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Oct 31, 2024

Ooma Q3 2025 Earnings Report

Ooma's Q3 2025 financial results were released, showing revenue growth and increased adjusted EBITDA.

Key Takeaways

Ooma reported a 9% year-over-year increase in total revenue, reaching $65.1 million. Subscription and services revenue drove growth, comprising 92% of total revenue. The company's adjusted EBITDA also increased to $5.7 million, compared to $5.0 million in the prior year.

Total revenue reached $65.1 million, a 9% increase year-over-year.

Subscription and services revenue grew to $60.1 million, representing 92% of total revenue.

GAAP net loss was $2.4 million, or $0.09 per share, while non-GAAP net income was $4.6 million, or $0.17 per diluted share.

Adjusted EBITDA increased to $5.7 million, compared to $5.0 million in the third quarter of fiscal 2024.

Total Revenue
$65.1M
Previous year: $59.9M
+8.8%
EPS
$0.17
Previous year: $0.15
+13.3%
Adjusted EBITDA
$5.7M
Previous year: $5M
+14.0%
Gross Profit
$39.3M
Previous year: $36.9M
+6.3%
Cash and Equivalents
$17.1M
Previous year: $18.9M
-9.2%
Free Cash Flow
$6.53M
Previous year: $563K
+1060.2%
Total Assets
$150M
Previous year: $163M
-8.2%

Ooma

Ooma

Ooma Revenue by Segment

Forward Guidance

Ooma expects total revenue in the range of $64.6 million to $65.1 million for the fourth quarter of fiscal year 2025. GAAP net loss is expected to be in the range of $1.2 million to $1.5 million, with a non-GAAP net income in the range of $4.5 million to $4.8 million.

Positive Outlook

  • Total revenue is expected to be between $64.6 million and $65.1 million.
  • Non-GAAP net income is projected to be between $4.5 million and $4.8 million.
  • Non-GAAP net income per share is expected to be in the range of $0.16 to $0.17.
  • Full fiscal year 2025 total revenue is expected to be in the range of $256.3 million to $256.8 million.
  • Full fiscal year 2025 non-GAAP net income is expected to be in the range of $16.7 million to $17.0 million.

Challenges Ahead

  • GAAP net loss is expected to be in the range of $1.2 million to $1.5 million.
  • GAAP net loss per share is projected to be between $0.04 and $0.05.
  • Full fiscal year 2025 GAAP net loss is expected to be in the range of $7.8 million to $8.1 million.
  • Full fiscal year 2025 GAAP net loss per share is expected to be in the range of $0.29 to $0.30.
  • Unspecified risks and uncertainties could impact actual results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income