Ooma (OOMA) AI Stock Analysis

• Market Cap: $319.33M
• Dividend Yield: N/A
• Average Volume (3M): 133.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 5.42%
• EPS Growth: 69.88%
• Country: US
• Employees: 1,186
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.23
• Shares Outstanding: 27,600,000
• 10 Day Avg. Volume: 95,705
• 30 Day Avg. Volume: 133,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 27.67
• 1Y Price Target: $18.50
• Price Target Upside: 59.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 46 Neutral
• Price Target: $11.00 ▼(-4.93% Downside)

Ooma's overall stock score is primarily impacted by its financial performance and technical analysis. While revenue growth is strong, profitability issues and bearish technical indicators weigh heavily on the score. The valuation is also a concern due to the negative P/E ratio. The positive sentiment from the earnings call is not factored into the overall score due to its exclusion.

Positive Factors

Revenue Growth

Ooma's consistent revenue growth, highlighted by a strong Q2 performance, indicates robust market demand and effective business strategies, supporting long-term expansion.

Business User Growth

The significant growth in business subscriptions underscores Ooma's successful penetration into the business market, enhancing its revenue base and competitive position.

Cash Flow Generation

Strong cash flow generation provides Ooma with financial flexibility to invest in growth opportunities and manage debt, supporting long-term financial health.

Negative Factors

Profitability Challenges

Ongoing profitability issues, reflected in negative net profit margins, could hinder Ooma's ability to reinvest in growth and improve shareholder returns over time.

Residential Revenue Decline

The decline in residential revenue suggests potential market saturation or competitive pressures, which may impact Ooma's overall revenue growth and market share.

Flat Gross Margins

Flat gross margins indicate challenges in improving cost efficiency, which could limit profitability improvements and affect long-term financial performance.

Ooma Business Overview & Revenue Model

Company Description

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Office Pro that offers services, including HD video meetings, call recording, enhanced call blocking, and voicemail transcription; Ooma Connect, which delivers fixed wireless internet connectivity; Ooma Managed Wi-Fi, a plug-and-play enterprise-grade Wi-Fi solution; and Ooma Enterprise, a unified-communications-as-a-service solution. It also provides Ooma AirDial, a plain old telephone service; Ooma Telo basic that provides unlimited personal calling within the Unites States; Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis; PureVoice HD, a residential phone services; Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; and Ooma Telo 4G, which combines the Ooma Telo base station with the Ooma 4G Cellular Adapter and battery back-up. In addition, the company offers Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; Ooma Smart Security, a security and monitoring platform; and Talkatone mobile app. It offers its products through direct sales, distributors, retailers, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

How the Company Makes Money

Ooma generates revenue primarily through subscription-based services, including monthly and annual fees for its residential and business VoIP plans. The company offers various tiers of service with different features, allowing it to capture a wide range of customers from individual consumers to small businesses. Additional revenue streams include the sale of hardware products, such as the Ooma Telo device and accessories. Ooma also benefits from partnerships with other technology providers and telecommunications companies, which helps to expand its customer base and enhance its service offerings. Furthermore, Ooma generates revenue through optional add-on services like international calling and advanced features, contributing to its overall earnings.

Ooma Financial Statement Overview

Summary

Ooma shows solid revenue growth and strong gross margins, but faces profitability challenges with negative net and EBIT margins. The balance sheet is stable with low leverage, and cash flow performance is strong, highlighted by significant free cash flow growth.

Income Statement

Ooma demonstrates consistent revenue growth with a TTM growth rate of 9.5% compared to the previous year. The gross profit margin stands strong at 60.9% for TTM, indicating efficient cost management. However, the company is facing challenges with profitability as reflected in the negative net profit margin of -1.9% and negative EBIT margin of -1.6%. Despite these challenges, the EBITDA margin of 3.3% suggests potential for operational improvements.

Balance Sheet

The balance sheet displays a healthy equity ratio of 59.0% and a manageable debt-to-equity ratio of 0.18, indicating financial stability. Nonetheless, the return on equity is negative, at -5.6%, due to the net losses, pointing towards inefficiencies in generating returns for shareholders.

Cash Flow

Ooma's cash flow is robust, highlighted by a significant free cash flow growth rate of 235.5% from 2024 to 2025. The operating cash flow to net income ratio is strong at -5.5, indicating effective cash generation despite reported net losses. The free cash flow to net income ratio is -4.2, suggesting that the company is generating adequate cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	261.62M	256.85M	236.74M	216.16M	192.29M	168.95M
Gross Profit	159.64M	156.02M	147.23M	137.65M	118.44M	104.80M
EBITDA	11.43M	6.20M	8.18M	3.28M	5.43M	4.60M
Net Income	-1.51M	-6.90M	-835.00K	-3.65M	-1.57M	-2.44M
Balance Sheet
Total Assets	150.09M	149.19M	159.25M	131.00M	109.25M	89.10M
Cash, Cash Equivalents and Short-Term Investments	19.56M	17.87M	17.54M	26.86M	31.28M	28.31M
Total Debt	11.59M	15.95M	29.68M	14.04M	14.45M	2.81M
Total Liabilities	61.97M	63.92M	81.17M	67.86M	58.20M	49.55M
Stockholders Equity	88.12M	85.28M	78.09M	63.14M	51.06M	39.55M
Cash Flow
Free Cash Flow	20.21M	20.16M	6.11M	3.56M	2.45M	1.21M
Operating Cash Flow	26.00M	26.61M	12.27M	8.77M	6.66M	4.37M
Investing Cash Flow	-5.79M	-6.45M	-35.33M	-6.15M	-4.89M	229.00K
Financing Cash Flow	-17.23M	-19.82M	16.45M	1.84M	601.00K	1.02M

Ooma Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OOMA, the sentiment is Neutral. The current price of 11.57 is above the 20-day moving average (MA) of 11.32, below the 50-day MA of 12.07, and below the 200-day MA of 12.83, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 83.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OOMA.

Ooma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	―	$224.25M	24.67	9.74%	―	18.18%	89.73%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KORE	―	$60.35M	―	―	―	0.24%	68.22%
ATNI	―	$239.16M	―	-9.15%	6.72%	-5.33%	-334.05%
SHEN	―	$709.27M	-19.72	-3.93%	0.77%	16.73%	-237.78%
RBBN	―	$610.15M	-14.10	-11.40%	―	7.38%	20.81%
OOMA	―	$319.33M	-198.80	-1.78%	―	5.42%	69.88%

Ooma Corporate Events

Ooma Inc. Earnings Call: Record Growth and Positive Outlook

Ooma Inc. recently held its earnings call, showcasing a strong financial performance that set new records in revenue and profitability. The company highlighted significant growth in its Airdial segment, with major customer acquisitions and expanded reseller partnerships contributing to a positive outlook. Despite minor setbacks in residential subscription revenue and stagnant gross margins, the overall sentiment remained optimistic, driven by robust business segment growth and financial health.

Ooma, Inc. Reports Steady Growth in Q2 2026

Ooma, Inc., a communications services provider for businesses and consumers, has reported its financial results for the fiscal second quarter of 2026, showcasing a steady growth trajectory. The company, known for its advanced communication solutions such as Ooma Office and Ooma Telo, continues to expand its presence in the communications industry.