Domo(DOMO) - 2026 Q2 - Quarterly Results

Executive Summary Domo's Q2 FY26 saw accelerating ACV, strong subscription RPO, and record non-GAAP operating margin, alongside industry recognition for BI leadership and workplace equality CEO's Strategic Commentary Domo's CEO highlighted accelerating ACV, strong subscription RPO, and expanding partnerships as key growth drivers. The company achieved record operating margin and its first positive non-GAAP EPS, with 108% NRR for consumption contracts, positioning Domo for leadership in the evolving data and AI landscape - CEO Josh James noted accelerating ACV, strong subscription RPO, and expanding partnerships as key growth drivers[3] - Domo achieved record operating margin and its first ever positive non-GAAP EPS[3] - Reported 108% NRR for customers on consumption contracts, indicating model effectiveness[3] - Positioned for leadership in data and AI through ongoing AI innovation, continued consumption growth, and a stronger partner ecosystem[3] Recent Business Highlights Domo received significant industry recognition, including being named a leader in Nucleus Research's 2025 Business Intelligence (BI) and Analytics Technology Value Matrix for the fifth consecutive year. The company also earned recognition in Dresner Advisory Services' 2025 BI Market Study and for equal advancement opportunity on the 2025 ParityLIST and the Shatter List - Named a leader in Nucleus Research's 2025 Business Intelligence (BI) and Analytics Technology Value Matrix for the fifth consecutive year[4] - Recognized as a leader in Dresner Advisory Services' 2025 Wisdom of Crowds® Business Intelligence (BI) Market Study for Customer Experience and Vendor Credibility Models, achieving its ninth consecutive perfect recommendation score[9] - Named to the 2025 ParityLIST and the Women Tech Council's Shatter List for the eighth consecutive year, recognizing equal advancement opportunity[9] Fiscal Second Quarter Fiscal 2026 Financial Results Domo reported Q2 FY26 total revenue of $79.7 million, achieving positive non-GAAP EPS and operating margin, with improved cash flow from operations and adjusted free cash flow Key Financial Highlights (Non-GAAP & GAAP) Domo reported total revenue of $79.7 million and subscription revenue of $72.7 million for Q2 FY26. Subscription RPO increased 19% year-over-year to $409.8 million. The company achieved a positive non-GAAP operating margin of 8% and non-GAAP net income of $0.9 million, resulting in diluted non-GAAP EPS of $0.02. Net cash provided by operating activities increased 155% year-over-year to $3.4 million, and adjusted free cash flow rose 125% year-over-year to $1.4 million Key Financial Highlights | Metric | Q2 FY26 Value | YoY Change | | :-------------------------------- | :---------------- | :--------- | | Total Revenue | $79.7 million | | | Subscription Revenue | $72.7 million | | | Billings | $70.3 million | | | Subscription RPO (as of July 31, 2025) | $409.8 million | +19% | | Current Subscription RPO (as of July 31, 2025) | $220.2 million | +4% | | Net Cash Provided by Operating Activities | $3.4 million | +155% | | Adjusted Free Cash Flow | $1.4 million | +125% | | GAAP Operating Margin | -9% | +9 percentage points | | Non-GAAP Operating Margin | +8% | +5 percentage points | | GAAP Net Loss | $22.9 million | | | GAAP Net Loss per Share (basic & diluted) | $0.56 | | | Non-GAAP Net Income | $0.9 million | | | Diluted Non-GAAP Net Income per Share | $0.02 | | | Cash and Cash Equivalents (as of July 31, 2025) | $47.1 million | | GAAP Financial Statements Domo's GAAP financial statements for Q2 FY26 show total revenue of $79.7 million, with an improved operating loss of $7.3 million compared to $14.5 million in Q2 FY25. However, net loss increased to $22.9 million, resulting in a GAAP net loss per share of $0.56. The balance sheet indicates a decrease in total assets and a widening stockholders' deficit, while cash flow from operations turned positive at $3.4 million Condensed Consolidated Statements of Operations For Q2 FY26, Domo reported total revenue of $79.7 million, up from $78.4 million in Q2 FY25. Net loss increased to $22.9 million from $19.5 million in the prior year quarter, with GAAP net loss per share at $0.56. Operating loss