Ooma (OOMA)
NYSE:OOMA
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Ooma
(NYSE:OOMA)
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Rating:72Outperform
Price Target:
$16.00
▲(11.81% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by improving financial performance (notably strong free cash flow and better profitability) and a positive earnings outlook with expanding EBITDA expectations. These strengths are tempered by a high valuation (P/E ~46.6) and overbought technical conditions that increase near-term volatility risk.
Positive Factors
Free cash flow growth
Material multi-year free-cash-flow improvement shows durable cash-generation capability. Sustained FCF enhances the firm's ability to fund organic growth, pay down debt, pursue accretive M&A, and return capital via buybacks without relying on external financing.
Negative Factors
Uneven operating profitability
Persistent volatility in operating profits and a recent slightly negative EBITDA indicate operating leverage is not fully realized. If management can't sustain margin improvements, earnings and cash conversion may fluctuate materially despite revenue growth, limiting long-term profitability visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow growth
Material multi-year free-cash-flow improvement shows durable cash-generation capability. Sustained FCF enhances the firm's ability to fund organic growth, pay down debt, pursue accretive M&A, and return capital via buybacks without relying on external financing.
Read all positive factors
Ooma (OOMA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$393.53M
Dividend YieldN/A
Average Volume (3M)270.32K
Price to Earnings (P/E)50.1
Beta (1Y)0.77
Revenue Growth4.22%
EPS GrowthN/A
CountryUS
Employees1,186
SectorTechnology
Sector Strength88
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.34
Shares Outstanding27,500,000
10 Day Avg. Volume261,315
30 Day Avg. Volume270,319
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)3.48
Price to Sales (P/S)1.18
P/FCF Ratio14.65
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit2.34
Enterprise Value/Ebitda21.11
Forecast
1Y Price Target
$18.33Price Target Upside28.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.29
Revenue Forecast (FY)$323.42M
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 an...
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 function...
Ooma Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: record adjusted EBITDA, sizable YoY improvements in non-GAAP net income, robust cash generation, ARPU and recurring revenue growth, and clear AirDial and acquisition-driven growth initiatives. Management provided conservative FY27 guidance that already assumes meaningful Business subscription growth (~30% YoY) and higher adjusted EBITDA while leaving potential acquisition synergies as upside. Key challenges include a still-negative product gross margin (though improving), a slight Residential revenue decline, Phone.com requiring integration to reach profitability, some lumpy and competitive dynamics in AirDial, and remaining acquisition-related debt. Overall, positive operational progress and a constructive outlook outweigh the near-term execution and margin risks.Positive Updates
Q4 and Full-Year Revenue Growth
Q4 revenue was $74.6M, up 15% year-over-year; fiscal 2026 revenue was $273.6M, up 7% year-over-year. Excluding Q4 acquisitions, Q4 revenue grew 5% YoY and full-year revenue grew 4% YoY.
Negative Updates
Product Gross Margin Still Negative
Product & other gross margin remains negative at -42% in Q4 despite improvement (from -55% prior year), reflecting higher-cost product mix from AirDial installations; overall gross margin held flat at 63% due to product mix effects.
Read all updates
Q4-2026 Updates
Positive
Negative
Q4 and Full-Year Revenue Growth
Q4 revenue was $74.6M, up 15% year-over-year; fiscal 2026 revenue was $273.6M, up 7% year-over-year. Excluding Q4 acquisitions, Q4 revenue grew 5% YoY and full-year revenue grew 4% YoY.
Read all positive updates
Company Guidance
Ooma provided non‑GAAP guidance for Q1 and full‑year fiscal 2027: Q1 revenue $79.6–80.4M (including $5.7–6.1M of product & other), Q1 non‑GAAP net income $8.8–9.2M and non‑GAAP diluted EPS $0.31–0.33 on ~28.0M diluted shares; full‑year revenue $321–325M (assuming Business subscription & services growth of ~30% YoY and Residential subscription revenue down 1–2%), with subscription & services expected to comprise 92–93% of revenue, full‑year non‑GAAP net income $35.5–37.0M, non‑GAAP diluted EPS $1.26–1.31 on ~28.2M shares, and adjusted EBITDA of roughly $43–44.5M (management noted it should be comfortably above $40M); guidance excludes stock‑based compensation, amortization of intangibles, acquisition‑related and other specified items.Ooma Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
74
Positive
Cash Flow
82
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 273.60M | 256.85M | 236.74M | 216.16M | 192.29M |
| Gross Profit | 167.24M | 156.02M | 147.23M | 137.65M | 118.44M |
| EBITDA | 18.58M | 6.20M | 8.18M | 3.28M | 5.43M |
| Net Income | 6.46M | -6.90M | -835.00K | -3.65M | -1.57M |
Balance Sheet | |||||
| Total Assets | 227.54M | 149.19M | 159.25M | 131.00M | 109.25M |
| Cash, Cash Equivalents and Short-Term Investments | 20.14M | 17.87M | 17.54M | 26.86M | 31.28M |
| Total Debt | 68.88M | 15.95M | 29.68M | 14.04M | 14.45M |
| Total Liabilities | 134.62M | 63.92M | 81.17M | 67.86M | 58.20M |
| Stockholders Equity | 92.92M | 85.28M | 78.09M | 63.14M | 51.06M |
Cash Flow | |||||
| Free Cash Flow | 22.10M | 20.16M | 6.11M | 3.56M | 2.45M |
| Operating Cash Flow | 27.69M | 26.61M | 12.27M | 8.77M | 6.66M |
| Investing Cash Flow | -69.68M | -6.45M | -35.33M | -6.15M | -4.89M |
| Financing Cash Flow | 44.27M | -19.82M | 16.45M | 1.84M | 601.00K |
Ooma Technical Analysis
Positive
14.31
Price Trends
13.00
Positive
12.25
Positive
12.14
Positive
Market Momentum
0.43
Positive
57.17
Neutral
54.56
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 14.31 is above the 20-day moving average (MA) of 14.19, above the 50-day MA of 13.00, and above the 200-day MA of 12.14, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 54.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ooma Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $210.30M | 18.42 | 11.24% | ― | 17.27% | 39.41% | |
72 Outperform | $393.53M | 50.13 | 7.20% | ― | 4.22% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $409.24M | -23.34 | -3.26% | 4.63% | -3.10% | 66.00% | |
54 Neutral | $160.57M | -1,125.37 | 45.15% | ― | 0.06% | 55.55% | |
52 Neutral | $797.45M | -16.17 | -4.06% | 0.97% | 11.59% | -106.83% | |
51 Neutral | $393.35M | 12.80 | 10.15% | ― | 7.38% | 20.81% |
* Technology Sector Average
OOMA
Ooma
14.31
2.20
18.17%
ATNI
ATN International
26.63
9.78
58.08%
RDCM
Radcom
12.60
1.65
15.07%
SHEN
Shenandoah Telecommunications Co
14.42
1.92
15.40%
RBBN
Ribbon Communications
2.24
-1.43
-38.96%
KORE
KORE Group Holdings
9.13
6.92
313.12%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.