Summary
Domo's fiscal 2026 second quarter, ended July 31, 2025, delivered modest top-line growth and a sharply smaller operating loss, but the bottom line moved the wrong way. Total revenue rose 1.7% to $79.7 million. Gross profit increased 2.3% to $59.6 million, and gross margin improved 0.5 percentage points to 74.8%. The operating loss narrowed 49.9% to $7.25 million, lifting operating margin to negative 9.1%, up 9.4 percentage points. Net loss, however, widened 17.7% to $22.9 million, and diluted EPS fell to negative $0.56, a $0.05 larger loss per share. A warrant liability remeasurement drove much of the net loss increase.
Cash generation improved. Operating cash flow was $3.37 million, up 154.6% from the prior-year quarter. Capital expenditures were $2.35 million, up 6.6%. Adjusted free cash flow, a non-GAAP measure, was $1.4 million, up 125%. Deferred revenue was $155.51 million, down 4.9% from the prior-year quarter. The company has a fully drawn credit facility and must meet minimum liquidity, annualized recurring revenue, and trailing 12-month EBITDA covenants.
Operational metrics showed mixed momentum. Subscription remaining performance obligations were $409.8 million as of July 31, 2025, up 19% year over year, while current subscription RPO was $220.2 million, up 4%. Total RPO was $430.9 million, compared with $358.9 million a year earlier, and the amount expected to be recognized in the next twelve months was $236.4 million, up from $225.4 million. Billings were $70.3 million. Net revenue retention was 108% for customers who started on a consumption contract. Consumption-based service represented 76% of annual recurring revenue. Multi-year contracts covered 72% of customers on a dollar-weighted basis, up from 69% at January 31, 2025. Trailing twelve-month gross retention was 85%, up from 84%. Domo had over 2,500 customers, and enterprise customers accounted for 44% of revenue. Non-GAAP operating margin was positive 8%, up 5 percentage points, and non-GAAP net income was $0.9 million, or $0.02 per diluted share. The company also noted it was named a leader in Nucleus Research's 2025 Business Intelligence and Analytics Technology Value Matrix for the fifth consecutive year and received a perfect recommendation score in Dresner Advisory Services' 2025 Wisdom of Crowds Business Intelligence Market Study.
Guidance points to a softer third quarter. For Q3 fiscal 2026, revenue is expected between $78.5 million and $79.5 million, and non-GAAP net loss per share is expected between $0.03 and $0.07 based on 41.5 million weighted-average shares. For full year fiscal 2026, revenue is expected between $316.0 million and $320.0 million, and non-GAAP net loss per share is expected between $0.11 and $0.19 based on 41.0 million weighted-average shares. Management cited macroeconomic conditions that have elongated sales cycles, increased deal scrutiny, and made renewals more challenging. Domo has incurred significant net losses since inception and expects losses for the foreseeable future. The customer count decreased slightly year over year, and deferred revenue declined. The company also faces credit facility covenants and the risk that noncompliance could trigger an event of default.
