olivLaw · US equity research
Ooma, Inc. OOMA
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
Ooma provides cloud communications services (SaaS and UCaaS) for small and mid-sized businesses and residential customers, with a focus on replacing legacy POTS lines through its Ooma AirDial solution. Revenue reached 273.6 million USD in fiscal 2026, and second-quarter fiscal 2027 growth was 25 percent, supported by Ooma Business and the December 2025 acquisitions.
At the close of 04 Nov 2026, Ooma, Inc. (OOMA) stock was 19.01 USD (+1.28% on the day), with market capitalisation 524.7 m USD, P/E 49.8 on diluted EPS of 0.38 USD over the last 12 months, beta 0.78, 52-week range 10.58–23.38 USD. Latest reported quarter (Q2 2027): revenue of 83.2 m USD (+25.4% YoY), net income of 3.0 m USD (+139.4% YoY), diluted EPS 0.10 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 36.4
- weak (30–45)
- Bollinger (20, 2)
- 19.01 – 20.71
- below the lower band · %B -0.00 · band width 8.5%
- SMA 50 / 200
- 21.15 / 17.76
- mixed trend
- MACD (12, 26, 9)
- -0.44 / -0.40
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −9.5% | −1.1% | −8.4 pp | — |
| 3 months | −11.5% | −0.5% | −11.1 pp | — |
| 6 months | +2.4% | +4.4% | −2.0 pp | — |
| Year to date | +62.1% | +12.3% | +49.7 pp | — |
| 1 year | +57.5% | +13.5% | +44.0 pp | −24.7% |
| 3 years | +75.2% | +76.4% | −1.2 pp | −19.7% |
| 5 years | −12.6% | +63.7% | −76.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 31 Jul 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 65.1 m | 65.1 m | 65.0 m | 66.4 m | 67.6 m | 74.6 m | 81.1 m | 83.2 m |
| Cost of revenue | 25.9 m | 25.2 m | 24.8 m | 26.1 m | 26.9 m | 28.5 m | 30.5 m | 32.2 m |
| Gross profit | 39.3 m | 39.9 m | 40.2 m | 40.2 m | 40.7 m | 46.1 m | 50.7 m | 51.0 m |
| Research & development | 14.2 m | 12.6 m | 12.4 m | 12.5 m | 12.1 m | 13.2 m | 15.0 m | 15.5 m |
| Operating income | -2.3 m | -321.0 k | -57.0 k | 916.0 k | 1.3 m | 2.1 m | 3.5 m | 4.0 m |
| Depreciation & amortisation | 1.1 m ≈ | 1.2 m | 944.0 k | 1.0 m ≈ | 1.0 m ≈ | 1.4 m | 1.2 m | 1.3 m ≈ |
| Pre-tax income | -2.3 m | -356.0 k | 106.0 k | 1.1 m | 1.5 m | 1.7 m | 2.7 m | 3.2 m |
| Income tax | 92.0 k | -95.0 k | 247.0 k | -118.0 k | 64.0 k | -2.3 m | 156.0 k | 155.0 k |
| Net income | -2.4 m | -261.0 k | -141.0 k | 1.3 m | 1.4 m | 4.0 m | 2.6 m | 3.0 m |
| Diluted EPS | -0.09 | -0.01 ≈ | -0.01 | 0.04 | 0.05 | 0.14 ≈ | 0.09 | 0.10 |
| Operating cash flow | 8.1 m ≈ | 7.8 m | 3.7 m | 6.4 m ≈ | 6.9 m ≈ | 10.7 m | 6.4 m | 13.1 m ≈ |
| Capex | 1.6 m ≈ | 1.7 m | 1.2 m | 1.3 m ≈ | 1.5 m ≈ | 1.6 m | 1.5 m | 2.3 m ≈ |
| Share repurchases | 1.2 m ≈ | 2.4 m | 2.2 m | 3.2 m ≈ | 2.8 m ≈ | 3.4 m | 3.3 m | 2.5 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 4-quarter history (min 50.7, median 55.0, max 159.6; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 114.5 m | 129.2 m | 151.6 m | 168.9 m | 192.3 m | 236.7 m | 256.9 m | 273.6 m |
