU) climbed 4% year over year to $15.68, propelled by increased mix of business users and higher-tier Ooma Office Pro and Pro Plus services adoption, with 61% of new Office users opting for premium tiers.
Management guided full-year non-GAAP revenue to $267 million to $270 million for FY2026, with non-GAAP net income for FY2026 now expected at $24.5 million to $25 million.
Named Competitors
Bandwidth Communication Platform — Cloud communications platform provider
Telephone and Data Services — Telecom and wireless services
(December 2025) Record Q3 adjusted EBITDA of $8.6 million with 50% YoY growth and 64% YoY EPS growth
(August 2025) Q2 FY2026 record non-GAAP net income of $6.5 million up 59% YoY; Airdial largest customer win with 3,000+ location national retailer deployment
(May 2025) Q1 FY2026 revenue of $65.0 million up 4% YoY; business revenue driving growth with subscription revenue at 93% of total
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