Citizens JMP maintains Ooma stock Market Perform rating

Friday, Citizens JMP analysts maintained their Market Perform rating on Ooma Inc . (NYSE: NYSE:OOMA) following the release of the company’s first-quarter fiscal year 2026 results. According to InvestingPro data, six analysts have recently revised their earnings expectations upward, with a consensus target suggesting potential upside of 33%. Ooma reported non-GAAP earnings per share (EPS) of $0.20, surpassing the consensus estimate of $0.18. The company also achieved an adjusted EBITDA of $6.7 million, which exceeded the consensus forecast of $6.2 million. Revenue for the quarter was reported at $65.0 million, slightly above the consensus estimate of $64.8 million, marking a year-over-year increase of 4%. This growth rate, however, was a deceleration from the 6% year-over-year growth reported in the previous quarter.

The company also disclosed its annualized exit recurring revenue, which reached $234 million, representing a 3% growth year-over-year and remaining steady with the previous quarter’s figures. Additionally, Ooma’s annual net dollar subscription retention rate improved to 99%, up from 98% in the last quarter. The company operates with a moderate debt level, maintaining a healthy current ratio of 1.16, according to InvestingPro analysis.

Despite the better-than-expected financial outcomes, Ooma’s stock experienced a modest increase of 1% on the day of the announcement. While the stock’s year-to-date (YTD) performance showed a 4% decline, contrasting with the Russell 3000’s flat performance over the same period, InvestingPro data reveals an impressive one-year return of over 53%. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued.

The analyst’s remarks come after Ooma’s latest financial report, which demonstrated the company’s ability to slightly outperform market expectations. The company’s steady growth in annualized recurring revenue and an uptick in subscription retention are notable, yet the stock’s movement indicates a reserved response from the market.

Ooma’s results and subsequent stock performance provide a snapshot of the company’s current financial health. The analyst’s decision to reiterate the Market Perform rating suggests a neutral outlook on the stock, aligning with the company’s consistent but moderate growth indicators. For deeper insights into Ooma’s valuation and growth prospects, investors can access comprehensive analysis and additional ProTips through the detailed Pro Research Report available on InvestingPro.

In other recent news, Ooma Inc. reported its first-quarter fiscal 2026 earnings, showcasing a positive surprise in earnings per share (EPS) which exceeded expectations at $0.20, compared to the forecasted $0.18. However, the company’s revenue slightly missed projections, reaching $65 million against the expected $65.6 million. Despite the revenue shortfall, Ooma’s non-GAAP net income and adjusted EBITDA showed significant growth, increasing by 56% and 33% year-over-year, respectively. The company also provided optimistic full-year guidance, projecting revenue between $267 million and $270 million.

Benchmark analyst Matthew Harrigan reiterated a Buy rating on Ooma with a $20 price target, following the company’s financial results that surpassed expectations. The analyst highlighted the growing adoption of Ooma’s AirDial product, noting a significant increase in new resellers, now exceeding 30. Ooma confirmed that Comcast (NASDAQ:CMCSA) has begun reselling AirDial, indicating a strong market potential for the product. Benchmark adjusted its fiscal year 2030 Adjusted EBITDA margin forecast for Ooma to just over 19%, reflecting confidence in Ooma’s growth prospects. These developments underscore Ooma’s strategic positioning within the telecommunications sector.

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