Telecom firm Ooma meets Q2 revenue estimates, raises FY net income guidance

Ooma

26/08/2025 21:24

Overview

Ooma fiscal Q2 rev grows 3% yr/yr, in line with analysts' expectations

Adjusted EPS for fiscal Q2 beats consensus

Adjusted EBITDA for fiscal Q2 exceeds estimates, per LSEG data

Outlook

Ooma expects Q3 revenue between $67.2 mln and $67.9 mln

Projects Q3 GAAP net income of $0.9 mln to $1.3 mln

Co anticipates Q3 non-GAAP net income of $6.0 mln to $6.4 mln

Maintains full-year revenue guidance of $267 mln to $270 mln

Ooma raises full-year GAAP net income guidance to $3.5 mln to $4.0 mln

Ooma increases full-year non-GAAP net income guidance to $24.5 mln to $25.0 mln

Result Drivers

SUBSCRIPTION REVENUE - Subscription and services revenue increased to $61.1 mln, driven by growth in Ooma Business

NON-GAAP EPS GROWTH - Non-GAAP EPS grew 52% yr/yr, attributed to operational improvements

ADJUSTED EBITDA INCREASE - Adjusted EBITDA rose 27% yr/yr, reflecting enhanced efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
In-line
$66.40 mln
$66.40 mln (6 Analysts)
Q2 Adjusted EPS
Beat
$0.23
$0.2 (6 Analysts)
Q2 EPS
-$0.04
Q2 Adjusted Net Income
Beat
$6.50 mln
$5.76 mln (5 Analysts)
Q2 Net Income
-$1.30 mln
Q2 Adjusted EBITDA
Beat
$7.20 mln
$7.18 mln (6 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the integrated telecommunications services peer group is "buy"

Wall Street's median 12-month price target for Ooma Inc is $17.75, about 32.5% above its August 25 closing price of $11.98

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw9JNbdLa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)