OOMA INC
For the period ended Apr 30, 2026. Filed Jun 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 30, 2026 · Filed Jun 5, 2026
OOMA$18.00+2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-10-31; filed 2025-12-09.
0001193125-25-312961
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-30; filed 2026-06-05.
0001327688-26-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 89 previous paragraphs and 81 current paragraphs.
40 unchanged; 38 reworded; 3 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
As of April 30, 2026, we had $52.9 million outstanding debt, net of unamortized issuance costs. We had no outstanding debt as of April 30, 2025.
Current report
In February 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). As a result of this ruling, we may be eligible for a refund of tariffs previously paid on imported goods. As the recoverability and timing of any such refund remains uncertain, we have not recorded a benefit for any potential refund and will not until such amounts are realizable. We will continue to monitor these developments and their potential impact on our results of operations.
Current report
Sales and marketing expenses increased $2.5 million or 13% year-over-year, primarily due to a $1.1 million increase in commissions due to growth in AirDial lines and sales of FluentStream and Phone.com offerings, a $1.4 million increase in amortization of intangible assets attributable to recent acquisitions, and a $0.4 million increase in personnel-related costs, partially offset by a $0.8 million decrease in advertising and marketing expense.
Removed paragraphs (11)
Previous report
On December 1, 2025, we completed the acquisition of FluentStream Corp. (“FluentStream”) a provider of enterprise-grade business phone services for small and medium-sized organizations, for approximately $45.0 million in cash, subject to certain working capital adjustments. We believe the acquisition of FluentStream will accelerate overall growth of Ooma Business. We financed the acquisition through a combination of cash on hand and term loan borrowings of $45.0 million under our credit agreement, as amended, with Citizens Bank, NA, as administrative agent and lender (the “Credit Agreement”). FluentStream was not material to our financial statements for the periods presented because the acquisition occurred after the end of our third fiscal quarter.
Previous report
As of October 31, 2025, we maintained zero outstanding debt balance consistent with January 31, 2025.
Previous report
Subscription and services revenue increased $1.8 million or 3% year-over-year, primarily attributable to an increase in AirDial lines, and an increase in the average revenue per core user.
Previous report
We derived approximately 63% and 61% of our total revenue from Ooma Business and approximately 35% and 36% from Ooma Residential for the nine months ended October 31, 2025 and 2024, respectively.
Previous report
Product and other revenue increased $2.0 million or 15% year-over-year, primarily attributable to an increase in AirDial and Telo shipments.
Previous report
Subscription and services gross margin of 70% remained consistent year-over-year. Cost of subscription and services revenue increased $2.0 million year-over-year, primarily due to a $1.2 million increase in personnel-related costs and a $1.1 million increase in infrastructure costs, partially offset by a $0.3 million net decrease in depreciation and amortization expense, and other operational expenses.
Previous report
Product and other revenue gross margin improved to negative 45% from negative 65% in the prior year period. The improvement in product margin was primarily due to the depletion of certain higher cost components that we procured in prior fiscal years to stay ahead of pandemic driven supply chain issues.
Previous report
Sales and marketing expenses were consistent year-over-year, primarily due to a $0.7 million decrease in personnel-related costs, driven in part by a reduction in acquisition-related stock-based compensation expense, partially offset by a $0.6 million increase in commissions expense.
Previous report
General and administrative expenses were consistent year-over-year, primarily due to a $0.6 million increase in acquisition-related expenses, partially offset a $0.3 million decrease in personnel-related costs and a $0.3 million net decrease in facility and other operational expenses.
Previous report
Sales and marketing expenses were consistent year-over-year, primarily due to a $1.4 million increase in commission expense partially offset by a $1.5 million decrease in personnel-related costs, driven in part by a reduction in acquisition-related stock-based compensation expense.
Previous report
Research and development expenses decreased $4.6 million or 11% year-over-year, primarily due to a $3.5 million decrease in personnel-related costs, driven in part by a reduction in acquisition-related stock-based compensation expense, a $0.9 million decrease in restructuring costs and a $0.4 million decrease in marketing expenses.
Reworded paragraphs (38)
Previous wording
Ooma provides leading communications services and related technologies that bring unique features, ease of use, and affordability to businesses and residential customers through our smart SaaS and unified communications platforms. For businesses of all sizes, we deliver advanced voice and collaboration features including messaging, intelligent virtual attendants, and video conferencing to help them run more efficiently. For consumers, our residential phone service provides PureVoice high-definition voice quality, advanced functionality and integration with mobile devices.
