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DOMO, INC. (DOMO)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 delivered revenue of $80.1M, above prior guidance ($77.5–$78.5M) and Wall Street consensus, with non-GAAP operating margin turning positive (1%) for the first time in a Q1; GAAP net loss per share was $0.45 and non-GAAP net loss per share was $0.09 .
  • Management raised FY26 guidance: revenue to $312–$320M (from $310–$318M) and non-GAAP EPS to $(0.18)–$(0.26) (from $(0.29)–$(0.39)); Q2 revenue guidance is $77.5–$78.5M and non-GAAP EPS of $(0.03)–$(0.07) .
  • Key KPIs strengthened: total subscription RPO reached $408.2M (+24% YoY), long-term subscription RPO $182.3M (+61% YoY), adjusted free cash flow $1.3M, and gross retention improved to 86% .
  • Stock-relevant catalyst: narrative shifted to profitable growth (consumption model, partner ecosystem), FY guidance raised, and continued AI momentum (Agent Catalyst, partner conversions), providing improving visibility to billings and margin trajectory .

What Went Well and What Went Wrong

What Went Well

  • “We’re not just keeping pace in the fast-moving world of data and AI—we’re leading the charge...we’ve turned the corner, and we should be able to deliver profitable, sustainable growth going forward.” — CEO Josh James .
  • Beats vs internal guidance and Street: exceeded Q1 guidance on billings, revenue, non-GAAP EPS; non-GAAP operating margin positive 1.3% and adjusted FCF positive; gross retention improved to 86% .
  • Partner ecosystem momentum: partner-sourced pipeline metrics up >200% QoQ for one CDW; conversion rates and close rates materially higher than traditional marketing leads; drive to exit FY26 at ~5% billings growth and 5% operating margin .

What Went Wrong

  • GAAP profitability remains challenging: GAAP operating margin at (18)% and GAAP net loss of $18.1M in Q1, reflecting ongoing SBC and other costs despite non-GAAP progress .
  • Near-term growth muted: Q2 billings guided to $69–$70M (+1–2% YoY), implying a gradual re-acceleration later in FY26; timing shifts from consumption conversions impacted renewal phasing .
  • Leverage and cost structure: long-term debt was ~$119.7M and SBC expense rose to $15.5M; management targets steady, not abrupt, margin expansion while investing in ecosystem GTM .

Financial Results

Revenue and Mix (oldest → newest)

MetricQ3 2025Q4 2025Q1 2026
Total Revenue ($USD Millions)$79.8 $78.8 $80.1
Subscription Revenue ($USD Millions)$71.1 $71.9 $71.4
Professional Services & Other ($USD Millions)$8.7 $6.9 $8.7
Billings ($USD Millions)$73.4 $102.6 $63.9

EPS and Margins (oldest → newest)

MetricQ3 2025Q4 2025Q1 2026
GAAP Net Loss per Share ($)$(0.48) $(0.45) $(0.45)
Non-GAAP Net Loss per Share ($)$(0.08) $(0.05) $(0.09)
GAAP Operating Margin (%)(14)% (16)% (18)%
Non-GAAP Operating Margin (%)3% 4% 1%
Subscription Gross Margin (GAAP, %)81% 80% 81%
Subscription Gross Margin (Non-GAAP, %)82% 81% 82%

KPIs (oldest → newest)

MetricQ3 2025Q4 2025Q1 2026
Total Subscription RPO ($USD Millions)$354.1 (+3% YoY) $403.6 (+14% YoY) $408.2 (+24% YoY)
Long-Term Subscription RPO ($USD Millions)$145.9 (+14% YoY) $178.5 (+38% YoY) $182.3 (+61% YoY)
Net Cash Provided by Operating Activities ($USD Millions)$(13.7) $8.9 $4.0
Adjusted Free Cash Flow ($USD Millions)$(13.8) $6.0 $1.3
Cash & Cash Equivalents ($USD Millions)$40.9 $45.3 $47.2

Q1 FY26 Actual vs Wall Street Consensus

MetricActualConsensusSurprise
Revenue ($USD Millions)$80.11 $77.75*+$2.36M / +3.0%*
Primary EPS ($)$(0.09) $(0.194)*+$0.104*
EBITDA ($USD Millions)$(13.97)*$(0.10)*$(13.87) miss*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q1 FY26$77.5–$78.5 Actual: $80.1 Beat
Non-GAAP EPS ($)Q1 FY26$(0.18)–$(0.22) Actual: $(0.09) Beat
Revenue ($M)Q2 FY26—$77.5–$78.5 New
Non-GAAP EPS ($)Q2 FY26—$(0.03)–$(0.07) New
Billings ($M)Q2 FY26—$69–$70 New
Revenue ($M)FY26$310–$318 $312–$320 Raised
Non-GAAP EPS ($)FY26$(0.29)–$(0.39) $(0.18)–$(0.26) Raised
Billings ($M)FY26$310–$320 $312–$322 Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25)Previous Mentions (Q4 FY25)Current Period (Q1 FY26)Trend
AI/technology initiativesDomo.AI awards; AI-led BI positioning Strong AI focus, Domo AI awards; agentic workflows Launched Agent Catalyst; 6,000 registrants at AI summit; rapid customer agent-building Accelerating
Ecosystem/CDW partnershipsRecognized in Snowflake Modern Marketing Data Stack; ecosystem messaging Priority on CDWs + SIs; materially higher conversion rates Partner pipeline up >200% QoQ for one CDW; broader conversion strength Strengthening
Retention & consumption pricingN/A in Q3 call transcript; press release onlyConsumption cohort >90% gross and >100% net retention; shift toward consumption Gross retention 86%; consumption ~70% of ARR, headed to ~90% by year-end Improving
Macro/tariffsN/ACautious macro; disciplined customer spend Tariffs mention minimal; macro stable vs last 12 months Stable
Gross margin trajectoryN/ASub. gross margin ~81.4%; low-80s near-term, mid-80s LT Non-GAAP sub. gross margin 81.6%; maintain near term, improve over time Stable to improving
Enterprise vs commercial mixN/AN/APartners driving more enterprise leads; expansion opportunity Favorable