For the first six months of fiscal 2026, revenue was $159.8 million, up 0.8%. Gross profit was $119.1 million, up 1.2%, and gross margin was 74.5%, up 0.3 percentage points. The operating loss narrowed 39.9% to $21.6 million, and operating margin improved 9.2 percentage points to negative 13.5%. Net loss narrowed 9.9% to $41.0 million, and diluted EPS improved 15.0% to negative $1.02. Operating cash flow was $7.32 million, up 271.4%, while capital expenditures were $5.28 million, up 11.5%.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $79.7M | $80.1M | -0.5% | $78.4M | +1.7% |
| Gross profit | $59.6M | $59.4M | +0.3% | $58.3M | +2.3% |
| Gross margin | 74.8% | 74.2% | +0.6 pp | 74.3% | +0.5 pp |
| Research & development | $19.0M | $20.0M | -5.1% | $22.0M | -13.7% |
| Sales & marketing | $35.3M | $39.7M | -11.0% | $36.6M | -3.6% |
| General & administrative | $12.6M | $14.2M | -10.8% | $14.2M | -10.8% |
| Total operating expenses | $66.9M | $73.8M | -9.3% | $72.8M | -8.1% |
| Operating income (loss) | -$7.3M | -$14.3M | +49.5% | -$14.5M | +49.9% |
| Operating margin | -9.1% | -17.9% | +8.8 pp | -18.5% | +9.4 pp |
| Net income (loss) | -$22.9M | -$18.1M | -27.0% | -$19.5M | -17.7% |
| Net margin | -28.8% | -22.5% | -6.2 pp | -24.9% | -3.9 pp |
| Diluted EPS | -$0.56 | -$0.45 | -$0.11 | -$0.51 | -$0.05 |
| Customers | 31 | — | — | 31 | ±0.0% |
Risks
MD&A states prevailing macroeconomic conditions have elongated the software sales cycle, increased deal scrutiny and made renewal discussions more challenging, and may negatively impact revenue growth in the near term. The company also notes customers may reduce or delay technology spending or seek concessions.
As of the most recent fiscal quarter, 76% of annual recurring revenue was utilizing the platform as a consumption-based service, and the company expects this percentage to increase. It warns that customers may use less data than originally contemplated in their consumption-based contracts, resulting in lower net retention in future years.
A majority of annual recurring revenue is up for renewal during the fiscal year ending January 31, 2026. Trailing twelve month gross retention rate was 84% and 85% as of July 31, 2024 and 2025, respectively, and the company attributes pressure in part to macroeconomic conditions and challenging renewals from customers with COVID-19 use cases.
The company had an accumulated deficit of $1,528.5 million at July 31, 2025, and net loss widened in the quarter to $22.9 million from $19.5 million in the prior-year quarter. As of July 31, 2025 it had $47.1 million of cash and cash equivalents, the $125.3 million credit facility was fully drawn, and no amounts were available to draw.
Total other expense, net increased in the quarter primarily due to a $10.4 million remeasurement of warrant liability, which drove the quarter's net loss widening even as the operating loss narrowed. The company expects interest expense to increase modestly in the near term due to an increasing principal balance.
The company faces intense and increasingly competitive markets, with large competitors such as Microsoft, Oracle, SAP and IBM able to bundle data management and analytics products into larger deals at significant discounts or no charge. It also flags that AI tools on its platform may raise novel liability, regulatory and reputational issues, including obligations under the EU AI Act.
Enterprise sales cycles vary from approximately six months to multiple years, and quarterly sales are heavily weighted toward the last few weeks and days of the quarter. Compression of sales activity to quarter-end increases the likelihood that sizeable transactions extend beyond the forecasted quarter, harming forecasting accuracy and billings.
The credit facility is secured by substantially all assets, including intellectual property, and requires compliance with a minimum annualized recurring revenue covenant, a minimum trailing 12-month consolidated EBITDA covenant and a monthly minimum liquidity covenant of $25.0 million. A breach could result in an event of default and acceleration of amounts outstanding.
The dual class structure concentrates voting control with founder and CEO Joshua G. James, who beneficially controlled approximately 78% of voting power as of July 31, 2025. He has pledged all of his Class A shares to secure a loan, and a default could result in lenders selling pledged shares into the market without volume or manner-of-sale limitations.
The company is subject to evolving tax rules across jurisdictions, including the OBBBA enacted July 4, 2025 and the OECD Pillar Two global minimum tax proposals, and to sales, use and value-added tax exposure in jurisdictions where it does not currently collect. It also cites limitations on its federal and state net operating loss carryforwards, including recent California legislation.
SaaS KPIs
All quarters →Total Customers
Billings
Adjusted Free Cash Flow
Non-GAAP Operating Margin
Subscription Remaining Performance Obligations (RPO)
Total RPO
Current Subscription RPO
Summary, forecast, risks and KPIs are extracted from Huckleberry.ai, Inc.'s SEC filings for Q2 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 1, 2026.