The quarter cleared a fairly modest bar. Ooma posted $83.2 million of revenue and $0.35 of non-GAAP diluted EPS, versus published expectations of roughly $81.7 million and $0.33, respectively; revenue was also near another published estimate of $83.3 million, so the cleanest surprise was on earnings rather than sales.
| Metric | Q2 FY27 | Prior-year Q2 | Published expectation / prior outlook |
|---|---|---|---|
| Total revenue | $83.2M (Financial Highlights) | $66.4M (Condensed Statements of Operations) | ~$81.7M published consensus |
| Non-GAAP diluted EPS | $0.35 (Non-GAAP Financial Measures) | $0.23 (Non-GAAP Financial Measures) | ~$0.33 published consensus |
| Adjusted EBITDA | $12.4M (Non-GAAP Financial Measures) | $7.2M (Non-GAAP Financial Measures) | — |
| FY27 revenue outlook | $332.0M-$333.5M (Business Outlook) | — | $326.0M-$328.5M prior outlook |
| FY27 non-GAAP diluted EPS outlook | $1.35-$1.38 (Business Outlook) | — | $1.29-$1.34 prior outlook |
Underlying growth remains acquisition-assisted, not purely organic. Subscription and services revenue rose to $75.6 million from $61.1 million a year earlier, with the company attributing the increase primarily to Ooma Business and the December 2025 FluentStream and acquisitions.
Profitability improved more than the headline revenue growth suggests. Adjusted EBITDA increased to $12.4 million from $7.2 million, while non-GAAP net income rose 58% year over year to $10.2 million. The filing also shows operating cash flow of $13.1 million and $6.5 million of debt repayment during the quarter (Cash Flow statement), supporting better cash generation even as cash ended at $17.5 million (Condensed Consolidated Balance Sheets).
The important change is the raise, not the quarter itself. Management lifted the FY27 revenue range by $5.5 million at the midpoint and the non-GAAP EPS range by $0.05 at the midpoint versus its May outlook. That is a genuine improvement over what had already been communicated, and it outweighs the fact that Q2 revenue was broadly in line with the higher end of published estimates.
The forward picture is better, but the growth thesis still depends on execution. AirDial services revenue grew 75% year over year, and the company cited new AI products and acquisition contributions as future drivers. 〔0〕 The filing also flags integration risk around FluentStream and, so the raised outlook is positive evidence of momentum but remains partly dependent on converting acquired growth and new products into sustained results.
Read the original 8-K on SEC EDGAR ↗