3 Reasons to Avoid JAMF and 1 Stock to Buy Instead

Jamf has gotten torched over the last six months - since January 2025, its stock price has dropped 41.4% to $8.30 per share. This might have investors contemplating their next move.

Is there a buying opportunity in Jamf, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.

Why Is Jamf Not Exciting?

Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why we avoid JAMF and a stock we'd rather own.

1. Long-Term Revenue Growth Disappoints

A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Jamf grew its sales at a 17.7% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds.

2. Weak Billings Point to Soft Demand

Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.

Jamf’s billings came in at $161 million in Q1, and over the last four quarters, its year-on-year growth averaged 8.9%. This performance was underwhelming and suggests that increasing competition is causing challenges in acquiring/retaining customers.

3. Operating Losses Sound the Alarms

While many software businesses point investors to their adjusted profits, which exclude stock-based compensation (SBC), we prefer GAAP operating margin because SBC is a legitimate expense used to attract and retain talent. This is one of the best measures of profitability because it shows how much money a company takes home after developing, marketing, and selling its products.

Jamf’s expensive cost structure has contributed to an average operating margin of negative 8.1% over the last year. Unprofitable software companies require extra attention because they spend heaps of money to capture market share. As seen in its historically underwhelming revenue performance, this strategy hasn’t worked so far, and it’s unclear what would happen if Jamf reeled back its investments. Wall Street seems to be optimistic about its growth, but we have some doubts.

Final Judgment

Jamf’s business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 1.6× forward price-to-sales (or $8.30 per share). While this valuation is reasonable, we don’t really see a big opportunity at the moment. We're pretty confident there are superior stocks to buy right now. We’d recommend looking at a top digital advertising platform riding the creator economy.

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