Domo Announces Third Quarter Fiscal 2026 Financial Results

About this update from Domo, Inc.

SILICON SLOPES, Utah --(BUSINESS WIRE)-- Domo, Inc. (Nasdaq: DOMO) today announced results for its fiscal third quarter ended October 31, 2025 . Fiscal Third Quarter Results Total revenue was $79.4 million Subscription revenue was $71.9 million Billings were $73.2 million Subscription Remaining Performance Obligations (RPO) was $405.9 million as of October 31, 2025 , an increase of 15% year over year Current subscription RPO was $214.1 million as of October 31, 2025 , an increase of 3% year over year Net cash provided by operating activities was $3.4 million , an increase of 125% year over year Adjusted free cash flow was $2.1 million , an increase of 115% year over year GAAP operating margin was negative 9%, an increase of 5 percentage points year over year Non-GAAP operating margin was positive 7%, an increase of 4 percentage points year over year GAAP net loss was $10.4 million , and GAAP net loss per share (basic and diluted) was $0.25 , based on 41.4 million weighted-average shares (basic and diluted) Non-GAAP net income was $0.3 million , and diluted non-GAAP net income per share was $0.01 , based on 44.8 million diluted weighted-average shares Cash and cash equivalents were $47.9 million as of October 31, 2025 “Our ecosystem strategy is working,” said Josh James , founder and CEO of Domo. “We expect to be free cash flow positive for the year and each quarter within the year. Our guidance for Q4 reflects the fastest billings growth we've seen in over three years, and we expect to see a marked improvement in gross retention this next quarter and into next year. We believe that these are all strong indications of our ability to deliver profitable, sustainable growth.” Recent Highlights Recent recognition from leading industry analyst and media organizations highlight Domo’s work in helping customers get the most value from their investments in AI and data products: Domo was ranked #1 in the 2025 Agentic AI Report by Dresner Advisory Services . Domo was named a Leader in the KMWorld 2025 Leader Group for Agentic AI . Domo was named a Leader in the Nucleus Research Embedded Analytics Technology Value Matrix 2025 . Domo was awarded with "Best Technology" in the CRN 2025 Products of the Year Awards for Best Business Intelligence & Data Analytics . Domo was ranked as #2 overall in Dresner Advisory Services' Analytical Data Products Report. Business Outlook Based on information available as of December 4, 2025 , Domo is providing the following guidance for its fourth quarter of fiscal 2026 and full year fiscal 2026: Q4 Fiscal 2026 Revenue is expected to be in the range of $78.0 million to $79.0 million Non-GAAP net loss per share, basic and diluted, is expected to be between $0.01 and $0.05 based on 42.1 million weighted-average shares outstanding, basic and diluted Full Year Fiscal 2026 Revenue is expected to be in the range of $317.5 million to $318.5 million Non-GAAP net loss per share, basic and diluted, is expected to be between $0.07 and $0.11 based on 41.0 million weighted-average shares outstanding, basic and diluted We have not reconciled guidance for non-GAAP metrics to their most directly comparable GAAP measures because certain items that impact these measures are not within our control or cannot be reasonably predicted. Earnings Call Details Domo plans to host a conference call today to review its fiscal 2026 third quarter financial results and to discuss its financial outlook. The call is scheduled to begin at 3:00 p.m. MT / 5:00 p.m. ET . A live webcast of the event will be available on the Domo Investor Relations website at https://www.domo.com/ir and a live dial-in is available at (877) 484-6065 or (201) 689-8846. A replay will