Ooma (OOMA) Stock Forecast & Price Target

Ooma Inc. is projected to achieve annual revenue in the range of $267.0M to $270.0M, marking an approximate 5% year-over-year increase, with non-GAAP EPS estimates exceeding consensus expectations. Subscription and services revenue of $60.6M reflects a year-over-year growth of 4%, surpassing anticipated metrics, while overall revenue of $65.1M also outperformed expectations by growing 6% year-over-year. The company's growth trajectory is bolstered by strong momentum in its product lineup, particularly the AirDial POTS replacement solution, and operational improvements through reduced R&D spending, suggesting a favorable outlook for future performance.

Ooma Inc. is projected to experience a decline in Adjusted EBITDA for F2026, estimated to be between $27.5 million and $29.0 million, which contrasts with management's longer-term expectations of a 20-25% EBITDA margin. The company's full-year revenue guidance of $267-$270 million falls short of previous estimates and reflects muted growth due to market uncertainties and competition. Additionally, Ooma's reliance on re-seller partnerships, along with risks such as potential service outages and limited brand recognition in a competitive landscape, further contribute to a negative outlook on its stock.