Ooma Reports $256.9 Million Revenue for Fiscal Year 2025, 8% Increase

Ooma, Inc. reported a total revenue of $256.9 million for the fiscal year ending January 31, 2025, marking an 8% increase from $236.7 million in the previous fiscal year. The growth was primarily driven by a 13% rise in subscription and services revenue from Ooma Business, which accounted for approximately 61% of total revenue. The company also noted a GAAP net loss of $6.9 million, a significant increase from a loss of $0.8 million in fiscal 2024, largely due to the absence of one-time tax benefits and acquisition-related costs that had positively impacted the previous year’s results.

In terms of operational metrics, Ooma's core user count stood at 1,234,000 as of January 31, 2025, a slight decrease from 1,243,000 the previous year. This decline was attributed to a reduction in Ooma Residential users, although Ooma Business users increased, comprising 41% of total core users, up from 39% in the prior year. The company’s annualized exit recurring revenue (AERR) also grew to $234.1 million, reflecting an increase in average revenue per core user, driven by organic growth and contributions from the recently acquired 2600Hz.

Strategically, Ooma completed the acquisition of 2600Hz in October 2023 for approximately $32.2 million, which is expected to enhance its business communications offerings. The acquisition is anticipated to contribute positively to revenue growth in the coming periods. Additionally, Ooma has been focusing on expanding its product offerings, including the Ooma AirDial, which serves as a replacement for legacy copper-wire analog phone services, and is positioned to capture a growing market segment.

The company’s total gross margin for fiscal 2025 was reported at 61%, a slight decrease from 62% in the previous year, primarily due to increased costs associated with infrastructure and personnel. Operating expenses rose to $163.0 million, up from $151.2 million in fiscal 2024, driven by higher sales and marketing, research and development, and general administrative costs. Despite these challenges, Ooma generated $26.6 million in cash flow from operations, a notable increase from $12.3 million in the prior year, indicating improved operational efficiency.

Looking ahead, Ooma aims to continue investing in its growth strategy, focusing on expanding its user base and enhancing its service offerings. The company plans to leverage its strategic partnerships and explore new market opportunities, particularly in the transition to 5G internet. However, Ooma also acknowledges the competitive landscape and potential regulatory challenges that could impact its operations and financial performance in the future.