Ooma, Inc. announced fiscal second-quarter 2027 results that surpassed company expectations across multiple financial metrics. Revenue reached $83.2 million, representing 25% growth compared to the prior-year period of $66.4 million. The company achieved non-GAAP net income of $0.35 per diluted share, an increase from $0.23 per diluted share in the comparable quarter, while adjusted EBITDA climbed to a record $12.4 million, reflecting 74% year-over-year growth and constituting 15% of total revenue.
Business subscription and services revenue expanded 38% year-over-year to $75.6 million, accounting for 91% of total revenue. The company’s AirDial service, which provides plain old telephone service replacement capabilities, drove significant expansion with revenue rising 75% and 50% growth in installations. Management added two new AirDial resale partners during the quarter, bringing the total to more than 40, including a Verizon platinum partner. The company secured a major hospital-system customer that purchased nearly 200 AirDial lines along with unified communications and internet backup services.
Ooma expanded its artificial intelligence product portfolio during the quarter, introducing AI transcription, AI insights, and standalone AI Answering Service and AI Receptionist products. The company plans to launch its Ooma AI Productivity Pack in the third quarter, featuring approximately 10 business-productivity tools. The residential division reversed its historical decline with more than 3,000 new users added during the quarter. MyPhone, the company’s residential landline offering for children and parents, launched and became available through multiple retailers including Costco, Amazon, Best Buy, Walmart and Target.
Management revised its full-year outlook upward, forecasting fiscal 2027 revenue between $332 million and $333.5 million. The company plans to introduce Star Dial, a residential service compatible with Starlink internet, in the third quarter, with a major retailer planning in-store placement beginning late in the fall. Operating cash flow reached a record $13.1 million for the quarter, while the company maintained $17.5 million in cash and investments and reduced debt to $47 million.
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