Ooma
Cut-price internet phone service for small businesses and homes, plus a box that keeps fire alarms and elevator phones working once the copper line is switched off.
Our viewNeutral Medium conviction
The scores
The profile · 1-4
Growth3/4 ↑
Revenue up 25%, but two-thirds was bought; own growth is about 8%, up from about 4% a year earlier, so Growing, not Compounding.
Business quality2/4 →
Retention flat at 99%, subscriptions end without penalty and carriers sell their own copper boxes; Ooma's top survey rank is the case for 3.
Financial position3/4 ↑
Net debt of $29.5M is under one year of adjusted EBITDA and free cash covers it; floating-rate covenants stop it being Self-funding.
Execution record3/4 ↑
Eight straight quarters above estimates and a raised 2027 guide, but the AirDial goal carries no date or disclosure to be held to.
Per share capture3/4 →
Buybacks keep the count flat and deals were paid in cash, but share pay of about $15M takes half the free cash.
Potential2/4 ↑
The copper pond is real and emptying fast, but carriers sell rival boxes, nothing is contracted and Ooma's position is undisclosed.
Risk profile3/4 →
No customer is 10%; AirDial leans on AT&T's retirement pace and engineering on Russian contractors, both survivable, so Concentrated.
Valuation3/4 ↓
About 27 times the 2027 plan needs 16% yearly growth in cash after share pay, which widening margins can deliver without AirDial's goal.
Evidence quality3/4 →
Figures are filed and copper counts come from the FCC, but AirDial's size is my inference and its growth management's word.
The bet · 2-3 years
Priced for success0.9×
If it works 0.9× · if it fails you keep about 65%.
The Verdict
We rate Ooma neutral. It sells cheap internet phone service to small businesses and homes, plus AirDial, a box that keeps alarms and lift phones working once old copper lines are switched off. The business is mixed: steady and profitable, but most recent growth was bought, and AirDial's size is not disclosed. The price is fair, not cheap: about right only if growth stays fast. As a bet it is fragile: even if AirDial keeps growing fast, today's money shrinks a little; if it stalls, about two thirds is left. We think the plan is credible, but the product meant to deliver it is too hidden to count on.
The long caseCarriers are switching off the old copper lines that alarms, elevators and fax machines still use, and each one needs a replacement box and a monthly service.
The evidence under this - 8 claims
C02facthigh confidence
Revenue was $83.2M in Q2 fiscal 2027, up 25% from $66.4M, and 91% of it was subscriptions and services.
C03management claimmedium confidence
Management says revenue grew 8% in Q2 fiscal 2027 without FluentStream and Phone.com, and business subscriptions also grew 8% without them.
against this
- The 10-Q gives the acquisitions' contribution only for the half year ($22.4M), so the Q2 figure alone cannot be checked against a filing.
- Late in Q2 Ooma took actions to combine Phone.com with Ooma, and customers moving between brands would blur the line between bought and own revenue.
C07management claimmedium confidence
Management says AirDial service revenue grew 75% in Q2 fiscal 2027 and 80% in Q1, and about 70% from a year earlier at its 2026-09-29 Investor Day; Ooma files no AirDial revenue or line count.
sourceQ2 fiscal 2027 results release (8-K Exhibit 99.1)primaryQ2 fiscal 2027 earnings call transcript (FMP)primaryQ1 fiscal 2027 earnings call transcript (FMP)primaryQuartr - Ooma Investor Day 2026 summary (an AI summary of…secondary
against this
- Asked in the Q1 fiscal 2027 call whether AirDial went from 2,000 to 4,000 lines or 10,000 to 20,000, management declined to give a number.
- Growth rates on an undisclosed base cannot be checked against any filing.
- The Investor Day's 70% reached this repository only through a vendor's AI summary (S25); the deck, transcript and investors.ooma.com pages could not be read.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; management's 70% added from S25, and the filings still carry no AirDial figure
C43inferencemedium confidence
AirDial is still small: a broker's account of the 2026-09-29 Investor Day puts it at about $20M of recurring revenue a year, about 7% of the total, inside this thesis's own ceiling of about $7M a quarter.
against this
- If the rest of Ooma Business shrank, for example through the IWG churn (C36), AirDial could be larger than this bound.
- AirDial hardware and installation are counted in product revenue, $7.6M in Q2, which this bound leaves out.
- The $20M reached this repository only through a news report of a broker's note, which does not say whether management or the broker computed it; Ooma files no such figure.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; a broker's relay of the Investor Day, about $20M a year (S26), sits inside the inferred ceiling
C22estimatemedium confidence
At $21.77, Ooma's $600.9M market value is about 38.8 times trailing cash after share pay, and about 27 times the fiscal 2027 plan's roughly $22M.
derived27.6M shares (S03 cover) at the $21.77 close of 2026-09-25 (S16) is $600.9M; over $15.5M (C21) is 38.8. The plan: adjusted EBITDA guided at $47.5M-$48.3M (S04) less $14.7M guided share pay, about $6.8M of capital spending, about $3M of interest on $47M of debt and about $1M of cash tax is about $22M.
against this
- On plain free cash flow the multiple is 19.8, and net debt of $29.5M adds about 5% to what a buyer pays for the business.
- The fiscal 2027 plan figure is my arithmetic on guidance, not a company forecast; working capital could move it by several million.
C21estimatehigh confidence
Share pay was about $14.8M over the same four quarters, so free cash flow after share pay was about $15.5M: share pay took half.
derivedStock compensation and related taxes of $15.2M in fiscal 2026 (S01) less $7.8M in the first half of fiscal 2026 plus $7.4M in the first half of fiscal 2027 (S02) is $14.8M; $30.3M (C20) less $14.8M is $15.5M.
against this
- Share pay fell from $18.2M in fiscal 2025, and buybacks have held the share count flat, so some would count the buyback cash rather than the expense.
- Guided fiscal 2027 share pay of $14.7M is slightly lower, so the burden is stable rather than rising.
C24management claimmedium confidence
In August Ooma raised fiscal 2027 guidance to revenue of $332.0M-$333.5M and non-GAAP net income of $39.5M-$40.3M, from $321M-$325M and $35.5M-$37.0M in March.
sourceQ2 fiscal 2027 results release (8-K Exhibit 99.1)primaryQ4 and fiscal 2026 results release (8-K Exhibit 99.1)primary
against this
- The guide includes a full year of the two acquisitions, about $45M of revenue, so it implies roughly 8% growth without them (C25).
- Management said it started the year cautious; a raise from a cautious base is partly the caution unwinding.
C08management claimlow confidence
Management's goal is 300,000 AirDial lines earning $100M a year, about $28 a line a month; it repeated the goal at its 2026-09-29 Investor Day as an intermediate one, still with no date.
sourceQ3 fiscal 2026 earnings call transcript (FMP)primaryQuartr - Ooma Investor Day 2026 summary (an AI summary of…secondary
against this
- The goal carries no date and Ooma files no AirDial line count, so progress toward it cannot be measured.
- At about $28 a month the goal is priced above Ooma's $16.95 average revenue per user, and carriers selling their own boxes may compete on price.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; the goal was repeated (S25), still undated
The company
A small business pays Ooma a monthly fee per user for a phone system that runs over the internet, on desk phones, computers and mobiles. Homes buy a base station that turns their broadband into a landline.