improved to $7.3 million from $14.5 million year-over-year Condensed Consolidated Statements of Operations | Metric (in thousands) | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :-------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Total Revenue | $78,407 | $79,718 | $158,510 | $159,829 | | Gross Profit | $58,283 | $59,643 | $117,672 | $119,086 | | Loss from Operations | $(14,487) | $(7,251) | $(35,937) | $(21,597) | | Net Loss | $(19,490) | $(22,932) | $(45,497) | $(40,984) | | Net Loss per Share (basic and diluted) | $(0.51) | $(0.56) | $(1.20) | $(1.02) | | Weighted-average shares (basic and diluted) | 38,389 | 40,643 | 37,943 | 40,196 | - Total stock-based compensation expenses for Q2 FY26 were $13.2 million, down from $16.5 million in Q2 FY25[19] - Remeasurement of warrant liability significantly impacted other expense, net, increasing to $10.4 million in Q2 FY26 from $0.1 million in Q2 FY25[19] Condensed Consolidated Balance Sheets As of July 31, 2025, Domo's total assets were $195.7 million, a decrease from $214.3 million at January 31, 2025. Total liabilities also decreased to $387.2 million from $391.6 million. Cash and cash equivalents slightly increased to $47.1 million from $45.3 million, while the stockholders' deficit widened to $(191.5) million from $(177.2) million Condensed Consolidated Balance Sheets | Metric (in thousands) | January 31, 2025 | July 31, 2025 | | :-------------------------------- | :--------------- | :-------------- | | Cash and cash equivalents | $45,264 | $47,143 | | Total Current Assets | $141,677 | $117,405 | | Total Assets | $214,340 | $195,715 | | Total Current Liabilities | $254,949 | $246,365 | | Warrant Liability | $11,208 | $20,491 | | Total Liabilities | $391,586 | $387,201 | | Total Stockholders' Deficit | $(177,246) | $(191,486) | - Accounts receivable, net, decreased significantly from $71.5 million to $47.3 million between January 31, 2025, and July 31, 2025[21] - Warrant liability nearly doubled from $11.2 million to $20.5 million during the six-month period[21] Condensed Consolidated Statements of Cash Flows For Q2 FY26, net cash provided by operating activities was $3.4 million, a significant improvement from net cash used of $6.2 million in Q2 FY25. Net cash used in investing activities remained stable at $2.3 million. Net cash used in financing activities was $0.8 million, compared to $2.6 million provided in Q2 FY25, primarily due to payments on short-term payable financing and shares repurchased for tax withholdings Condensed Consolidated Statements of Cash Flows | Metric (in thousands) | Three Months Ended July 31, 2024 | Three Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(6,171) | $3,368 | $(4,270) | $7,319 | | Net cash used in investing activities | $(2,204) | $(2,349) | $(4,730) | $(5,276) | | Net cash provided by (used in) financing activities | $2,574 | $(758) | $3,695 | $(1,353) | | Net (decrease) increase in cash, cash equivalents, and restricted cash | $(5,454) | $(37) | $(5,235) | $1,879 | | Cash, cash equivalents, and restricted cash at end of period | $55,704 | $47,143 | $55,704 | $47,143 | - The shift to positive net cash from operating activities in Q2 FY26 was driven by adjustments including stock-based compensation, remeasurement of warrant liability, and changes in accounts receivable[23] - Payments on short-term payable financing amounted to $3.3 million in Q2 FY26, contributing to the net cash used in financing activities[23] Non-GAAP Financial Measures and Reconciliations Domo provides non-GAAP reconciliations for various metrics, excluding stock-based compensation, amortization of certain intangible assets, and remeasurement of warrant liability. For Q2 FY26, non-GAAP subscription gross margin was 82%, non-GAAP operating income was $6.1 million (compared to a GAAP operating loss of $7.3 million), and non-GAAP net income was $0.9 million, resulting in non-GAAP diluted EPS of $0.02. Billings for Q2 FY26 were $70.3 million, and adjusted free cash flow was $1.4 million Non-GAAP Subscription Gross Margin Reconciliation Non-GAAP subscription gross margin for Q2 FY26 remained stable at 82%, consistent with Q2 FY25, after adjusting for stock-based compensation Non-GAAP Subscription Gross