Current wording
Ooma provides leading communications services and related technologies that bring unique features, ease of use, and affordability to businesses and residential customers through our smart SaaS and unified communications platforms. For businesses of all sizes, we deliver advanced voice and collaboration features including messaging, intelligent virtual attendants, and video conferencing to help them run more efficiently. Ooma’s all-in-one replacement solution for analog phone lines helps businesses maintain mission-critical systems by moving connectivity to the cloud. For consumers, our residential phone service provides PureVoice high-definition voice quality, advanced functionality and integration with mobile devices.
Previous wording
We generate revenues primarily from the sale of subscriptions and other services for our business and residential communications solutions. We generate our product and other revenue from the sale of our on-premise devices and end-point devices, including Ooma AirDial. We primarily offer our solutions in the United States and Canada, with limited offerings in certain other countries.
Current wording
We generate revenues primarily from the sale of subscriptions and other services for our business and residential communications solutions. We generate our product and other revenue from the sale of on-premise devices and end-point devices, including Ooma AirDial, and from installation services, equipment rentals, and professional services. We primarily offer our solutions in the United States and Canada, with limited offerings in certain other countries.
Previous wording
We refer to Ooma Office, Ooma Enterprise, Ooma AirDial, 2600Hz, and OnSIP collectively as Ooma Business. Ooma Residential includes Ooma Telo basic and premier services, as well as Ooma Telo LTE services.
Current wording
We refer to Ooma Office, Ooma Enterprise, Ooma AirDial, 2600Hz, FluentStream, Phone.com, and OnSIP collectively as Ooma Business. Ooma Residential includes Ooma Telo basic and premier services, as well as Ooma Telo LTE services.
Previous wording
Third Quarter Fiscal 2026 Financial Performance
Current wording
First Quarter Fiscal 2026 Financial Performance
Previous wording
Total revenue was $67.6 million, up 4% year-over-year, primarily driven by the growth of Ooma Business.
Current wording
Total revenue was $81.1 million, up 25% year-over-year, primarily driven by the growth of Ooma Business and contributions of FluentStream and Phone.com. In December 2025, we completed the acquisitions of FluentStream and Phone.com, which contributed $11.2 million in revenue in the aggregate for the first quarter of fiscal 2027.
Previous wording
Subscription and services revenue from Ooma Business grew 6% year-over-year, primarily driven by user growth.
Current wording
Subscription and services revenue from Ooma Business grew 38% year-over-year, primarily driven by user growth and subscription and the contributions of FluentStream and Phone.com.
Previous wording
Total gross margin was 60%, consistent with the prior year quarter.
Current wording
Total gross margin was 62%, consistent with the prior year quarter.
Previous wording
GAAP net income was $1.4 million, compared to net loss of $2.4 million in the prior year quarter reflecting continued improvement in our operations.
Current wording
GAAP net income was $2.6 million, compared to net loss of $0.1 million in the prior year quarter reflecting continued improvement in our operations.
Previous wording
Adjusted EBITDA was $8.6 million, compared to $5.7 million in the prior year quarter.
Current wording
Adjusted EBITDA was $11.8 million, compared to $6.7 million in the prior year quarter.
Previous wording
As of October 31, 2025, we had total cash and cash equivalents of $21.7 million, compared to $17.9 million as of January 31, 2025.
Current wording
As of April 30, 2026, we had total cash and cash equivalents of $17.2 million, compared to $20.1 million as of January 31, 2026, decrease primarily driven by prepayments of term loan borrowings.
Previous wording
Core Users decreased year-over-year, which was primarily driven by a decline in Ooma Residential users, partially offset by an increase in Ooma Business users. As of October 31, 2025, Ooma Business users comprised approximately 42% of our total core users, up from 41% as of October 31, 2024. We define our core users as the number of active residential user accounts and business user extensions (excluding Talkatone and 2600Hz users). We believe that the relationship that we establish with our core users positions us to sell additional premium communications services and other new connected services to them.
Current wording
Core Users increased year-over-year, which was primarily driven by growth in Ooma Business users, including the addition of 165,000 core users associated with our FluentStream and Phone.com offerings. As of April 30, 2026, Ooma Business users comprised approximately 49% of our total core users, up from 41% as of April 30, 2025. We define our core users as the number of active residential user accounts and business user extensions (excluding Talkatone and 2600Hz users). We believe that the relationship that we establish with our core users positions us to sell additional premium communications services and other new connected services to them.