The newer product is AirDial, a box with a mobile-network radio. It plugs into a fire alarm panel, an elevator phone or a fax machine and keeps it working once the phone company switches off the copper line.
The evidence under this - 3 claims
C01facthigh confidence
Ooma sells internet phone service by monthly subscription: cloud phone systems to small businesses, AirDial boxes that replace copper lines, and home phones.
C09facthigh confidence
The FCC counted 8.61M business copper phone lines in June 2025, down from 9.39M in December 2024; all switched lines fell 17.9% a year.
C11facthigh confidence
In March 2026 the FCC gave carriers a 31-day automatic grant on applications to stop a service, which speeds copper retirement.
How it makes money
Almost all of it is subscriptions: 91% of the $83.2M it took in last quarter was monthly service fees, about 70% from businesses and 28% from homes. The phones and boxes are sold at a loss, 25 cents lost on every dollar of devices, to win the subscription behind them.
The evidence under this - 3 claims
C02facthigh confidence
Revenue was $83.2M in Q2 fiscal 2027, up 25% from $66.4M, and 91% of it was subscriptions and services.
C38facthigh confidence
In Q2 fiscal 2027 Ooma Business was about 70% of revenue and Ooma Residential about 28%.
C30facthigh confidence
Ooma sells its devices at a loss: product gross margin was minus 25% in Q2 fiscal 2027, and management guides about minus 40% for the year.
Where the money comes from, stream by stream
| Stream | Share of sales (Q2 fiscal 2027) | How it earns it |
|---|---|---|
| Ooma Business | about 70% | Monthly cloud phone subscriptions for small businesses, AirDial copper-line replacement, and the acquired FluentStream, Phone.com, OnSIP and 2600Hz platforms. |
| Ooma Residential | about 28% | Home phone service over the internet through the Ooma Telo box, with free basic calling and paid premier and LTE plans. |
| Other, mainly Talkatone | about 2%, the remainder | Ads and prepaid calling in the Talkatone mobile app and other small services. |
Who runs it
Eric Stang has run Ooma since 2009 and Shig Hamamatsu its finances since 2021. Insiders own about a tenth of the company, most of it Stang's, and have been selling. The yearly bonus rides on sales and a cash-profit measure; the share awards simply vest over four years, so nothing in the pay plan rewards growth per share.
The evidence under this - 4 claims
C54facthigh confidence
Eric Stang has been chief executive since January 2009 and chairman since December 2014; Shig Hamamatsu has been chief financial officer since September 2021, after the same role at Accuray.
C55facthigh confidence
As of April 10, 2026 the ten directors and executive officers owned 9.9% including options and units vesting within 60 days; Eric Stang 6.1%, the largest insider; Trigran Investments at 8.1% and BlackRock at 6.8% were the only holders above 5%.
against this
Stang's 6.1% includes 320,000 vested options; insiders sold 26 times and bought none in the year, Stang 76,322 shares in September (C34).
C56facthigh confidence
Ooma's fiscal 2026 bonus paid on revenue and adjusted EBITDA, up to 200% of target; excluding the acquisitions it scored about 80%, revenue $267.5M against $271.6M, and the committee then added discretionary bonuses. Long-term awards are time-vesting RSUs over four years, with no performance condition.
against this
- The discretionary top-up after a formula miss, explicitly for the acquisitions, weakens the revenue goal as a test.
- No equity pays on growth, cash after share pay or return on capital; RSUs pay as long as the executive stays.
C34factmedium confidence
Insiders sold 26 times and bought none in the year; the chief executive sold 76,322 shares at about $23 on 2026-09-10 to 14, not under a plan.
sourceForm 4 filings, Ooma insiders, December 2025 to September…primaryForm 10-Q for the quarter ended July 31, 2026primary
against this
- The chief executive adopted a Rule 10b5-1 plan on July 9, 2026 for up to 417,363 shares (S03); its cooling-off period likely runs to October, so the September sales sit outside it rather than signalling a new view.
- He received a 300,000-share award in March 2026, so the sales are a small part of his holdings.
Why it wins, and who could beat it
Why customers come back
Once a business has set up its extensions, call routing and desk phones, or wired a box into a fire panel, moving to a rival means doing that work again. That keeps most customers in place.
But the hold is weak. Most can cancel without penalty and take their number with them, and they are not spending more: existing customers paid 99 cents in July 2026 for every dollar a year earlier, down from 100 cents the year before.
The evidence under this - 3 claims
C42inferencemedium confidence
Switching costs are real but modest: customers mostly stay, yet they can leave without penalty and keep their phone number, and they are not spending more.
derivedRetention of 99% (C06), subscriptions cancellable without penalty (C17), and number porting, which Ooma's own 10-K lists as a service carriers must provide (S01).
against this
- An AirDial box wired into a fire panel or elevator is costly to remove, so AirDial may hold customers better than the cloud phone.
- IT professionals ranked Ooma first of six phone providers in the 2026 Spiceworks survey, which Ooma reports (S19).
C17facthigh confidence
Ooma's customers can in most cases end their subscriptions without penalty.
C06facthigh confidence
Net dollar subscription retention was 99% at July 31, 2026, against 100% a year earlier: existing customers are not spending more.
The threat
The phone companies switching off copper sell their own replacement. AT&T, which retires most of the lines today, sells a box built by DataRemote, and Verizon sells one for alarm and elevator lines. In office phones, RingCentral already sells the AI receptionist Ooma has just launched.
The evidence under this - 3 claims
C13facthigh confidence
AT&T sells its own copper replacement built by DataRemote, Verizon sells one for alarm and elevator lines, and Napco sells cellular alarm communicators.
C12management claimmedium confidence
Management says most retiring lines today are AT&T's and that Verizon is not yet retiring many.
against this
Verizon's business site already sells its own replacement for alarm, elevator and fax lines (S13), so when Verizon retires copper it has a product ready.
C15facthigh confidence
RingCentral sells an AI Receptionist that answers calls, the same job Ooma's new AI Receptionist does.
The rivals: T, VZ, INSG, NSSC, RNG, TMUS, EGHT, CXDO, CMCSA, ZM.
Who else does this, rival by rival
| Ticker | Rival | Where it competes | How far along | Priced against it |
|---|---|---|---|---|
| T | AT&T Phone - Advanced, on DataRemote's VAB-1 boxPriced against it: Shown, not counted | Ooma AirDial | On sale | Shown, not counted |
| VZ · INSG | Verizon's POTS replacement on Inseego and ATEL devicesPriced against it: Shown, not counted | Ooma AirDial | On sale | Shown, not counted |
| NSSC | Napco StarLink cellular communicatorsPriced against it: Yes | Ooma AirDial | On sale | Yes |
| RNG | RingCentral RingEX with AI ReceptionistPriced against it: Yes | Ooma Business cloud phone systems | On sale | Yes |
| VZ · T · TMUS | Mobile phone service from Verizon, AT&T and T-MobilePriced against it: Shown, not counted | Ooma Residential | On sale | Shown, not counted |
| EGHT | 8x8Priced against it: Yes | - | On sale | Yes |
| CXDO | CrexendoPriced against it: Yes | - | On sale | Yes |
| CMCSA | ComcastPriced against it: Shown, not counted | - | On sale | Shown, not counted |
| ZM | Zoom CommunicationsPriced against it: Shown, not counted | - | On sale | Shown, not counted |
How big it could get
How big this could get
The FCC, the US telecoms regulator, counted 8.61M business copper lines in June 2025, down from 9.39M six months earlier; AT&T alone still had 2.1M locations on copper at the end of 2025. Ooma's goal of 300,000 AirDial lines earning $100M a year prices a line at about $28 a month.
