Ooma Inc. (OOMA) has disclosed a new risk, in the Debt & Financing category.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Ooma Inc.’s financial health is potentially jeopardized by its $16.0 million debt, which is due in 2026 and arises from its Credit Agreement with Citizens Bank, N.A. The company’s operational cash flows are critical for servicing this debt, with the risk exacerbated by the possibility of additional borrowing under the agreement. The company faces the challenge of managing interest rate fluctuations, competitive disadvantages due to higher leverage, and the strain of meeting stringent financial covenants. With the economic landscape influencing Ooma’s performance, the company’s ability to meet its financial obligations remains uncertain.
The average OOMA stock price target is $15.60, implying 86.60% upside potential.
To learn more about Ooma Inc.’s risk factors, click here.