| Revenue YoY | +9.5% | +12.9% | +17.3% | +11.4% | +13.8% | unavailable | +8.5% | +6.5% |
| Net income | -13.1 m | -14.6 m | -18.8 m | -2.4 m | -1.8 m | -835.0 k | -6.9 m | 6.5 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | unavailable | unavailable | unavailable | -0.11 | -0.07 | -0.03 | -0.26 | 0.23 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -11.5% | -11.3% | -12.4% | -1.4% | -0.9% | -0.4% | -2.7% | 2.4% |
| Free cash flow | 695.0 k | -5.8 m | -10.8 m | 1.2 m | 2.5 m | 6.1 m | 20.2 m | 22.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Jan 2026
- Cash
- 20.1 m USD
- Financial debt
- 57.9 m USD
- Net debt
- 37.7 m USD
- Equity
- 92.9 m USD
- Total assets
- 227.5 m USD
- Debt / equity
- 0.62x
- Current ratio
- 0.93x
- ROE
- 7.2%
- ROA
- 3.4%
- FCF margin
- 8.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 151.6 m | 168.9 m | 192.3 m | 236.7 m | 256.9 m | 273.6 m | SEC (XBRL)· 03 Apr 2026verified |
| Cost of revenue | 62.2 m | 64.1 m | 73.9 m | 89.5 m | 100.8 m | 106.4 m | SEC (XBRL)· 03 Apr 2026verified |
| Gross profit | 89.4 m | 104.8 m | 118.4 m | 147.2 m | 156.0 m | 167.2 m | SEC (XBRL)· 03 Apr 2026verified |
| Research & development | 37.8 m | 36.1 m | 38.2 m | 49.9 m | 54.3 m | 50.3 m | SEC (XBRL)· 03 Apr 2026verified |
| Operating income | -19.7 m | -2.8 m | -1.9 m | -4.0 m | -6.9 m | 4.3 m | SEC (XBRL)· 03 Apr 2026verified |
| Depreciation & amortisation | 2.5 m | 2.9 m | 3.1 m | 4.3 m | 4.3 m | 4.4 m | SEC (XBRL)· 03 Apr 2026verified |
| EBITDA | -17.2 m ≈ | 125.0 k ≈ | 1.2 m ≈ | 299.0 k ≈ | -2.6 m ≈ | 8.7 m ≈ | SEC (XBRL)· 03 Apr 2026derived |
| Pre-tax income | -18.9 m | -2.4 m | -1.8 m | -2.8 m | -6.1 m | 4.4 m | SEC (XBRL)· 03 Apr 2026verified |
| Income tax | -130.0 k | 85.0 k | — | -2.0 m | 760.0 k | -2.1 m | SEC (XBRL)· 03 Apr 2026verified |
| Net income | -18.8 m | -2.4 m | -1.8 m | -835.0 k | -6.9 m | 6.5 m | SEC (XBRL)· 03 Apr 2026verified |
| Diluted EPS | — | -0.11 | -0.07 | -0.03 | -0.26 | 0.23 | SEC (XBRL)· 03 Apr 2026verified |
| Weighted average diluted shares | — | 22.4 m | 23.5 m | 25.6 m | 26.7 m | 28.1 m | SEC (XBRL)· 03 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 11.7 m | 17.3 m | 19.7 m | 17.5 m | 17.9 m | 20.1 m | SEC (XBRL)· 03 Apr 2026verified |
| Receivables | 4.6 m | 5.2 m | 7.3 m | 9.9 m | 8.0 m | 11.8 m | SEC (XBRL)· 03 Apr 2026verified |
| Inventories | 8.4 m | 12.2 m | 13.8 m | 19.8 m | 13.1 m | 16.2 m | SEC (XBRL)· 03 Apr 2026verified |
| Current assets | 48.0 m | 56.0 m | 66.0 m | 63.7 m | 56.2 m | 66.7 m | SEC (XBRL)· 03 Apr 2026verified |
| Property, plant & equipment, net | 5.3 m | 5.1 m | 6.5 m | 9.9 m | 12.0 m | 13.3 m | SEC (XBRL)· 03 Apr 2026verified |
| Goodwill | 4.3 m | 4.3 m | 4.3 m | 23.1 m | 23.1 m | 49.8 m | SEC (XBRL)· 03 Apr 2026verified |
| Intangibles (excl. goodwill) | 6.8 m | 5.5 m | 4.2 m | 28.0 m | 22.2 m | 62.5 m | SEC (XBRL)· 03 Apr 2026verified |