Margin Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Subscription gross profit on a GAAP basis | $57,620 | $58,587 | | Subscription gross margin on a GAAP basis | 81% | 81% | | Stock-based compensation | $807 | $947 | | Subscription gross profit on a non-GAAP basis | $58,427 | $59,534 | | Subscription gross margin on a non-GAAP basis | 82% | 82% | Non-GAAP Operating Expenses and Operating Income (Loss) Reconciliation Non-GAAP total operating expenses for Q2 FY26 decreased to $55.0 million from $57.5 million in Q2 FY25. This led to a non-GAAP operating income of $6.1 million in Q2 FY26, a significant improvement from $1.9 million in Q2 FY25, and a non-GAAP operating margin of 8% Non-GAAP Operating Expenses and Operating Income (Loss) Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Total operating expenses on a GAAP basis | $72,770 | $66,894 | | Total operating expenses on a non-GAAP basis | $57,478 | $54,982 | | Operating loss on a GAAP basis | $(14,487) | $(7,251) | | Operating income (loss) on a non-GAAP basis | $1,926 | $6,119 | | Operating margin on a GAAP basis | (18)% | (9)% | | Operating margin on a non-GAAP basis | 2% | 8% | - The improvement in non-GAAP operating income and margin was primarily due to the exclusion of stock-based compensation and amortization of intangible assets[25] Non-GAAP Net Income (Loss) and EPS Reconciliation Domo achieved non-GAAP net income of $0.9 million in Q2 FY26, a substantial improvement from a non-GAAP net loss of $2.7 million in Q2 FY25. This translated to a diluted non-GAAP net income per share of $0.02, compared to a loss of $0.07 in the prior year Non-GAAP Net Income (Loss) and EPS Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands, except per share data) | Three Months Ended July 31, 2025 (in thousands, except per share data) | | :------------------------------------------ | :--------------------------------------------------------------------- | :--------------------------------------------------------------------- | | Net loss on a GAAP basis | $(19,490) | $(22,932) | | Net (loss) income on a non-GAAP basis | $(2,731) | $879 | | Net loss per share on a GAAP basis (diluted) | $(0.51) | $(0.56) | | Net (loss) income per share on a non-GAAP basis (diluted) | $(0.07) | $0.02 | | Weighted-average shares used (diluted) | 38,389 | 43,554 | - The significant improvement in non-GAAP net income was largely due to the exclusion of stock-based compensation and the remeasurement of warrant liability[25] Billings and Adjusted Free Cash Flow Reconciliation Billings for Q2 FY26 were $70.3 million, an increase from $68.6 million in Q2 FY25. Adjusted free cash flow showed a positive $1.4 million in Q2 FY26, a notable turnaround from a negative $5.6 million in Q2 FY25 Billings and Adjusted Free Cash Flow Reconciliation | Metric | Three Months Ended July 31, 2024 (in thousands) | Three Months Ended July 31, 2025 (in thousands) | | :------------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Billings | $68,626 | $70,333 | | Adjusted free cash flow | $(5,593) | $1,380 | - The positive adjusted free cash flow in Q2 FY26 was achieved by adjusting net cash from operating activities for employee stock purchase plan proceeds, property and equipment purchases, and short-term payable financing[27] Business Outlook Domo provides Q3 and full-year FY26 guidance, projecting revenue between $78.5-$79.5 million for Q3 and $316.0-$320.0 million for the full year, with anticipated non-GAAP net losses per share Q3 Fiscal 2026 Guidance For Q3 Fiscal 2026, Domo expects revenue to be between $78.5 million and $79.5 million. Non-GAAP net loss per share is projected to be between $0.03 and $0.07, based on 41.5 million weighted-average shares Q3 Fiscal 2026 Guidance | Metric | Q3 Fiscal 2026 Guidance | | :------------------------------------ | :---------------------- | | Revenue | $78.5 million to $79.5 million | | Non-GAAP Net Loss per Share (basic & diluted) | $0.03 to $0.07 | | Weighted-average shares outstanding (basic & diluted) | 41.5 million | Full Year Fiscal 2026 Guidance For the full fiscal year 2026, Domo anticipates revenue in the range of $316.0 million to $320.0 million. Non-GAAP net loss per share is expected to be between $0.11 and $0.19, based on 41.0 million weighted-average shares