Financial Analysis

"Note 11: Commitments and Contingencies Purchase Commitments As of January 31, 2026 and 2025, non-cancelable inventory purchase commitments to contract manufacturers and other parties were approximately $ 15.1 million and $ 6.2 million, respectively. Additionally, the Company has a non-cancelable service agreement with a telecommunications provider pursuant to which the Company is obligated to total minimum purchase commitments of $ 10.2 million between March 2025 and February 2029, of which $ 8.1 million was outstanding as of January 31, 2026. Legal Proceedings In addition to the litigation matters described below, from time to time, the Company may be involved in a variety of other claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters, and other litigation matters relating to various claims that arise in the normal course of business. Defending such proceedings is costly and can impose a significant burden on management and employees. The Company may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regulatory matte …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue disaggregated by revenue source consisted of the following (in thousands): Fiscal Year Ended January 31, 2026 2025 2024 Subscription and services revenue $ 252,015 $ 238,641 $ 221,624 Product and other revenue 21,587 18,211 15,113 Total revenue $ 273,602 $ 256,852 $ 236,737

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Note 9: Stock-Based Compensation Total stock-based compensation recognized in the consolidated statements of operations was as follows (in thousands): Fiscal Year Ended January 31, 2026 2025 2024 Cost of revenue $ 913 $ 1,022 $ 1,000 Sales and marketing 2,091 3,895 2,226 Research and development 4,094 5,479 4,760 General and administrative 7,820 7,519 6,847 Total stock-based compensation expense $ 14,918 $ 17,915 $ 14,833 The income tax benefit related to stock-based compensation expense was zero for all periods presented due to a full valuation allowance on the Company's deferred tax assets (see Note 10: Income Taxes below). As of January 31, 2026, there was $ 20.9 million of unrecognized compensation expense related to unvested RSUs, stock options and stock purchase rights under the ESPP, which is expected to be recognized over a weighted-average vesting period of 2.5 years. The fair value of employee stock options and ESPP was estimated using the BlackScholes model with the following assumptions: Fiscal Year Ended January 31, 2026 2025 (1) 2024 (1) Stock Options: Expected volatility 47 % NA NA Expected term (in years) 5.8 NA NA Risk-free interest rate 3.7 % NA NA Dividend yield NA NA NA (1) No options were granted in fiscal 2025 or 2024. Fiscal Year Ended January 31, 2026 2025 2024 ESPP: Expected volatility 33 % 39 %- 57 % 32 %- 43 % Expected term (in years) 0.5 0.5 - 2.0 0.5 - 2.0 Risk-free interest rate 3.9 % 3.6 %- 5.4 % 3.9 %- 5.5 % Dividend yield NA NA NA The expected …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 4: Fair Value Measurements As of January 31, 2026 and 2025, the Company had $ 20.1 million and $ 17.9 million in cash, respectively. Non-Marketable Equity Investments. As of January 31, 2026 and January 31, 2025 , the total amount of non-marketable equity investments in privately held companies included in other assets in the Company's consolidated balance sheets was $ 3.3 million. This balance represents investments in preferred shares of Global Telecom Corporation (GTC), a privately-held technology company. The Companys non-marketable equity investments do not have readily determinable fair values. Under the measurement alternative election, the Company accounts for these non-marketable equity securities at cost and remeasures to fair value upon observable price changes in orderly transactions for the identical or similar investment of the same issuer or upon impairment. These investments are not eligible for the net-asset-value practical expedient from fair value measurement. The measurement alternative election is reassessed each reporting period to determine whether the non-marketable equity investments continue to be eligible for this election. The Company classifies these non-marketable equity investments as Level 3 within the fair value hierarchy. …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 6: Goodwill and Acquired Intangible Assets During fiscal 2026, the Company recognized intangibles of $ 46.9 million and goodwill of $ 26.8 million in connection with business acquisitions completed in December 2025. See Note 13: Business Acquisition. The goodwill balance was as follows (in thousands): Total Balance at