Ooma Inc Q3 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 : Great to see the company hitting another record EBITDA margin during the quarter here. It looks like there's a healthy step-up in profitability in fiscal 4Q as well with the FluentStream acquisition closing. Is that because is there a significantly higher subscription and services gross margin components? Or I'm just kind of curious like below the revenue line, what gets you to that big jump up in EPS and EBITDA for fiscal 4Q?

Question: Josh Nichols - B. Riley Securities Holdings Inc - Analyst : Appreciate the context. And then I know obviously, FluentStream is closed, but you're still waiting on Phone.com, which is in the guidance, obviously, for the fourth quarter. Eric, you mentioned that there's -- like those numbers that you kind of laid out in terms of full year run rate numbers for those two acquisitions don't include any synergies. Is there any way for you to maybe kind of quantify any expectations that you may be able to see around those? Or is this something that you think you may start to see some synergy benefits in like the second half of next fiscal year or a little bit longer?

Question: Eric Martinuzzi - Lake Street Capital Markets LLC - Analyst : Yes. I wanted to understand on the legacy business, given the Q4 guide was a little bit below where we were expecting. Shig, I think you mentioned that there were some AirDial pushouts. I've got -- basically, between what I was looking for and what you guys guided to on the legacy business, I'm off by about $1.5 million. Is that all attributable to AirDial pushouts?

Question: Eric Martinuzzi - Lake Street Capital Markets LLC - Analyst : Okay. And is this something -- I know you've been at this for a couple of years now with the AirDial. Is this a different behavior than 12 months ago? Just kind of a one-off? Or do you think there's something -- a read-through on the macro?

Question: Eric Martinuzzi - Lake Street Capital Markets LLC - Analyst : Got you. And Eric, post close, I realize we've only technically owned FluentStream for a week now. But what are your intentions or what

Question: Kincaid LaCorte - Citizens JMP Securities LLC - Analyst : Great. This is Kincaid on for Patrick. Congratulations on the quarter, guys. Eric, I just had a question on the Phone.com acquisition call, you had mentioned that you had very significant AI developments in the works. Could you give us any color on what that looks like?

Question: Kincaid LaCorte - Citizens JMP Securities LLC - Analyst : Spectacular. And then a quick follow-up. This is your eighth acquisition in 11 years. I'm just curious if there's any learnings going from the first one until now that you can highlight for us?

Question: Matthew Harrigan - Benchmark Company LLC - Analyst : This is just a [nit], but you're so careful on guidance. Do you have any feel for what the non-GAAP charges on the acquisition FluentStream would be? The noncash comp and the -- sorry, the stock compensation and the acquisition expenses, I assume it might be high six figures. And then secondly, the Vegas hotel, more than 1,000 rooms, is that presumably a gaming company with material other assets outside Las Vegas where you could get further penetration?

Question: Matthew Harrigan - Benchmark Company LLC - Analyst : And are you seeing anything on the SMB side that gives you pause on the economy to the extent that, that business is economically sensitive?

Question: Arjun Bhatia - William Blair Capital Partners - Analyst : Eric, I'm just curious, you're kind of acquiring FluentStream and Phone.com, presumably, they'll be -- you'll be integrating those and working through the acquisitions at the same time. They're decent-sized deals. And you've obviously done M&A in the past, but you're going to have to deal with these two together. Can you just give us kind of your capacity to absorb both businesses at the same time throughout fiscal '27?

Question: Arjun Bhatia - William Blair Capital Partners - Analyst : Understood. That's very helpful. And then just on the business segment, you obviously had the nice win with the hotel in Vegas. When you're looking at the competitive dynamics there, just curious, where are you seeing the most sort of incremental share gains from? Like who are the incumbents you're booting out there? And how is that competitive landscape changed over the last year or so?