Ooma Delivers Strong Q2 Performance, Drives Momentum Across Business Amidst Accelerating POTS Replacement

Telecommunications company Ooma has reported a robust second quarter fiscal 2027 performance, with the business continuing to drive growth and momentum across its operations. The company's CEO, Eric Stang, highlighted during an earnings call that Q2 was another strong quarter for Ooma, with revenue reaching $83.2 million, up from $66.4 million in Q2 a year ago.

This represents 25% revenue growth year-over-year, driven mainly by business customers, including AirDial and the company's two acquisitions late last year. Key business subscription and services revenue grew faster, at an impressive 38% year-over-year. Notably, Q2 AirDial services revenue surged 75% year-over-year.

Stang attributed Ooma's momentum across all major areas of its business to several key factors, including accelerating POTS (Plain Old Telephone Service) replacement, new AI features, and the company's residential product, MyPhone. These drivers are expected to propel the business forward, with Stang expressing enthusiasm for Ooma's outlook.

On the bottom line, Ooma delivered non-GAAP net income of $10.2 million and adjusted EBITDA of $12.4 million in Q2, representing 58% and 74% year-over-year increases, respectively. The company's adjusted EBITDA margin now stands at a solid 15%, up from 10% just six quarters ago.

Stang expressed pride in Ooma's ability to achieve steadily improving profitability over the past six quarters and beyond. Looking ahead, the CEO believes the business model can generate further increases in profitability, underscoring the company's confidence in its future prospects.