Ooma (OOMA) Stock Forecast & Price Target

Ooma Inc. reported subscription and services revenue of $60.6 million, marking a 4% year-over-year increase and surpassing consensus expectations, showcasing its stable revenue generation capabilities. The company’s forward guidance indicates projected revenue growth of approximately 5% year-over-year, coupled with higher non-GAAP earnings per share estimates, which reflect improved operational efficiencies and cost management, particularly in research and development. Additionally, Ooma's strategic focus on expanding its product offerings and distribution channels, especially with innovations like the AirDial POTS replacement product, positions it for potential accelerated growth, particularly in the business segment.

Ooma Inc. is projected to experience a decline in Adjusted EBITDA, with expectations for F2026 falling between $27.5 million and $29.0 million, which is below management's long-term margin target. Despite reporting an EBITDA of $6.9 million on revenue of $65.1 million, the company's annualized exit recurring revenue growth has stagnated, and its net dollar subscription retention rate has decreased to 98%. Additionally, competitive pressures and reliance on reseller partnerships pose significant risks, further exacerbating Ooma's challenges in sustaining growth and market presence.