Ooma Inc Q2 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Josh Nichols - B. Riley Securities Holdings Inc - Analyst : Good to see the improvement, particularly on the bottom line and the company buying back some stock. I know you mentioned AirDial bookings more than doubled. And with the second half hardware ramp, I presume a lot of that is related to AirDial well. Is it they're not contributing any meaningful percentage to ARR at this point? Or at what point do you think you'd start giving a little bit more granularity on the breakout as that continues to build? .

Question: Josh Nichols - B. Riley Securities Holdings Inc - Analyst : And then just to update, I mean you continue to add new partners on the AirDial front as well, too. When you look -- I think in 1Q, you launched with very large market cap telecom company, an aggregator CLEC and previously announced ILEC. Any updates here that you could give us on just like how that ramp is progressing since like the last quarter call update? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 26, 2025 / 9:00PM, OOMA.N - Q2 2026 Ooma Inc Earnings Call

Question: Eric Martinuzzi - Lake Street Capital Markets LLC - Analyst : Congratulations as well on the improving profitability of the business. I wanted to talk about where you're pointing that incremental cash flow. Obviously, in Q2, with the, what was, $4.5 million or so on share repurchase program. Is that to say that we're not actively pursuing any M&A opportunities? Or is it just to say that your own shares are the better bargain in the market with that cash flow?

Question: Eric Martinuzzi - Lake Street Capital Markets LLC - Analyst : Okay. And then the growth on the business side, it's -- you've got 2 quarters in a row here growth in the core subscription service growth rate on the business side. You're talking about 5% to 6% for the year. Is that just conservatism? Or are we looking at maybe some incremental churn that we need to model for in the back half? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 26, 2025 / 9:00PM, OOMA.N - Q2 2026 Ooma Inc Earnings Call

Question: Kincaid LaCorte LaCorte - Citizens JMP - Analyst : This is Kincaid on for Pat. Super excited to hear about that new largest retail customer that you guys landed. I'd love to hear more about how that deal came about. What was the differentiator. What lets you win that? And are we going to start seeing that in the back half of the year? Or what's the time line there?

Question: Kincaid LaCorte LaCorte - Citizens JMP - Analyst : Spectacular. If you can give you a little color on how much -- like you said 3,000 locations, how much revenue are you expecting to drive per location with these installations?

Question: Matthew Harrigan - Benchmark Company LLC - Analyst : I know but to of an afterthought compared to AirDial, but can you talk a little bit about 2600 hertz and what kind of the organic growth rate there is? I know you introduced a number of new open APIs. And I think when you did the deal, there is some discussion they're trying to get better monetization for [Kazu]. And I know it fits well within your business portfolio, but it necessarily doesn't get as much bandwidth as AirDial perhaps understandably.

Question: Matthew Harrigan - Benchmark Company LLC - Analyst : And we know that you have enough on your hands with AirDial in North America. But to the extent that you're getting full demand from Europe, I mean that's really a testament to the efficacy of the product relative to limited alternatives. Are you seeing more of that? And again, I know that's not a priority, but I was just curious.

Question: Alinda Li - William Blair Capital Partners - Analyst : Congrats on the solid quarter and also on the 10-year anniversary. A quick question here. NRR was 100%. Can you give us more color in terms of what drove the 1 point uptick there? And what should we expect NRR to be going forward?

Question: Alinda Li - William Blair Capital Partners - Analyst : Yes, no worries. The second part was what should we expect NRR to be going forward?

Question: Alinda Li - William Blair Capital Partners - Analyst : And the other question is top line guidance was reiterated, but net income guidance is raised again by around 7.6% at the midpoint. So what are the efficiencies that you're looking to implement or to achieve the bottom line guidance? I know you mentioned also the tax benefit that is helping with the bottom line. Any other efficiencies that we should be aware of?