📊 OOMA Key Takeaways
Is Ooma Inc. (OOMA) a Good Investment?
OOMA demonstrates compelling profitability improvement (net income +193.6% YoY, EPS +188.5%) with strong free cash flow generation ($22.1M, 8.1% margin) despite very thin operating margins. The combination of high gross margins (61.1%), manageable debt (0.55x D/E), and excellent interest coverage (236.4x) suggests operational improvements underway, though the company must address critical liquidity concerns and low absolute profitability levels.
Why Buy Ooma Inc. Stock? OOMA Key Strengths
- Strong gross margins (61.1%) indicate solid service pricing power and product quality
- Significant profitability improvement trajectory (net income +193.6% YoY, EPS +188.5%)
- Excellent free cash flow generation ($22.1M annually, 8.1% FCF margin) exceeding reported net margins
- Healthy debt position (0.55x D/E ratio) with exceptional interest coverage (236.4x)
- Positive revenue growth momentum (+6.5% YoY) with improving bottom-line execution
OOMA Stock Risks: Ooma Inc. Investment Risks
- Critically low operating margins (1.6%) and net margins (2.4%) indicating significant operational inefficiencies despite strong gross margins
- Concerning liquidity position with current ratio below 1.0 (0.93x) and weak quick ratio (0.70x)
- Poor capital efficiency with low ROE (7.0%) and ROA (2.8%) relative to industry expectations
- Modest revenue growth (6.5% YoY) insufficient to drive sustained profitability expansion in competitive services market
- Material gap between FCF margin (8.1%) and net margin (2.4%) suggests working capital stress or unsustainable cost reductions
Key Metrics to Watch
- Operating margin trend - must expand above 2.0% to demonstrate sustainable profitability
- Current ratio trajectory - critical to reach 1.0x+ within next 2-3 quarters to address liquidity risk
- Revenue growth acceleration - determine if 6.5% can accelerate above 8-10% to support margin leverage
- Free cash flow consistency and cash conversion - confirm FCF sustainability as business scales
- Return on equity progression - track ROE trajectory toward 12%+ levels acceptable for shareholders
Ooma Inc. (OOMA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
OOMA Profit Margin, ROE & Profitability Analysis
OOMA vs Technology Sector: How Ooma Inc. Compares
How Ooma Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ooma Inc. Stock Overvalued? OOMA Valuation Analysis 2026
Based on fundamental analysis, Ooma Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ooma Inc. Balance Sheet: OOMA Debt, Cash & Liquidity
OOMA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ooma Inc.'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.03 indicates the company is currently unprofitable.
OOMA Revenue Growth, EPS Growth & YoY Performance
OOMA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $65.1M | -$141.0K | $0.05 |
| Q2 2026 | $64.1M | -$141.0K | $0.04 |
| Q1 2026 | $62.5M | -$141.0K | $-0.01 |
| Q3 2025 | $59.9M | $271.0K | $0.09 |
| Q2 2025 | $58.4M | -$55.0K | $0.00 |
| Q1 2025 | $56.9M | -$326.0K | $-0.01 |
| Q3 2024 | $56.7M | $271.0K | $0.09 |
| Q2 2024 | $52.7M | -$55.0K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ooma Inc. Dividends, Buybacks & Capital Allocation
OOMA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ooma Inc. (CIK: 0001327688)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OOMA
What is the AI rating for OOMA?
Ooma Inc. (OOMA) has an AI rating of BUY with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are OOMA's key strengths?
Claude: Strong gross margins (61.1%) indicate solid service pricing power and product quality. Significant profitability improvement trajectory (net income +193.6% YoY, EPS +188.5%).
What are the risks of investing in OOMA?
Claude: Critically low operating margins (1.6%) and net margins (2.4%) indicating significant operational inefficiencies despite strong gross margins. Concerning liquidity position with current ratio below 1.0 (0.93x) and weak quick ratio (0.70x).
What is OOMA's revenue and growth?
Ooma Inc. reported revenue of $273.6M.
Does OOMA pay dividends?
Ooma Inc. does not currently pay dividends.
Where can I find OOMA SEC filings?
Official SEC filings for Ooma Inc. (CIK: 0001327688) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OOMA's EPS?
Ooma Inc. has a diluted EPS of $0.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is OOMA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ooma Inc. has a BUY rating with 62% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is OOMA stock overvalued or undervalued?
Valuation metrics for OOMA: ROE of 7.0% (sector avg: 22%), net margin of 2.4% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy OOMA stock in 2026?
Our dual AI analysis gives Ooma Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OOMA's free cash flow?
Ooma Inc.'s operating cash flow is $27.7M, with capital expenditures of $5.6M. FCF margin is 8.1%.
How does OOMA compare to other Technology stocks?
Vs Technology sector averages: Net margin 2.4% (avg: 18%), ROE 7.0% (avg: 22%), current ratio 0.93 (avg: 2.5).