Ooma (OOMA) AI Stock Analysis

• Market Cap: $315.19M
• Dividend Yield: N/A
• Average Volume (3M): 215.47K
• Price to Earnings (P/E): 146.9
• Beta (1Y): 0.85
• Revenue Growth: 4.22%
• EPS Growth: N/A
• Country: US
• Employees: 1,186
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): 0.27
• Shares Outstanding: 27,600,000
• 10 Day Avg. Volume: 410,384
• 30 Day Avg. Volume: 215,472
• 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: 0.98
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 54.19
• 1Y Price Target: $18.63
• Price Target Upside: 59.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $269.92M

• Rating: 62 Neutral
• Price Target: $12.00 ▲(2.65% Upside)

Ooma's overall stock score reflects strong revenue growth and strategic acquisitions, which are positive for future prospects. However, profitability challenges and high valuation metrics weigh down the score. Technical indicators suggest a neutral market sentiment, while the recent acquisition of FluentStream provides a potential catalyst for growth.

Positive Factors

Revenue Growth

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

Strategic Acquisitions

Strategic acquisitions enhance market position and revenue base, contributing to sustainable growth and competitive advantage.

Business Segment Growth

Growth in the business segment reflects successful customer acquisition and retention, driving long-term revenue expansion.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth opportunities, affecting long-term financial health.

Cash Flow Concerns

Declining cash flow growth may limit the company's ability to fund operations and strategic initiatives, impacting future liquidity.

Residential Subscription Decline

A decline in residential subscriptions signals potential market saturation or competitive pressures, affecting revenue stability.

Ooma Business Overview & Revenue Model

Company Description

Ooma, Inc. provides communications services and related technologies for businesses and consumers in the United States and Canada. The company's products and services include Ooma Office, a cloud-based multi-user communications system for small and medium-sized businesses; Ooma Office Pro that offers services, including HD video meetings, call recording, enhanced call blocking, and voicemail transcription; Ooma Connect, which delivers fixed wireless internet connectivity; Ooma Managed Wi-Fi, a plug-and-play enterprise-grade Wi-Fi solution; and Ooma Enterprise, a unified-communications-as-a-service solution. It also provides Ooma AirDial, a plain old telephone service; Ooma Telo basic that provides unlimited personal calling within the Unites States; Ooma Premier, a suite of advanced calling features on a monthly or annual subscription basis; PureVoice HD, a residential phone services; Ooma Telo, a home communications solution designed to serve as the primary phone line in the home; and Ooma Telo 4G, which combines the Ooma Telo base station with the Ooma 4G Cellular Adapter and battery back-up. In addition, the company offers Ooma Mobile HD app that allows users to make and receive phone calls and access Ooma features and settings; Ooma Telo Air, a wireless Ooma Telo with built-in Wi-Fi and Bluetooth; Ooma Smart Security, a security and monitoring platform; and Talkatone mobile app. It offers its products through direct sales, distributors, retailers, and resellers, as well as online. Ooma, Inc. was incorporated in 2003 and is headquartered in Sunnyvale, California.

How the Company Makes Money

Ooma generates revenue primarily through subscription services and equipment sales. The company offers different tiers of subscription plans, including Ooma Telo service and Ooma Office plans, which provide users with various features and functionalities for a monthly fee. Additionally, Ooma earns money from the sale of hardware, such as the Ooma Telo device and other communication equipment. The company also benefits from partnerships with internet service providers and technology firms, which enhance its market reach and service offerings. Furthermore, Ooma generates revenue from additional services such as international calling and business applications, contributing to its overall earnings.

Ooma Financial Statement Overview

Summary

Ooma demonstrates strong revenue growth and efficient cost management, as seen in its gross profit margins. However, the company faces challenges in achieving profitability, with negative net profit margins and return on equity. The balance sheet is stable with low leverage, but cash flow concerns persist due to declining free cash flow growth.

Income Statement

Ooma's revenue has shown consistent growth over the years, with a notable increase in the TTM period. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin remains healthy, indicating efficient cost management, but the negative net profit margin highlights challenges in controlling operating expenses.

