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Jan 31

Ooma Q4 2025 Earnings Report

Ooma reported a 6% year-over-year revenue increase in Q4 2025, driven by strong subscription growth and improved profitability.

Key Takeaways

Ooma posted Q4 2025 revenue of $65.1 million, a 6% increase year-over-year. Subscription and services revenue contributed $60.6 million, accounting for 93% of total revenue. The company reported a GAAP net loss of $0.3 million, an improvement from the $3.1 million loss in the prior year. Non-GAAP net income increased to $5.8 million, up from $3.5 million in Q4 2024. Adjusted EBITDA also improved to $6.9 million from $5.2 million.

Q4 2025 revenue grew 6% year-over-year to $65.1 million.

Subscription and services revenue reached $60.6 million, 93% of total revenue.

Non-GAAP net income increased to $5.8 million, up from $3.5 million in Q4 2024.

Adjusted EBITDA improved to $6.9 million from $5.2 million in the prior year.

Total Revenue
$65.1M
Previous year: $61.7M
+5.6%
EPS
$0.21
Previous year: $0.13
+61.5%
Adjusted EBITDA
$6.91M
Previous year: $5.2M
+32.9%
Gross Profit
$39.9M
Previous year: $37.8M
+5.8%
Cash and Equivalents
$17.9M
Previous year: $17.5M
+1.9%
Total Assets
$149M
Previous year: $159M
-6.3%

Ooma

Ooma

Ooma Revenue by Segment

Forward Guidance

Ooma expects revenue for FY 2026 to be in the range of $267 million to $270 million, with continued growth in subscription services and improved profitability.

Positive Outlook

  • Projected revenue growth to $267-$270 million in FY 2026.
  • Subscription and services revenue expected to drive growth.
  • Continued investment in new products and market expansion.
  • Expected improvement in profitability and cash flow.
  • Strategic focus on cloud communications and POTS replacement.

Challenges Ahead

  • Macroeconomic uncertainties could impact business growth.
  • Intense competition in the cloud communications market.
  • Dependence on third-party network and platform providers.
  • Potential challenges in integrating acquisitions.
  • Foreign exchange fluctuations may impact financial results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income