Full Year Fiscal 2026 Guidance | Metric | Full Year Fiscal 2026 Guidance | | :------------------------------------ | :----------------------------- | | Revenue | $316.0 million to $320.0 million | | Non-GAAP Net Loss per Share (basic & diluted) | $0.11 to $0.19 | | Weighted-average shares outstanding (basic & diluted) | 41.0 million | Additional Company Information This section details Domo's Q2 FY26 earnings call, company profile, public disclosure practices, rationale for non-GAAP financial measures, and important forward-looking statement disclaimers Earnings Call Details Domo scheduled a conference call for August 27, 2025, at 3:00 p.m. MT/ 5:00 p.m. ET to review Q2 FY26 financial results and discuss its financial outlook. A live webcast and dial-in options were provided, with a replay available until September 27, 2025 - Conference call held on August 27, 2025, at 3:00 p.m. MT/ 5:00 p.m. ET[7] - Live webcast available on Domo Investor Relations website; dial-in and replay options provided[7][8] About Domo Domo is an AI and Data Products platform that helps companies leverage data and AI to drive value. Its platform, powered by Domo.AI and enriched by a partner ecosystem, enables users to prepare, visualize, automate, distribute, and build end-to-end data products, from hydrating data foundations to deploying AI models and embedded applications - Domo is an AI and Data Products platform designed to help companies leverage data and AI for value creation[9] - The platform supports the entire data journey, enabling users to prepare, visualize, automate, distribute, and build end-to-end data products, including fully embedded applications and AI model deployment[10] Disclosure Channels Domo uses various public channels to disseminate material information, including its website, press releases, SEC filings, blogs, and social media (Facebook, LinkedIn, X accounts @Domotalk and @JoshJames) to ensure broad, non-exclusionary distribution and comply with Regulation FD. Investors are encouraged to monitor these channels - Domo disseminates material information through its website, press releases, SEC filings, blogs, and social media (Facebook, LinkedIn, @Domotalk X, @JoshJames X)[11] - These channels are used for broad, non-exclusionary distribution and to comply with Regulation FD disclosure obligations[11] Use of Non-GAAP Financial Measures Domo uses non-GAAP financial measures such as non-GAAP subscription gross margin, operating expenses, operating loss/margin, net loss/EPS, billings, and adjusted free cash flow to supplement GAAP statements. These measures exclude stock-based compensation, amortization of certain intangible assets, and remeasurement of warrant liability, and are used for internal decision-making and external performance evaluation, as they provide insights into core business operating results and liquidity - Non-GAAP measures include non-GAAP subscription gross margin, operating expenses, operating loss/margin, net loss/EPS, billings, and adjusted free cash flow[12] - Exclusions from non-GAAP measures typically include stock-based compensation expense, amortization of certain intangible assets, and remeasurement of warrant liability[12] - Management uses these non-GAAP measures for financial and operational decision-making, period-to-period comparisons, and to provide meaningful supplemental information about core business performance and liquidity[14] Forward-Looking Statements The press release contains forward-looking statements, including CEO statements, competitive positions, strategic priorities, and financial outlook, which are subject to risks and uncertainties. Actual results may differ materially from predictions due to factors outlined in SEC filings, such as the Annual Report on Form 10-K. Domo undertakes no duty to update this information unless legally required - The press release contains forward-looking statements regarding competitive positions, strategic priorities, and financial outlook[16] - These statements are subject to risks and uncertainties, and actual results may differ materially from predictions[16] - Risks are detailed in SEC filings, including the Annual Report on Form 10-K, and Domo does not undertake to update this information unless required by law[16]