| Total assets | 80.6 m | 89.1 m | 109.3 m | 159.3 m | 149.2 m | 227.5 m | SEC (XBRL)· 03 Apr 2026verified |
| Accounts payable | 8.5 m | 7.5 m | 7.5 m | 7.8 m | 6.0 m | 8.3 m | SEC (XBRL)· 03 Apr 2026verified |
| Short-term debt | — | — | — | — | — | 6.4 m | SEC (XBRL)· 03 Apr 2026verified |
| Long-term debt | — | — | — | 16.0 m | 0 | 51.5 m | SEC (XBRL)· 03 Apr 2026verified |
| Current liabilities | 46.9 m | 46.7 m | 46.9 m | 51.5 m | 51.7 m | 71.7 m | SEC (XBRL)· 03 Apr 2026verified |
| Total liabilities | 52.2 m | 49.5 m | 58.2 m | 81.2 m | 63.9 m | 134.6 m | SEC (XBRL)· 03 Apr 2026verified |
| Equity | 28.4 m † | 39.6 m † | 51.1 m † | 78.1 m † | 85.3 m † | 92.9 m † | SEC (XBRL)· 03 Apr 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -7.6 m | 4.4 m | 6.7 m | 12.3 m | 26.6 m | 27.7 m | SEC (XBRL)· 03 Apr 2026verified |
| Capex | 3.3 m | 3.2 m | 4.2 m | 6.2 m | 6.4 m | 5.6 m | SEC (XBRL)· 03 Apr 2026verified |
| Free cash flow | -10.8 m ≈ | 1.2 m ≈ | 2.5 m ≈ | 6.1 m ≈ | 20.2 m ≈ | 22.1 m ≈ | SEC (XBRL)· 03 Apr 2026derived |
| Investing cash flow | 2.9 m | 229.0 k | -4.9 m | -35.3 m | -6.4 m | -69.7 m | SEC (XBRL)· 03 Apr 2026verified |
| Financing cash flow | 1.0 m | 1.0 m | 601.0 k | 16.5 m | -19.8 m | 44.3 m | SEC (XBRL)· 03 Apr 2026verified |
| Share repurchases | — | — | — | — | 4.5 m | 11.6 m | SEC (XBRL)· 03 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 52 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 524.7 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet19
- Growth26
- Quality47
- Returns71
- Valuation76
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.24 – 60.46 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/Sales8.95 – 60.46 (Mid 36.72)9 companies used · median multiple 3.4x · quartiles 0.9x – 5.5xADP, CARS, FA, GLOB, GMHS, IBEX, SOPH, VRSK, WDAY
- Peers: EV/EBITDA3.24 – 7.96 (Mid 5.25)5 companies used · median multiple 11.0x · quartiles 7.5x – 15.8xCARS, FA, GMHS, IBEX, VRSK
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 52/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 61.5% | 54 (on a fixed band) | 13% |
| EBIT margin · Quality | 3.6% | 46 (vs peers) | 10% |
| FCF margin · Quality | 9.9% | 40 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| Revenue growth (YoY) · Growth | 6.5% | 26 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | 1.8x | 29 (vs peers) | 8% |
| Current ratio · Balance sheet | 1.0x | 9 (on a fixed band) | 8% |
| EV/Sales · Valuation | 1.8x | 58 (vs peers) | 21% |
| FCF yield · Valuation | 5.8% | 100 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 2.3% | 71 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet19/100 · 2/2 factors with a value
- Growth· partial26/100 · 1/2 factors with a value
- Quality47/100 · 3/3 factors with a value
- Returns71/100 · 1/1 factors with a value
- Valuation76/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Ooma, Inc. (OOMA). Latest full fiscal year: 2026; data up to 2026-07-31.