Nobody counts how many of those lines feed an alarm or elevator that truly needs a box, so the real market is unknown.
The evidence under this - 3 claims
C09facthigh confidence
The FCC counted 8.61M business copper phone lines in June 2025, down from 9.39M in December 2024; all switched lines fell 17.9% a year.
C10facthigh confidence
AT&T had 2.1M customer locations on copper phone lines at the end of 2025, down from 2.7M a year earlier, and plans to exit copper.
C08management claimlow confidence
Management's goal is 300,000 AirDial lines earning $100M a year, about $28 a line a month; it repeated the goal at its 2026-09-29 Investor Day as an intermediate one, still with no date.
sourceQ3 fiscal 2026 earnings call transcript (FMP)primaryQuartr - Ooma Investor Day 2026 summary (an AI summary of…secondary
against this
- The goal carries no date and Ooma files no AirDial line count, so progress toward it cannot be measured.
- At about $28 a month the goal is priced above Ooma's $16.95 average revenue per user, and carriers selling their own boxes may compete on price.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; the goal was repeated (S25), still undated
The results
The numbers
Is it growing?Steady
Sales grew 17% over the twelve months to Jul 2026, faster than the 6.5% in the year to Jan 2026.
Is it profitable?Thin
Operating margin is 3.6%, up from −1.7% in the year to Jan 2024.
Does growth pay off?Pays off
Running costs take 58¢ of each sales dollar, down from 63¢ in the year to Jan 2022.
Does it earn good returns?Low
Each dollar put into the business earns 9.4% a year after tax, up from 3.6% in the year to Jan 2026.
Is it making cash?Solid
It turned 9.9% of sales into free cash, $30.3M over the last twelve months.
Is the balance sheet safe?Light debt
It owes $28.9M more than the cash it holds, about 0.8 years of the cash its operations bring in.
Are shares being diluted?Diluting
The share count rose 23% in 4.5 years, and pay in shares costs 4.7% of sales.
All the numbers
Filed figures from the company's 10-K and 10-Q, read 2026-10-04. Fiscal years end in January.
| Jan 2022 | Jan 2023 | Jan 2024 | Jan 2025 | Jan 2026 | 12 mo to Jul 2026 | |
|---|---|---|---|---|---|---|
| Size and growth | ||||||
| Sales | $192M | $216M | $237M | $257M | $274M | $307M |
| Sales growth | +14% | +12% | +9.5% | +8.5% | +6.5% | +17% |
| Profit | ||||||
| Gross margin | 62% | 64% | 62% | 61% | 61% | 61% |
| Operating margin | −1.0% | −2.7% | −1.7% | −2.7% | 1.6% | 3.6% |
| Net margin | −0.9% | −1.7% | −0.4% | −2.7% | 2.4% | 3.6% |
| What growth costs, per sales dollar | ||||||
| Research and development | 20% | 21% | 21% | 21% | 18% | 18% |
| Sales and marketing | 30% | 32% | 31% | 30% | 29% | 27% |
| General and admin | 12% | 13% | 12% | 12% | 13% | 12% |
| Pay in shares | 6.6% | 6.4% | 6.3% | 7.0% | 5.5% | 4.7% |
| Capital spending | 2.2% | 2.4% | 2.6% | 2.5% | 2.0% | 2.2% |
| Cash | ||||||
| Cash from operations | $6.66M | $8.77M | $12.3M | $26.6M | $27.7M | $37.1M |
| Free cash flow | $2.45M | $3.56M | $6.11M | $20.2M | $22.1M | $30.3M |
| Balance sheet | ||||||
| Cash and short-term investments | $31.3M | $26.9M | $17.5M | $17.9M | $20.1M | $17.5M |
| Debt | - | - | $16.0M | $0 | $57.9M | $46.5M |
| Net cash | - | - | $1.54M | $17.9M | −$37.7M | −$28.9M |
| Returns and shares | ||||||
| Return on capital | - | - | - | - | 3.6% | 9.4% |
| Shares (diluted) | 23.5M | 24.5M | 25.6M | 26.7M | 28.1M | 28.9M |
What growth costs
For years Ooma spent about as much to win each new dollar of sales as the last, so growing did not make it more profitable. That began to change in the last year, partly because research spending was cut, and the company has just turned a small profit.
The evidence under this - 2 claims
C53facthigh confidence
Per sales dollar, R&D was 21.4 cents in fiscal 2021 and 21.1 in fiscal 2025, then 18.4 in fiscal 2026 and 18.2 over the four quarters to July 2026; sales and marketing from 30.1 to a 32.2 peak in fiscal 2023, then 28.6 and 27.4; general and admin held near 12; stock pay fell from 7.3 to 4.7.
sourceForm 10-K for the fiscal year ended January 31, 2023primaryForm 10-K for the fiscal year ended January 31, 2026primaryForm 10-Q for the quarter ended July 31, 2026primary
against this
- R&D dollars fell from $54.3M in fiscal 2025 to $50.3M in fiscal 2026, so part of the gain is a cut rather than scale.
- The acquired businesses arrived from December 2025 with their own cost bases, so the ratios after fiscal 2026 mix two companies.
C19facthigh confidence
In Q2 fiscal 2027 GAAP net income was $3.0M; non-GAAP net income of $10.2M added back $3.8M of share pay and $3.0M of acquisition amortisation.
The last report (26 Aug)
Quarter ended July 2026, filed figures.
25%
Sales growth
against the same quarter a year earlier
2.6%
Growth from the quarter before
against 8.8% the quarter before that
5¢
Operating profit
per dollar of sales
On the surface the second quarter of fiscal 2027, which ended in July 2026, was strong. Sales rose 25% to $83.2M, earnings beat the forecast for the eighth quarter running, and management raised its full-year guidance.
Underneath, most of the growth was bought. Without FluentStream and Phone.com, sales grew 8%. Reported profit was $3.0M; the $10.2M the company headlines adds back pay given in shares and the cost of the purchases.
What it did to the thesisIt supported the plan but showed most growth was bought, with the company's own sales growing slowly and real profit far below the headline figure. That keeps the view Neutral: the price is fair, and the copper-replacement product meant to speed growth is still not disclosed.
The quarter in detail
Sales growth from the previous quarter, filed figures.
Earnings per share $0.35 against $0.33 expected; $0.10 as filed, the gap being what the company adds back.
The evidence under this - 5 claims
C02facthigh confidence
Revenue was $83.2M in Q2 fiscal 2027, up 25% from $66.4M, and 91% of it was subscriptions and services.