be available at (877) 660-6853 or (201) 612-7415 with the access ID#13757140 following the completion of the conference call until 11:59 p.m. (ET) January 5, 2026 . About Domo Domo is an AI and Data Products platform that helps companies of all sizes leverage data and AI to drive value in today’s data-driven world. Built around our customers’ preferred data foundation, powered by our award-winning Domo.AI solution, and enriched with our partner ecosystem , the Domo platform enables users to prepare, visualize, automate, distribute, and build end-to-end data products that provide solutions across the entire data journey. From hydrating your data foundation, to building fully embedded applications that can be shared with your employees and customers, to deploying AI models across a variety of providers, Domo gives users the ability to build data products that generate measurable value for the business. For more information, visit www.domo.com . You can also follow Domo on LinkedIn , X , and Facebook . Domo Disclosure Channels to Disseminate Information Domo investors and others should note that we announce material information to the public about our company, products and services, and other issues through a variety of means, including Domo’s website, press releases, filings with the U.S. Securities and Exchange Commission (SEC), blogs and social media, in order to achieve broad, non-exclusionary distribution of information to the public. We intend to use the Domo Facebook page, the Domo LinkedIn page, the Domo blog, the @Domotalk X account and the @JoshJames X account as a means of disclosing information about the Company and its services and for complying with the disclosure obligations under Regulation FD. The information we post through these social media channels may be deemed material. Accordingly, we encourage investors and others to monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described here may be updated from time to time as listed on our investor relations webpage. Use of Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP), we reference in this press release and the accompanying tables the following non-GAAP financial measures: non-GAAP subscription gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share (basic and diluted), billings, and adjusted free cash flow. In computing the measures other than billings and adjusted free cash flow, we exclude the effects of one or more of the following: stock-based compensation expense, amortization of certain intangible assets, loss on extinguishment of debt, and remeasurement of warrant liability. Billings is defined as total revenue plus the change in deferred revenue in a period. In computing adjusted free cash flow, we use net cash provided by (used in) operating activities, less purchases of property and equipment, and exclude the effects of proceeds from shares issued in connection with the employee stock purchase plan and the net change in short-term payable financing. As it relates to adjusted free cash flow, we add back amounts equal to the proceeds from shares issued in connection with employee stock purchase plan to reflect the non-cash nature of these transactions. Because no cash is exchanged in these transactions, showing proceeds in the financing section of the statement of cash flows as required by GAAP results in a corresponding decrease in the operating section, which management believes is not indicative of actual cash used in or provided by our operations. We also add back the net change to short-term payable financing to adjusted free cash flow. We believe that this non-GAAP cash metric is useful because it provides investors with the same information that management uses to consistently evaluate, forecast and measure the Company’s actual cash flows and its ability to achieve and maintain positive cash flows. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this release. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements of our Chief Executive Officer, and statements regarding our future performance and outlook, including guidance for our fourth fiscal quarter and fiscal year. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption "Risk Factors" and elsewhere in our filings with the SEC , including, without limitation, the Annual Report on Form 10-K filed with the SEC on April 4, 2025 or subsequent filings with the SEC . All information provided in this release and in the attachments is as of the date hereof, and we undertake no duty to update this information unless required by law. Domo is a registered trademark of Domo, Inc. Domo, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended October 31 , October 31 , 2024 2025 2024 2025 Revenue: Subscription $ 71,113 $ 71,879 $ 214,144 $ 215,998 Professional services and other 8,651 7,524 24,130 23,234 Total revenue 79,764 79,403 238,274 239,232 Cost of revenue: Subscription (1) 13,334 14,281 39,410 42,211 Professional services and other (1) 6,627 6,223 21,389 19,036 Total cost of revenue 19,961 20,504 60,799 61,247 Gross profit 59,803 58,899 177,475 177,985 Operating expenses: Sales and marketing (1) 37,194 34,120 116,040 109,081 Research and development (1) 21,264 19,062 65,952 57,975 General and administrative (1), (2) 12,429 12,647 42,504 39,456 Total operating expenses 70,887 65,829 224,496 206,512 Loss from operations (11,084 ) (6,930 ) (47,021 ) (28,527 ) Other expense, net: Loss on extinguishment of debt (1,850 ) - (1,850 ) - Remeasurement of warrant liability (455 ) 1,704 (33 ) (7,579 ) Other expense, net (1) (5,167 ) (4,953 ) (14,772 ) (14,632 ) Total other expense, net (7,472 ) (3,249 ) (16,655 ) (22,211 ) Loss before income taxes (18,556 ) (10,179 ) (63,676 ) (50,738 ) Provision for income taxes 205 209 582 634 Net loss $ (18,761 ) $ (10,388 ) $ (64,258 ) $ (51,372 ) Net loss per share (basic and diluted) $ (0.48 ) $ (0.25 ) $ (1.68 ) $ (1.26 ) Weighted-average number of shares used in computing net loss per share, basic and diluted 38,832 41,448 38,243 40,618 (1) Includes stock-based compensation expenses, as follows: Cost of revenue: Subscription $ 784 $ 810 $ 2,389 $ 2,427 Professional services and other 295 174 942 963 Sales and marketing 4,754 2,939 15,238 11,204 Research and development 4,038 3,851 12,529 12,959 General and administrative 3,080 4,430 12,075 13,116 Other expense, net 210 - 603 218 Total stock-based compensation expenses $ 13,161 $ 12,204 $ 43,776 $ 40,887 (2) Includes amortization of certain intangible assets, as follows: General and administrative $ 142 $ 142 $ 426 $ 426 Domo, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) January 31 , October 31 , 2025 2025 Assets Current assets: Cash and cash equivalents $ 45,264 $ 47,874 Accounts receivable, net of allowances of $3,470 and $3,119 as of January 31, 2025 and October 31, 2025 , respectively 71,544 52,265 Contract acquisition costs, net 15,780 16,501 Prepaid expenses and other current assets 9,089 6,076 Total current assets 141,677 122,716 Property and equipment, net 28,625 29,268 Right-of-use assets 10,158 11,888 Contract acquisition costs, noncurrent, net 19,553 23,958 Intangible assets, net 2,125 1,700 Goodwill 9,478 9,478 Other assets 2,724 2,597 Total assets $ 214,340 $ 201,605 Liabilities and stockholders' deficit Current liabilities: Accounts payable $ 10,033 $ 25,050 Warrant liability 11,208 18,787 Accrued expenses and other current liabilities 49,701 52,110 Lease liabilities 5,731 7,653 Deferred revenue 178,276 146,269 Total current liabilities 254,949 249,869 Lease liabilities, noncurrent 7,695 6,618 Deferred