Ooma (OOMA) Financials

Ooma’s latest quarter shows a business that is still growing revenue and generating positive operating cash flow, but profitability remains thin and the balance sheet has become more leveraged over the last year. In Q1 2027, revenue rose to $81.1 million from $74.6 million a year earlier, while net income improved to $2.6 million. Cash from operations was also solid at $6.4 million. However, the company’s cash balance fell quarter over quarter, debt remains meaningful, and the business still carries a large amount of acquired intangible assets and goodwill on the balance sheet.

Here are the main takeaways for retail investors:

• Revenue increased to $81.1 million in Q1 2027, up from $74.6 million in Q4 2026 and $65.0 million in Q1 2026, showing continued top-line growth.
• Gross profit rose to $50.7 million in Q1 2027, with gross margin near 62%, indicating healthy underlying product/service economics.
• Operating cash flow improved to $6.4 million in Q1 2027 versus $3.7 million in Q1 2026, a good sign for cash generation.
• Net income improved sharply year over year to $2.6 million from a $141,000 loss in the prior-year quarter.
• The company generated positive free-cash-flow-like results after capital spending, with relatively modest capex of $1.5 million in the quarter.
• Cash and equivalents were $17.2 million at the end of Q1 2027, which is still adequate, but not especially large for a company with this cost structure.
• Deferred revenue remains a steady source of operating support, with $17.1 million in current deferred revenue and $11.0 million in other noncurrent operating liabilities-related items.
• Share count has stayed relatively stable in the mid-27 million range, so dilution has not been a major issue recently.
• Cash fell by $3.0 million during Q1 2027, largely because financing outflows exceeded operating cash generation.
• Total liabilities were $131.0 million, including $52.9 million of debt, so leverage is still a notable factor investors need to watch.
• The company’s retained earnings remain deeply negative at -$131.1 million, reflecting years of cumulative losses.
• Goodwill and intangible assets remain large at $109.7 million combined, which means a big portion of assets depends on acquisition-related values.
• Operating income was only $3.5 million in Q1 2027 after just $2.1 million in Q4 2026, so profitability is still narrow and could easily swing with cost pressure.

Longer-term trend: Ooma has improved meaningfully from the weaker results seen in 2024 and early 2025, when quarterly net losses were common. Revenue has trended upward, operating cash flow has generally remained positive, and the most recent quarter shows real progress on profitability. Still, this is not a high-margin or highly capital-light story yet. Investors should view Ooma as a company with improving fundamentals, but one that still faces execution risk because earnings remain modest relative to revenue and leverage is not trivial.