📊 OOMA Key Takeaways
Is Ooma Inc. (OOMA) a Good Investment?
OOMA maintains stable revenue growth (+6.5% YoY) and positive free cash flow generation with excellent debt service coverage, demonstrating financial solvency. However, operational efficiency is weak with only 4.3% operating margin and 2.7% ROE, indicating poor capital deployment, while liquidity concerns with current ratio below 1.0 raise working capital management questions.
Ooma shows steady top-line growth with strong gross margins and a clear profitability inflection, producing solid free cash flow despite thin operating income. Balance sheet leverage is moderate and interest burden is minimal, but liquidity is tight and operating margin remains low. Continued operating leverage and working capital discipline are key to sustaining momentum.
Ooma Inc. Key Strengths (OOMA)
- Strong gross margin of 62.4% demonstrates solid pricing power and cost-of-revenue efficiency
- Excellent interest coverage ratio of 194.9x indicates virtually zero debt default risk
- Moderate leverage at 0.50x debt-to-equity provides financial flexibility and balance sheet stability
- Positive free cash flow generation of $4.9M (6.1% FCF margin) shows underlying business cash generation
- High gross margin supporting attractive unit economics
- Positive free cash flow with improving profitability
- Moderate leverage and minimal interest burden
OOMA Stock Risks: Ooma Inc. Investment Risks
- Very weak operating margin of 4.3% and net margin of 3.2% signal operational inefficiency and high operating expense burden
- Poor capital returns with ROE of 2.7% and ROA of 1.1% indicate inefficient capital deployment and asset utilization
- Liquidity stress with current ratio of 0.94x and quick ratio of 0.69x below healthy levels, suggesting working capital management issues
- Modest revenue growth of 6.5% YoY is below technology/services sector expectations
- Very thin operating margin leaves little shock absorption
- Sub-1.0 current and quick ratios indicate liquidity pressure
- Modest growth in a competitive communications/UCaaS market
Key Metrics to Watch
- Operating margin expansion pathway - critical need to improve from 4.3% toward industry norms
- Current and quick ratio trends - must return above 1.0x for financial health
- Return on equity improvement - currently 2.7% is inadequate
- Revenue growth acceleration - identify if 6.5% reflects market saturation or execution challenges
- Operating margin
- Current ratio
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 |
|---|---|---|---|
| Q1 2027 | $65.0M | -$141.0K | $-0.01 |
| 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 |
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 a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OOMA's key strengths?
Claude: Strong gross margin of 62.4% demonstrates solid pricing power and cost-of-revenue efficiency. Excellent interest coverage ratio of 194.9x indicates virtually zero debt default risk. ChatGPT: High gross margin supporting attractive unit economics. Positive free cash flow with improving profitability.
What are the risks of investing in OOMA?
Claude: Very weak operating margin of 4.3% and net margin of 3.2% signal operational inefficiency and high operating expense burden. Poor capital returns with ROE of 2.7% and ROA of 1.1% indicate inefficient capital deployment and asset utilization. ChatGPT: Very thin operating margin leaves little shock absorption. Sub-1.0 current and quick ratios indicate liquidity pressure.
What is OOMA's revenue and growth?
Ooma Inc. reported revenue of $81.1M.
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 $0.09.
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 grade reflects both perspectives for balanced insights.
What is OOMA's fundamental grade?
Based on our AI fundamental analysis in June 2026, Ooma Inc. has a A grade with 68% 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 2.7% (sector avg: 22%), net margin of 3.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is OOMA's AI grade for 2026?
Our dual AI analysis gives Ooma Inc. a combined A grade 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 $6.4M, with capital expenditures of $1.5M. FCF margin is 6.1%.
How does OOMA compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.2% (avg: 18%), ROE 2.7% (avg: 22%), current ratio 0.94 (avg: 2.5).