January 31, 2025 $ 23,069 Additions due to FluentStream acquisition 18,030 Additions due to Phone.com acquisition 8,728 Balance at January 31, 2026 $ 49,827 The gross value, accumulated amortization and carrying values of intangible assets were as follows (in thousands): As of January 31, 2026 Estimated life (in years) Gross Value Accumulated Amortization Carrying Value Developed technology 2 - 7 $ 24,918 $ ( 8,338 ) $ 16,580 Customer relationships 5 - 7 56,045 ( 13,719 ) 42,326 Trade names 2 - 7 4,785 ( 1,213 ) 3,572 Total intangible assets $ 85,748 $ ( 23,270 ) $ 62,478 As of January 31, 2025 Estimated life (in years) Gross Value Accumulated Amortization Carrying Value Developed technology 2 - 7 $ 20,618 $ ( 5,591 ) $ 15,027 Customer relationships 5 - 7 16,545 ( 10,131 ) 6,414 Trade names 2 - 5 1,685 ( 942 ) 743 Total intangible assets $ 38,848 $ ( 16,664 ) $ 22,184 Amortization expense was $ 6.6 million, $ 5.8 million and $ 3.7 million in fiscal 2026, 2025 and 2024, respectively. At January 31, 2026, the estimated future amortization expense for intangible assets was as follows (in thousands): Fiscal Years Ending January 31, Total 2027 $ 12,094 2028 10,9 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 10: Income Taxes The domestic and foreign components of income (loss) before income taxes were as follows (in thousands): Fiscal Year Ended January 31, 2026 2025 2024 United States $ 3,162 $ ( 6,126 ) $ ( 491 ) Foreign 1,211 ( 15 ) ( 2,322 ) Income (loss) before income taxes $ 4,373 $ ( 6,141 ) $ ( 2,813 ) Income tax (benefit) provision consisted of the following (in thousands): Fiscal Year Ended January 31, 2026 2025 2024 Current: Federal $ ( 19 ) $ 168 $ State 481 592 1,153 Foreign Total current 462 760 1,153 Deferred: Federal ( 1,876 ) ( 2,661 ) State ( 672 ) ( 470 ) Foreign Total deferred ( 2,548 ) ( 3,131 ) Income tax (benefit) provision $ ( 2,086 ) $ 760 $ ( 1,978 ) The income tax benefit of $ 2.1 million for fiscal 2026 was primarily attributable to the release of a $ 2.5 million valuation allowance on certain preexisting deferred tax assets realized as a result of deferred tax liabilities assumed in the Company's acquisition of Phone.com. The income tax benefit of $ 2.0 million for fiscal 2024 was primarily attributable to the release of a $ 3.1 million valuation allowance on certain preexisting deferred tax assets realized as a result of deferred tax liabilities assumed in the Company's acquisition of 2600Hz. Rate Reconciliation The Company adopted ASU 2023-09 Income Taxes (Topic 740): Improvements To Income Tax Disclosures' on a prospective basis beginning with the year ended January 31, 2026. The following table presents required disclosure pursuant to ASU 20 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 7: Operating Leases The Company leases its headquarters located in Sunnyvale, California, as well as office space and data center facilities in several locations under non-cancelable operating lease agreements, with expiration dates through fiscal 2033 . The lease agreements often include escalating rent payments, renewal provisions and other provisions which require the Company to pay common area maintenance costs, property taxes and insurance. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the consolidated balance sheet. Short-term operating lease liabilities are presented within accrued expenses and other current liabilities. Supplemental balance sheet information related to leases was as follows (in thousands): As of January 31, 2026 January 31, 2025 Assets Operating lease right-of-use assets $ 14,198 $ 15,311 Total leased assets $ 14,198 $ 15,311 Liabilities Short-term operating lease liabilities $ 4,284 $ 3,713 Long-term operating lease liabilities 10,988 12,234 Total lease liabilities $ 15,272 $ 15,947 Weighted-average remaining lease term 4.5 years 5.2 years Weighted-average discount rate 6.4 % 6.3 % The components of lease expense were as follows (in thousands): Fiscal Year Ended January 31, 2026 2025 2024 Operating lease costs (1) $ 5,490 $ 5,025 $ 4,581 Variable lease costs (2) 1,647 1,427 1,21 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Not Yet Adopted. In November 2024, the FASB issued ASU 2024-03: Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. The ASU also requires disclosure of the total amount of selling expenses and our definition of selling expenses. The standard is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the new standard. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets, providing a practical expedient to calculating current expected credit losses for current accounts receivable and contract assets by assuming that the current conditions as of the balance sheet date will not change for the remaining life of the asset. This update is effective for annual reporting periods beginning after December 15, 2025 and for interim periods within those annual periods, and is applied prospectively. The Com …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 15: Retirement Plan The Company offers a qualified 401(k) defined contribution plan to eligible full-time employees that provides for discretionary employer matching and profit-sharing contributions. The Company matches the lower of 50 % of employee contributions or 50 % of the first 6 % of each employees eligible compensation that is contributed to the 401(k) plan. Contributions made by the Company vest 100 % upon contribution and are expensed as incurred as compensation costs. The Companys matching contributions to the plan were $ 1.4 million, $ 1.2 million and $ 1.1 million for fiscal 2026, 2025 and 2024 , respectively. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Note 3: Revenue and Deferred Revenue Disaggregated revenue Revenue disaggregated by revenue source consisted of the following (in thousands): Fiscal Year Ended January 31, 2026 2025 2024 Subscription and services revenue $ 252,015 $ 238,641 $ 221,624 Product and other revenue 21,587 18,211 15,113 Total revenue $ 273,602 $ 256,852 $ 236,737 The Company derived approximately 64 % , 61 % and 58 % of its total revenue from Ooma Business and approximately 34 % , 36 % and 40 % of its total revenue from Ooma Residential in fiscal 2026, 2025, and 2024, respectively. No individual country outside of the United States represented 10% or more of total revenue for the periods presented. No single customer accounted for 10% or more of total revenue for the periods presented. Deferred revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided. As of January 31, 2026 January 31, 2025 Subscription and services $ 17,667 $ 16,601 Product and other 137 8 Total deferred revenue $ 17,804 16,609 Less: current deferred revenue 17,787 16,586 Non-current deferred revenue included in other long-term liabilities $ 17 $ 23 During fiscal 2026, the Company recognized revenue of approximately $ 16.6 million pertaining to amounts deferred as of January 31, 2025. As of January 31, 2026, the majority of the Companys deferred revenue balance …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 16: Segment Information The Company has a single reportable segment. The CODM uses consolidated net income (loss) for purposes of allocating resources and evaluating financial performance, including monitoring actual results versus historical periods. Adjusted cost of revenue, adjusted sales and marketing, adjusted research and development and adjusted general and administrative expenses are considered significant segment expenses that are regularly provided to the CODM and included within consolidated net loss. The measure of segment assets is the total assets on the Companys consolidated balance sheets. Capital expenditures are reported on a consolidated basis on the Companys consolidated statements of cash flows. The following tables include the Company's segment revenue, significant segment expenses, and other segment items to reconcile to net income (loss) (in thousands): Fiscal Year Ended January 31, 2026 2025 2024 Revenue from external customers $ 273,602 $ 256,852 $ 236,737 Less: Cost of revenue (1) 102,340 96,772 87,328 Sales and marketing (1) 72,540 70,506 68,654 Research and development (1) 45,813 47,506 44,609 General and administrative (1) 23,357 23,105 20,622 Other segment expenses 25,296 25,903 19,525 Interest and other income, net ( 117 ) ( 799 ) ( 1,188 ) Income tax (benefit) provision ( 2,086 ) 760 ( 1,978 ) Consolidated net income (loss) $ 6,459 $ ( 6,901 ) $ ( 835 ) (1) Amounts exclude other segment expenses as follows: Fiscal Year Ended January 31, 2 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 2: Significant Accounting Policies Revenue Recognition The Company derives its revenue from two sources: (1) subscription and services revenue, which is derived primarily from the sale of subscription plans for communications services and other connected services; and (2) product and other revenue. Subscriptions and services are sold directly to end-customers. Products are sold to end-customers through several channels, including but not limited to distributors, retailers and resellers (collectively channel partners), and Ooma sales representatives. The Company determines revenue recognition through the following steps: identification of the contract(s) with a