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 Company’s deferred revenue balance was composed of subscription contracts that were invoiced during the fourth quarter of fiscal 2026.

Remaining performance obligations. As of January 31, 2026, contract revenue that had not yet been recognized for open contracts with an original expected length of greater than one year was approximately $59.5 million. The Company expects to recognize revenue on approximately 47% of this amount over the next 12 months, with the balance to be recognized thereafter.

Free Sentinel

Want the next OOMA INC revenue disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment OOMA INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2026Apr 3, 2026Showing above
2025Apr 1, 2025
2024Apr 2, 2024
2023Apr 7, 2023
2022Apr 8, 2022
2021Apr 7, 2021

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.