Olo (OLO) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 4.97M
• Price to Earnings (P/E): 593.7
• Beta (1Y): 1.00
• Revenue Growth: 21.92%
• EPS Growth: 95.91%
• Country: US
• Employees: 617
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 121,063,644
• 10 Day Avg. Volume: 5,153,235
• 30 Day Avg. Volume: 4,966,484
• 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: 0.73
• Enterprise Value/Revenue: 4.00
• Enterprise Value/Gross Profit: 7.50
• Enterprise Value/Ebitda: 75.93
• 1Y Price Target: $10.25
• Price Target Upside: 0.29% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: $11.50 ▲(12.52% Upside)

Olo's overall stock score reflects strong revenue growth and strategic corporate events, such as the acquisition by Thoma Bravo. However, profitability challenges and valuation concerns weigh on the score. The technical analysis indicates a positive trend, while the earnings call provides a positive outlook despite some challenges.

Positive Factors

Financial Performance

Olo reported second-quarter results that were slightly ahead of analyst estimates on revenue and adjusted operating income.

Market Position

Strong franchise value associated with being an operating system/growth-oriented platform for enterprise and emerging enterprise restaurant brands could have attracted a variety of suitors.

Strategic Partnerships

Traction with brands of high caliber, like Chipotle, is highly encouraging, especially considering Chipotle's historical preference for home-grown technology.

Negative Factors

Growth Rate

Growth deceleration in adjusted gross profit was noted, slowing from 18% in the previous quarter to 10%.

Product Offerings

Olo still has some notable gaps in its solutions, especially in facilitating in-person commerce.

Stock Valuation

The transaction price values Olo at 4.1x EV/26E sales, compared to the 10-20% growth peer group trading at 5.7x EV/26E sales.

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: 10.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.22 is below the 20-day moving average (MA) of 10.27, above the 50-day MA of 9.68, and above the 200-day MA of 7.76, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 12.37 is Positive, 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	80 Outperform	$1.48B	27.90	29.66%	2.65%	14.21%	23.74%
OLO	71 Outperform	$1.73B	593.71	-0.13%	―	21.92%	95.91%
Sector *	68 Neutral	¥243.34B	15.37	6.64%	2.41%	9.16%	-0.18%
VTEX	63 Neutral	$745.27M	74.99	5.33%	―	4.51%	8241.83%
SPT	63 Neutral	$869.69M	―	-32.50%	―	14.79%	27.52%
BLND	50 Neutral	$736.48M	―	-93.00%	―	-4.76%	67.62%

Olo Corporate Events

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.