Balance Sheet

The company's balance sheet shows a relatively low debt-to-equity ratio, indicating a conservative use of leverage. However, the return on equity is negative, reflecting ongoing profitability challenges. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE points to inefficiencies in generating returns from shareholders' equity.

Cash Flow

Ooma's cash flow statement reveals a decline in free cash flow growth in the TTM period, which could be a concern for future liquidity. The operating cash flow to net income ratio is positive, indicating that the company generates cash from operations despite net losses. However, the free cash flow to net income ratio suggests that cash generation is not yet sufficient to cover net losses fully.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	256.85M	236.74M	216.16M	192.29M	168.95M
Gross Profit	156.02M	147.23M	137.65M	118.44M	104.80M
EBITDA	6.20M	8.18M	3.28M	5.43M	4.60M
Net Income	-6.90M	-835.00K	-3.65M	-1.57M	-2.44M
Balance Sheet
Total Assets	149.19M	159.25M	131.00M	109.25M	89.10M
Cash, Cash Equivalents and Short-Term Investments	17.87M	17.54M	26.86M	31.28M	28.31M
Total Debt	15.95M	29.68M	14.04M	14.45M	2.81M
Total Liabilities	63.92M	81.17M	67.86M	58.20M	49.55M
Stockholders Equity	85.28M	78.09M	63.14M	51.06M	39.55M
Cash Flow
Free Cash Flow	20.16M	6.11M	3.56M	2.45M	1.21M
Operating Cash Flow	26.61M	12.27M	8.77M	6.66M	4.37M
Investing Cash Flow	-6.45M	-35.33M	-6.15M	-4.89M	229.00K
Financing Cash Flow	-19.82M	16.45M	1.84M	601.00K	1.02M

Ooma Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.69
• 50DMA: Positive
• 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 11.69 is above the 20-day moving average (MA) of 11.37, above the 50-day MA of 11.37, and below the 200-day MA of 12.27, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.33 is Neutral, neither overbought nor oversold. The STOCH value of 50.29 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	$206.62M	20.57	10.54%	―	17.27%	39.41%
ATNI	63 Neutral	$341.46M	―	-1.70%	4.63%	-3.10%	66.00%
OOMA	62 Neutral	$315.19M	146.86	2.59%	―	4.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KORE	55 Neutral	$78.40M	-1.15	―	―	0.06%	55.55%
SHEN	50 Neutral	$640.66M	-15.88	-4.41%	0.94%	11.59%	-106.83%
RBBN	50 Neutral	$505.07M	-11.88	-11.40%	―	7.38%	20.81%

Ooma Corporate Events

Ooma Completes Acquisition of FluentStream Corp.

On December 1, 2025, Ooma, Inc. completed its acquisition of FluentStream Corp., a cloud communications provider for small and medium-sized businesses, for approximately $45 million. This acquisition is expected to enhance Ooma’s financial performance by contributing $24-$25 million in revenue and $9.5-$10.5 million in adjusted EBITDA annually. The acquisition was funded through an amendment to Ooma’s credit agreement, which included a $65 million term loan commitment, with $45 million borrowed on the closing date. The amendment also reduced the revolving credit facility and extended its maturity date, impacting Ooma’s financial strategies and stakeholder interests.

Ooma Announces Acquisition of FluentStream Corp.

On November 3, 2025, Ooma, Inc. announced a definitive agreement to acquire FluentStream Corp., a provider of enterprise-grade business phone services, for approximately $45 million in cash. This acquisition is expected to enhance Ooma’s revenue, earnings, and cash flow, and add about 80,000 business users, thereby strengthening its position in the SMB market. The transaction is anticipated to close in the fourth quarter of Ooma’s fiscal year 2026, subject to regulatory approvals and customary closing conditions. FluentStream is projected to generate $24-$25 million in revenue and $9.5-$10.5 million of adjusted EBITDA annually, aligning with Ooma’s strategy to expand its brand portfolio and deliver long-term shareholder value.