Yesterday we highlighted Ooma’s potential to continue its streak of earnings beats, and the company delivered. The VoIP and communications provider reported Q3 fiscal 2025 EPS of $0.27.
Fourth Straight Beat Drives Momentum
The quarter marked Ooma’s fourth consecutive earnings surprise, with EPS up 58.8% year over year from $0.17 in Q3 fiscal 2024. Revenue reached $67.6 million, up 3.8% annually, while the company swung from a $2.4 million net loss a year ago to $1.4 million in profit. Operating income turned positive at $1.3 million versus a $2.3 million loss in the prior year period.
CEO Eric Stang called it “a great quarter for Ooma, not only financially, but also competitively,” noting the company achieved “record results” including $8.1 million in operating cash flow. That strong cash generation allowed Ooma to eliminate its remaining debt shortly after quarter end. “Over the last 12 months, we have paid off $18 million of debt and also bought back $5.2 million of our stock for a combined $23.2 million,” Stang said.
Major Partnership Wins Validate Strategy
Management disclosed two significant customer wins for its AirDial POTS replacement solution. A “top-tier national cable company” selected Ooma as its exclusive provider, with launch expected in calendar Q1 2026. Stang emphasized the partner’s scale: “This is a major win for us and a partner that represents huge potential.”
The company also signed an aggregator serving approximately 100,000 business copper lines and 10,000 residential lines to resell both AirDial and its Telo residential solution. The partner launched with Telo in early December. Ooma now has more than 20 partners contracted to resell AirDial, with “several significant discussions underway.”
When asked directly whether Q3 AirDial bookings exceeded Q2’s record level, Stang confirmed: “We did, yes.” The company attributed momentum to carrier price increases on legacy copper lines and an uptick in shutdown announcements.
Quiet Reaction Despite Strong Fundamentals
Despite the beat and partnership news, shares remain well below the 52-week high of $15.70, though they’ve recovered 27% from November’s $9.79 low. Analysts maintain a $18.62 average price target with five buy ratings.
The muted media and retail attention suggests Ooma remains under the radar. The company is transitioning to profitability while expanding carrier partnerships. Watch whether the new cable partnership’s Q1 launch drives another leg higher.
Top Gaining Stocks
Top Losing Stocks