Summary
Domo's fiscal 2027 first quarter came with revenue of $79.4 million, down 0.9% from $80.1 million a year earlier, and a strategic update that overshadowed the numbers. The Board concluded that pursuing a strategic transaction is the best path to maximize shareholder value. Domo is in advanced negotiations regarding a potential transaction. No definitive agreement has been executed, and management said there can be no assurance that any transaction will result. The company is not providing financial guidance at this time.
Billings were $60.4 million, down from $63.9 million in the prior-year quarter. Subscription RPO was $412.9 million as of April 30, 2026, up 1% year over year, while current subscription RPO was $222.2 million, down 2%. Total RPO was $437.3 million, and the portion expected to be recognized in the next twelve months was $239.6 million. Customer count fell 6% year over year, to over 2,400. The trailing twelve month gross retention rate was 86%, up from 85%. Consumption-based agreements represented 89% of ARR, and 76% of customers were under multi-year contracts on a dollar-weighted basis. Enterprise customers accounted for 44% of revenue, down from 45%, and customers billed in the United States made up 79% of revenue, down from 80%.
Management pointed to elongated sales cycles, increased deal scrutiny and tougher renewal discussions as continuing pressures. New customers added $2.6 million of subscription revenue, offset by a $4.2 million net decrease from existing customers.
Profitability improved even as the top line slipped. Gross profit was $58.5 million, down 1.5%, and gross margin was 73.7%, down from 74.2%. The operating loss narrowed to $10.96 million from $14.35 million, and operating margin improved to negative 13.8% from negative 17.9%. Net loss was $14.17 million, or $0.33 per diluted share, compared with $18.05 million, or $0.45 per diluted share. Non-GAAP operating margin was 6%, an improvement of 4 percentage points, and non-GAAP net loss was $0.9 million, or $0.02 per share. Total operating expenses fell 6%. Sales and marketing expense was 47% of revenue, down from 50%. Research and development was 23%, down from 25%, while general and administrative was 18%, up from 17%.
Cash generation held up. Operating cash flow was $5.17 million, up 30.9% from $3.95 million. Capital expenditures were $1.84 million, down 37.1%. Adjusted free cash flow was negative $184,000, compared with $1.285 million a year earlier. Deferred revenue was $161.94 million, down 1.8% from $164.90 million. Cash and cash equivalents were $39.1 million as of April 30, 2026.
The balance sheet carries the real risk. Domo was not in compliance with the minimum annualized recurring revenue covenant under its credit facility as of April 30, 2026. Lenders can accelerate repayment of $136.6 million of principal and related fees, and the term loan is classified as a current liability. Cash of $39.1 million would not be sufficient to repay it. Management concluded that substantial doubt exists about the company's ability to continue as a going concern. A forbearance agreement gives Domo room, but it depends on a definitive purchase agreement by July 31, 2026 and completion of a transaction no later than November 30, 2026. The company also has an at-the-market program for up to $150.0 million of Class B common stock, with no shares sold to date. The accumulated deficit reached $1,561.1 million.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2027 | Q4 FY2026 | QoQ | Q1 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $79.4M | $79.6M | -0.3% | $80.1M | -0.9% |
| Gross profit | $58.5M | $61.1M | -4.2% | $59.4M | -1.5% |
| Gross margin | 73.7% | 76.8% | -3.0 pp | 74.2% | -0.5 pp |
| Research & development | $18.6M | $19.2M | -3.0% | $20.0M | -6.6% |
| Sales & marketing | $37.6M | $32.7M | +14.8% | $39.7M | -5.2% |
| General & administrative | $13.3M | $19.8M | -32.8% | $14.2M | -6.3% |
| Total operating expenses | $69.5M | $71.7M | -3.1% | $73.8M | -5.8% |
| Operating income (loss) | -$11.0M | -$10.6M | -3.7% | -$14.3M | +23.6% |
| Operating margin | -13.8% | -13.3% | -0.5 pp | -17.9% | +4.1 pp |
| Net income (loss) | -$14.2M | -$8.0M | -77.8% | -$18.1M | +21.5% |
| Net margin | -17.9% | -10.0% | -7.8 pp | -22.5% | +4.7 pp |
| Diluted EPS | -$0.33 | -$0.19 | -$0.14 | -$0.45 | +$0.12 |
| Customers | 6 | — | — | — | — |
Risks
Domo was not in compliance with the minimum annualized recurring revenue covenant under its credit facility as of April 30, 2026, giving lenders the right to accelerate $136.6 million of principal and related fees, which the company classified as a current liability. Cash and cash equivalents of $39.1 million at April 30, 2026 would not be sufficient to repay the term loan upon acceleration, and management concluded substantial doubt exists about the ability to continue as a going concern.
The board initiated a formal process to explore strategic alternatives in February 2026 and the company is in advanced negotiations, but no definitive agreement has been executed. The forbearance agreement requires entry into a definitive purchase agreement by July 31, 2026 and completion of a transaction no later than November 30, 2026, and failure to meet these milestones could allow lenders to accelerate indebtedness and foreclose on assets.
MD&A states prevailing macroeconomic conditions have elongated the software sales cycle, increased deal scrutiny and made renewal discussions more challenging, which may negatively impact revenue growth in the near term. Total revenue decreased 0.9% to $79.4 million in the quarter ended April 30, 2026 from $80.1 million in the prior-year quarter.
Total customer count decreased 6% from April 30, 2025 to April 30, 2026, and subscription revenue declined 2% in the quarter ended April 30, 2026, driven by a $4.2 million net decrease from existing customers. Deferred revenue decreased 1.8% to $161.9 million versus the prior-year quarter, and gross retention was 86% as of April 30, 2026.
With 89% of annual recurring revenue now on consumption-based pricing, the company warns that customers may use less data than contemplated in initial contracts, resulting in lower net retention in future years, and that it may not accurately predict demand for AI tools, potentially incurring unrecovered operational costs.
The company faces intense competition from large vendors such as Microsoft, Amazon Web Services, Oracle, SAP, Salesforce and IBM, and warns that if new AI technologies deliver business intelligence functions at lower prices or more efficiently, it could adversely affect its ability to compete. AI tools on the platform also raise evolving regulatory exposure, including the EU AI Act and the Utah Artificial Intelligence Policy Act.
Enterprise sales cycles range from approximately six months to multiple years, and quarterly sales activity is heavily weighted toward the last few weeks of the quarter, increasing the likelihood that sizable transactions slip beyond the forecasted quarter and harming forecasting accuracy and billings.
Founder and CEO Joshua G. James beneficially controlled approximately 76% of the voting power of outstanding capital stock as of April 30, 2026 through the dual-class structure, and has pledged all Class A shares plus Class B shares to secure a loan maturing June 27, 2026, which could trigger share sales or governance changes upon default.
The company expects to continue incurring losses and must recruit, integrate, train and motivate new employees, including its direct sales force, while retaining existing employees. Sales and marketing expense included $0.5 million of executive officer severance in the quarter ended April 30, 2026.
SaaS KPIs
All quarters →Total Customers
Billings
Non-GAAP Subscription Gross Margin
Adjusted Free Cash Flow
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 FY2027 (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 1, 2026.