C44facthigh confidence
Ooma's adjusted earnings per share beat the average analyst estimate in each of the last eight quarters, most recently $0.35 against $0.33.
sourceOOMA research pack (FMP, FINRA, SEC Form 4), frozensecondaryQ2 fiscal 2027 results release (8-K Exhibit 99.1)primary
against this
Management says it guides cautiously, so beating its own guide partly measures the caution; GAAP earnings per share were $0.10 in Q2 fiscal 2027.
C24management claimmedium confidence
In August Ooma raised fiscal 2027 guidance to revenue of $332.0M-$333.5M and non-GAAP net income of $39.5M-$40.3M, from $321M-$325M and $35.5M-$37.0M in March.
sourceQ2 fiscal 2027 results release (8-K Exhibit 99.1)primaryQ4 and fiscal 2026 results release (8-K Exhibit 99.1)primary
against this
- The guide includes a full year of the two acquisitions, about $45M of revenue, so it implies roughly 8% growth without them (C25).
- Management said it started the year cautious; a raise from a cautious base is partly the caution unwinding.
C03management claimmedium confidence
Management says revenue grew 8% in Q2 fiscal 2027 without FluentStream and Phone.com, and business subscriptions also grew 8% without them.
against this
- The 10-Q gives the acquisitions' contribution only for the half year ($22.4M), so the Q2 figure alone cannot be checked against a filing.
- Late in Q2 Ooma took actions to combine Phone.com with Ooma, and customers moving between brands would blur the line between bought and own revenue.
C19facthigh confidence
In Q2 fiscal 2027 GAAP net income was $3.0M; non-GAAP net income of $10.2M added back $3.8M of share pay and $3.0M of acquisition amortisation.
What management did with the money
It borrowed $65M to buy FluentStream for about $50.5M and Phone.com for about $22.7M in December 2025, and by July 2026 owed $47.0M against $17.5M of cash. Buybacks have only held the share count flat.
Insiders in 2026Q2: 6 purchases and 21 sales, from their Form 4 filings.
The evidence under this - 3 claims
C27facthigh confidence
Ooma bought FluentStream for about $50.5M in December 2025 and Phone.com for about $22.7M, funded by a $65M term loan.
C26facthigh confidence
At July 31, 2026 Ooma owed $47.0M on a term loan due December 2030 at a floating rate and held $17.5M of cash: net debt $29.5M.
C28facthigh confidence
Ooma had 27.6M shares at August 28, 2026; buybacks kept the count flat, with $2.2M left of a $24M authorisation.
The price, and where we disagree
In short. Fair, not cheap. The price already pays for this year's plan and fast growth after it, and the product meant to deliver that growth is too hidden in the accounts to count on.
Share price
$20.43
close,
Price for each $1 of spare cash
19.7
rivals' middle 13.5
Spare cash as a share of the price
5.1%
its 6-year normal 1.6%
The shares rose 71.4% in a year while sales per share rose 15.8%: mostly buyers paying more for each dollar of sales. The market has already bought the copper story.
The December results are the next date that could show how big that story is; the September Investor Day added a Canadian carrier, TELUS, as a reseller with up to 300,000 lines to convert but no committed volume. Underneath, the switch-off is speeding up: since March 2026 the FCC approves carriers' requests to stop old services automatically after 31 days.
The evidence under this - 3 claims
C31facthigh confidence
Over the year to 2026-09-25 the price rose 71.4% while sales per share rose 15.8%; buyers paying more per dollar of sales explains 48.0%.
C11facthigh confidence
In March 2026 the FCC gave carriers a 31-day automatic grant on applications to stop a service, which speeds copper retirement.
C50management claimlow confidence
At its 2026-09-29 Investor Day, management reported AirDial recurring revenue up 70% and, by a broker's account, about $20M a year, about 7% of the total; a TELUS resale partnership in Canada targeting up to 300,000 lines with go-live in the second half of the fiscal year; and over 8 million US business lines still to replace.
sourceQuartr - Ooma Investor Day 2026 summary (an AI summary of…secondaryInvesting.com: B.Riley reiterates Buy on Ooma stock, cites…tertiary
against this
- Both copies that answered relay the event second-hand, a vendor's AI summary (S25) and a news report of a broker's note (S26), one origin; the deck and transcript could not be read.
- Up to 300,000 lines is TELUS's base to convert, not an order: no volume is committed, and TELUS converts with its own technicians.
- 2026-10-01editedInvestor Day review: a second copy (S26) agrees on TELUS's 300,000 lines and the second-half go-live and adds about $20M of AirDial recurring revenue
The betPriced for success
If it works
0.9×
from today's value, valued like its peers
If it fails
keep 65%
of today's market value: the rest of the company, less its debt
How we read the multiple
Ooma's spare cash, after running costs and investment, was $30.3M over the last year, and the price is about 20 times that. But staff paid in shares are a real cost:
- Take off $14.8M of share pay and about $15.5M is left.
- The $600.9M price is about 39 times that, and 27 times this year's plan of about $22M.
- To earn 9% a year, it must grow about 16% a year for five years.
- The business grows about 8% by itself, so AirDial, its fastest grower, must fill the gap.
Against its own history. Cheaper than its own past on cash and profit, a little dearer on sales. That is because for years it barely made a profit, not because it has become cheap.
The evidence under this - 5 claims
C20estimatehigh confidence
Over the four quarters to Q2 fiscal 2027 operating cash flow was $37.1M and capital spending $6.8M, leaving free cash flow of $30.3M.
derivedSum of filed quarterly cash flows: operating $6.9M, $10.7M, $6.4M and $13.1M; capital spending $1.5M, $1.6M, $1.5M and $2.3M, for Q3 fiscal 2026 to Q2 fiscal 2027 (S01, S02, S03).
against this
Q2's $13.1M included $2.9M from paying suppliers later and a $3.4M build of inventory; working capital timing moves any single quarter by several million.
C21estimatehigh confidence
Share pay was about $14.8M over the same four quarters, so free cash flow after share pay was about $15.5M: share pay took half.
derivedStock compensation and related taxes of $15.2M in fiscal 2026 (S01) less $7.8M in the first half of fiscal 2026 plus $7.4M in the first half of fiscal 2027 (S02) is $14.8M; $30.3M (C20) less $14.8M is $15.5M.
against this
- Share pay fell from $18.2M in fiscal 2025, and buybacks have held the share count flat, so some would count the buyback cash rather than the expense.
- Guided fiscal 2027 share pay of $14.7M is slightly lower, so the burden is stable rather than rising.
C22estimatemedium confidence
At $21.77, Ooma's $600.9M market value is about 38.8 times trailing cash after share pay, and about 27 times the fiscal 2027 plan's roughly $22M.
derived27.6M shares (S03 cover) at the $21.77 close of 2026-09-25 (S16) is $600.9M; over $15.5M (C21) is 38.8. The plan: adjusted EBITDA guided at $47.5M-$48.3M (S04) less $14.7M guided share pay, about $6.8M of capital spending, about $3M of interest on $47M of debt and about $1M of cash tax is about $22M.
against this
- On plain free cash flow the multiple is 19.8, and net debt of $29.5M adds about 5% to what a buyer pays for the business.