Previous wording
Annualized Exit Recurring Revenue ("AERR") grew year-over-year due to an increase in the average revenue per core user, which was largely driven by an increasing mix of Business users. We believe that AERR is an indicator of recurring subscription and services revenue for near-term future periods. We estimate our AERR by dividing our recurring quarterly subscription revenue from our Core Users by the average number of core users each quarter and annualize by multiplying by four. We then multiply that result by the number of core users at the end of the period to calculate AERR. AERR includes the annual recurring revenue from 2600Hz.
Current wording
Annualized Exit Recurring Revenue ("AERR") grew year-over-year due to an increase in the average revenue per core user, which was largely driven by an increasing mix of Business users. We believe that AERR is an indicator of recurring subscription and services revenue for near-term future periods. We estimate our AERR by dividing our recurring quarterly subscription revenue from our Core Users by the average number of core users each quarter and annualize by multiplying by four. We then multiply that result by the number of core users at the end of the period to calculate AERR. AERR includes the annual recurring revenue from 2600Hz. Since the fourth quarter of fiscal 2026, AERR includes annual recurring revenue generated from our FluentStream and Phone.com offerings.
Previous wording
In addition, we use Adjusted EBITDA (Earnings Before Interest Tax and Depreciation and Amortization) to manage our business, evaluate our performance and make planning decisions. We consider this metric to be a useful measure of our operating performance, because it contains adjustments for unusual events or factors that do not directly affect what management considers the core operating performance, and are used by our management for that purpose. We also believe this measure enables us to better evaluate our performance by facilitating a meaningful comparison of our core operating results in a given period to those in prior and future periods. Investors often use similar measures to evaluate the operating performance with those of competitors. Adjusted EBITDA represents net income before interest and other income, income taxes, depreciation and amortization of capital expenditures, amortization of intangible assets, stock-based compensation and related taxes, acquisition-related costs, restructuring costs, litigation costs and gain on note conversion.
Current wording
In addition, we use Adjusted EBITDA (Earnings Before Interest Tax and Depreciation and Amortization) to manage our business, evaluate our performance and make planning decisions. We consider this metric to be a useful measure of our operating performance, because it contains adjustments for unusual events or factors that do not directly affect what management considers the core operating performance, and are used by our management for that purpose. We also believe this measure enables us to better evaluate our performance by facilitating a meaningful comparison of our core operating results in a given period to those in prior and future periods. Investors often use similar measures to evaluate the operating performance with those of competitors. Adjusted EBITDA represents net income before interest and other income, income taxes, depreciation and amortization of capital expenditures, amortization of intangible assets, stock-based compensation and related taxes, restructuring costs and litigation costs.
Previous wording
Adjusted EBITDA does not consider the impact of interest and other income/expense, income taxes, stock-based compensation and related taxes, amortization of intangible assets, litigation costs, acquisition-related costs, restructuring costs and gain on note conversion; and
Current wording
Adjusted EBITDA does not consider the impact of interest and other income/expense, income taxes, stock-based compensation and related taxes, amortization of intangible assets, litigation costs and restructuring costs; and
Previous wording
Subscription and services revenue is derived primarily from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services, and to a lesser extent from payments associated with our Talkatone mobile application and prepaid international calls. We expect our subscription and services revenue to grow as we expand our user base, driven primarily by growth in Ooma Business, including through the FluentStream acquisition.
Current wording
Subscription and services revenue is derived primarily from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services, and to a lesser extent from payments associated with our Talkatone mobile application and prepaid international calls. We expect our subscription and services revenue to grow as we expand our user base, driven primarily by growth in Ooma Business. We expect revenues from Ooma Business will continue to account for most of our revenue for foreseeable future.
Previous wording
Product and other revenue consists primarily of sales of our on-premise devices and end-point devices used in connection with our services, including shipping and handling fees for our direct customers.
Current wording
Product and other revenue consists primarily of sales sale of our on-premise devices and end-point devices, including Ooma AirDial, and from installation services, equipment rentals, and professional services.
