OOMA INC SEC 10-Q Report

Ooma Inc., a leading provider of innovative communication solutions and services, has released its Form 10-Q report for the second quarter ended July 31, 2025. The report highlights the company's continued growth in both financial and operational metrics, driven primarily by the robust performance of Ooma Business. This summary provides an overview of the key financial and business highlights from the report.

Financial Highlights

• Total Revenue: $66.4 million, up 3% year-over-year, primarily driven by the growth of Ooma Business.
• Gross Profit: $40.2 million, reflecting a gross margin of 61%, up from 60% in the prior year quarter.
• Income (loss) from operations: $0.9 million, compared to a loss of $1.6 million in the prior year quarter, indicating improved operational efficiency.
• Net Income: $1.3 million, compared to a net loss of $2.1 million in the prior year quarter, reflecting continued improvement in operations.
• Basic Net Income (Loss) Per Share: $0.05, compared to $(0.08) in the prior year quarter.
• Diluted Net Income (Loss) Per Share: $0.04, compared to $(0.08) in the prior year quarter.

Business Highlights

• Revenue Segments: Ooma derived approximately 63% of its total revenue from Ooma Business and approximately 35% from Ooma Residential for the three months ended July 31, 2025. This indicates a strong performance in the business segment, driven by user growth and increased average revenue per core user.
• Sales Units: The increase in product and other revenue by 15% year-over-year was primarily due to an increase in AirDial shipments, reflecting a positive trend in the sales of on-premise devices.
• Operational Efficiency: Subscription and services gross margin remained consistent at 70% year-over-year, indicating stable operational efficiency in delivering services.
• Product Margin Improvement: Product and other revenue gross margin improved significantly to negative 47% from negative 70% in the prior year period, primarily due to the depletion of higher cost components procured in prior fiscal years.
• Research and Development: R&D expenses decreased by 8% year-over-year, primarily due to a reduction in personnel and contractor-related costs, reflecting a focus on cost management while maintaining innovation.
• Future Outlook: Ooma expects its subscription and services revenue to grow as it expands its core user base, driven primarily by growth in Ooma Business. The company also anticipates an increase in sales and marketing expenses in absolute dollars as it continues to grow its business.

SEC Filing: OOMA INC [ OOMA ] - 10-Q - Sep. 05, 2025