Ooma AI Stock Analysis
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Ooma (OOMA) AI Stock Analysis
Ooma
(NYSE:OOMA)
The score is driven primarily by strengthening financial performance (profitability inflection and strong free cash flow) and a constructive earnings outlook with improving margins and growth catalysts. Technicals support a positive trend, but the overall score is held back by a relatively high P/E and execution risks noted on the call (AI adoption visibility and negative product gross margins).
Ooma (OOMA) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $491.56M
- Dividend Yield
- ―
- Average Volume (3M)
- 405.43K
- Price to Earnings (P/E)
- 46.4
- Beta (1Y)
- 0.75
- Revenue Growth
- 17.19%
- EPS Growth
- ―
- Country
- US
- Employees
- 1,420
- Sector
- General
- Sector Strength
- 55
- Industry
- Telecommunications Services
Ooma Business Overview & Revenue Model
Company Description
Ooma, Inc. delivers a diverse range of communication solutions and associated technological innovations to both commercial clients and individual users across the United States and Canada. For businesses, Ooma offers an array of solutions. These incl...
How the Company Makes Money
Ooma generates revenue primarily from recurring subscriptions for its cloud communications services, supplemented by product sales and usage-based/ancillary fees. (1) Subscription/services revenue: The core of Ooma’s model is charging monthly or annu...
Ooma Earnings Call Summary
The call conveyed strong top-line growth, substantial margin and profitability improvement, robust cash generation, and clear strategic catalysts (AirDial expansion, AI product roadmap, MyPhone/StarDial and acquisition synergies). Key near-term uncertainties include limited visibility on AI adoption, negative product gross margins (though improving), modest core user growth with one-time churn impacts, and relatively low cash balances alongside outstanding debt. On balance, the positive operational and financial momentum and constructive guidance outweigh the highlighted challenges.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Ooma gave non‑GAAP guidance for Q3 and full‑year FY2027: for Q3 it expects total revenue of $83.7M–$84.5M (including $7.0M–$7.5M of product & other revenue), non‑GAAP net income of $9.8M–$10.2M and non‑GAAP diluted EPS of $0.34–$0.35 (assuming ~29.1M weighted average diluted shares). For full‑year FY27 the company forecasts revenue of $332.0M–$333.5M (business subscription & services revenue growth of ~32% YoY; residential subscription revenue flat to +1%), subscription & services to represent 91%–92% of revenue, non‑GAAP net income of $39.5M–$40.3M, adjusted EBITDA of $47.5M–$48.3M, and non‑GAAP diluted EPS of $1.35–$1.38 (assuming ~29.2M diluted shares); guidance is on a non‑GAAP basis (excluding items like stock‑based compensation and amortization).
Ooma Financial Statement Overview
Summary
Financial performance is improving meaningfully: multi-year revenue growth and a transition to profitability, with stable low-60% gross margins supporting operating leverage. Cash generation is a standout (TTM operating cash flow ~$37.1M; TTM free cash flow ~$30.3M). Main constraints are still-thin net/operating margins and some balance-sheet leverage volatility across periods.
Income Statement
72PositiveBalance Sheet
78PositiveCash Flow
82Very Positive| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 306.59M | 273.60M | 256.85M | 236.74M | 216.16M | 192.29M |
| Gross Profit | 188.46M | 167.24M | 156.02M | 147.23M | 137.65M | 118.44M |
| EBITDA | 29.23M | 18.58M | 6.20M | 6.99M | 3.28M | 5.43M |
| Net Income | 10.93M | 6.46M | -6.90M | -835.00K | -3.65M | -1.75M |
Balance Sheet | ||||||
| Total Assets | 226.42M | 227.54M | 149.19M | 159.25M | 131.00M | 109.25M |
| Cash, Cash Equivalents and Short-Term Investments | 17.53M | 20.14M | 17.87M | 17.54M | 26.86M | 31.28M |
| Total Debt | 56.39M | 73.16M | 15.95M | 29.68M | 14.04M | 14.45M |
| Total Liabilities | 128.04M | 134.62M | 63.92M | 81.17M | 67.86M | 58.20M |
| Stockholders Equity | 98.39M | 92.92M | 85.28M | 78.09M | 63.14M | 51.06M |
Cash Flow | ||||||
| Free Cash Flow | 30.30M | 22.10M | 20.16M | 6.11M | 3.56M | 2.45M |
| Operating Cash Flow | 37.12M | 27.69M | 26.61M | 12.27M | 8.77M | 6.66M |
| Investing Cash Flow | -70.47M | -69.68M | -6.45M | -35.33M | -6.15M | -4.89M |
| Financing Cash Flow | 31.33M | 44.27M | -19.82M | 16.45M | 1.84M | 601.00K |
Ooma Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OOMA, the sentiment is Negative. The current price of 18.30 is below the 20-day moving average (MA) of 19.34, below the 50-day MA of 20.73, and above the 200-day MA of 17.92, indicating a neutral trend. The MACD of -0.70 indicates Positive momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OOMA.
Ooma Risk Analysis
Ooma disclosed 63 risk factors in its most recent earnings report. Ooma reported the most risks in the "Legal & Regulatory" category.
Latest Risks Added
2 New RisksOoma Peers Comparison
Overall Rating
IDT80Outperform
ATNI77Outperform- OOMA73Outperform
CXDO70Outperform
IQST45Neutral
SHEN45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IDT | 80Outperform | $2.21B | 24.00 | 24.83% | 0.33% | 5.40% | 14.64% |
| ATNI | 77Outperform | $460.95M | 2.65 | 34.46% | 3.71% | 1.36% | ― |
| OOMA | 73Outperform | $491.56M | 46.41 | 11.59% | ― | 17.19% | ― |
| CXDO | 70Outperform | $167.88M | 40.79 | 5.38% | ― | 33.54% | -17.64% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IQST | 45Neutral | $8.63M | -0.35 | -81.23% | ― | 39.28% | 10.85% |
| SHEN | 45Neutral | $575.80M | -12.99 | -4.80% | 1.15% | 5.54% | -10.75% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| OOMA | Ooma Inc. | 18.30 | 6.87 | 60.10% | |
| ATNI | Atn International, Inc. | 30.47 | 11.45 | 60.21% | |
| CXDO | Crexendo Inc. | 5.05 | -1.73 | -25.52% | |
| IDT | IDT Corporation | 83.05 | 31.82 | 62.10% | |
| SHEN | Shenandoah Telecommunications | 10.39 | 0.08 | 0.82% | |
| IQST | Iqstel, Inc. | 0.79 | -3.70 | -82.41% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 28, 2026