- The fiscal 2027 plan figure is my arithmetic on guidance, not a company forecast; working capital could move it by several million.
C23estimatemedium confidence
To return 9% a year and be worth 20 times cash after share pay in fiscal 2032, that cash must grow about 16% a year from the 2027 plan.
derived$600.9M grown at 9% for five years is $925M; at 20 times, cash after share pay must be about $46M in fiscal 2032, against about $22M in fiscal 2027 (C22): 2.06 times, or 15.6% a year. The 9% return and 20 times exit are my assumptions.
against this
- Non-GAAP net income is guided up 36% in fiscal 2027, so near-term profit growth is well above 16%.
- A higher exit multiple, which a faster AirDial would earn, lowers the growth needed.
C03management claimmedium confidence
Management says revenue grew 8% in Q2 fiscal 2027 without FluentStream and Phone.com, and business subscriptions also grew 8% without them.
against this
- The 10-Q gives the acquisitions' contribution only for the half year ($22.4M), so the Q2 figure alone cannot be checked against a filing.
- Late in Q2 Ooma took actions to combine Phone.com with Ooma, and customers moving between brands would blur the line between bought and own revenue.
Priced against its rivals
The competitors its own annual report names, each confirmed against the rival's filing. Measured on price for each $1 of spare cash, cheapest first:
| Ticker | Company | price for each $1 of spare cash |
|---|---|---|
| EGHT | 8x8 | 6.6× |
| RNG | RingCentral | 9.8× |
| CXDO | Crexendo | 17.1× |
| OOMA | Ooma | 19.7× |
| NSSC | Napco Security Technologies | 21.5× |
| CMCSA | Comcast not in the median | 3.8× |
| VZ | Verizon Communications not in the median | 9.2× |
| T | AT&T not in the median | 9.9× |
| ZM | Zoom Communications not in the median | 13.7× |
The middle of the other 4 is 13.5. Comcast Corporation, Verizon Communications Inc., AT&T Inc., Zoom Communications, Inc. compete with it in one product line inside a much bigger company, so their price says little about this business and they are not counted in the middle. Ooma, Inc. is 2nd dearest of 5.
Rivals' figures come from a data provider, so read the spread of the group rather than any single pair.
Both larger cloud phone rivals cost less for each dollar of spare cash, and Ooma sits above the group's middle, so the higher price is Ooma's own.
Private or foreign rivals that cannot be priced: Nextiva, Intermedia, Dialpad, Alianza, Vonage (Ericsson), Granite Telecommunications, MetTel, DataRemote, Microsoft (Teams Phone), Alphabet (Google Voice).
The bet: what it pays if it works
This bet is on one business only: AirDial, the box that replaces an old copper phone line for an alarm or a lift. Cloud phones and home phones are counted separately, at the price this thesis already calls fair for them.
That leaves part of today's price riding on AirDial, and even if it keeps growing fast for two more years the company is worth less than today. That makes it an expensive bet; if AirDial stalls, the rest still covers more than half the price.
| Ooma AirDial revenue in two to three years | AirDial lines a year needed | Valued like its peers | Like the cheapest |
|---|---|---|---|
| $28.00M | about 84.1K at 100% kept | 0.8× | 0.7× |
| $63.00M (the big win) | about 189.2K at 100% kept | 0.9× | 0.7× |
| $86.00M | about 258.3K at 100% kept | 1.0× | 0.7× |
| $120.00M (market forecast) | about 360.4K at 100% kept | 1.2× | 0.7× |
The FCC's business copper count falls 18% a year and AT&T targets exit by 2029, retiring about 5.1M lines; at 7% Ooma serves 360,000, earning about $120M, against carriers' own boxes, MetTel, Granite and Napco. On that forecast, $120.00M pays 1.2× from today's value: an Expensive bet on the market case. Ooma AirDial would be worth about $294.00M, 1.5× what the price pays for it.
To pay 2× (a Fair bet) it would need about $308.95M of Ooma AirDial revenue (about 927.8K AirDial lines a year); to pay 5× (a Cheap bet), about $996.27M of Ooma AirDial revenue (about 3.0M AirDial lines a year), at the same multiple.
Each row is Ooma AirDial alone, plus the rest of the company (Ooma Business cloud phone systems and Ooma Residential) counted at about $365.70M.
The steps it has to take
- Done AirDial service revenue growing faster than 50% a year: 80% in Q1 and 75% in Q2 fiscal 2027, by management's account
- Not started Ooma discloses AirDial revenue or lines due 2026-12-14
- Not started AirDial reaches 10% of revenue or more than 150,000 lines in service due 2028-03
- Not started AirDial service revenue reaches about $63M a year due 2029-03
The detail behind the label
Rating
Expensive
the big win's payoff against the 2× and 5× lines
Valued like the cheapest
0.7×
the same success, the lowest comparison
Cheap bet at about
$3.79
81% below the price (close, )
The option
0.8×
what Ooma AirDial is worth if it works, against what the price pays for it
Market case
1.2×
an expensive bet if the market forecast holds
The evidence under this - 5 claims
C07management claimmedium confidence
Management says AirDial service revenue grew 75% in Q2 fiscal 2027 and 80% in Q1, and about 70% from a year earlier at its 2026-09-29 Investor Day; Ooma files no AirDial revenue or line count.
sourceQ2 fiscal 2027 results release (8-K Exhibit 99.1)primaryQ2 fiscal 2027 earnings call transcript (FMP)primaryQ1 fiscal 2027 earnings call transcript (FMP)primaryQuartr - Ooma Investor Day 2026 summary (an AI summary of…secondary
against this
- Asked in the Q1 fiscal 2027 call whether AirDial went from 2,000 to 4,000 lines or 10,000 to 20,000, management declined to give a number.
- Growth rates on an undisclosed base cannot be checked against any filing.
- The Investor Day's 70% reached this repository only through a vendor's AI summary (S25); the deck, transcript and investors.ooma.com pages could not be read.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; management's 70% added from S25, and the filings still carry no AirDial figure
C43inferencemedium confidence
AirDial is still small: a broker's account of the 2026-09-29 Investor Day puts it at about $20M of recurring revenue a year, about 7% of the total, inside this thesis's own ceiling of about $7M a quarter.
against this
- If the rest of Ooma Business shrank, for example through the IWG churn (C36), AirDial could be larger than this bound.
- AirDial hardware and installation are counted in product revenue, $7.6M in Q2, which this bound leaves out.
- The $20M reached this repository only through a news report of a broker's note, which does not say whether management or the broker computed it; Ooma files no such figure.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; a broker's relay of the Investor Day, about $20M a year (S26), sits inside the inferred ceiling
C24management claimmedium confidence
In August Ooma raised fiscal 2027 guidance to revenue of $332.0M-$333.5M and non-GAAP net income of $39.5M-$40.3M, from $321M-$325M and $35.5M-$37.0M in March.
sourceQ2 fiscal 2027 results release (8-K Exhibit 99.1)primaryQ4 and fiscal 2026 results release (8-K Exhibit 99.1)primary
against this
- The guide includes a full year of the two acquisitions, about $45M of revenue, so it implies roughly 8% growth without them (C25).
- Management said it started the year cautious; a raise from a cautious base is partly the caution unwinding.
