Ooma, Inc (OOMA) AI Stock Analysis

Ooma, Inc. provides communications services and technologies for businesses and consumers across the United States and Canada. Founded in 2003 and based in Sunnyvale, California, the company serves small and medium-sized businesses through Ooma Office and Ooma Office Pro, which feature HD video meetings, call recording, voicemail transcription, and call blocking. For residential customers, the company offers the Ooma Telo home communications hub with PureVoice HD, along with Ooma Telo 4G for cellular backup connectivity. Its broader portfolio includes the Ooma Mobile HD app, the Talkatone mobile messaging app, and the Ooma Smart Security platform. Solutions are sold through direct sales, retail channels, distributors, and online storefronts.

Ooma increased revenue at a 5-year CAGR of 10.1% from FY2021 to FY2026. Annual revenue expanded from $192.3M in FY2022 to $273.6M in FY2026, though annual top-line growth decelerated from 13.8% to 6.5% across that span. After reporting net losses of -$1.8M in FY2022, -$3.7M in FY2023, -$835,000 in FY2024, and -$6.9M in FY2025, net income turned positive at $6.5M in FY2026 with a net margin of 2.4%. For the trailing twelve months ended July 31, 2026, revenue reached $306.6M with a profit margin of 3.6%. In the latest quarter, revenue grew 25.4% year-over-year while quarterly earnings increased 150.0%.

As of July 31, 2026, Ooma held $17.5M in cash and short-term investments alongside total debt of $56.4M, resulting in net debt of $38.9M. Shareholders' equity was $98.4M against total assets of $226.4M, producing a debt-to-equity ratio of 0.57 and a current ratio of 0.95. In FY2026, the business generated $27.7M in operating cash flow and $22.1M in free cash flow. Capital expenditures totaled $5.6M, while share buybacks absorbed $16.8M.

At $19.72 per share, Ooma has a market capitalization of $544.3M and an enterprise value of $651.9M. The stock trades at a trailing P/E of 50.6x and an EV/EBITDA of 22.3x, both above the median of its US-listed Technology peers (28.1x and 16.6x, respectively). However, its forward P/E of 16.0x and price-to-sales multiple of 1.8x sit below the peer medians of 18.8x and 2.8x. Over the past year, Ooma generated a 77.8% return, outperforming the S&P 500 (SPY) return of 16.8%, though its 5-year return of 0.1% lagged the S&P 500 return of 83.0%.

Wall Street coverage consists of 6 Strong Buy ratings and 1 Hold rating among 7 analysts. The mean price target is $26.80, representing an upside of 35.9% compared to the last closing price of $19.72. For the fiscal year ending January 31, 2027, consensus estimates call for revenue of $332.9M and EPS of $1.37, representing projected EPS growth of 31.6%. Consensus projections for the following fiscal year point to revenue of $349.0M and EPS of $1.50. Ooma has beaten consensus EPS estimates in each of the last 4 quarters.

This page is an AI-written research summary of Ooma, Inc (OOMA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: OOMA income statement, OOMA balance sheet, OOMA key metrics, OOMA analyst forecast, OOMA chart. See the OOMA stock overview for the latest quote and news.