Summary
Domo's fiscal 2026 first quarter was a flat revenue story with a much better bottom line. Total revenue came in at $80.1 million for the three months ended April 30, 2025, essentially unchanged from the $80.1 million reported a year earlier. Gross profit of $59.4 million was flat too, and gross margin held steady at 74.2% versus 74.1%. Growth is not coming from the customer base. Customer count fell 2% from April 30, 2024 to April 30, 2025, though the company still served more than 2,500 customers at quarter end. Consumption-based agreements now account for more than 70% of annual recurring revenue, and management expects that percentage to increase.
Backlog and billings point in different directions. Subscription remaining performance obligations were $408.2 million as of April 30, 2025, up 24% year over year, and the slice expected to be recognized beyond twelve months was $182.3 million, up 61%. Total RPO reached $427.5 million, compared with $346.3 million a year earlier, with $241.0 million of that scheduled for the next twelve months against $230.5 million. Near-term conversion was weaker. Billings were $63.9 million for the quarter, compared with $65.5 million in the prior-year period, and deferred revenue slipped to $164.9 million from $173.4 million, a decline of 4.9%.
Profitability improved sharply because spending came down. Operating loss was $14.3 million, narrower than the $21.5 million loss a year earlier, and operating margin improved to -17.9% from -26.8%. Net loss was $18.1 million, or $0.45 per diluted share, compared with $26.0 million, or $0.69 per diluted share, in the prior-year quarter. On a non-GAAP basis, operating margin turned positive at 1%, an increase of 10 percentage points year over year, and non-GAAP net loss was $3.6 million, or $0.09 per share. The cost controls show up in the expense ratios: sales and marketing was 50% of revenue versus 53%, research and development was 25% versus 28%, and general and administrative was 17% versus 20%. Management noted that the first fiscal quarter is seasonally the heaviest for sales and marketing spend.
Cash generation improved while the balance sheet stayed stretched. Operating cash flow was $4.0 million, up from $1.9 million a year earlier, an increase of 108%. Adjusted free cash flow, a non-GAAP measure, was $1.3 million, up 159%. Capital expenditures were $2.9 million, up from $2.5 million, and covered capitalized development work. The company funds operations with a $125.3 million credit facility that was fully drawn as of April 30, 2025, and it must keep $25.0 million of unrestricted cash in pledged U.S. accounts under a monthly liquidity covenant.
Guidance frames a soft near term. For the second quarter of fiscal 2026, management guided revenue to $77.5 million to $78.5 million and non-GAAP net loss per share to $0.03 to $0.07 on 40.5 million weighted-average shares. For the full fiscal year 2026, revenue is guided to $312.0 million to $320.0 million, with non-GAAP net loss per share of $0.18 to $0.26 on 41.0 million shares. Management said it believes the company has turned the corner and can deliver profitable, sustainable growth going forward.
The risks are familiar but material. Macroeconomic conditions have elongated software sales cycles, increased deal scrutiny and made renewals harder, and management says revenue growth may be negatively impacted in the near term. A shrinking customer count, lower deferred revenue, a large accumulated deficit and an expectation of losses for the foreseeable future all weigh on the story. The credit facility adds a minimum annualized recurring revenue covenant and a trailing twelve-month consolidated EBITDA covenant on top of the liquidity requirement. Retention is the part to watch. The trailing twelve-month gross retention rate was 85% as of April 30, 2025, up from 84%, and 70% of customers were under multi-year contracts on a dollar-weighted basis, compared with 69% as of January 31, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $80.1M | $78.8M | +1.7% | $80.1M | +0.0% |
| Gross profit | $59.4M | $58.6M | +1.5% | $59.4M | +0.1% |
| Gross margin | 74.2% | 74.4% | -0.2 pp | 74.1% | +0.1 pp |
| Research & development | $20.0M | $21.9M | -9.0% | $22.7M | -12.1% |
| Sales & marketing | $39.7M | $35.5M | +11.8% | $42.2M | -6.1% |
| General & administrative | $14.2M | $13.4M | +5.5% | $15.9M | -10.9% |
| Total operating expenses | $73.8M | $70.8M | +4.2% | $80.8M | -8.7% |
| Operating income (loss) | -$14.3M | -$12.3M | -17.0% | -$21.4M | +33.1% |
| Operating margin | -17.9% | -15.6% | -2.3 pp | -26.8% | +8.9 pp |
| Net income (loss) | -$18.1M | -$17.7M | -2.1% | -$26.0M | +30.6% |
| Net margin | -22.5% | -22.4% | -0.1 pp | -32.5% | +9.9 pp |
| Diluted EPS | -$0.45 | -$0.46 | +$0.01 | -$0.69 | +$0.24 |
Risks
Domo has shifted most of its business to a consumption-based model, with over 70% of annual recurring revenue now consumption-based. The filing warns that customers may end up using less data than originally contemplated in their consumption-based contracts, resulting in lower net retention in future years, and that the transition subjects the company to unpredictable planning and modeling of growth.
