Olo (OLO) AI Stock Analysis

• Market Cap: $1.72B
• Dividend Yield: N/A
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): 578.9
• Beta (1Y): 1.12
• Revenue Growth: 23.31%
• EPS Growth: N/A
• Country: US
• Employees: 617
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.07
• Shares Outstanding: 120,334,150
• 10 Day Avg. Volume: 6,211,737
• 30 Day Avg. Volume: 2,786,794
• PEG Ratio: 3.30
• Price to Book (P/B): -13.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 772.77
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 5.97
• Enterprise Value/Ebitda: 46.15
• 1Y Price Target: $10.31
• Price Target Upside: 1.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $10.00 ▼(-1.28%Downside)

Olo's overall score is driven by strong financial performance and positive technical indicators, bolstered by a favorable earnings call and strategic acquisition. However, high valuation concerns slightly dampen the overall outlook.

Positive Factors

Acquisition

Olo announced it reached an agreement to be acquired by Thoma Bravo for $10.25 per share cash, a $2.0B equity value.

Customer Base

Olo has an enviable 750-customer installed base of companies running on its Order product and the ability to cross-sell Pay and Engage into that base is part of what makes the asset so appealing.

Financial Performance

Olo reported a beat-and-raise first quarter, with accelerated gross profit growth and some highly encouraging customer wins.

Negative Factors

Growth Rate

Olo’s growth rate has been much lower than other companies in the restaurant and hospitality tech vertical.

Product Gaps

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

Stock Rating

We lowered our rating to Hold. Our new price target aligns with the takeout offer of $10.25 per share.

Olo Business Overview & Revenue Model

Company Description

Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States. The company's platform enables on-demand commerce operations, which cover digital ordering and delivery through online and mobile ordering modules. Its modules include Order Management, an on-demand digital commerce and channel management solutions that enables consumers to order directly from and pay restaurants via mobile, web, kiosk, voice, and other digital channels; and Delivery Enablement, a fulfillment network, as well as a network aggregator and channel management solution, which enables restaurants to offer, manage, and expand direct delivery, as well as allows restaurants to control and syndicate menu, pricing, location data, and availability, while directly integrating and optimizing orders from third-parties into the restaurants' point-of-sale and systems. The company also provides Customer Engagement solution, a suite of restaurant-centric marketing and sentiment solutions that enables restaurants to collect, analyze, and act on guest data; Front-of-House solution, which enables restaurants to streamline the queue orders from multiple sales channels; and Payment solution, a payment platform that offers fraud prevention that results in enhanced authorization rates for valid transactions. The company was formerly known as Mobo Systems, Inc. and changed its name to Olo Inc. in January 2020. Olo Inc. was incorporated in 2005 and is headquartered in New York, New York.

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 solid balance sheet with minimal financial risk. While profitability is improving with a positive net income, the company faces challenges in converting net income into free cash flow, which is an area needing enhancement.

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	299.11M	284.94M	228.29M	185.40M	149.37M	98.42M
Gross Profit	163.53M	156.42M	138.97M	127.89M	118.54M	79.76M
EBITDA	19.90M	14.61M	-47.56M	-41.05M	-45.21M	4.08M
Net Income	3.27M	-897.00K	-58.29M	-45.97M	-42.27M	3.06M
Balance Sheet
Total Assets	764.58M	754.78M	742.82M	775.56M	755.88M	134.42M
Cash, Cash Equivalents and Short-Term Investments	358.47M	360.74M	362.55M	448.77M	514.45M	75.76M
Total Debt	13.26M	13.98M	18.86M	20.05M	0.00	0.00
Total Liabilities	69.31M	71.55M	91.35M	77.95M	54.13M	186.91M
Stockholders Equity	695.27M	683.22M	651.47M	697.62M	701.75M	-52.48M
Cash Flow
Free Cash Flow	22.28M	38.80M	-19.67M	-6.65M	14.41M	19.50M
Operating Cash Flow	34.21M	39.69M	-6.57M	2.34M	16.25M	20.77M
Investing Cash Flow	-6.00M	-16.87M	-19.49M	-158.48M	-77.07M	-1.27M
Financing Cash Flow	196.00K	-14.28M	-45.80M	-8.23M	499.51M	45.33M

Olo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 10.13 is above the 20-day moving average (MA) of 8.87, above the 50-day MA of 8.52, and above the 200-day MA of 6.96, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 76.00 is Negative, neither overbought nor oversold. The STOCH value of 98.95 is Negative, 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	75 Outperform	$1.60B	31.80	30.85%	8.59%	11.15%	27.97%
VTEX	72 Outperform	$1.19B	79.07	6.26%	―	7.71%	―
OLO	69 Neutral	$1.72B	578.86	0.49%	―	23.31%	―
ML	69 Neutral	$972.40M	114.79	3.34%	―	28.92%	―
SPT	66 Neutral	$1.22B	―	-36.95%	―	17.79%	16.49%
Sector *	63 Neutral	$33.79B	5.85	-11.85%	1.81%	5.29%	-18.24%
BLND	49 Neutral	$894.49M	―	-93.00%	―	-0.40%	63.36%

Olo Corporate Events

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.

The most recent analyst rating on (OLO) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Olo stock, see the OLO Stock Forecast page.

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.

The most recent analyst rating on (OLO) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Olo stock, see the OLO Stock Forecast page.