Figures computed from the financial statements: revenue 273.6 m USD in 2026; YoY growth 6.5%; net margin 3.6%; ROE 11.7%; net debt/EBITDA 1.8x.
The estimated value range is 6.09–34.21 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 20.99 USD, the price of 19.01 USD leaves a potential of 10.4% (value / price − 1) and a margin of safety of 9.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 52/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF yield: 5.8%
- Shareholder yield (distributions): 2.3%
What contradicts it
- Revenue growth (YoY): 6.5%
- Net debt / EBITDA: 1.8x
- Current ratio: 1.0x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y.
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 119.8 bn | 27.7 | 77.0% | 20.1% | +6.7% | +19% / +32% |
| WDAYWorkday, Inc. | 44.4 bn | 40.9 | 16.0% | 12.3% | +13.1% | −6% / −25% |
| VRSKVerisk Analytics, Inc. | 25.9 bn | 30.1 | — | 29.3% | +6.6% | −12% / −18% |
| ATHMAutohome Inc. | 10.4 bn | 53.5 | 6.3% | 443.2% | +11.1% | −5% / −18% |
| PEGAPegasystems Inc. | 5.6 bn | 21.3 | 51.4% | 16.9% | +16.6% | −37% / +32% |
| FAFirst Advantage Corp | 3.9 bn | 160.5 | 1.9% | 1.5% | +83.0% | +62% / +45% |
| QBTSD-Wave Quantum Inc. | 3.8 bn | — | -28.0% | -2,001.6% | +178.5% | −54% / +1,166% |
| RAMPLiveRamp Holdings, Inc. | 2.3 bn | 15.8 | 16.2% | 18.7% | +9.0% | +41% / +39% |
| GLOBGlobant S.A. | 2.1 bn | 21.0 | 5.1% | 4.2% | +1.6% | −25% / −78% |
| INODInnodata Inc | 1.5 bn | 32.8 | 37.7% | 14.7% | +47.6% | −25% / +541% |
| LZLegalZoom.com, Inc. | 1.1 bn | 56.0 | 12.1% | 2.6% | +10.9% | −26% / −40% |
| NRDSNerdWallet, Inc. | 754.4 m | 13.3 | 18.2% | 7.6% | +21.7% | −21% / +1% |
| NXTTNext Technology Holding Inc. | 736.5 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| CARSCars.com Inc. | 682.5 m | 22.4 | 7.4% | 4.7% | +0.6% | +10% / −32% |
| IBEXIBEX Limited | 593.6 m | 14.3 | 30.4% | 7.2% | +15.4% | +27% / +152% |
| OOMAOoma, Inc. | 524.7 m | 49.8 | 11.7% | 3.6% | +6.5% | +57% / +75% |
| SOPHSOPHiA GENETICS SA | 477.3 m | — | -110.0% | -102.2% | +18.6% | +42% / +73% |
| GRVYGravity Co., Ltd. | 475.7 m | 0.0 | 16.5% | 17.0% | −31.0% | +19% / −6% |
| TCXTucows Inc | 140.3 m | — | — | -21.2% | +7.7% | −42% / −41% |
| TRAKRepositrak, Inc. | 132.7 m | 18.7 | 14.9% | 32.5% | +3.0% | −46% / −29% |
| BIRDSmartbird, Inc. | 92.1 m | — | -164.0% | -72.8% | −19.7% | −68% / −91% |
| VERIVeritone, Inc. | 56.7 m | — | -517.7% | -117.5% | −0.5% | −87% / −73% |
| GMHSGamehaus Holdings Inc. | 51.4 m | 8.5 | 11.8% | 4.1% | −11.3% | −35% / −93% |
| DGNXDiginex Limited | 38.7 m | — | — | -255.5% | +57.0% | −99% / unavailable |
| CHRCheer Holding, Inc. | 14.0 m | 0.1 | 7.6% | 17.2% | +1.1% | −77% / −100% |
1- and 3-year price returns: for OOMA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 11.89 Total return -37% · Per year -37% | 21.01 Total return 10% · Per year 10% | 31.61 Total return 66% · Per year 66% |
| 3 years | 12.02 Total return -37% · Per year -14% | 23.83 Total return 25% · Per year 8% | 39.32 Total return 107% · Per year 27% |
| 5 years | 12.14 Total return -36% · Per year -9% | 27.04 Total return 42% · Per year 7% | 48.90 Total return 157% · Per year 21% |
- Exit P/E± 5.96
- Net margin± 4.17
- Annual revenue growth± 3.36
- Annual dilution± 0.35
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Ooma provides cloud communications services (SaaS and UCaaS) for small and mid-sized businesses and residential customers, with a focus on replacing legacy POTS lines through its Ooma AirDial solution. Revenue reached 273.6 million USD in fiscal 2026, and second-quarter fiscal 2027 growth was 25 percent, supported by Ooma Business and the December 2025 acquisitions 123.