Macroeconomic conditions have elongated the software sales cycle, increased deal scrutiny and made renewal discussions more challenging, which the filing states may negatively impact revenue growth in the near term. Revenue was flat year over year at $80.11M in FY2026 Q1 (up 0.0%) and deferred revenue declined 4.9% to $164.90M versus the prior-year quarter.
The company had an accumulated deficit of $1,505.6 million at April 30, 2025 and had drawn all of its $125.3 million credit facility with no availability remaining. It filed a $300.0 million shelf registration and a $150.0 million at-the-market program, warning that additional financing may not be available on favorable terms, if at all.
The credit facility is secured by substantially all assets and requires compliance with a minimum annualized recurring revenue covenant, a minimum trailing 12-month consolidated EBITDA covenant tested quarterly, and a monthly minimum liquidity covenant of $25.0 million in unrestricted cash. A breach could accelerate repayment, and the company notes it may need forbearance or alternative financing.
Renewal risk is elevated: a majority of annual recurring revenue is up for renewal during the fiscal year ending January 31, 2026, and the trailing-twelve-month gross retention rate was 85% as of April 30, 2025. Billings declined from $65.5 million to $63.9 million for the three months ended April 30, 2025, and customer count decreased 2% from April 30, 2024 to April 30, 2025.
Domo faces intense and increasing competition from large software companies such as Microsoft, Oracle, SAP and IBM, which can bundle analytics into larger deals at significant discounts or at no charge. The filing also flags AI-related risks, including that AI outputs may be deficient or biased and that the EU AI Act and other emerging regulations could require it to alter or restrict its AI usage at added cost.
Domo remains primarily dependent on its direct sales force, and its channel partner relationships have generated limited revenue historically. Partner agreements are typically non-exclusive, partners may cease marketing Domo with little or no notice, and channel sales are more likely to involve collectability concerns.
Founder and CEO Joshua G. James beneficially controlled approximately 78% of the voting power as of April 30, 2025 through the dual class structure, limiting other stockholders' ability to influence matters including a change of control. The filing also notes he has pledged his shares to secure a loan that could trigger sales, with various repayment requirements if the Class B stock price falls below certain levels.
The platform relies on third-party data centers and technology and services, including artificial intelligence, with limited control over facility operations and no guarantee agreements will be renewed on commercially reasonable terms. If data access from third-party software and service platforms is restricted, customer data access and results of operations could be adversely affected.
Because revenue from subscriptions is recognized ratably over terms of generally one to five years, a decline in new or renewed subscriptions may not be fully reflected in results until future periods. Most costs are expensed as incurred while revenue is recognized over the life of the agreement, so adding customers can result in more costs than revenue in early periods.
SaaS KPIs
All quarters →Total Customers
Billings
Non-GAAP Subscription Gross Margin
Adjusted Free Cash Flow
Current Remaining Performance Obligations (cRPO)
Non-GAAP Operating Margin
Subscription Remaining Performance Obligations (RPO)
Total Remaining Performance Obligations (RPO)
Summary, forecast, risks and KPIs are extracted from Huckleberry.ai, Inc.'s SEC filings for Q1 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.