customer; identification of the performance obligations in the contract; determination of the transaction price; allocation of the transaction price to the performance obligations in the contract; and recognition of revenue when, or as, the Company satisfies a performance obligation. Subscription and Services Revenue. Most of the Companys revenue is derived from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual or multi-year subscriptions. Subscription revenue is generally recognized ratably over the contractual service term. A small portion of revenue is recognized on a point-in-time basis from services such as prepaid internation …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 8: Stockholders Equity Common Stock Reserved for Future Issuance The Company has a stock-based compensation plan, the 2015 Equity Incentive Plan (the EIP), pursuant to which it has granted incentive and nonstatutory stock options and restricted stock units. Additionally, the Company's 2015 Employee Stock Purchase Plan (the ESPP) allows eligible employees to purchase shares of common stock at a discounted price through payroll deductions. On June 5, 2025, our stockholders approved the amended and restated EIP. The EIP was amended to extend the term for 10 years, remove the evergreen provision, and increase the number of shares authorized for issuance by 330,000 , among other items. Additionally, on June 5, 2025, our stockholders approved the amended and restated ESPP. The ESPP was amended to eliminate the term thereof so that the ESPP will not expire, remove the evergreen provision, and increase the number of shares authorized for issuance by 795,144 , among other items. The Company had shares of common stock reserved for issuance as follows (in thousands): As of January 31, 2026 January 31, 2025 Restricted stock units outstanding 1,901 1,856 Options to purchase common stock 568 653 Shares available for future issuance under stock plans 2,806 3,249 Shares reserved under ESPP 2,657 2,156 Total shares reserved for issuance 7,932 7,914 Stock Options. Under the EIP, options to purchase shares of common stock may be granted to employees, non-employee directors and consultants. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 11: Commitments and Contingencies Purchase Commitments As of July 31, 2026 and January 31, 2026, non-cancelable inventory purchase commitments to contract manufacturers and other parties were approximately $ 15.3 million and $ 15.1 million, respectively. Additionally, the Company has a non-cancelable service agreement with a telecommunications provider pursuant to which the Company is obligated to total minimum purchase commitments of $ 8.4 million between March 2026 and February 2029, of which $ 7.2 million was outstanding as of July 31, 2026. Legal Proceedings In addition to the litigation matters described below, from time to time, the Company is or may be involved in a variety of other claims, lawsuits, investigations, and proceedings relating to contractual disputes, intellectual property rights, employment matters, regulatory compliance matters, and other litigation matters relating to various claims that arise in the normal course of business. Defending such proceedings is costly and can impose a significant burden on management and employees. The Company may receive unfavorable preliminary or interim rulings in the course of litigation, and there can be no assurances that favorable final outcomes will be obtained. The Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. The Company assesses its potential liability by analyzing specific litigation and regul …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Six Months Ended July 31, 2026 July 31, 2025 July 31, 2026 July 31, 2025 Subscription and services revenue $ 75,579 $ 61,139 $ 150,173 $ 121,398 Product and other revenue 7,649 5,225 14,204 9,995 Total revenue $ 83,228 $ 66,364 $ 164,377 $ 131,393

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Note 8: Stock-Based Compensation Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Six Months Ended July 31, 2026 July 31, 2025 July 31, 2026 July 31, 2025 Cost of revenue $ 218 $ 222 $ 427 $ 453 Sales and marketing 374 452 766 1,155 Research and development 962 978 1,888 2,098 General and administrative 2,111 1,983 4,083 3,865 Total stock-based compensation expense $ 3,665 $ 3,635 $ 7,164 $ 7,571 As of July 31, 2026, there was $ 29.9 million of unrecognized compensation expense related to unvested RSUs, stock options, and stock purchase rights under the ESPP, which is expected to be recognized over a weighted-average vesting period of approximately 2.8 years.

