Summary
Domo finished fiscal 2026 with record quarterly billings and a slowly improving profit profile. Fourth-quarter revenue was $79.6 million, up 1.1% from the prior-year quarter, and full-year revenue came in at $318.9 million, up 0.6%. Subscription revenue grew 2% year over year in the quarter, and management said billings of $111.2 million, up 8%, were the highest for any quarter in company history. Growth remains thin, and it rests on a smaller customer base. Domo reported a 7% decline in customer count for the year ended January 31, 2026, though it still counts more than 2,400 customers.
Margins improved faster than the top line. Gross profit was $61.1 million for the quarter, up 4.4%, and gross margin reached 76.8%, up 2.4 percentage points. The operating loss narrowed to $10.6 million, and operating margin of -13.3% improved 2.3 percentage points. Net loss was $8.0 million, a 54.9% narrowing. Non-GAAP measures turned positive, with non-GAAP operating margin of 10%, an improvement of 6 percentage points, and non-GAAP net income of $1.2 million, or $0.03 per diluted share.
For the full fiscal year the operating loss narrowed 34.0% to $39.1 million, the net loss narrowed 27.6% to $59.3 million, and diluted loss per share was $1.45, an improvement of $0.68. Full-year non-GAAP net loss was $1.3 million. Expense discipline did the heavy lifting. Sales and marketing expense fell 6%, research and development fell 12%, and general and administrative rose 6% on higher stock-based compensation and severance.
Cash generation was uneven. Operating cash flow was negative $2.8 million in the quarter, down 131.0% from the prior-year quarter. For the full year, net cash provided by operating activities was $7.9 million, up 187.6%, while adjusted free cash flow was negative $0.6 million, an improvement of $12.3 million. Capital expenditures were $2.4 million in the quarter, up 8.5%, and $10.0 million for the year, up 5.4%. Deferred revenue finished at $180.9 million, flat against the prior-year quarter.
Backlog and retention look stronger than the revenue line. Subscription RPO was $437.9 million as of January 31, 2026, up 8%, and current subscription RPO was $227.0 million, up 1%. Total RPO was $464.8 million, with $246.3 million expected to be recognized as revenue over the next twelve months. The ARR net retention rate was 96% in the fourth quarter, up from 91% a year earlier, and trailing-twelve-month gross retention was 85%. About 84% of ARR now comes from consumption-based agreements, and 76% of customers are on multi-year contracts on a dollar-weighted basis.
Management tied the quarter to AI adoption, saying customers are moving from pilots to production deployments. The company also cited six Dresner Advisory Services 2025 Technology Innovation Awards and overall leader placements in several ISG 2025 buyers guides.
Demand, not cost, is the main overhang. The 10-K describes elongated sales cycles, increased deal scrutiny and tougher renewal conversations, and warns those conditions may keep weighing on near-term revenue growth. Enterprise customers accounted for 44% of revenue. Liquidity deserves attention too. The $125.3 million credit facility is fully drawn, and the covenants include a minimum annualized recurring revenue test, a minimum trailing-twelve-month consolidated EBITDA test and a monthly requirement to hold $25.0 million of unrestricted cash in pledged U.S. accounts. The company said it was in compliance. Cloud infrastructure commitments total $50.3 million, with $12.0 million due within the next twelve months. The release carried no specific guidance for the next quarter or for the full fiscal year; management said it would discuss its financial outlook on the earnings call.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $79.6M | $79.4M | +0.3% | $78.8M | +1.1% |
| Gross profit | $61.1M | $58.9M | +3.8% | $58.6M | +4.4% |
| Gross margin | 76.8% | 74.2% | +2.6 pp | 74.4% | +2.4 pp |
| Research & development | $19.2M | $19.1M | +0.8% | $21.9M | -12.4% |
| Sales & marketing | $32.7M | $34.1M | -4.1% | $35.5M | -7.7% |
| General & administrative | $19.8M | $12.6M | +56.3% | $13.4M | +47.2% |
| Total operating expenses | $71.7M | $65.8M | +8.9% | $70.8M | +1.2% |
| Operating income (loss) | -$10.6M | -$6.9M | -52.5% | -$12.3M | +13.8% |
| Operating margin | -13.3% | -8.7% | -4.5 pp | -15.6% | +2.3 pp |
| Net income (loss) | -$8.0M | -$10.4M | +23.3% | -$17.7M | +54.9% |
| Net margin | -10.0% | -13.1% | +3.1 pp | -22.4% | +12.4 pp |
| Diluted EPS | -$0.19 | -$0.25 | +$0.06 | -$0.46 | +$0.27 |
Risks
In February 2026 the board initiated a formal process to explore strategic alternatives to maximize shareholder value. This could divert management attention, incur significant transaction costs even if unsuccessful, disrupt customer and employee relationships, and trigger legal proceedings.
The company has a history of losses and expects to continue incurring losses. Net loss was $59.34 million for FY2026 year to date, though the loss narrowed from the prior-year period, and Q4 FY2026 operating cash flow was negative $2.77 million, down 131.0% from positive $8.92 million in the prior-year quarter. It may need to raise additional capital and had no amounts available to draw under its credit facility.
The credit facility is secured by substantially all assets, including intellectual property, and contains restrictive covenants plus financial covenants tied to minimum annualized recurring revenue, trailing 12-month consolidated EBITDA, and monthly minimum liquidity. Noncompliance could lead to default, acceleration, or foreclosure.
The trailing 12-month gross retention rate was 85% for the 12 months ended January 31, 2026, and MD&A says the recent decline in annual billings is primarily due to a decrease in gross retention and ARR net retention rates. Customer count decreased 7% from January 31, 2025 to January 31, 2026, though ARR net retention improved to 96% in Q4 FY2026.
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 near-term revenue growth. Customers may reduce or delay technology spending or seek payment concessions.
The market is intensely competitive, with large vendors such as Microsoft, Amazon Web Services, Oracle, SAP, Salesforce, and IBM and specialized analytics/AI providers. Competitors may bundle products at significant discounts or no charge, and AI tools could reduce customer need for Domo's platform.
The dual-class structure concentrates voting control with founder and CEO Joshua G. James, who beneficially controlled approximately 78% of voting power as of January 31, 2026. He has pledged all Class A and Class B shares to secure a loan extended to the last two weeks of June 2026; default or foreclosure sales could depress the stock price.
84% of annual recurring revenue now uses consumption-based pricing. This model may result in lower net retention if customers use less data than originally committed, and may create unrecovered operational costs if AI tool usage exceeds expectations.
AI technologies are subject to evolving laws such as the EU AI Act and the Utah Artificial Intelligence Policy Act. Compliance may require substantial time and resources, and AI outputs perceived as deficient, inaccurate, biased, or unethical could lead to liability, regulatory inquiry, or reputational harm.
Enterprise sales cycles vary from approximately six months to multiple years and are heavily weighted toward the end of the quarter. This creates low and difficult-to-predict sales volume, forecasting misses, and timing risk for revenue, billings, and cash collections.
Operations rely on third-party data centers, cloud infrastructure, and AI services. Extended outages, capacity miscalculations, contract renewal failures, or inability to switch providers rapidly could disrupt customer service and lead to refunds, credits, or non-renewals.
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 Q4 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.