Management Commentary

  • “These standout results show our reconfigured model is working, and I’m more confident than ever in our trajectory...We believe we’ve turned the corner, and we should be able to deliver profitable, sustainable growth going forward.” — Josh James, CEO .
  • “We exceeded our Q1 guidance for billings, revenue and non-GAAP EPS and were adjusted free cash flow positive...We expect billings of $69–$70M in Q2, GAAP revenue of $77.5–$78.5M and non-GAAP EPS of $(0.03)–$(0.07). For the full year, we are raising guidance...” — Tod Crane, CFO .
  • “Retention improved in Q1...Consumption customers now represent over 70% of our ARR, heading toward 90% by the end of the year.” — Josh James .

Q&A Highlights

  • Macro/tariffs: Macro remains cautious but steady vs last 12 months; tariffs not a large issue for customers; AI use cases are driving activity .
  • Gross margin trajectory: Subscription gross margin at 81.6%; expect it to remain near-term and increase over time as consumption ties revenue more closely to cost .
  • Pricing/consumption: Consumption aligns pricing with realized value; cohorts on consumption more likely to adopt AI modules due to no paywalls, driving usage and ROI .
  • Billings progression: Q2 billings growth +1–2% YoY, with pipeline, partner activity, and rep productivity implying exit-Q4 billings growth ~5% .
  • Ecosystem GTM: Continued investment in CDW/SI partnerships while gradually expanding margins (targeting 5% in FY26 exit and 10% in FY27 exit) .

Estimates Context

  • Q1 FY26 delivered revenue and EPS beats vs S&P Global consensus; EBITDA lagged Street’s model, a metric management does not guide to.
  • Q2 FY26 guidance sits near consensus on revenue; EPS guidance bracket encompasses consensus.
PeriodMetricActualConsensus
Q1 FY26Revenue ($USD Millions)$80.11 $77.75*
Q1 FY26Primary EPS ($)$(0.09) $(0.194)*
Q1 FY26EBITDA ($USD Millions)$(13.97)*$(0.10)*
Q2 FY26Revenue ($USD Millions)Guidance: $77.5–$78.5 $78.07*
Q2 FY26Primary EPS ($)Guidance: $(0.03)–$(0.07) $(0.0517)*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • DOMO is executing a pivot to profitable growth: first-ever positive Q1 non-GAAP operating margin, positive adjusted FCF, and raised FY26 revenue/EPS guidance .
  • Consumption-based pricing and deeper CDW/SI ecosystem ties are improving retention and driving longer contract terms, evidenced by RPO acceleration (+24% YoY total; +61% long-term) .
  • Near-term growth is measured (Q2 billings +1–2% YoY), but management guides to exit FY26 at ~5% billings growth and ~5% operating margin, with FY27 exit targeting ~10%/~10% .
  • AI momentum is tangible: Agent Catalyst adoption, rapid agent deployment by customers, and expanding cloud partnerships (Snowflake, Databricks, AWS SCA announced later) underpin product-led consumption growth .
  • Risk monitor: GAAP losses persist, SBC remains elevated, and debt at ~$120M necessitates continued cash generation; management plans steady margin expansion while investing in ecosystem GTM .
  • Trading lens: Raised FY guidance and improving retention/KPIs are positive narrative shifts; watch Q2 billings and partner-driven pipeline conversion to validate second-half re-acceleration .
  • Estimate path: Street likely to lift FY26 revenue/EPS estimates post-beat and raise; however, EBITDA modeling may vary given non-GAAP emphasis and consumption dynamics.*

Additional Press Releases Relevant to Q1 FY26

  • Q1 earnings call timing (May 12) .
  • Industry recognition: #1 in Dresner 2025 Self-Service BI (May 15) .
  • Snowflake collaboration expansion (June 26) supporting AI/data cloud integrations .

Non-GAAP Adjustments

  • Non-GAAP metrics exclude SBC, amortization of intangibles, and warrant liability remeasurement; reconciliation provided (e.g., non-GAAP operating income $1.0M vs GAAP operating loss $(14.3)M; non-GAAP net loss per share $(0.09) vs GAAP $(0.45)) .