C21estimatehigh confidence
Share pay was about $14.8M over the same four quarters, so free cash flow after share pay was about $15.5M: share pay took half.
derivedStock compensation and related taxes of $15.2M in fiscal 2026 (S01) less $7.8M in the first half of fiscal 2026 plus $7.4M in the first half of fiscal 2027 (S02) is $14.8M; $30.3M (C20) less $14.8M is $15.5M.
against this
- Share pay fell from $18.2M in fiscal 2025, and buybacks have held the share count flat, so some would count the buyback cash rather than the expense.
- Guided fiscal 2027 share pay of $14.7M is slightly lower, so the burden is stable rather than rising.
C08management claimlow confidence
Management's goal is 300,000 AirDial lines earning $100M a year, about $28 a line a month; it repeated the goal at its 2026-09-29 Investor Day as an intermediate one, still with no date.
sourceQ3 fiscal 2026 earnings call transcript (FMP)primaryQuartr - Ooma Investor Day 2026 summary (an AI summary of…secondary
against this
- The goal carries no date and Ooma files no AirDial line count, so progress toward it cannot be measured.
- At about $28 a month the goal is priced above Ooma's $16.95 average revenue per user, and carriers selling their own boxes may compete on price.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; the goal was repeated (S25), still undated
Where we disagree with the market
The market believes
A copper-retirement growth story with rising profits: nine of fifteen analysts rate it a buy.
We believe
The plan is credible, but 8% growth of its own and an undisclosed AirDial make the price fair, not cheap.
Coverage quotes the adjusted profit and the 25% growth, and leaves out that two-thirds of that growth was bought and pay in shares takes half the cash.
The case against us is a company that keeps delivering, beating forecasts eight quarters running. Own growth above 10%, or AirDial disclosed at more than a tenth of sales, would prove the market right.
What analysts say, and the evidence
Analysts positive
86%
of 7, 1 Sep
Four months earlier
86%
of 7, 1 May
The evidence under this - 6 claims
C32factmedium confidence
Nine of fifteen analysts rate Ooma a buy and one a sell; the average target of the last month's two was $26.00 against $23.57 over the year.
C03management claimmedium confidence
Management says revenue grew 8% in Q2 fiscal 2027 without FluentStream and Phone.com, and business subscriptions also grew 8% without them.
against this
- The 10-Q gives the acquisitions' contribution only for the half year ($22.4M), so the Q2 figure alone cannot be checked against a filing.
- Late in Q2 Ooma took actions to combine Phone.com with Ooma, and customers moving between brands would blur the line between bought and own revenue.
C21estimatehigh confidence
Share pay was about $14.8M over the same four quarters, so free cash flow after share pay was about $15.5M: share pay took half.
derivedStock compensation and related taxes of $15.2M in fiscal 2026 (S01) less $7.8M in the first half of fiscal 2026 plus $7.4M in the first half of fiscal 2027 (S02) is $14.8M; $30.3M (C20) less $14.8M is $15.5M.
against this
- Share pay fell from $18.2M in fiscal 2025, and buybacks have held the share count flat, so some would count the buyback cash rather than the expense.
- Guided fiscal 2027 share pay of $14.7M is slightly lower, so the burden is stable rather than rising.
C44facthigh confidence
Ooma's adjusted earnings per share beat the average analyst estimate in each of the last eight quarters, most recently $0.35 against $0.33.
sourceOOMA research pack (FMP, FINRA, SEC Form 4), frozensecondaryQ2 fiscal 2027 results release (8-K Exhibit 99.1)primary
against this
Management says it guides cautiously, so beating its own guide partly measures the caution; GAAP earnings per share were $0.10 in Q2 fiscal 2027.
C24management claimmedium confidence
In August Ooma raised fiscal 2027 guidance to revenue of $332.0M-$333.5M and non-GAAP net income of $39.5M-$40.3M, from $321M-$325M and $35.5M-$37.0M in March.
sourceQ2 fiscal 2027 results release (8-K Exhibit 99.1)primaryQ4 and fiscal 2026 results release (8-K Exhibit 99.1)primary
against this
- The guide includes a full year of the two acquisitions, about $45M of revenue, so it implies roughly 8% growth without them (C25).
- Management said it started the year cautious; a raise from a cautious base is partly the caution unwinding.
C43inferencemedium confidence
AirDial is still small: a broker's account of the 2026-09-29 Investor Day puts it at about $20M of recurring revenue a year, about 7% of the total, inside this thesis's own ceiling of about $7M a quarter.
against this
- If the rest of Ooma Business shrank, for example through the IWG churn (C36), AirDial could be larger than this bound.
- AirDial hardware and installation are counted in product revenue, $7.6M in Q2, which this bound leaves out.
- The $20M reached this repository only through a news report of a broker's note, which does not say whether management or the broker computed it; Ooma files no such figure.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; a broker's relay of the Investor Day, about $20M a year (S26), sits inside the inferred ceiling
What could go wrong, and how we would know
The risks
- Growth was slowing. Before the purchases, growth slowed every year, from 9.5% in fiscal 2024 to 6.5% in fiscal 2026.
- The carriers sell their own box. AT&T and Verizon, the companies switching off copper, sell replacements themselves, and Verizon has not yet started retiring many lines.
- Customers can walk away. Most can cancel without penalty and keep their number, and existing customers now spend slightly less than a year ago.
- Insiders are selling. Insiders sold 26 times and bought none in a year; the chief executive sold 76,322 shares in September outside any trading plan.
The evidence under this - 6 claims
C05facthigh confidence
Before the acquisitions, growth had slowed each year: 9.5% in fiscal 2024, 8.5% in fiscal 2025 and 6.5% in fiscal 2026, when revenue was $273.6M.
C13facthigh confidence
AT&T sells its own copper replacement built by DataRemote, Verizon sells one for alarm and elevator lines, and Napco sells cellular alarm communicators.
C12management claimmedium confidence
Management says most retiring lines today are AT&T's and that Verizon is not yet retiring many.
against this
Verizon's business site already sells its own replacement for alarm, elevator and fax lines (S13), so when Verizon retires copper it has a product ready.
C17facthigh confidence
Ooma's customers can in most cases end their subscriptions without penalty.
C06facthigh confidence
Net dollar subscription retention was 99% at July 31, 2026, against 100% a year earlier: existing customers are not spending more.
C34factmedium confidence
Insiders sold 26 times and bought none in the year; the chief executive sold 76,322 shares at about $23 on 2026-09-10 to 14, not under a plan.
sourceForm 4 filings, Ooma insiders, December 2025 to September…primaryForm 10-Q for the quarter ended July 31, 2026primary
against this
- The chief executive adopted a Rule 10b5-1 plan on July 9, 2026 for up to 417,363 shares (S03); its cooling-off period likely runs to October, so the September sales sit outside it rather than signalling a new view.
- He received a 300,000-share award in March 2026, so the sales are a small part of his holdings.
What we still do not know
- How big AirDial is. Ooma files no figure; a broker's account of its Investor Day puts it at about $20M a year, inside our ceiling of about $7M a quarter.
- How many copper lines actually need a box, and what the carriers charge for theirs.