SWOT
Strengths
- Recurring subscription model with predictable revenue, high retention of subscription revenue and stable gross margin 12.
- Integrated hardware and software platform and a product range for business and residential users, supported by consumer ranking recognition 1.
- Declining debt and operating cash generation, which provide financial flexibility 23.
Weaknesses
- Reliance on sole suppliers for components and a small number of vendors for the devices sold 1.
- The net dollar subscription retention rate declined in the second quarter of fiscal 2027 compared with the prior year 2.
- Dependence on third parties for network connectivity, software development and customer service, including outside the United States 1.
Opportunities
- Replacing POTS lines and expanding AirDial could open a significant market 13.
- New AI features and the integration of recent acquisitions could raise average revenue per customer 13.
- Launching Ooma Business services in several countries could extend the user base beyond the United States and Canada 1.
Risks
- Customer churnhigh
Customers may cancel subscriptions without penalty, and rising churn could force the company to spend more to acquire new customers 1.
- Supplier dependence and supply chainmedium
Components and devices come from a few suppliers, and delays or tariffs could affect shipments and margins 1.
- Acquisition integrationmedium
The FluentStream and Phone.com acquisitions could divert management attention or fail to deliver the expected benefits 13.
- Regulation and securityhigh
FCC requirements, USF reform and a possible ransomware attack could lead to fines, extra costs or service interruptions 1.
- Debt and credit covenantslow
The company carries debt owed to a bank, and credit agreement covenants impose operating and financial restrictions that could limit flexibility 12.
Investment thesis
What would need to be true (bull case)
- If growth in the business segment and the contribution from acquisitions hold, revenue could keep rising at a strong pace, as the second quarter of fiscal 2027 suggests 2.
- If AirDial and AI feature adoption increases, average revenue per user could rise and AERR could keep improving 23.
- Lower debt and rising adjusted EBITDA could give the company more room to invest 23.
What would break the thesis
- If the revenue retention rate keeps falling, growth could depend more on new acquisitions and heavy marketing spending 2.
- Competition and regulation could reduce margins or slow adoption of new products, especially if customers choose cheaper alternatives 1.
- Integration of recent acquisitions could prove harder than expected, and business results could fall short of guidance 13.
What to watch
- Third-quarter fiscal 2027 revenue results compared with guidanceQ3 2027
- Trend in the net dollar subscription retention rate (NDRR)Q3 2027
- Adoption of AI features and growth in AirDial revenue2027
- Level of debt and how it is reduced after acquisitionsnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Ooma offers voice and collaboration communications services built on SaaS and unified communications platforms, for both businesses and consumers. Revenue comes mainly from monthly subscriptions and from selling or renting on-premise and end-point devices. The company operates primarily in the United States and Canada, with limited offerings elsewhere 1.
