Ooma (OOMA) AI Stock Analysis

• Market Cap: $332.30M
• Dividend Yield: N/A
• Average Volume (3M): 184.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 7.01%
• EPS Growth: -84.41%
• Country: US
• Employees: 1,186
• Sector: Communication Services
• Sector Strength: 82
• Industry: Telecommunications Services
• EPS (TTM): 0.20
• Shares Outstanding: 27,600,000
• 10 Day Avg. Volume: 177,951
• 30 Day Avg. Volume: 184,052
• PEG Ratio: -0.11
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.23
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 2.06
• Enterprise Value/Ebitda: 13.80
• 1Y Price Target: $17.75
• Price Target Upside: 47.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 65 Neutral
• Price Target: $13.50 ▲(12.13%Upside)

Ooma's overall score reflects strong financial performance with substantial revenue growth and cash flow generation, tempered by profitability challenges. Technical analysis and valuation indicate caution, while positive earnings call sentiment and supportive corporate events contribute to a balanced outlook.

Positive Factors

Growth Strategy

Ooma's shares trade at a premium compared to the communications SaaS comp group median, indicating investor confidence in the company's growth strategy and potential for realizing synergies from its acquisition of 2600Hz.

Product Recognition

Ooma's Office product has received recognition by winning the PCMag 2025 Business Choice Award for VoIP Service, highlighting its appeal and quality.

Strategic Partnerships

Comcast is the top cable MSO now reselling AirDial, indicating strong market acceptance and the potential for further growth.

Negative Factors

Client Impact

1Q26 sales were up 4% to $65.0M, in line with guidance and Benchmark’s estimate with a mild dampener as expected from seat reductions at Regus, Ooma’s largest client.

Stock Performance

The stock has fallen 8% year to date versus a 5% drop for the Russell 3000.

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 its subscription-based model, offering communication services to both residential and business customers. For residential users, Ooma provides VoIP phone services which typically include the sale of hardware devices like the Ooma Telo, followed by ongoing service subscriptions. For business customers, Ooma offers a suite of business phone services, including Ooma Office, which charges a monthly fee per user for access to its cloud-based phone system. Additionally, Ooma earns from smart security products and managed service offerings. The company may also enter into partnerships with retailers and service providers to expand its market reach and enhance its distribution channels, contributing to its revenue streams.

Ooma Financial Statement Overview

Summary

Ooma shows strong revenue growth and gross margins, but profitability challenges persist due to negative net and EBIT margins. Strong cash flow generation provides a buffer, highlighting financial resilience amidst profitability issues.

Income Statement

Ooma demonstrates consistent revenue growth with a TTM growth rate of 9.5% compared to the previous year. The gross profit margin stands strong at 60.9% for TTM, indicating efficient cost management. However, the company is facing challenges with profitability as reflected in the negative net profit margin of -1.9% and negative EBIT margin of -1.6%. Despite these challenges, the EBITDA margin of 3.3% suggests potential for operational improvements.

Balance Sheet

The balance sheet displays a healthy equity ratio of 59.0% and a manageable debt-to-equity ratio of 0.18, indicating financial stability. Nonetheless, the return on equity is negative, at -5.6%, due to the net losses, pointing towards inefficiencies in generating returns for shareholders.

Cash Flow

Ooma's cash flow is robust, highlighted by a significant free cash flow growth rate of 235.5% from 2024 to 2025. The operating cash flow to net income ratio is strong at -5.5, indicating effective cash generation despite reported net losses. The free cash flow to net income ratio is -4.2, suggesting that the company is generating adequate cash relative to its net income.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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	6.99M	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: Negative
• Last Price: 12.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 12.04 is below the 20-day moving average (MA) of 12.51, below the 50-day MA of 12.86, and below the 200-day MA of 13.35, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 40.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OOMA.

Ooma Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	76 Outperform	$225.05M	26.60	9.35%	―	18.23%	81.31%
SIFY	65 Neutral	$405.16M	―	-5.17%	―	10.20%	―
OOMA	65 Neutral	$332.30M	―	-5.81%	―	7.01%	-84.41%
ATNI	64 Neutral	$273.14M	―	-5.79%	5.54%	-5.46%	-76.33%
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
RBBN	60 Neutral	$686.76M	―	-11.45%	―	7.68%	18.65%
WOW	46 Neutral	$329.94M	―	-26.19%	―	-8.37%	78.45%

Ooma Corporate Events

Ooma Approves Amendments to Equity Plans

At the 2025 Annual Meeting of Stockholders held on June 5, 2025, Ooma, Inc. announced the approval of amendments to its 2015 Equity Incentive Plan and 2015 Employee Stock Purchase Plan. These amendments increase the number of shares authorized for issuance by 330,000 and 795,144 shares, respectively, potentially enhancing the company’s ability to attract and retain talent through equity compensation.

The most recent analyst rating on (OOMA) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Ooma stock, see the OOMA Stock Forecast page.

Ooma Stockholders Approve Key Proposals at Annual Meeting

At the annual meeting held on June 5, 2025, Ooma, Inc. stockholders voted on five key proposals. These included the election of directors, ratification of KPMG LLP as the independent accounting firm, approval of executive compensation, and amendments to the company’s equity incentive and employee stock purchase plans. The approval of these proposals ensures continuity in leadership and financial oversight, while also extending the company’s incentive plans, which are crucial for employee retention and motivation.

The most recent analyst rating on (OOMA) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Ooma stock, see the OOMA Stock Forecast page.