Previous wording
Subscription and services gross margin may fluctuate from period-to-period based on the interplay of a number of factors, including revenue mix and fluctuations in the costs described above. We expect our subscription and services gross margin to increase over the long-term, primarily as we achieve scale efficiencies and as Ooma Business revenue becomes a larger majority of total subscription revenue.
Current wording
Subscription and services gross margin may fluctuate from period-to-period based on the interplay of a number of factors, including revenue mix and fluctuations in the costs described above. We expect our subscription and services gross margin to increase over the long term, primarily as we achieve scale efficiencies and as Ooma Business revenue becomes a larger majority of total subscription revenue and as and to the extent we realize anticipated synergies from our recent acquisitions.
Previous wording
Product and other gross margin may fluctuate from period-to-period based on a number of factors, including total units shipped as compared to the direct costs of production and relatively fixed personnel costs incurred. We sell our on-premise devices at aggressive price points to facilitate the adoption of our platforms and services. Additionally, some product costs have become subject to significantly higher pricing reflecting supply chain constraints in the global macroeconomic environment and the impacts of increasing tariffs or trade restrictions and related uncertainty, as well as certain components becoming subject to end-of-life and we may not be able to fully offset such higher costs through price increases. Accordingly, we expect our product and other gross margin will continue to be negative for the foreseeable future as they are negatively impacted by these higher component costs and AirDial installation costs.
Current wording
Product and other gross margin may fluctuate from period-to-period based on a number of factors, including total units shipped as compared to the direct costs of production and relatively fixed personnel costs incurred. We sell our on-premise devices at aggressive price points to facilitate the adoption of our platforms and services. Additionally, some product costs have become subject to significantly higher pricing due to supply chain constraints in the global macroeconomic environment and increasing tariffs, as well as certain components becoming subject to end-of-life, and we may not be able to fully offset such higher costs through price increases. We are also experiencing higher AirDial installation costs due to ramp up efforts in recent periods to address growth in customer demand. Accordingly, we expect that our product and other gross margin will continue to be negatively impacted by these higher component costs and AirDial installation costs, and our product and other gross margin will continue to be negative for the foreseeable future.
Previous wording
Comparison of the three and nine months ended October 31, 2025 and 2024(dollars in tables are in thousands):
Current wording
Comparison of the three months ended April 30, 2026 and 2025(dollars in tables are in thousands):
Previous wording
We derived approximately 63% and 62% of our total revenue from Ooma Business and approximately 35% and 36% from Ooma Residential for the three months ended October 31, 2025 and 2024, respectively.
Current wording
We derived approximately 70% and 62% of our total revenue from Ooma Business and approximately 28% and 35% from Ooma Residential for the three months ended April 30, 2026 and 2025, respectively.
Previous wording
Subscription and services revenue increased $5.3 million or 3% year-over-year, primarily attributable to an increase in AirDial lines, and an increase in the average revenue per core user, driven by organic growth, which was in part due to increased sales of Ooma Office and Ooma Enterprise services.
Current wording
Subscription and services revenue increased $14.3 million or 24% year-over-year, primarily attributable to the contribution of FluentStream and Phone.com offerings, continued growth in AirDial lines, and organic growth, including increased sales of Ooma Office services, which resulted in an increase in our average revenue per core user.
Previous wording
Product and other revenue increased $0.7 million or 14% year-over-year, primarily attributable to an increase in AirDial shipments.
Current wording
Product and other revenue increased $1.8 million or 37% year-over-year, primarily attributable to an increase in AirDial shipments.
Previous wording
Subscription and services gross margin of 70% remained consistent year-over-year. Cost of subscription and services revenue increased $0.7 million or 4% year-over-year, primarily due to a $0.5 million increase in personnel-related costs and a $0.3 million increase in infrastructure costs, partially offset by a $0.1 million decrease in regulatory fees. Overall, the increase in the cost of subscription and services in part reflects the growth of Ooma Business.
Current wording
Subscription and services gross margin of 71% increased year-over-year from 70%. Cost of subscription and services revenue increased $3.8 million or 21% year-over-year, primarily due to a $2.1 million increase in personnel-related costs, a $0.8 million increase in infrastructure costs, a $0.3 million increase in banking fees, and a $0.3 million increase in intangible amortization, partially offset by a $0.2 million decrease in regulatory fees. Overall, the increase in the cost of subscription and services in part reflects the growth of Ooma Business and the additional costs resulting from sales of FluentStream and Phone.com offerings.