Ooma Business, which includes Ooma Office, Ooma Enterprise, Ooma AirDial, 2600Hz, FluentStream, Phone.com and OnSIP, is the main growth engine. As of January 31, 2026, about 49 percent of core users were Ooma Business users, up from 41 percent a year earlier 1. The segment was expanded through the FluentStream and Phone.com acquisitions completed in December 2025 1.
Ooma Residential provides home phone services (Ooma Telo, Telo Air, Telo LTE), the Talkatone app and smart security products. The segment grows more slowly than business but adds to the user base and to opportunities for connected services 12.
Segments
Ooma Business
Ooma Business drove most of the subscription revenue growth, with 38 percent growth in the second quarter of fiscal 2027 2. The FluentStream and Phone.com acquisitions contributed 22.4 million USD in revenue in the first half of fiscal 2027 2.
Ooma Residential
The residential segment includes Ooma Telo services and the Talkatone app, mostly sold on monthly subscriptions. In the second quarter of fiscal 2027 the company launched Ooma MyPhone for residential customers 3.
Ooma AirDial
AirDial replaces POTS lines that are being decommissioned, serving alarm and safety systems. AirDial services revenue grew 75 percent in the second quarter of fiscal 2027 versus the prior year 3.
Market context
Ooma operates in business and residential communications markets in the United States and Canada, where the shift from analog telephony to cloud services continues. The company highlights replacing decommissioned copper analog lines (POTS) as a major opportunity, plus adjacent markets 1. Revenue growth of 25 percent in the second quarter of fiscal 2027 indicates continued demand in business 2.
Guidance for fiscal 2027 calls for total revenue between 332.0 and 333.5 million USD and non-GAAP net income between 39.5 and 40.3 million USD 3. These are management estimates and could be revised if adoption or customer retention changes.
Trends
- Replacement of legacy POTS linestailwind
The decommissioning of copper networks means many safety systems and business lines need replacement, which could accelerate AirDial adoption. The company describes demand in this area as growing 13.
- AI features for business customersmixed
Launching AI Insights, AI Answering Service and AI Receptionist could raise average revenue per user if customers adopt them 3. The company notes that AI use may not produce the desired benefits and may create liability 1.
- Tariffs and importsheadwind
Tariffs on imported goods may affect the devices the company sells, and gross margin and results could suffer if costs rise 1.
Competitive position
Ooma competes with UCaaS providers, cloud communications companies and telephone carriers, in markets where some rivals have greater financial resources. The company acknowledges that intense competition and possible mergers among competitors could weaken its position 1.
Stated advantages include affordable pricing, voice quality and retention, along with rankings from PCMag and Consumer Reports 1. Differentiation also rests on integrating hardware and software and on the 2600Hz platform for carriers and resellers 1.
- RingCentralRNG
Provider of UCaaS and business communications that fits the competitive category the company describes; the name is not quoted in the analyzed sources, so the identification is indicative.
- Vonage
VoIP and cloud communications provider in the same product category as Ooma Business; not named explicitly in the analyzed sources and the ticker is not confirmed.
- Microsoft Teams ecosystem
Collaboration platform Ooma integrates with through Direct Routing; it is both a partner and a competitor in business communications.
- Traditional telephone and mobile carriers
Carriers offering fixed lines and analog services remain the alternative customers compare against, especially for safety systems.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report04 Sept 2026
- Current report26 Aug 2026Results of operations · Financial statements and exhibits
- Current report09 Jun 2026Shareholder vote
- Quarterly report05 Jun 2026
- Current report26 May 2026Results of operations · Financial statements and exhibits
- Proxy statement15 Apr 2026
- Annual report03 Apr 2026
- Current report04 Mar 2026Results of operations · Financial statements and exhibits
- Quarterly report09 Dec 2025
- Current report08 Dec 2025Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-01-31 · SEC / Ooma, Inc. · 03 Apr 2026
- [2] Form 10-Q, quarter ended 2026-07-31 · SEC / Ooma, Inc. · 04 Sept 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Ooma, Inc. · 26 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.