v3.26.1
Revenue and Deferred Revenue
 6 Months Ended
Jul. 31, 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

 

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

The Company derived approximately 70% and 63% of its total revenue from Ooma Business, and approximately 28% and 35% from Ooma Residential, for the three months ended July 31, 2026 and 2025, respectively. The Company derived approximately 70% and 63% of its total revenue from Ooma Business and approximately 28% and 35% from Ooma Residential for the six months ended July 31, 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

 

 

 

 

 

July 31,
2026

 

 

January 31,
2026

Customer A

 

 

 

 

—

 

 

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

 

 

 

 

July 31,
2026

 

January 31,
2026

Subscription and services

 

 

 

$

18,114

 

$

17,667

Product and other

 

 

 

 

11

 

 

137

Total deferred revenue

 

 

 

$

18,125

 

 

17,804

Less: current deferred revenue

 

 

 

 

18,104

 

 

17,787

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

 

 

 

$

21

 

$

17

During the three and six months ended July 31, 2026, the Company recognized revenue of approximately $3.0 million and $14.9 million pertaining to amounts deferred as of January 31, 2026, respectively. As of July 31, 2026, deferred revenue was primarily composed of subscription contracts invoiced during the first half of fiscal 2027, as well as amounts recorded during fiscal 2026 for annual contracts.

Remaining Performance Obligations. As of July 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 $74.0 million. The Company expects to recognize revenue on approximately 44% of this amount over the next 12 months, with the balance to be recognized thereafter.