Olo (OLO) AI Stock Analysis

• Market Cap: $1.74B
• Dividend Yield: N/A
• Average Volume (3M): 5.26M
• Price to Earnings (P/E): 593.7
• Beta (1Y): 0.97
• Revenue Growth: 21.92%
• EPS Growth: 95.91%
• Country: US
• Employees: 617
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 121,064,000
• 10 Day Avg. Volume: 6,851,629
• 30 Day Avg. Volume: 5,258,411
• 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: 0.72
• Enterprise Value/Revenue: 4.00
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 75.93
• 1Y Price Target: $10.25
• Price Target Upside: -0.10% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 63 Neutral
• Price Target: $11.00 ▲(7.21% Upside)

Olo's overall score reflects strong technical momentum and a solid financial position, but is weighed down by valuation concerns due to lack of profitability and ongoing litigation risks related to the merger.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, enabling Olo to invest in growth opportunities and manage obligations effectively.

Merger with Thoma Bravo

The merger with Thoma Bravo can provide strategic resources and expertise, potentially boosting Olo's competitive position and market reach.

Negative Factors

Profitability Concerns

Negative profitability can limit reinvestment in business growth and innovation, posing a challenge to sustaining long-term financial health.

Litigation Risks

Litigation risks can lead to financial and reputational damage, potentially distracting management and affecting strategic initiatives.

Declining Gross Profit Margin

A declining gross profit margin suggests rising costs or pricing pressures, which can erode profitability and competitiveness over time.

Olo Business Overview & Revenue Model

Company Description

Olo (OLO) is a leading on-demand commerce platform for multi-location restaurant brands. The company operates in the technology and restaurant sectors, providing digital ordering and delivery solutions to enhance customer experiences and streamline operations for restaurants. Olo's core products and services include online ordering, delivery integration, and customer engagement tools aimed at helping restaurants optimize their digital presence and operational efficiency.

How the Company Makes Money

Olo primarily generates revenue through a subscription-based model, charging restaurants for access to its digital platform and services. The company's key revenue streams include subscription fees for its software-as-a-service (SaaS) offerings, transaction fees from orders processed through its platform, and service fees for additional features and integrations. Significant partnerships with major restaurant brands and delivery service providers also contribute to its earnings by expanding its user base and enhancing its service offerings.

Olo Financial Statement Overview

Summary

Olo demonstrates strong revenue growth and a robust balance sheet with low leverage, despite challenges in profitability and cash flow efficiency. The company has turned a positive net income and maintains positive cash flows, indicating potential for growth.

Income Statement

Olo shows a positive trend in revenue growth with a significant increase in Total Revenue from $228.3M in 2023 to $299.1M in TTM. The Gross Profit Margin remains robust at 54.7% (TTM). However, profitability remains a concern as evidenced by negative EBIT and low Net Profit Margin at 1.09% (TTM). Despite these challenges, the company has managed to turn a positive net income in the latest period, indicating potential for improved profitability.

Balance Sheet

Olo maintains a solid financial position with a high equity ratio of 90.9% (TTM), reflecting strong shareholder equity relative to total assets. The Debt-to-Equity Ratio is low at 0.02, indicating minimal leverage and financial risk. However, the Return on Equity is modest at 0.47% (TTM), suggesting room for improvement in efficiently utilizing equity to generate profits.

