Ooma Inc. reported fiscal second-quarter 2027 revenue of $83.2 million, a 25% increase from the prior year and ahead of the $81.72 million consensus estimate. The company’s business subscription and services revenue, which now accounts for 70% of total subscription and services revenue, grew 38% year-over-year on an organic basis, excluding acquisitions.
Adjusted earnings per share reached $0.35, topping the $0.33 estimate. Adjusted EBITDA hit a record $12.4 million, up 74% from the prior year and representing 15% of revenue. Free cash flow totaled $10.8 million, while average revenue per user rose to $16.95 per month, with business ARPU at approximately $24 and residential ARPU at about $10.
The company’s AirDial services revenue surged 75% year-over-year, contributing to a 17% rise in trailing twelve-month revenue to $307 million. Annual exit recurring revenue reached $299 million, while the net dollar retention rate stood at 99%. Recurring gross profit margin improved to 72%, up from 62% in the prior year.
Ooma raised its full-year fiscal 2027 guidance, projecting revenue of $332 million to $333.5 million, up from prior expectations. Non-GAAP diluted EPS is now forecast at $1.35 to $1.38, while adjusted EBITDA is expected to range between $47.5 million and $48.3 million. Business subscription and services growth is projected at roughly 32%, while residential subscription revenue is seen as flat to up 1%.
CEO Eric Stang noted that Ooma is ahead of its original plan halfway through fiscal 2027, citing strong performance in both revenue and profitability. The company also highlighted upcoming product launches, including an AI Productivity Pack in Q3 and the Star Dial service, alongside an expansion of its MyPhone offering into Canada by the end of the quarter.
Ooma’s stock rose 6.09% in after-hours trading to $21.78, approaching its 52-week high of $22.72. The company, founded in 2003 and listed in 2015, employs 1,444 people and serves over 1.4 million core users. Its recent acquisitions—FluentStream and Phone.com, completed in December 2025 for $45 million and $23.2 million respectively—have contributed to its growth trajectory.