Previous wording
Product and other revenue gross margin improved to negative 45% from negative 57% in the prior year period. The improvement in product margin was primarily due to the depletion of certain higher cost components that we procured in prior fiscal years to stay ahead of pandemic driven supply chain issues.
Current wording
Product and other revenue gross margin improved to negative 32% from negative 42% in the prior year period. The improvement in product margin was primarily due to a more favorable sales mix toward higher margin products such as AirDial.
Previous wording
Research and development expenses decreased $2.1 million or 15% year-over-year, primarily due to a $1.6 million decrease in personnel and contractor-related costs, driven in part by a reduction in acquisition-related stock-based compensation expense, and a $0.5 million decrease in restructuring costs.
Current wording
Research and development expenses increased $2.6 million or 21% year-over-year, primarily due to a $2.2 million increase in personnel and contractor-related costs, a $0.3 million increase in license fees, and a $0.1 million increase in restructuring costs.
Previous wording
General and administrative expenses increased $0.9 million or 4% year-over-year, primarily due to a $0.2 million increase in personnel-related costs and a $0.6 million increase in acquisition-related expenses.
Current wording
General and administrative expenses increased $1.8 million or 22% year-over-year, primarily due to a $1.3 million increase in personnel-related costs related to increased headcount from recent acquisitions and a $0.2 million increase in restructuring costs.
Previous wording
As of October 31, 2025, we had $21.7 million of total cash and cash equivalents. In December 2025, we completed the acquisition of FluentStream for approximately $45.0 million in cash, subject to certain working capital adjustments, the payment of which we funded primarily through term loan borrowings of $45.0 million under the Credit Agreement. We believe our total cash and cash equivalents, together with our remaining borrowing capacity under the Credit Agreement, will be sufficient to meet our cash needs for at least the next 12 months. Our future capital requirements will depend on many factors, including our growth rate, the introduction of new and enhanced offerings, the timing and extent of our sales and marketing activities, and research and development expenditures, and other factors. We may in the future make investments in or acquisitions of businesses or technologies, which may require the use of cash.
Current wording
As of April 30, 2026, we had $17.2 million of total cash and cash equivalents and borrowing capacity of $10.0 million under our Credit Agreement, which we believe will be sufficient to meet our cash needs for at least the next 12 months. Our future capital requirements will depend on many factors, including our growth rate, the introduction of new and enhanced offerings, the timing and extent of our sales and marketing activities and research and development expenditures, the repayment of outstanding indebtedness, and other factors. We may in the future make investments in or acquisitions of businesses or technologies, which may require the use of cash. We may seek to raise additional funds at any time through equity or debt financings. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition would be adversely affected.
Previous wording
For the nine months ended October 31, 2025, our net income of $2.5 million included non-cash items of $21.1 million primarily related to stock-based compensation, operating lease expense, and depreciation and amortization expense. Operating asset and liability changes for the nine months ended October 31, 2025 included:
Current wording
For the three months ended April 30, 2026, our net income of $2.6 million included non-cash items of $8.7 million primarily related to stock-based compensation, operating lease expense, and depreciation and amortization expense. Operating asset and liability changes for the three months ended April 30, 2026 included:
Previous wording
an increase of $0.8 million in accounts receivable due to the timing of customer cash collections;
Current wording
an increase of $0.5 million in accounts receivable due to the timing of customer cash collections;
Previous wording
an increase of $2.3 million in inventories and deferred inventory costs;
Current wording
an increase of $1.8 million in inventories and deferred inventory costs, driven by the timing of inventory receipts;
Previous wording
an increase of $1.2 million in prepaid expenses and other current and non-current assets;
Current wording
an increase of $2.2 million in prepaid expenses and other current and non-current assets, driven by the timing of payments for prepaid expenses;
Previous wording
a net decrease of $2.7 million in accounts payable, accrued expenses and other liabilities due to the timing of payments; and
Current wording
a net increase of $0.3 million in accounts payable, accrued expenses and other liabilities due to the timing of payments; and
Previous wording
an increase of $0.4 million in deferred revenue.
Current wording
a decrease of $0.7 million in deferred revenue.
Previous wording
Cash provided by operating activities for the nine months ended October 31, 2025 decreased $1.8 million year-over-year, which primarily reflected working capital impacts resulting from the timing of payments. Although we have generated cash from operations in recent periods, our operating cash flow may not remain positive in the future as we continue to invest in efforts to scale our business.
