VoIP services firm Ooma's Q3 revenue slightly beats expectations

Ooma

08/12/2025 21:26

Removes mention to acquisitions in Result Drivers section

Overview

Ooma fiscal Q3 revenue slightly beats analyst expectations, growing 4% yr/yr

Adjusted EPS for fiscal Q3 beats consensus, reflecting strong operational performance

Company reports record adjusted EBITDA, beating analyst estimates

Outlook

Ooma expects Q4 revenue between $71.3 mln and $71.9 mln

Company forecasts full-year revenue of $270.3 mln to $270.9 mln

Ooma sees Q4 non-GAAP net income of $8.4 mln to $8.9 mln

Result Drivers

SUBSCRIPTION GROWTH - Growth in Ooma Business drove an increase in subscription and services revenue, contributing to 92% of total revenue

EPS AND EBITDA GROWTH - Non-GAAP diluted EPS grew 64% yr/yr and adjusted EBITDA reached a record $8.6 mln, up 50% yr/yr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$67.60 mln
$67.59 mln (6 Analysts)
Q3 Adjusted EPS
Beat
$0.27
$0.22 (6 Analysts)
Q3 EPS
$0.05
Q3 Adjusted Net Income
Beat
$7.70 mln
$6.21 mln (5 Analysts)
Q3 Net Income
$1.40 mln
Q3 Adjusted EBITDA
Beat
$8.60 mln
$7.21 mln (6 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $18.25, about 55.5% above its December 5 closing price of $11.74

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw50x3WGa

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(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.)