Summary
Domo reported total revenue of $79.4 million for its fiscal 2026 third quarter, essentially flat from the prior-year quarter. Gross profit was $58.9 million, down 1.5% year over year, and gross margin slipped to 74.2% from 75.0%. The company cut its operating loss to $6.9 million from $11.1 million a year earlier, and operating margin improved to negative 8.7% from negative 13.9%. Net loss narrowed to $10.4 million from $18.8 million, while diluted EPS improved to negative $0.25 from negative $0.48. On a non-GAAP basis, operating margin was positive 7%, up 4 percentage points, and non-GAAP net income was $0.3 million, or $0.01 per diluted share.
Cash generation turned positive. Operating cash flow was $3.4 million for the quarter, up from negative $13.7 million a year earlier. Adjusted free cash flow was $2.1 million, up 115%. Capital expenditures were $2.3 million, down from $2.5 million. Deferred revenue ended the quarter at $149.3 million, down 5.0% from $157.2 million a year earlier. Billings were $73.2 million. Subscription RPO increased 15% year over year, and current subscription RPO increased 3%.
For the nine months ended October 31, 2025, total revenue was $239.2 million, flat from $238.3 million a year earlier. Gross profit was $178.0 million, flat from $177.5 million. Operating loss narrowed to $28.5 million from $47.0 million. Net loss narrowed to $51.4 million from $64.3 million. Diluted EPS improved to negative $1.26 from negative $1.68. Operating cash flow was $10.7 million, up from negative $18.0 million. Capital expenditures were $7.6 million, up from $7.2 million.
Management pointed to the ecosystem strategy and expects Domo to be free cash flow positive for the year and each quarter within the year. For the fourth quarter of fiscal 2026, guidance calls for non-GAAP net loss per share of $0.01 to $0.05. For the full fiscal year 2026, guidance is for non-GAAP net loss per share of $0.07 to $0.11. The company also highlighted analyst recognition, including a #1 ranking in the 2025 Agentic AI Report by Dresner Advisory Services and a Leader position in the KMWorld 2025 Leader Group for Agentic AI.
The quarter showed progress on profitability, but challenges remain. Gross retention was 84% as of October 31, 2025, unchanged from a year earlier. Domo had over 2,400 customers, and 74% of customers were under multi-year contracts on a dollar-weighted basis, up from 69% as of January 31, 2025. Management cited macroeconomic conditions that have elongated software sales cycles, increased deal scrutiny and made renewal discussions more challenging. Total customer count decreased slightly from October 31, 2024 to October 31, 2025. The company also noted that professional services and other revenue decreased primarily due to the delivery of certain other contracts recognized in the prior year quarter. The company expects to incur losses for the foreseeable future and may not be able to achieve or sustain profitability. Domo was in compliance with the covenant terms of the credit facility on January 31, 2025 and October 31, 2025.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $79.4M | $79.7M | -0.4% | $79.8M | -0.5% |
| Gross profit | $58.9M | $59.6M | -1.2% | $59.8M | -1.5% |
| Gross margin | 74.2% | 74.8% | -0.6 pp | 75.0% | -0.8 pp |
| Research & development | $19.1M | $19.0M | +0.6% | $21.3M | -10.4% |
| Sales & marketing | $34.1M | $35.3M | -3.3% | $37.2M | -8.3% |
| General & administrative | $12.6M | $12.6M | +0.0% | $12.4M | +1.8% |
| Total operating expenses | $65.8M | $66.9M | -1.6% | $70.9M | -7.1% |
| Operating income (loss) | -$6.9M | -$7.3M | +4.4% | -$11.1M | +37.5% |
| Operating margin | -8.7% | -9.1% | +0.4 pp | -13.9% | +5.2 pp |
| Net income (loss) | -$10.4M | -$22.9M | +54.7% | -$18.8M | +44.6% |
| Net margin | -13.1% | -28.8% | +15.7 pp | -23.5% | +10.4 pp |
| Diluted EPS | -$0.25 | -$0.56 | +$0.31 | -$0.48 | +$0.23 |
| Customers | 31 | 31 | ±0.0% | — | — |
Risks
MD&A states prevailing macroeconomic conditions have elongated software sales cycles, increased deal scrutiny and made renewal discussions more challenging, which may negatively impact near-term revenue growth. Total revenue was flat at $79.4 million in FY2026 Q3 versus $79.8 million in FY2025 Q3, and deferred revenue decreased 5.0% to $149.3 million from $157.2 million a year earlier.
Enterprise sales cycles run approximately six months to multiple years and quarterly sales are heavily weighted to the last few weeks or days, increasing the chance that sizable deals slip beyond the forecasted quarter and harm billings and new customer metrics. The risk factors note that end-of-quarter compression can require additional sales, legal and finance spending.
MD&A says total customer count decreased from October 31, 2024 to October 31, 2025, and existing-customer revenue was a net decrease that offset new-customer gains. Trailing twelve month gross retention rate was 84% as of October 31, 2025, unchanged from 84% as of October 31, 2024, while deferred revenue declined 5.0% to $149.3 million from $157.2 million a year earlier.
As of the most recent fiscal quarter, 80% of annual recurring revenue was on consumption-based pricing, which is relatively new and carries risk that customers use less data than originally contracted, reducing net retention, or use AI tools more than expected, increasing unrecovered operational costs. Changes in pricing models may also cause customer dissatisfaction or impair projections.
Domo faces intense competition from large software and analytics providers that may bundle competing products at discounts or no charge, and partners or customers may adopt artificial intelligence tools offered by competitors instead of purchasing Domo services. The EU AI Act and other evolving AI regulations could require changes to AI features and add compliance costs and liability.
As of October 31, 2025, Domo had $47.9 million of cash and cash equivalents, the $125.3 million credit facility was fully drawn, and no amounts were available to draw. The facility is secured by substantially all assets, including intellectual property, and includes restrictive covenants, minimum annualized recurring revenue, minimum trailing 12-month EBITDA and $25.0 million monthly minimum liquidity requirements; noncompliance could accelerate repayment.
Joshua G. James, founder and CEO, beneficially controls approximately 78% of voting power as of October 31, 2025 and has pledged all Class A and Class B shares beneficially owned by him to secure a loan. The loan matures in the last two weeks of March 2026 and includes repayment requirements if the Class B stock price falls below specified levels, so default could result in lender sales of pledged shares and stock price declines.
Domo's platform depends on customer access to data maintained on third-party software and service platforms, and it generally lacks agreements guaranteeing access. If third parties restrict integration, limit connector functionality, or slow data delivery, customer access may be impaired and business harmed.
SaaS KPIs
All quarters →Total Customers
Billings
Non-GAAP Subscription Gross Margin
Adjusted Free Cash Flow
Non-GAAP Operating Margin
Customers under multi-year contracts (dollar-weighted)
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 Q3 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.