0001327688-26-000009
SEC filingOoma achieved a profitability inflection in FY2026, swinging from a net loss to $6.5 million in net income, driven by revenue growth and disciplined cost management. The turnaround reflects improved operating leverage and sustained cash generation.
Revenue increased 6.5% to $273.6 million for fiscal 2026. This growth was supported by an increase in Net Dollar Retention Rate (NDRR), attributed to relatively consistent user churn and an increase in Average Monthly Recurring Subscription Revenue. Management expects revenues from Ooma Business to continue accounting for the majority of revenue for the foreseeable future. Gross profit rose 7.2% to $167.2 million, yielding a gross margin of 61.1%.
Operationally, the increase in NDRR signals that existing customers are generating more revenue over time, helping offset customer acquisition costs. However, management expects product and other gross margins to remain negative for the foreseeable future due to higher component costs and AirDial installation expenses. Product and other gross margin may fluctuate based on total units shipped relative to direct production costs and fixed personnel costs. The company's ability to sustain profitability will depend on managing these cost pressures while continuing to grow recurring revenue.