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what it is
Ooma sells internet phone service and office calling tools to small businesses and households that want cheaper landline-style service.
how it gets paid
Last year Ooma made $257M in revenue. Business subscriptions was the main engine at $154.2M, or 60% of sales.
why it's growing
Revenue grew 8.5% last year. 60.9% gross margin matters because gross margin → money left after delivering the service → it says the product works.
what just happened
The latest quarter showed $199M in revenue, with EPS of $0.09 and gross margin of 60.9%.
At a glance
B balance sheet — gets the job done, barely
35/100 earnings predictability — expect surprises
46.0x trailing p/e — you're paying up for this one
-$0.26 fy2024 eps est
$257M fy2024 rev est
xvary composite: 42/100 — below average
What they do
Ooma sells internet phone service and office calling tools to small businesses and households that want cheaper landline-style service.
Ooma wins because ripping out a phone system is miserable. Once your numbers, call menus, desktop app, and mobile app are set up, switching risks missed calls and broken workflows. That stickiness helps support $257 million in annual revenue, even with only 1,186 employees.
How they make money
$257M
annual revenue · their business grew +8.5% last year
Business subscriptions
$154.2M
Residential subscriptions
$64.3M
Hardware and endpoint devices
$25.7M
Professional and other services
$12.8M
The products that matter
business phone service
Ooma Office
part of the $164M Business Services segment
it sits inside the $164M segment that grew 15%. if Ooma is going to earn a premium multiple, this is the engine doing the heavy lifting.
15% growth
mobile business communications
Ooma AirDial
two awards in 2026
it won two security awards in 2026. that helps the sales pitch in a crowded market, but awards are not revenue — they only matter if they show up in customer adds.
sales tool
consumer home phone hardware
Ooma Telo
forum complaints from 2011–2023
complaints about voice cutting out and buggy voicemail show up across forum posts from 2011 to 2023. that's a 12-year reminder that consumer telecom customers do not stay loyal for the vibes.
reputation risk
Key numbers
46.0x
trailing p/e
trailing P/E → stock price versus past profit → you are paying a growth multiple for a company with shaky earnings.
2.4%
operating margin
operating margin → profit after everyday costs → Ooma keeps about 2 cents from each $1 of sales before taxes and interest.
$11M
long-term debt
Long-term debt is only 3% of capital, so the balance sheet is not the main problem. Profit is.
$257M
annual revenue
Revenue grew 8.5% vs. prior year, which is decent. The problem is that growth has not turned into much operating profit.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 35 / 100
- long-term debt $11M (3% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for OOMA right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest quarter showed $199M in revenue, with EPS of $0.09 and gross margin of 60.9%.
The margin line looked healthy, but the bigger picture is still awkward. Ooma produced a fiscal 2025 EPS loss of $0.26 despite full-year revenue of $257M.
$199M
revenue
$0.09
eps
60.9%
gross margin
the number that mattered
60.9% gross margin matters because gross margin → money left after delivering the service → it says the product works, even if the company still struggles below that line.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is the business mix shift stalling before the valuation resets.
med
Growth falls back toward the full-year pace
Full-year revenue grew 7%, while Business Services grew 15%. If company-wide growth slides back toward 7%, the 46.0x trailing P/E starts looking like an expensive memory instead of a forward-looking bet.
The market is paying for acceleration. It won't pay the same price for "still transitioning."
med
Consumer decline keeps offsetting the good news
Consumer Services fell 3%. That means the faster business has to keep outrunning the shrinking one just to make consolidated results look clean. Handoffs are hard. That's why they get called handoffs.
If the decline steepens, Ooma stays stuck in an awkward middle ground between legacy telecom and SaaS re-rating story.
med
Product perception remains a drag
Complaints about dropped voice and voicemail problems appear in user forums from 2011 to 2023. That does not prove a current system-wide issue, but it does show reputation scars that have been around for a long time.
In a market with low switching friction, bad product memory can cost you more than one quarter.
If total growth keeps looking like 7% while the stock keeps trading like a 15% story, something has to give.
source: institutional data · regulatory filings · risk analysis
Pay attention to
growth handoff
Can Business Services keep carrying the company
You want to see growth stay closer to 15% than 7%. If that gap closes the wrong way, the premium multiple stops making sense.
q1 2027 earnings
The next proof point arrives soon
After a $74.6M quarter and a $0.34 EPS beat, the next report needs to show the quarter was not a one-off.
consumer erosion
Watch whether the shrinking side gets worse
Consumer Services already fell 3%. If that decline steepens, the good segment has to run even faster just to keep total growth respectable.
valuation gap
Street targets versus market skepticism
The analyst median sits at $18.30 versus an $11.51 stock price. That gap is large enough to matter and small enough to disappear if execution slips.
Analyst rankings
earnings predictability
35 / 100
in human-speak, analysts think the numbers can swing around more than you'd like.
risk rank
3
Safer than about half the market. Not fragile, not exactly a bunker either.
price stability
35 / 100
The stock does not trade like a steady utility. It trades like a small-cap software story still arguing with itself.
source: institutional data
Institutional activity
institutional ownership data for OOMA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$12
current price
n/a
target midpoint · n/a from current
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