Ooma, Inc.

After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to turn the conference over to Matt. You may begin.

Thank you, Tawanda. Good day, everyone, and welcome to the fiscal second quarter 2026 earnings call at UMA, Inc. My name is Matt Robison, UMA's Director of IR and Corporate Development. On the call with me today are UMA's CEO, Eric Stang, and CFO, Shig Hamamatsu. After the market closed today, UMA issued its fiscal second quarter 2026 earnings press release. This release is also available on the company's website, UMA.com. This call is being webcast live and is accessible from a link on the events and presentations page of the investor relations section of our website. This link will be active or replay this call for one year. During today's presentation, our executives will make forward-looking statements in the meaning of the federal securities laws. Forward-looking statements generally relate to future events or future financial or operating performance. Our expectations and beliefs regarding these matters may not materialize, and actual results are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release we issued earlier today, and those risks more fully described in our filings for the Securities and Exchange Commission. The forward-looking statements in this presentation are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements except as required by law. Please note that, other than revenue or as otherwise stated, the financial measures to be disclosed on this call will be on a non-GAAP basis. The non-GAAP financial measures are not tentatively considered in isolation or as a substitute for results prepared in accordance with GAAP. The discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures discussed in this call to the most directly comparable GAAP financial measures is included in our earnings press release, which is available on our website. On this call, we will give guidance for third quarter and full year fiscal 2026 on a non-GAAP basis. Also, in addition to our press release and 8 filing, the overview page and events and presentations page, in the investor section of our website as well as the quarterly results page of the financial information section of our website include links to information about costs and expenses not included in our non-GAAP values and key metrics of our core subscription businesses. These are titled Supplemental Financial Disclosure 1 and Supplemental Financial Disclosure 2. Additionally, our investor presentation slides include GAAP to non-GAAP reconciliation that also provides resolution of GAAP expenses that are excluded from non-GAAP metrics. Now I will hand the call over to UMA CEO, Eric Stang.

Thank you, Matt. Hi, everyone. Welcome to UMA's second quarter fiscal 2026 earnings call. Thank you for joining us. We're pleased to report strong Q2 financial results and to discuss the momentum we have going into the second half of our fiscal year. Financially, we grew our revenue in Q2 to 66.4 million while also setting some bottom line records. In Q2, we achieved record non-GAAP net income of $6.5 million and record adjusted EBITDA of $7.2 million. GAAP net income was $1.3 million and cash flow from operations was $6.4 million. Currently, we are at 11% adjusted EBITDA as a percent of revenue, our highest to date and now already at the low end of our midterm target range model of 11% to 14%. I believe these results show the power of our business to grow top-line revenue while also driving improved bottom-line profitability. Regarding our revenue from business users, our metrics strengthened in Q2. User growth net of churn, average revenue per user, annual exit recurring revenue, and the take rate of our Pro and Pro Plus higher tier offerings were all up, both sequentially and year over year. We believe we executed well to achieve these results. Regarding our communications solutions for smaller size businesses, we will be strengthening our ability to provide a double play offering by introducing the Connect 5000 later this quarter. Connect 5000 is a 5G internet solution that incorporates Wi-Fi and prioritizes voice traffic over the connection. Sold with UMA Office, it will allow us to offer a more complete solution for our customers. It also affords us the opportunity to increase our revenue and have a deeper relationship with our customers. In Q3, we will also continue our efforts to develop new AI-driven features. For smaller-sized businesses, We believe AI features need to be not only powerful, but also very easy to use and extremely low cost. We have already developed AI applications that we use internally and are learning from them as we craft new features for our customers. New AI features, along with more advanced contact center functionality and integrations with other vertical solutions, will allow us to serve slightly larger sized businesses. and we are already beginning to see some traction in that regard. I'm pleased to report that Airdial ramped well in Q2. We more than doubled new bookings year over year and secured our largest customer win to date with a large national retailer. We've started the rollout with this retailer and anticipate serving over 3,000 locations. We also closed several other significantly sized customers who placed initial orders. As is our goal every quarter, we expanded the number of partners who will resell Airdial and signed three new partner resellers in the quarter. We believe two of these new partners have experience selling competitive solutions and will be able to ramp relatively quickly with Airdial. In total, we are now approaching 35 Airdial partner resellers. Currently, real estate and REITs, colleges and universities, healthcare and senior living, state and local government, and hospitality are very active segments for Airedial. And in general, we believe the POTS replacement market is expanding as more businesses come to realize the need to act. We believe Airedial is the leading solution in the market today, and we intend to make it even stronger in the future by introducing further enhancements to our Airdial remote device management portal, and by driving down the cost of Airdial hardware. For 2600Hz, our wholesale UCaaS, CPaaS, and contact center platform, we announced in Q2 the launch of new mobile and desktop applications. More recently, we also introduced video meetings and team chat. We signed one new customer in Q2 and expanded with several existing customers. Looking forward, we see continued sales momentum and remain focused on extending Ooma's IP to the 2600 Hz platform. On the residential front, we had a stronger quarter for new customer acquisition and experienced slightly reduced churn compared to Q1. Subscription and services revenue, though down year over year, was up slightly sequentially. Retail and direct are our main sales channels, but we also sell to internet service providers and receive customer referrals from T-Mobile. Currently, we have approximately 85 ISPs selling or referring Telo, and we signed seven new ISPs in Q2. While ISP-driven users make up just a small percentage of our teller user base today, we believe sales to ISPs represent additional opportunity for growth. As we go into the second half of our fiscal year, our focus is on capitalizing fully on Airdial, continuing to enhance UMA Office to drive higher ARPU and to expand to larger customers, and positioning 26 Hertz as the best wholesale platform. We hope to expand our list of Airedial partners and see our existing partners ramp sales significantly. Most of all, we are focused on executing well. We believe we have built outstanding solutions and have set goals to drive both growth and improved profitability going forward. Now, before I turn it over to Shig, I would also like to mention that this past July marked 10 years since Ooma became a public company. We're proud of this milestone. Since we went public, we have more than tripled our revenue, dramatically improved our bottom line, shifted to serving primarily business customers, and reinvented ourselves to serve new markets. I'm proud of our accomplishments and excited as I look forward, since I believe UMA has never been stronger than it is today. I'll now turn over the call to Shig, our CFO, to discuss our results and outlook in more detail, and then return with some closing remarks.