v3.26.1
Revenue and Deferred Revenue
 3 Months Ended
Apr. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue and Deferred Revenue

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

 

 

April 30,
2026

 

 

April 30,
2025

Subscription and services revenue

 

$

74,594

 

$

60,259

Product and other revenue

 

 

6,555

 

 

4,770

Total revenue

 

$

81,149

 

$

65,029

The Company derived approximately 70% and 62% of its total revenue from Ooma Business, and approximately 28% and 35% from Ooma Residential, for the three months ended April 30, 2026 and 2025, respectively. No individual country outside of the United States, and no single customer, represented 10% or more of total revenue for the periods presented.

Customers who represented 10% or more of net accounts receivable were as follows:

 

 

 

 

 

As of

 

 

 

 

 

April 30,
2026

 

 

January 31,
2026

Customer A

 

 

 

 

13%

 

 

10%

 

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

 

 

 

 

April 30,
2026

 

January 31,
2026

Subscription and services

 

 

 

$

17,032

 

$

17,667

Product and other

 

 

 

 

80

 

 

137

Total deferred revenue

 

 

 

$

17,112

 

 

17,804

Less: current deferred revenue

 

 

 

 

17,095

 

 

17,787

Non-current deferred revenue included in other long-term liabilities

 

 

 

$

17

 

$

17

During the three months ended April 30, 2026, the Company recognized revenue of approximately $11.9 million pertaining to amounts deferred as of January 31, 2026. As of April 30, 2026, deferred revenue was primarily composed of subscription contracts invoiced during the first quarter of fiscal 2027, as well as amounts recorded during fiscal 2026 for annual contracts.

Remaining Performance Obligations. As of April 30, 2026, contract revenue that had not yet been recognized for open contracts with an original expected length of greater than one year was approximately $68.3 million. The Company expects to recognize revenue on approximately 45% of this amount over the next 12 months, with the balance to be recognized thereafter.