Cash Flow

The company has demonstrated a positive Free Cash Flow growth, with Free Cash Flow improving from $38.8M in 2024 to $22.3M in TTM, albeit a decrease but remaining positive. The Operating Cash Flow to Net Income ratio is strong at 10.48 (TTM), highlighting effective cash conversion from operations. However, the Free Cash Flow to Net Income Ratio stands at a lower 6.82, indicating some challenges in translating profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	314.33M	284.94M	228.29M	185.40M	149.37M	98.42M
Gross Profit	167.55M	156.42M	138.97M	127.89M	118.54M	79.76M
EBITDA	16.56M	14.61M	-47.56M	-41.05M	-45.21M	4.08M
Net Income	-884.00K	-897.00K	-58.29M	-45.97M	-42.27M	3.06M
Balance Sheet
Total Assets	780.67M	754.78M	742.82M	775.56M	755.88M	134.42M
Cash, Cash Equivalents and Short-Term Investments	377.44M	360.74M	362.55M	448.77M	514.45M	75.76M
Total Debt	12.73M	13.98M	18.86M	20.05M	0.00	0.00
Total Liabilities	71.68M	71.55M	91.35M	77.95M	54.13M	186.91M
Stockholders Equity	708.99M	683.22M	651.47M	697.62M	701.75M	-52.48M
Cash Flow
Free Cash Flow	37.02M	38.80M	-19.67M	-6.65M	14.41M	19.50M
Operating Cash Flow	42.92M	39.69M	-6.57M	2.34M	16.25M	20.77M
Investing Cash Flow	-10.92M	-16.87M	-19.49M	-158.48M	-77.07M	-1.27M
Financing Cash Flow	7.90M	-14.28M	-45.80M	-8.23M	499.51M	45.33M

Olo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLO, the sentiment is Positive. The current price of 10.26 is above the 20-day moving average (MA) of 10.24, above the 50-day MA of 10.20, and above the 200-day MA of 8.11, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OLO.

Olo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KARO	82 Outperform	1.75B	33.11	28.76%	2.24%	14.21%	23.74%
VTEX	70 Neutral	844.31M	84.25	5.34%	―	4.51%	8241.83%
OLO	63 Neutral	$1.74B	593.71	-0.13%	―	21.92%	95.91%
SPT	62 Neutral	843.40M	-14.60	-37.20%	―	14.79%	27.52%
BLND	58 Neutral	1.05B	-25.03	88.02%	―	-4.76%	67.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Olo Corporate Events

Olo Stockholders Approve Merger with Olo Parent, Inc.

On September 9, 2025, Olo Inc. held a special meeting where stockholders voted to adopt a merger agreement with Olo Parent, Inc., resulting in Olo becoming a wholly-owned subsidiary. The merger proposal and a compensation proposal related to executive payments in connection with the merger were both approved by the necessary stockholder votes, indicating strong support for the merger and its associated plans.

Olo Faces Litigation Over Recent Merger Agreement

Olo Inc. announced a merger agreement with Project Hospitality Parent, LLC, which will result in Olo becoming a wholly-owned subsidiary of Project Hospitality Parent. This merger, involving Thoma Bravo affiliates, has led to litigation from stockholders alleging misrepresentation in the merger’s proxy statement. Despite the company’s belief that these claims are without merit, Olo has decided to supplement disclosures to address the claims and avoid potential business delays.

Olo Receives FTC Approval for Merger Progress

Olo Inc., a Delaware corporation, has entered into a Merger Agreement with Project Hospitality Parent, LLC and its subsidiary, Project Hospitality Merger Sub, Inc. On August 15, 2025, the U.S. Federal Trade Commission granted early termination of the HSR Waiting Period, a key condition for the merger’s completion. The merger’s finalization is still subject to other customary closing conditions, including approval by Olo’s stockholders, with a special meeting scheduled for September 9, 2025.

Olo Announces Acquisition by Thoma Bravo for $2B

On July 3, 2025, Olo Inc. announced its acquisition by Thoma Bravo in an all-cash transaction valued at approximately $2.0 billion. The merger, unanimously approved by Olo’s Board, offers shareholders $10.25 per share, a 65% premium over the unaffected share price. This acquisition is expected to accelerate Olo’s growth and enhance its offerings for restaurant brands globally. Upon completion, Olo will become a privately held company, continuing to operate under its current name. The transaction is anticipated to close by the end of 2025, subject to customary conditions, including shareholder and regulatory approvals.

Olo Holds Annual Stockholders Meeting with Key Votes

On June 12, 2025, Olo Inc. held its annual meeting of stockholders with a significant quorum present, representing 92.87% of the voting power. During the meeting, stockholders voted to elect three Class I directors, ratify the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approve the compensation of the company’s named executive officers on a non-binding advisory basis.