Ooma (OOMA) Stock Forecast & Price Target

Ooma Inc. recently guided for a revenue range of $267.0M-$270.0M, reflecting a year-over-year increase of approximately 5%, along with a non-GAAP EPS forecast of $0.77-$0.82, which is higher than the consensus estimate. The company's subscription and services revenue of $60.6M surpassed expectations and demonstrated an annual growth of 4%, indicative of robust demand for its products, particularly the AirDial POTS replacement. Additionally, Ooma's business subscription and services revenues increased by 8% in 4QF25, further supported by significant margin improvements and strategic intentions to enhance sales reach, positioning the company for potential accelerated growth.

Ooma Inc. is projecting a decline in its Adjusted EBITDA for fiscal year 2026, with guidance indicating a range of $27.5 million to $29 million, which is below prior estimates and signals potential profitability concerns. Additionally, the company reported only modest year-over-year revenue growth of 3%, alongside a decrease in its annual net dollar subscription retention rate, which could indicate rising customer churn and operational instability. Furthermore, Ooma faces significant risks, including service outages that could affect customer retention, dependence on re-seller partnerships, and intense competition within the communications sector, all of which contribute to a negative outlook for its stock.