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Upturn AI Summary - About
Ooma Inc(OOMA)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for OOMA
11/06/2026: OOMA (3-star) is currently NOT-A-BUY. Pass it for now.
Ooma Inc is a cloud communications company that provides VoIP and unified communications solutions for small businesses and residential customers. The company's main strength lies in its integrated hardware and software platform, which helps drive recurring subscription revenue and customer loyalty. Its growth story centers on scaling its business segment and cross-selling smart security services. However, Ooma faces significant risks from intense competition in the cloud communications space and potential churn within its SMB customer base. The stock may best suit growth-oriented investors interested in cloud-based services; monitor subscriber growth rates and progress in reaching consistent profitability for key insights.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Ooma shows consistent service revenue growth but faces stiff competition in its primary business segments. |
| Momentum investor | Weak fit | The stock has historically lacked the consistent upward price momentum required for this strategy. |
| Value investor | Mixed fit | Valuation is often tied to growth expectations rather than current earnings multiples. |
| Dividend investor | Weak fit | Ooma does not pay a dividend and focuses on reinvesting cash flow. |
| Low-risk investor | Weak fit | The company faces high competition and operational risks inherent in the tech sector. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is susceptible to swings based on subscriber growth reports and competitive shifts. |
| Valuation risk | Medium | Investor sentiment regarding SaaS valuation multiples can significantly impact stock price. |
| Competition risk (Cloud Communications) | High | Ooma faces intense competition from better-capitalized players like Zoom and RingCentral. |
| Business quality | Medium | The company has strong recurring revenue, though margins are constrained by high operating expenses. |
| Dividend income | Low / none | No dividend is offered, making this unsuitable for income-focused portfolios. |
| Execution risk | Medium | Success depends on the effective migration of users to Ooma Office and continuous feature innovation. |
Price Behavior
Rolling Over
The price momentum is slowing down and beginning to turn downward.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 45.11% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 11/06/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 496.80M USD | Price to earnings Ratio 46.15 | 1Y Target Price 26.8 |
Price to earnings Ratio 46.15 | 1Y Target Price 26.8 | ||
Volume (30-day avg) 336.6K shares | Beta 1.12 | 52 Weeks Range 9.79 - 26.19 | Updated Date 11/08/2026 |
52 Weeks Range 9.79 - 26.19 | Updated Date 11/08/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.39 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Ooma Business | UCaaS, virtual receptionist, and mobile app services for SMBs. | The main engine for long-term growth and recurring revenue. |
| Ooma Residential | Ooma Telo and home security subscription services. | A stable but slower-growth segment providing foundational cash flow. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 46.15 | Forward PE 10.98 | Enterprise Value 540.11M | Price to Sales(TTM) 1.62 |
Enterprise Value 540.11M | Price to Sales(TTM) 1.62 | ||
Enterprise Value to Revenue 1.76 | Enterprise Value to EBITDA 18.48 | Shares Outstanding 27.60M | Shares Floating 24.92M |
Shares Outstanding 27.60M | Shares Floating 24.92M | ||
Percent Insiders 8.49 | Percent Institutions 75.69 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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