Ooma (OOMA) AI Stock Analysis

• Market Cap: $320.16M
• Dividend Yield: N/A
• Average Volume (3M): 118.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• 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: 143,140
• 30 Day Avg. Volume: 118,449
• PEG Ratio: -0.08
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 19.02
• 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: 56.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $11.00 ▼(-6.86% 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. is a telecommunications company that specializes in providing innovative voice over IP (VoIP) services and smart home solutions. Founded in 2004, Ooma offers a range of products including residential and business phone services, as well as home security and automation systems. The company's core products include the Ooma Telo, a VoIP home phone service, and Ooma Office, a cloud-based phone system designed for small to medium-sized businesses. Ooma aims to enhance communication and security for its customers through its advanced technology and user-friendly applications.

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 strong revenue growth but struggles with profitability, as indicated by negative net profit margins. The balance sheet reflects reduced leverage, yet return on equity remains negative. Cash flow generation is positive, though growth is a concern.

Income Statement

Ooma's income statement shows a mixed performance. The company has achieved consistent revenue growth over the years, with a TTM revenue growth rate of 86.2%. However, profitability remains a challenge, as indicated by negative net profit margins and EBIT margins. The gross profit margin is relatively stable at around 61%, but the negative net profit margin of -0.58% in the TTM period highlights ongoing profitability issues.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.13 in the TTM period, indicating a reduction in leverage. However, the return on equity remains negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is stable, showing a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis reveals some strengths, with a positive operating cash flow and a free cash flow to net income ratio of 0.78 in the TTM period. However, the free cash flow growth rate is negative, indicating potential challenges in sustaining cash flow growth. The operating cash flow to net income ratio is above 0.5, suggesting decent cash generation relative to 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: Positive
• Last Price: 11.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OOMA, the sentiment is Positive. The current price of 11.81 is above the 20-day moving average (MA) of 11.43, below the 50-day MA of 11.97, and below the 200-day MA of 12.72, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 64.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OOMA.

Ooma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	76 Outperform	$202.93M	22.33	9.74%	―	18.18%	89.73%
ATNI	63 Neutral	$274.63M	―	-1.70%	5.23%	-3.10%	69.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KORE	57 Neutral	$74.52M	―	―	―	0.24%	68.22%
SHEN	47 Neutral	$635.17M	-15.91	-4.41%	1.01%	11.59%	-106.83%
OOMA	46 Neutral	$320.16M	―	-1.78%	―	5.42%	69.88%
RBBN	46 Neutral	$559.82M	-12.94	-11.40%	―	7.38%	20.81%

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.