The evidence under this - 4 claims
C43inferencemedium confidence
AirDial is still small: a broker's account of the 2026-09-29 Investor Day puts it at about $20M of recurring revenue a year, about 7% of the total, inside this thesis's own ceiling of about $7M a quarter.
against this
- If the rest of Ooma Business shrank, for example through the IWG churn (C36), AirDial could be larger than this bound.
- AirDial hardware and installation are counted in product revenue, $7.6M in Q2, which this bound leaves out.
- The $20M reached this repository only through a news report of a broker's note, which does not say whether management or the broker computed it; Ooma files no such figure.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; a broker's relay of the Investor Day, about $20M a year (S26), sits inside the inferred ceiling
C07management claimmedium confidence
Management says AirDial service revenue grew 75% in Q2 fiscal 2027 and 80% in Q1, and about 70% from a year earlier at its 2026-09-29 Investor Day; Ooma files no AirDial revenue or line count.
sourceQ2 fiscal 2027 results release (8-K Exhibit 99.1)primaryQ2 fiscal 2027 earnings call transcript (FMP)primaryQ1 fiscal 2027 earnings call transcript (FMP)primaryQuartr - Ooma Investor Day 2026 summary (an AI summary of…secondary
against this
- Asked in the Q1 fiscal 2027 call whether AirDial went from 2,000 to 4,000 lines or 10,000 to 20,000, management declined to give a number.
- Growth rates on an undisclosed base cannot be checked against any filing.
- The Investor Day's 70% reached this repository only through a vendor's AI summary (S25); the deck, transcript and investors.ooma.com pages could not be read.
- 2026-10-01editedInvestor Day review: its refresh trigger fired; management's 70% added from S25, and the filings still carry no AirDial figure
C09facthigh confidence
The FCC counted 8.61M business copper phone lines in June 2025, down from 9.39M in December 2024; all switched lines fell 17.9% a year.
C13facthigh confidence
AT&T sells its own copper replacement built by DataRemote, Verizon sells one for alarm and elevator lines, and Napco sells cellular alarm communicators.
What would change our view
- Neutral→AttractiveThe price falls on an unchanged business
It needs all of:
- ○The market value falls to 25 times the cash left after paying staff in shares, from about 38.8 today.about $14.03 today, 31% below the last close
- ○Sales growth without the acquisitions holds at 8% or more.checked at the next results, due by 14 Dec
- Neutral→AttractiveAirDial proves large and customers spend more
It needs all of:
- ○Ooma discloses AirDial sales or lines showing it is at least a tenth of revenue.checked at the next results, due by 14 Dec
- ○Existing customers spend at least $1.01 for every dollar they spent a year earlier.checked at the next results, due by 14 Dec
- Neutral→UnattractiveThe own business stalls
It needs any of:
- ○Sales growth without the acquisitions falls below 5%.checked at the next results, due by 14 Dec
- ○Existing customers spend 97 cents or less of every dollar they spent a year earlier.checked at the next results, due by 14 Dec
We would also be wrong if
- AirDial's service revenue grows less than 25% while AT&T is still switching off copper: the carriers' own boxes are winning.
- Ooma borrows more than $75M, or issues shares, to buy another company.
What is coming
- 14 December 2026 Q3 fiscal 2027 results: Whether growth without acquisitions holds at 8% and dollar retention at 99%, and whether AirDial's roughly 70% growth continues.
Every dated event ahead
- 14 December 2026 Q3 fiscal 2027 results: Whether growth without acquisitions holds at 8% and dollar retention at 99%, and whether AirDial's roughly 70% growth continues.
- January 2027 TELUS begins reselling AirDial in Canada: Whether the TELUS channel goes live in the second half of the fiscal year as said; a first line count would size a channel with no committed volume.
- March 2027 Q4 fiscal 2027 results and fiscal 2028 guidance: Whether the raised fiscal 2027 guide is met and the next year's guide implies own growth above 8% without fresh acquisitions.
Since we wrote this
Written
26 Sep
Price the thesis read
$21.77
25 Sep
Latest close
$20.43
close, · -6.2% since
- 5 OctThesis reviewThe bet now names what it ridesThe owner asked that every bet name the macro trend behind it, after BWXT's bet was missing its chief executive's case for nuclear over gas.
- 4 OctThesis reviewOwner's checklist: revenue streams, cost of growth, management, catalystsThe owner's checklist found the method silent on who runs the company, what growth costs, where the money comes from and what is dated ahead; this pass fills those four blocks from the proxy and filings.
- 1 OctThesis reviewInvestor Day: AirDial about 7% of recurring revenue; view heldA broker's account puts AirDial at about $20M a year, inside our ceiling, and TELUS will resell it with no committed volume, so own growth and the price still decide the view.
- 26 SepThesis writtenNeutral, medium convictionTwo-thirds of the headline growth was bought, pay in shares takes half the spare cash, and AirDial's size is undisclosed, so the price is fair rather than cheap.
Also checked 1 time with nothing new to act on.
Sources 28
Where this came from
Sources - 28
Every claim above cites one of these, or states the reasoning that derived it. The quote is frozen at the date it was read: a link can rot, and an agent fetch returns a reading of a page rather than the page. Backs counts the whole claim ledger, so it can name a claim this page does not surface.
- S01primarycompany filing2026-04-03Item 1 business description of Ooma Business, AirDial and Ooma Residential; the Competition section naming cloud phone, carrier and copper-replacement rivals; no customer at 10% of revenue; risk factors on cancellable subscriptions, Russian contractors, debt covenants; stock compensation by year; 1,420 employeesbacksC01C05C14C17C18C29C40C53C57
- S02primarycompany filing2026-08-26Q2 and first-half fiscal 2027 income statement, balance sheet and cash flow; non-GAAP reconciliation; raised fiscal 2027 guidance; AirDial services revenue up 75%backsC02C07C19C24C44
- S03primarycompany filing2026-09-04key metrics (1,427,000 core users, net dollar subscription retention 99%, AERR $298.9M); $22.4M of first-half revenue from FluentStream and Phone.com; Business 70% and Residential 28% of revenue; term loan terms; acquisition prices; share count 27.6M; buyback authorisation; CEO 10b5-1 plan adopted July 9, 2026; product margin minus 25%backsC01C02C06C26C27C28C30C34C38C52C53
- S04primarytranscript2026-08-26Q2 fiscal 2027 earnings call transcript (FMP)data/cache/transcripts/OOMA-2027Q2.jsongrowth excluding acquisitions of 8%; ARPU $16.95; 703,000 business users and IWG churn; AirDial installations up 50%; about 8 million lines to replace; AI pricing; MyPhone and StarDial; fiscal 2027 guidance detail. Five analysts asked questions live; none challenged organic growth or share pay
Excluding the impact of these acquisitions, total revenue in Q2 grew 8% year-over-year.