Current wording
Cash provided by operating activities for the three months ended April 30, 2026 increased $2.7 million year-over-year, which primarily reflected working capital impacts resulting from the timing of payments. Although we have generated cash from operations, our operating cash flow may not remain positive in the future as we continue to invest in efforts to scale our business.
Previous wording
For the nine months ended October 31, 2025, cash used in investing activities was $4.0 million, which consisted primarily of capital expenditures. Cash used in investing activities decreased $0.7 million year-over-year primarily due to a decrease in fixed assets additions for the nine months ended October 31, 2025.
Current wording
For the three months ended April 30, 2026, cash used in investing activities was $1.1 million, which consisted primarily of capital expenditures of $1.5 million, offset by $0.4 million cash received from working capital adjustment related to the FluentStream acquisition. Cash used in investing activities decreased $0.1 million compared to the prior year period, driven by the $0.4 million working capital adjustment received, partially offset by higher capital expenditures.
Previous wording
For the nine months ended October 31, 2025, cash used in financing activities was $9.1 million, which consisted of payments of $4.0 million related to shares repurchased for tax withholdings on vesting of RSUs, and payments of $8.2 million under our stock repurchase plan, partially offset by proceeds of $3.0 million from the issuance of common stock from our ESPP and stock option exercises. Cash used in financing activities decreased $5.8 million year-over-year, which primarily reflected repayments of borrowings under our 2023 Credit Agreement (as defined below) during the nine months ended October 31,2024, which did not recur in the nine months ended October 31,2025.
Current wording
For the three months ended April 30, 2026, cash used in financing activities was $8.3 million, which consisted of payments of $1.4 million related to shares repurchased for tax withholdings on vesting of RSUs, and payments of $3.3 million under our stock repurchase plan, and debt prepayments of $5.0 million, partially offset by proceeds of $1.4 million from the issuance of common stock from our ESPP and stock option exercises. Cash used in financing activities increased $6.9 million year-over-year, which primarily reflected prepayments of term loan borrowings under our Credit Agreement (as defined below) during the three months ended April 30, 2026, which did not occur in the three months ended April 30, 2025.
Previous wording
In October 2023, we entered into the 2023 Credit Agreement, which provides for a secured revolving credit facility under which we may borrow up to an aggregate of $30.0 million and, subject to certain conditions, may be increased to up to $50.0 million. As of October 31, 2025, we had zero outstanding borrowings and were in compliance with all loan covenants. On December 1, 2025, the Company entered into the Credit Agreement, the terms of which replace and supersede the terms of the 2023 Credit Agreement. The Credit Agreement has a term of five years and provides for a term loan facility of up to $65.0 million and a revolving credit facility of up to $10.0 million. In connection with entering into the Credit Agreement, we borrowed $45.0 million as a term loan maturing on the December 1, 2030 (the “Maturity Date”). The remaining $20.0 million of the term loan facility under the Credit Agreement may, subject to the satisfaction of certain conditions precedent, be borrowed by the Company no later than 90 days after the amendment closing date as an additional term loan maturing on the Maturity Date. We used the proceeds of initial term loan to finance the FluentStream acquisition and intend to use the proceeds from future borrowings thereunder to fund other potential acquisitions working capital, and other general corporate purposes.
Current wording
We maintain a credit agreement with Citizens Bank, N.A., as amended through December 2025 (the "Credit Agreement"). The Credit Agreement has a five-year term and provides for a term loan facility of up to $65.0 million and a revolving credit facility of up to $10.0 million. In December 2025, we borrowed $65.0 million as a term loan maturing on December 1, 2030. We used the proceeds of the term loan to finance the FluentStream and Phone.com acquisitions (see Note 13: Business Acquisition). As of April 30, 2026, we had a $52.9 million term loan balance, net of unamortized debt discount and issuance costs, no borrowings under the revolving credit facility under the Credit Agreement, and were in compliance with all loan covenants.
Previous wording
Refer to Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 for a discussion of our critical accounting policies and estimates. There have been no changes to the Company’s significant accounting policies and estimates as outlined in our fiscal 2025 Annual Report in the first three quarters of fiscal 2026.
Current wording
Refer to Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 for a discussion of our critical accounting policies and estimates. There have been no changes to the Company’s significant accounting policies and estimates as outlined in our fiscal 2026 Annual Report in the first quarter of fiscal 2027.