Ooma expands stock plans following shareholder approval

Published 10/06/2025, 21:52
Ooma expands stock plans following shareholder approval

Ooma Inc . (NYSE:OOMA), a provider of innovative communication solutions for businesses and consumers with annual revenue of $259.38 million and 7.01% year-over-year growth, announced on Monday the expansion of its equity incentive and employee stock purchase plans. According to InvestingPro analysis, the company appears undervalued at its current market price of $12.93, with multiple analysts recently revising their earnings expectations upward. The Sunnyvale, California-based company, which specializes in computer processing and data preparation services and maintains a moderate debt level with a debt-to-equity ratio of just 0.13, received approval from its shareholders at the annual meeting held on June 5, 2025, to amend and restate its 2015 Equity Incentive Plan (EIP) and its 2015 Employee Stock Purchase Plan (ESPP).

The approved amendments will increase the number of shares authorized for issuance under the EIP by 330,000 shares, and under the ESPP by 795,144 shares. These changes aim to offer additional incentives to attract, retain, and motivate employees, directors, and consultants by providing them opportunities to acquire a proprietary interest in the company.

Details regarding the terms and amendments of the EIP and ESPP were included in Ooma’s definitive proxy statement filed with the Securities and Exchange Commission on April 18, 2025. The full text of the plans, as amended and restated, are filed as Exhibit Nos. 10.1 and 10.2 with the current report on Form 8-K.

This expansion of stock plans comes as part of Ooma’s broader strategy to align the interests of its employees and directors with those of its shareholders. The company’s commitment to fostering a culture of ownership among its team members is expected to drive continued innovation and growth. InvestingPro data reveals seven analysts have revised their earnings upward for the upcoming period, suggesting strong confidence in the company’s future performance. For deeper insights into Ooma’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The information provided in this article is based on Ooma’s recent SEC filing and reflects the company’s ongoing efforts to enhance shareholder value through strategic corporate governance practices.

In other recent news, Ooma Inc. reported its first-quarter fiscal year 2026 earnings, revealing earnings per share (EPS) of $0.20, surpassing the consensus estimate of $0.18. The company achieved an adjusted EBITDA of $6.7 million, exceeding the forecast of $6.2 million, and reported revenue of $65 million, slightly above the consensus estimate of $64.8 million, marking a 4% year-over-year increase. Despite the revenue miss against the forecast of $65.6 million, Ooma provided positive full-year revenue guidance of $267-$270 million. Benchmark analyst Matthew Harrigan reiterated a Buy rating with a $20 price target for Ooma, highlighting the company’s promising developments, particularly with its AirDial product, which Comcast (NASDAQ:CMCSA) has begun reselling. Benchmark also increased its fiscal year 2030 Adjusted EBITDA margin forecast for Ooma to just over 19%, reflecting confidence in the company’s growth trajectory. Citizens JMP maintained a Market Perform rating on Ooma, noting the company’s steady growth in annualized recurring revenue and improved subscription retention. Ooma’s recent performance and strategic partnerships, such as with Comcast, indicate a positive outlook for future expansion within the telecommunications sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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