Ooma, Inc. (OOMA)
NYSEInformation TechnologyTelecommunications ServicesSnapshot 2026-09-04
$23.20-0.77%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyTelecommunications ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Ooma grows revenue to about $327 million in FY 2027. Profit per share rises to around $0.40. The company shows steady earnings beats and expands its AI and AirDial services. Its valuation is cheap compared to peers with a strong market position.
Revenue growth could slow below 11% expected by analysts. Profit margins may not improve enough to meet EPS targets. Rising debt from acquisitions could pressure cash flow and earnings.
The market prices in about 11% revenue growth and fair value near $20 per share. Our fair value is 16% below the Street median, reflecting cautious optimism. We see room for upside if Ooma meets its growth and profit targets.
Breaks if: EPS falls below $0.37 in FY 2027
Grow GAAP diluted earnings per share to the range of $0.37 to $0.42 for fiscal year 2027.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on revenue growth and improving profitability. The current thesis state is intact, with management demonstrating a commitment to achieving their financial targets.
The market seems to have priced in a justified valuation, with OOMA appearing expensive compared to its peers. There is a slight expectations gap, suggesting that some positive performance may already be anticipated.
Management is on track to meet its revenue and profit targets for fiscal 2027, with recent financial performance showing strong growth. However, there is an elevated risk of missing guidance due to the nature of the industry.
The long-term thesis hinges on management's ability to maintain guidance and deliver on financial targets. Additionally, external factors such as Federal Reserve interest rate decisions and the performance of sector bellwether ASTS could influence OOMA's trajectory.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. Ooma raised its full-year outlook following strong Q2 results. The latest earnings beat supports expectations for higher revenue and earnings. Growth in POTS replacement markets also reinforces revenue objectives.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. GAAP diluted EPS rose from $0.04 in 2026-Q2 to $0.10 in 2027-Q2, a 150% increase year-over-year. Management's fiscal 2027 GAAP EPS guidance remains at $0.37 to $0.42, indicating progress and delivery on this priority.
“GAAP net income was $0.10 per diluted share, compared to $0.04 per diluted share a year ago.”
“GAAP net income per share expected in the range of $0.37 to $0.42 for fiscal 2027.”
“GAAP net income per share guidance for fiscal 2027 is $0.37 to $0.42.”
Breaks if: Non-GAAP net income falls below $37.5M in FY 2027
Target non-GAAP net income in the range of $37.5 million to $39 million for fiscal year 2027.
Stated as a priority in 3 of last 3 quarters. Non-GAAP net income increased from $6.45 million in 2026-Q2 to $10.2 million in 2027-Q2, a 58% rise year-over-year. Fiscal 2027 guidance for non-GAAP net income remains at $37.5 million to $39 million, showing management is delivering on this target.
“Non-GAAP net income was $10.2 million, up 58% year-over-year.”
“Non-GAAP net income was $9.7 million, up 73% year-over-year.”
“Non-GAAP net income guidance for fiscal 2027 is $37.5 million to $39.0 million.”
Breaks if: Revenue falls below $326M in FY 2027
Breaks if: PE rises above 38x without earnings growth
Overall, OOMA's fundamentals show promise, but the elevated risks and current valuation require careful monitoring. Not investment advice.