Ooma added $16.8 million of revenue over six months. It also added $6.6 million of inventory, a 44.5% increase that ran nearly twice as fast as sales. The filing's central trade-off is sitting in plain sight: growth and cash generation improved, but the balance sheet is carrying more of the expansion.
Revenue rose 25.4% to $83.2 million versus the comparable six months, while operating income climbed from $916,000 to $4.0 million. Operating cash flow nearly doubled to $19.5 million, and operating margin widened from 1.4% to 4.8%.
Management ties much of the growth to Ooma Business and two acquisitions completed in December 2025:
"Second Quarter Fiscal 2027 Financial Performance Total revenue was $83.2 million, up 25% year-over-year, primarily driven by the growth of Ooma Business and contributions of FluentStream and Phone.com, which were both acquired in December 2025."
Ooma, Form 10-Q, September 4, 2026
That makes the sales increase more than a simple subscription trend. Core users rose to 1.427 million from 1.230 million, while annualized exit recurring revenue reached $298.9 million from $239.7 million. Net dollar subscription retention, though, eased to 99% from 100%.
The profit improvement came with a larger cost base. Ooma said subscription and services costs rose 23%, with personnel and infrastructure making up most of the increase. Sales and marketing costs also moved higher:
"Six months ended July 31, 2026 Compared to Six months ended July 31, 2025 Sales and marketing expenses increased $5.8 million or 15% year-over-year, primarily due to a $2.7 million increase in amortization of intangible assets and a $1.4 million increase in personnel-related costs attributable to our acquisitions of FluentStream and Phone.com, a $2.3 million increase in commissions expense, and a $0.3 million increase in license fees, partially offset by a $1.1 million decrease in advertising and marketing expense."
Ooma, Form 10-Q, September 4, 2026
The $2.7 million amortization item is a non-cash acquisition expense. The commissions, personnel costs, and infrastructure spending are the more direct operating burden. Ooma still expanded gross margin modestly, from 60.6% to 61.3%, but the larger operating-margin move came while the company was spending to support the acquired businesses.
The cash-flow result adds another layer. Operating cash flow reached $19.5 million, but cash on hand fell 10.4% to $17.5 million. Inventory increased 44.5%, accounts receivable rose 31.9%, and capital spending increased 48.4% to $3.8 million. Ooma does not disclose a single cause for the inventory increase beyond noting that inventory levels are subject to purchase-order and delivery timing outside its control.
The company also spent more on development, with research and development rising 23.8% to $15.5 million. Diluted shares increased 2.7% to 28.9 million, a smaller movement than the revenue line but still part of the financing picture as the business expands.
Ooma's next quarterly report will put the key comparison on the inventory line: whether the balance continues to grow faster than revenue, alongside retention and recurring revenue. For now, growth continued, and the warehouse is keeping the receipt.
Source: Ooma Form 10-Q filed September 4, 2026, for the six months ended July 31, 2026.