Domo Q1 FY2026 Results and Strategic Transaction Update
Domo, Inc. (NASDAQ:DOMO) announced its fiscal first‑quarter 2026 results, reporting an adjusted loss of $0.02 per share, which beat the analyst consensus estimate of a $0.08 loss per share. Revenue for the quarter was $79.4 million, falling 1 % year‑on‑year from $80.1 million and missing the consensus estimate of $79.58 million. Subscription revenue declined to $69.8 million from $71.4 million in the comparable period last year. Billings decreased to $60.4 million from $63.9 million a year earlier. Adjusted operating margin improved to 6 % from 1 % in the prior year. Cash and cash equivalents were $39.1 million as of 30 April 2026.
The board disclosed that the company has entered into a forbearance agreement with its lender after breaching the minimum annualized recurring revenue covenant under its credit facility. The board concluded that pursuing a strategic transaction represents the best path to maximize shareholder value after evaluating a broad range of alternatives. The company said substantial progress has been made in negotiations for a potential strategic transaction, but no definitive agreement has been executed and no further financial guidance will be provided until additional disclosures are deemed appropriate.
Shares fell 10.1 % following the announcement. Founder and CEO Josh James commented that “we are still in the early innings of a major shift from AI experimentation to AI embedded in everyday work” and expressed confidence that Domo’s combination of data, applications, and AI agents positions the company to play an important role in that shift.