Ooma Reports $67.6M Revenue and $7.7M Non-GAAP Net Income in Q3
Written by Emily J. Thompson, Senior Investment Analyst
Source: Businesswire
Updated: 1 hour ago0mins
- Strong Financial Performance: Ooma achieved $67.6 million in revenue for Q3 FY2026, reflecting a 4% year-over-year growth, while non-GAAP net income reached $7.7 million, indicating robust growth potential in the market.
- Earnings Per Share Growth: The non-GAAP diluted EPS increased by 64% year-over-year to $0.29, showcasing a significant improvement in profitability that enhances investor confidence.
- Record Adjusted EBITDA: Ooma's adjusted EBITDA hit a record $8.6 million, growing 50% year-over-year, which demonstrates substantial progress in operational efficiency and cost control, further solidifying its market position.
- Acquisition Strategy Advancement: Ooma recently completed the acquisition of FluentStream and expects to finalize the acquisition of Phone.com by late December, with both transactions poised to create new growth opportunities and enhance future cash flow and revenue growth.
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Analyst Views on OOMA
Wall Street analysts forecast OOMA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OOMA is 18.50 USD with a low forecast of 17.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 11.740
Low
17.00
Averages
18.50
High
20.00
Current: 11.740
Low
17.00
Averages
18.50
High
20.00
Lake Street
Eric Martinuzzi
Buy
maintain
$17 -> $18
2025-11-04
Reason
Lake Street
Eric Martinuzzi
Price Target
$17 -> $18
2025-11-04
maintain
Buy
Reason
Lake Street analyst Eric Martinuzzi raised the firm's price target on Ooma to $18 from $17 and keeps a Buy rating on the shares. After Ooma announced its intent to acquire FluentStream, the firm says the combination "offers the advantage of making a major upward revision to AEBITDA from Day 1 and opens the door to revenue synergies over the long term." The firm, which sees the deal "checking the two most important boxes," namely acquiring a highly profitable business and for a good price, rolled out revised FY27 estimates and raised its price target to reflect the accretive nature of the transaction.
Alliance Global Partners
Brian Kinstlinger
Buy
downgrade
$18 -> $16
2025-05-29
Reason
Alliance Global Partners
Brian Kinstlinger
Price Target
$18 -> $16
2025-05-29
downgrade
Buy
Reason
Alliance Global Partners analyst Brian Kinstlinger lowered the firm's price target on Ooma to $16 from $18 and keeps a Buy rating on the shares. The company's Q1 revenue growth was hurt by the churn from its largest customer, International Workplace Group, the analyst tells investors in a research note. The firm believes Ooma's catalyst to accelerated growth remains several quarters away.
Citizens Capital Markets
Patrick Walravens
Hold
Reiterates
n/a
2025-03-05
Reason
Citizens Capital Markets
Patrick Walravens
Price Target
n/a
2025-03-05
Reiterates
Hold
Reason
Benchmark
Matthew Harrigan
Strong Buy
Maintains
$17 → $20
2025-03-05
Reason
Benchmark
Matthew Harrigan
Price Target
$17 → $20
2025-03-05
Maintains
Strong Buy
Reason
See All Ratings
About OOMA
Ooma, Inc. delivers phone, messaging, video and advanced communications services. It offers a range of solutions to fit each business’ needs, along with personalized support to resolve any issues in deploying and maintaining its services. Its solutions include Ooma Business, which includes Ooma Office, Ooma Enterprise, Ooma AirDial, 2600Hz, and OnSIP; Ooma Residential, which includes Ooma Telo basic and premier services as well as its smart security solutions, and Talkatone mobile app. Ooma Office is a cloud-based multi-user communications system for small and medium-sized businesses designed to manage communications in and out of the office with a suite of business features. Ooma Enterprise is a customizable and scalable unified-communications-as-a-service (UCaaS) solution that complements Ooma Office. It also sells a variety of accessories, including handsets with smartphone-like features, remote phone jacks and battery backup, as well as a range of sensors for home security.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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