revenue, noncurrent 2,828 3,042 Other liabilities, noncurrent 8,446 9,820 Long-term debt 117,668 124,188 Total liabilities 391,586 393,537 Commitments and contingencies Stockholders' deficit: Common stock 39 42 Additional paid-in capital 1,310,922 1,346,653 Accumulated other comprehensive (loss) income (669 ) 283 Accumulated deficit (1,487,538 ) (1,538,910 ) Total stockholders' deficit (177,246 ) (191,932 ) Total liabilities and stockholders' deficit $ 214,340 $ 201,605 Domo, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended Nine Months Ended October 31 , October 31 , 2024 2025 2024 2025 Cash flows from operating activities Net loss $ (18,761 ) $ (10,388 ) $ (64,258 ) $ (51,372 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 2,254 2,636 7,117 7,232 Non-cash lease expense 1,142 1,470 3,320 3,972 Amortization of contract acquisition costs 4,454 4,858 13,181 13,977 Stock-based compensation expense 13,161 12,204 43,776 40,887 Loss on extinguishment of debt 1,850 - 1,850 - Remeasurement of warrant liability 456 (1,704 ) 33 7,579 Other, net 2,390 2,244 4,334 6,613 Changes in operating assets and liabilities: Accounts receivable, net (8,489 ) (4,942 ) 10,020 19,279 Contract acquisition costs (4,524 ) (6,399 ) (10,328 ) (18,975 ) Prepaid expenses and other assets 1,543 276 1,819 3,443 Accounts payable (11,655 ) 4,796 (152 ) 14,935 Operating lease liabilities (1,392 ) (1,796 ) (4,000 ) (4,843 ) Accrued expenses and other liabilities 10,238 6,329 6,073 (231 ) Deferred revenue (6,368 ) (6,200 ) (30,756 ) (31,793 ) Net cash (used in) provided by operating activities (13,701 ) 3,384 (17,971 ) 10,703 Cash flows from investing activities Purchases of property and equipment (2,515 ) (2,292 ) (7,245 ) (7,568 ) Net cash used in investing activities (2,515 ) (2,292 ) (7,245 ) (7,568 ) Cash flows from financing activities Payments of deferred offering costs for registration statement (402 ) - (402 ) (164 ) Proceeds from shares issued in connection with employee stock purchase plan 789 653 1,910 1,333 Shares repurchased for tax withholdings on vesting of restricted stock (296 ) (1,128 ) (504 ) (2,733 ) Debt issuance proceeds (costs), net 52,758 - 52,758 (206 ) Repayment of debt and related fees (53,177 ) - (53,177 ) - Proceeds from short-term payable financing 6,190 3,993 8,972 10,960 Payments on short-term payable financing (4,536 ) (3,664 ) (4,536 ) (10,689 ) Net cash provided by (used in) financing activities 1,326 (146 ) 5,021 (1,499 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 111 (215 ) 181 974 Net (decrease) increase in cash, cash equivalents, and restricted cash (14,779 ) 731 (20,014 ) 2,610 Cash, cash equivalents, and restricted cash at beginning of period 55,704 47,143 60,939 45,264 Cash, cash equivalents, and restricted cash at end of period $ 40,925 $ 47,874 $ 40,925 $ 47,874 Reconciliation of Non-GAAP Financial Measures (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended October 31 , October 31 , 2024 2025 2024 2025 Reconciliation of Subscription Gross Margin on a GAAP Basis to Subscription Gross Margin on a Non-GAAP Basis: Revenue: Subscription $ 71,113 $ 71,879 $ 214,144 $ 215,998 Cost of revenue: Subscription 13,334 14,281 39,410 42,211 Subscription gross profit on a GAAP basis 57,779 57,598 174,734 173,787 Subscription gross margin on a GAAP basis 81 % 80 % 82 % 80 % Stock-based compensation 784 810 2,389 2,427 Subscription gross profit on a non-GAAP basis $ 58,563 $ 58,408 $ 177,123 $ 176,214 Subscription gross margin on a non-GAAP basis 82 % 81 % 83 % 82 % Reconciliation of Total Operating Expenses on a GAAP Basis to Total Operating Expenses on a Non-GAAP Basis: Total operating expenses on a GAAP basis $ 70,887 $ 65,829 $ 224,496 $ 206,512 Stock-based compensation (11,872 ) (11,220 ) (39,842 ) (37,279 ) Amortization