backsC03C06C07C16C18C36C37 - S05primarycompany filing2026-03-04fiscal 2026 revenue $273.6M, acquisitions' $6.1M contribution, original fiscal 2027 guidance of $321M-$325M revenue and $35.5M-$37.0M non-GAAP net incomebacksC05C24
- S06primarytranscript2025-12-08Q3 fiscal 2026 earnings call transcript (FMP)data/cache/transcripts/OOMA-2026Q3.jsonthe 300,000-line, $100M AirDial goal; the acquisitions' expected $45M of revenue and $10M of adjusted EBITDA a year; purchase funding
we remain committed to our long-term goal to secure 300,000 AirDial lines generating $100 million of AirDial annual recurring revenue
backsC08C27 - S07primarygovernment data2026-05-01switched access lines by customer type: 8,612 thousand business and 6,413 thousand residential at June 2025 (table: 'Business Total 8,612 43,972 52,584'); retail switched access lines falling 17.9% a year over three years; interconnected VoIP falling 2.3% a year and mobile rising 2.5%
interconnected VoIP subscriptions declined at a compound annual growth rate of 2.3%, mobile voice subscriptions increased at a compound annual growth rate of 2.5%, and retail switched access lines declined at a compound annual growth rate of 17.9% per year
backsC09C39C45 - S08primarygovernment data2026-02-019,387 thousand business switched access lines at December 2024 (table: 'Business Total 9,387 42,744 52,131'), the base six months before S07
In December 2024, there were 16 million end-user switched access lines in service, 64 million interconnected VoIP subscriptions, and 391 million mobile subscriptions
backsC09 - S09primarycompany filing2026-02-092.1 million customer location switched access lines at December 31, 2025 against 2.7 million a year earlier; the plan to exit copper across the large majority of its footprintbacksC10
- S10primaryregulator2026-03-27the 31-day automatic grant for a carrier's application to stop a service, which speeds copper retirement
We conclude that 31 days is sufficient time for the Commission to determine whether to remove a dominant carrier's discontinuance application from streamlined processing or to allow automatic grant of the discontinuance.
backsC11 - S11primarytranscript2026-05-26Q1 fiscal 2027 earnings call transcript (FMP)data/cache/transcripts/OOMA-2027Q1.jsonAT&T as the main source of retiring lines; refusal to size AirDial when an analyst asked; product margin guided to about minus 40% for fiscal 2027; majority of Q1's 15,000 business user growth was AirDial
most of the lines going away today are from AT&T. There are others out there that have lots of lines, Verizon being one that are really not sunsetting many lines yet
backsC07C12C30 - S12primarycompany release2025-03-13AT&T's own copper-replacement product, built by a private rival Ooma's 10-K names
AT&T Phone - Advanced, powered by DataRemote's VAB-1 POTS IN A BOX®, replaces copper landlines with a cellular gateway with 24-hour battery backup.
backsC13 - S13primarycompany release2026-09-26Verizon sells its own copper replacement for the same devices AirDial serves, on Inseego and ATEL hardware; no price on the page
Common uses can include credit card systems, elevator phones, alarm panels, fax machines, fire alarms, phone lines, security gates and more.
backsC13 - S14primarycompany filing2026-08-24StarLink cellular communicators replacing the copper line on fire and burglar alarms, sold with a monthly service fee; the phase-out of copper named as a driverbacksC13C49
- S15primarycompany filing2026-02-27AI Receptionist (AIR), a voice AI agent that answers calls, sold with its cloud phone system; most customers are small and medium businessesbacksC15C41
- S16secondaryvendor data2026-09-26OOMA research pack (FMP, FINRA, SEC Form 4), frozencontent/OOMA/research-pack.jsonprice and return series, the price-move split, analyst rating history and targets, short interest, insider transactions, headcount, filed-competitor multiplesbacksC31C32C33C35C44
- S17primarycompany filing2026-09-2426 open-market sales and no purchases; the Rule 10b5-1 box on each sale; 16 of 26 sales, 248,793 shares, not under a planbacksC34
- S18primarycompany filing2026-03-03a smaller cloud phone company naming Ooma among its competitorsbacksC41
- S19secondarycompany release2026-08-25Ooma's account of a survey of 236 IT professionals ranking it first of six standalone VoIP providers; Spiceworks' own page was not reachedread, but no claim rests on it
- S20primarycompany filing2026-02-27Zoom Phone as a flagship product inside Zoom's suite, not reported separatelyread, but no claim rests on it
- S21primarycompany filing2024-12-03AT&T's dated target to exit legacy copper network operations across the large majority of its wireline footprint by the end of 2029; found by EDGAR full-text search through press_fetchbacksC46
- S22primarycompany release2026-03-11a private rival's deployment pace and its carrier resale channel, plus 17,000 units installed at the US Postal Service; read through ir_fetch
Provided as a fully managed service, MetTel is deploying POTS Transformation at thousands of locations per month across the public and private sectors. Six of the largest U.S. national and regional telecommunications carriers and cable companies offer MetTel's solution as their own through channel agreements to transition their business and government customers from their expiring landlines.
backsC47 - S23primarycompany release2026-02-24a rival's own sizing of the remaining US copper base, which conflicts with the FCC count, and its alliance with DataRemote, the maker of AT&T's box; read through ir_fetch
Estimates range from 14 to 30 million copper lines overall remaining in the U.S alone.
backsC47 - S24primarycompany release2025-04-22Granite Telecommunications press release - Granite EPIK Confirmed as Top POTS Replacement in Network Testing Granite Telecommunicationsthe scale of a private rival Ooma's 10-K names, whose EPIK box sells into its own installed base of business lines, tested over 2.5 million calls; read through ir_fetch
The $1.8 billion company serves more than two-thirds of Fortune 100 companies and has 1.75 million voice and data lines under management, supporting more than 650,000 locations.
backsC48 - S25secondaryother2026-09-29what management said about AirDial at the 2026-09-29 Investor Day, as summarised by a vendor; the deck, the Seeking Alpha transcript and the investors.ooma.com pages answered 403 or a paywall to ir_fetch, so this summary is the copy that answered; read through ir_fetch
Major partnership with TELUS (Canada), targeting up to 300,000 lines, with go-live in H2 fiscal year. AirDial recurring revenue grew 70% YoY; intermediate goal is 300,000+ lines and $100M recurring revenue, with significant runway remaining. Over 8 million business and government-grade switched access lines remain in the US, with forced shutdowns accelerating POTS replacement demand.
backsC07C08C50 - S26tertiarynews2026-09-30AirDial at about $20M of annual recurring revenue, about 7% of the total, and the TELUS reseller detail; Investing.com answered 403 to ir_fetch and press_fetch, so this was read by an agent fetch and the figures reproduced across two independently phrased requests
AirDial currently represents approximately $20 million of annual recurring revenue, or about 7% of total ARR. The company announced Canadian carrier Telus as a new AirDial reseller, with approximately 300,000 lines at Telus Business Solutions and go-live expected in the second half of fiscal 2027. Telus owns the copper infrastructure it is retiring and is expected to convert lines with its own technicians.
backsC43C50 - S27primarycompany filing2026-04-15executive officers and their tenure, beneficial ownership as of April 10, 2026, the fiscal 2026 bonus plan's revenue and adjusted EBITDA goals and payout, the discretionary bonuses, and the time-based RSU awardsbacksC54C55C56
- S28primarycompany filing2023-04-07the fiscal 2021 to 2023 income statements and capital spending, read through the frozen numbers card (content/OOMA/financials.json), and the OnSIP acquisition of July 2022backsC53C57