Here’s What Lifted Olo (OLO) in Q2

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Micro Cap Composite appreciated 15.65% net-of-fees in the second quarter but underperformed the Russell Microcap Growth Index’s 20.92% return. In a highly volatile market led by high-beta and lower-quality stocks, the firm does not expect the fund to align with index performance. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Olo Inc. (NYSE:OLO). Headquartered in New York, New York, Olo Inc. (NYSE:OLO) offers a SaaS platform for restaurants. The one-month return of Olo Inc. (NYSE:OLO) was 13.93%, and its shares gained 117.60% of their value over the last 52 weeks. On July 25, 2025, Olo Inc. (NYSE:OLO) stock closed at $10.14 per share, with a market capitalization of $1.714 billion.

Conestoga Capital Advisors stated the following regarding Olo Inc. (NYSE:OLO) in its second quarter 2025 investor letter:

“Olo Inc. (NYSE:OLO) is a SaaS technology platform that enables it’s greater than 700 restaurant brand customers to reach their customers across over 85,000 locations. OLO has been a leader in two of the past three quarters. In its 1Q earnings report, OLO announced a major win with the Chipotle restaurant chain. Also, during the quarter, OLO announced that Red Lobster had come back to their platform after attempting to build their own solution but realizing OLO was a better option. There was also speculation during the quarter that OLO could be considering strategic alternatives, which contributed to the stock gains.”

Is Olo Inc. (OLO) the Best Debt-Free IT Stock to Buy Under $10?

A business executive showcasing a mobile ordering app to a busy restaurant staff.

Olo Inc. (NYSE:OLO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 27 hedge fund portfolios held Olo Inc. (NYSE:OLO) at the end of the first quarter compared to 30 in the previous quarter. In the first quarter of 2025, Olo Inc. (NYSE:OLO) generated total revenue of $80.7 million, reflecting an increase of 21% year-over-year. While we acknowledge the risk and potential of Olo Inc. (NYSE:OLO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Olo Inc. (NYSE:OLO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Olo Inc. (NYSE:OLO) and shared the list of best overlooked stocks that pay dividends. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.