of certain intangible assets (142 ) (142 ) (426 ) (426 ) Total operating expenses on a non-GAAP basis $ 58,873 $ 54,467 $ 184,228 $ 168,807 Reconciliation of Operating Loss on a GAAP Basis to Operating Income (Loss) on a Non-GAAP Basis: Operating loss on a GAAP basis $ (11,084 ) $ (6,930 ) $ (47,021 ) $ (28,527 ) Stock-based compensation 12,951 12,204 43,173 40,669 Amortization of certain intangible assets 142 142 426 426 Operating income (loss) on a non-GAAP basis $ 2,009 $ 5,416 $ (3,422 ) $ 12,568 Reconciliation of Operating Margin on a GAAP Basis to Operating Margin on a Non-GAAP Basis: Operating margin on a GAAP basis (14 )% (9 )% (20 )% (12 )% Stock-based compensation 17 16 19 17 Operating margin on a non-GAAP basis 3 % 7 % (1 )% 5 % Reconciliation of Net Loss on a GAAP Basis to Net (Loss) Income on a Non-GAAP Basis: Net loss on a GAAP basis $ (18,761 ) $ (10,388 ) $ (64,258 ) $ (51,372 ) Stock-based compensation 13,161 12,204 43,776 40,887 Amortization of certain intangible assets 142 142 426 426 Loss on extinguishment of debt 1,850 - 1,850 - Remeasurement of warrant liability 455 (1,704 ) 33 7,579 Net (loss) income on a non-GAAP basis $ (3,153 ) $ 254 $ (18,173 ) $ (2,480 ) Reconciliation of Net Loss per Share on a GAAP Basis (Basic) to Net (Loss) Income per Share on a Non-GAAP Basis (Basic): Net loss per share on a GAAP basis (basic) $ (0.48 ) $ (0.25 ) $ (1.68 ) $ (1.26 ) Stock-based compensation 0.34 0.30 1.15 1.01 Amortization of certain intangible assets — — — 0.01 Loss on extinguishment of debt 0.05 — 0.05 — Remeasurement of warrant liability 0.01 (0.04 ) — 0.18 Net (loss) income per share on a non-GAAP basis (basic) $ (0.08 ) $ 0.01 $ (0.48 ) $ (0.06 ) Weighted-average shares used (basic) 38,832 41,448 38,243 40,618 Reconciliation of Net Loss per Share on a GAAP Basis (Diluted) to Net (Loss) Income per Share on a Non-GAAP Basis (Diluted): Net loss per share on a GAAP basis (diluted) $ (0.48 ) $ (0.25 ) $ (1.68 ) $ (1.26 ) Adjustments for difference in weighted-average shares — 0.02 — — Stock-based compensation 0.34 0.28 1.15 1.01 Amortization of certain intangible assets — — — 0.01 Loss on extinguishment of debt 0.05 — 0.05 — Remeasurement of warrant liability 0.01 (0.04 ) — 0.18 Net (loss) income per share on a non-GAAP basis (diluted) $ (0.08 ) $ 0.01 $ (0.48 ) $ (0.06 ) Weighted-average shares used (diluted) 38,832 44,789 38,243 40,618 Billings: Total revenue $ 79,764 $ 79,403 $ 238,274 $ 239,232 Add: Deferred revenue (end of period) 153,919 146,269 153,919 146,269 Deferred revenue, noncurrent (end of period) 3,311 3,042 3,311 3,042 Less: Deferred revenue (beginning of period) (161,601 ) (153,967 ) (185,250 ) (178,276 ) Deferred revenue, noncurrent (beginning of period) (1,997 ) (1,544 ) (2,736 ) (2,828 ) Decrease in deferred revenue (current and noncurrent) (6,368 ) (6,200 ) (30,756 ) (31,793 ) Billings $ 73,396 $ 73,203 $ 207,518 $ 207,439 Reconciliation of Net Cash (Used In) Provided by Operating Activities to Adjusted Free Cash Flow: Net cash (used in) provided by operating activities $ (13,701 ) $ 3,384 $ (17,971 ) $ 10,703 Proceeds from shares issued in connection with employee stock purchase plan 789 653 1,910 1,333 Purchases of property and equipment (2,515 ) (2,292 ) (7,245 ) (7,568 ) Proceeds from short-term payable financing 6,190 3,993 8,972 10,960 Payments on short-term payable financing (4,536 ) (3,664 ) (4,536 ) (10,689 ) Adjusted free cash flow $ (13,773 ) $ 2,074 $ (18,870 ) $ 4,739 View source version on businesswire.com : https://www.businesswire.com/news/home/20251202011174/en/ Media Contact: Cory Edwards VP Corporate Communications Domo [email protected] Investor Contact: Cameron Janke VP Finance Domo [email protected] Source: Domo, Inc.

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