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Note 3: Fair Value Measurements The Company estimates and categorizes fair value by applying the following hierarchy: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Observable prices based on inputs not quoted in active markets but are corroborated by market data. Level 3: Unobservable inputs that are supported by little or no market activity. The Company had $ 17.5 million and $ 20.1 million in cash and cash equivalents as of July 31, 2026 and January 31, 2026, respectively. Non-Marketable Equity Investments. As of July 31, 2026 , the total amount of non-marketable equity investments in privately held companies included in other assets in the Company's condensed consolidated balance sheets was $ 3.3 million. This balance represents investments in preferred shares of Global Telecom Corporation (GTC), a privately-held technology company. The Companys non-marketable equity investments do not have readily determinable fair values. Under the measurement alternative election, the Company accounts for these non-marketable equity securities at cost and remeasures to fair value upon observable price changes in orderly transactions for the identical or similar investment of the same issuer or upon impairment. These investments are not eligible for the net-asset-value practical expedient from fair value measurement. The measurement alternative election is reassessed each reporting period to determine whether the non-marketable equity …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 5: Acquired Intangible Assets The gross value, accumulated amortization and carrying values of acquired intangible assets were as follows (in thousands): As of July 31, 2026 As of January 31, 2026 Estimated life (in years) Gross Value Accumulated Amortization Carrying Value Gross Value Accumulated Amortization Carrying Value Developed technology 2 - 7 $ 24,918 $ ( 10,080 ) $ 14,838 $ 24,918 $ ( 8,338 ) $ 16,580 Customer relationships 5 - 7 56,045 ( 17,800 ) 38,245 56,045 ( 13,719 ) 42,326 Trade names 2 - 7 4,785 ( 1,574 ) 3,211 4,785 ( 1,213 ) 3,572 Total intangible assets $ 85,748 $ ( 29,454 ) $ 56,294 $ 85,748 $ ( 23,270 ) $ 62,478 Amortization expense was $ 3.0 million and $ 1.4 million for the three months ended July 31, 2026 and 2025, respectively, and was $ 6.2 million and $ 2.8 million for each of the six months ended July 31, 2026 and 2025, respectively. At July 31, 2026, the estimated future amortization expense for intangible assets is as follows (in thousands): Fiscal Years Ending January 31, Total 2027 remainder $ 5,908 2028 10,975 2029 10,056 2030 9,654 2031 8,748 Thereafter 10,953 Total $ 56,294

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Note 9: Income Taxes The Company recorded an income tax provision of $ 0.2 million and $ 0.3 million during the three and six months ended July 31, 2026, respectively, and an income tax benefit of $ 0.1 million and an income tax provision of $ 0.1 million during the three and six months ended July 31, 2025, respectively. The income tax provision recorded in the second quarter of fiscal 2027 was primarily attributable to state income taxes that occurred during the quarter. As of July 31, 2026, the Company continued to maintain a full valuation allowance against its remaining deferred tax assets. As of July 31, 2026, the Company had unrecognized tax benefits of approximately $ 11.6 million, n one of which would currently affect the Company's effective tax rate if recognized due to the Company's deferred tax assets being fully offset by a valuation allowance. There were no interest expense or penalties related to unrecognized tax benefits recorded through July 31, 2026. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, the Company believes that its reserves for income taxes reflect the most likely outcome based on information currently available. The Company adjusts these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 6: Operating Leases The Company leases its headquarters located in Sunnyvale, California, as well as office space and data center facilities in several locations under non-cancelable operating lease agreements, with expiration dates through fiscal 2033 . Supplemental balance sheet information related to leases was as follows (in thousands): As of July 31, 2026 January 31, 2026 Assets Operating lease right-of-use assets $ 13,296 $ 14,198 Total leased assets $ 13,296 $ 14,198 Liabilities Short-term operating lease liabilities $ 4,449 $ 4,284 Long-term operating lease liabilities 9,940 10,988 Total lease liabilities $ 14,389 $ 15,272 Weighted-average remaining lease term 4.1 years 4.5 years Weighted-average discount rate 6.4 % 6.4 % Operating lease right-of-use assets and long-term operating lease liabilities are included on the face of the consolidated balance sheet. Short-term operating lease liabilities are presented within accrued expenses and other current liabilities. The Company incurred total lease costs in its condensed consolidated statements of operations of $ 2.0 million and $ 1.8 million for the three months ended July 31, 2026 and 2025, respectively, and $ 3.9 million and $ 3.5 million for the six months ended July 31, 2026 and 2025, respectively. Supplemental cash flow information related to leases was as follows (in thousands): Three Months Ended Six Months Ended July 31, 2026 July 31, 2025 July 31, 2026 July 31, 2025 Cash payments for operating leases $ 1,1 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Not Yet Adopted. In November 2024, the FASB issued ASU 2024-03: Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disaggregation of certain costs in a separate note to the financial statements, such as the amounts of employee compensation, depreciation and intangible asset amortization, included in each relevant expense caption in annual and interim consolidated financial statements. The ASU also requires disclosure of the total amount of selling expenses and our definition of selling expenses. The standard is effective for annual periods beginning after December 15, 2026 and for interim periods beginning after December 15, 2027 on a retrospective or prospective basis, with early adoption permitted. The Company is evaluating the new standard. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which simplifies the capitalization guidance by removing all references to software development project stages so that the guidance is neutral to different software development methods. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments i …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 2: Revenue and Deferred Revenue The Company derives its revenue from two sources: Subscription and Services Revenue is derived from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual or multi-year subscriptions. Subscription revenue is generally recognized ratably over the contractual service term. A small portion of revenue is recognized on a point-in-time basis from services such as: prepaid international calls, and advertisements displayed through the Talkatone mobile application. Product and Other Revenue is generated primarily from the sale of on-premise devices and end-point devices, including Ooma AirDial, and from installation services, equipment rentals, and professional services. To a lesser extent, revenue is also generated from porting fees that enable customers to transfer their existing phone numbers. The Company recognizes revenue from product sales to direct end-customers and channel partners at the point-in-time that control is transferred. Revenue from installation services and professional services is recognized as the services are performed, while rental revenue is recognized ratably over the rental period. Revenue disaggregated by revenue source consisted of the following (in thousands): Three Months Ended Six Months Ended July 31, 2026 July 31, 2025 July 31, 2026 Jul …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Note 14: Segment Information The Company has a single reportable segment. The CODM uses consolidated net income for purposes of allocating resources and evaluating financial performance, including monitoring actual results versus historical periods. Adjusted cost of revenue, adjusted sales and marketing, adjusted research and development and adjusted general and administrative expenses are considered significant segment expenses that are regularly provided to the CODM and included within consolidated net income. The measure of segment assets is the total assets on the Companys consolidated balance sheets. Capital expenditures are reported on a consolidated basis on the Companys consolidated statements of cash flows. The following tables include the Company's segment revenue, significant segment expenses, and other segment items to reconcile to net income (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2026 2025 2026 2025 Revenue from external customers $ 83,228 $ 66,364 $ 164,377 $ 131,393 Less: Cost of revenue (1) 30,959 25,198 60,077 49,066 Sales and marketing (1) 20,067 17,960 39,804 36,281 Research and development (1) 14,092 11,492 28,101 22,760 General and administrative (1) 6,953 5,601 14,573 11,449 Other segment expenses 7,167 5,197 14,324 10,978 Interest and other expense (income), net 831 ( 221 ) 1,601 ( 384 ) Income tax provision (benefit) 155 ( 118 ) 311 129 Consolidated net income $ 3,004 $ 1,255 $ 5,586 $ 1,114 (1) Amounts exclude other segm …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 7: Stockholders Equity The Company has a stock-based compensation plan, the Amended and Restated 2015 Equity Incentive Plan (the EIP), pursuant to which it has granted incentive and nonstatutory stock options and restricted stock units. Additionally, the Company's Amended and Restated 2015 Employee Stock Purchase Plan (the ESPP) allows eligible employees to purchase shares of common stock at a discounted price through payroll deductions. Stock Options. Stock option activity for the six months ended July 31, 2026 was as follows: Weighted-Average Aggregate Shares Exercise Price Intrinsic Value (in thousands) Per Share (in thousands) Balance as of January 31, 2026 568 $ 13.44 $ 263 Granted 41 $ 11.64 Exercised ( 33 ) $ 11.73 Canceled ( 5 ) $ 11.64 Balance as of July 31, 2026 571 $ 13.43 $ 4,747 Vested and exercisable as of July 31, 2026 490 $ 13.68 $ 3,955 The aggregate intrinsic value of vested options exercised during the six months ended July 31, 2026 and 2025 was $ 0.2 million and $ 0.4 million, respectively. During the six months ended July 31, 2026, the Company granted 40,500 stock options with a $ 5.89 per share weighted average fair value . During the three months ended July 31, 2026 and three and six months ended July 31, 2025 , no stock options were granted. Restricted Stock Units. RSU activity for the six months ended July 31, 2026 was as follows: Shares (in thousands) Weighted-Average Grant Date Fair Value Per Share Balance as of January 31, 2026 1,901 $ 12.16 G …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing