Executive Summary

Q2 FY26 delivered revenue of $79.72M and first-ever positive non-GAAP diluted EPS of $0.02, beating Wall Street consensus on both revenue and EPS; however, EBITDA missed materially versus consensus due to non-operating items . EPS est: -$0.052*, Revenue est: $78.07M*, EBITDA est: $4.70M*; Actuals: EPS $0.02, Revenue $79.72M, EBITDA -$6.55M* .
Non-GAAP operating margin reached a record 7.7% per the call (press rounded to 8%), with subscription gross margin improving to 81.9% sequentially; adjusted free cash flow turned positive at $1.38M .
Guidance raised: FY26 revenue to $316–$320M (from $312–$320M) and FY26 non-GAAP net loss per share to $0.11–$0.19 (from $0.18–$0.26). Q3 revenue guided to $78.5–$79.5M, non-GAAP EPS -$0.03 to -$0.07; introduced billings guidance (Q3: $75.5–$76.5M; FY: $317–$321M) .
Strategic catalysts: accelerating ACV, 108% NRR for consumption-cohort customers, deepening CDW/hyperscaler partnerships (Snowflake, Databricks, AWS, BigQuery), and strong Japan momentum (NRR ~130% on renewals; ACV nearly doubled) .

What Went Well and What Went Wrong

What Went Well

First positive non-GAAP diluted EPS ($0.02) and record non-GAAP operating margin (~7.7% vs press 8%), reflecting disciplined cost management and stronger revenue performance .
Subscription RPO hit a record $409.8M (+19% YoY); consumption-based ARR surpassed 75% with strong cohort economics (108% NRR for customers starting on consumption) .
Partner ecosystem traction: expanded Snowflake marketplace collaboration, enhanced BigQuery integration, and AWS strategic collaboration for agentic AI; management emphasized “electric” CDW events driving thousands of leads and higher close rates .
- “We achieved record operating margin and delivered our first ever positive non-GAAP EPS… reported 108% NRR… clear proof our model is driving results.” — Josh James
- “Operating margin in the quarter was 7.7%, the highest in company history.” — CFO Tod Crane

What Went Wrong

GAAP net loss remained high at $22.93M with GAAP net loss per share of $0.56; other expense surged due to a $10.44M warrant liability remeasurement, pressuring GAAP profitability and S&P-calculated EBITDA* .
Gross retention was 85% (flat for five quarters) and not yet at target; management expects meaningful improvement starting in Q4 as multi-year consumption contracts renew .
Deferred revenue declined sequentially in Q2 (current from $162.94M at Q1-end to $153.97M at Q2-end), limiting billings uplift despite new ACV momentum; net cash from operations eased to $3.37M vs $3.95M in Q1 .

Financial Results

Core P&L and Margin Metrics

Metric	Q4 FY25	Q1 FY26	Q2 FY26
Revenue ($USD Millions)	$78.77	$80.11	$79.72
GAAP EPS ($)	$(0.45)	$(0.45)	$(0.56)
Non-GAAP Diluted EPS ($)	$(0.05)	$(0.09)	$0.02
GAAP Operating Margin (%)	(16)%	(18)%	(9)%
Non-GAAP Operating Margin (%)	4%	1%	8%
Subscription Gross Margin (GAAP, %)	80%	81%	81%

Notes: Call stated non-GAAP operating margin of 7.7% (press rounded to 8%) .

Segment Revenue Mix

Metric ($USD Millions)	Q4 FY25	Q1 FY26	Q2 FY26
Subscription Revenue	$71.86	$71.39	$72.73
Professional Services & Other Revenue	$6.91	$8.72	$6.99
Total Revenue	$78.77	$80.11	$79.72

KPIs and Cash Metrics

KPI	Q4 FY25	Q1 FY26	Q2 FY26
Billings ($USD Millions)	$102.64	$63.90	$70.33
Subscription RPO – Total ($USD Millions)	$403.6	$408.2	$409.8
Subscription RPO – >12 months ($USD Millions)	$178.5	$182.3	$154.0
Net Cash from Operating Activities ($USD Millions)	$8.92	$3.95	$3.37
Adjusted Free Cash Flow ($USD Millions)	$6.01	$1.29	$1.38
Cash & Cash Equivalents ($USD Millions)	$45.26	$47.18	$47.14
Consumption Cohort NRR (%)	—	—	108%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	Q3 FY26	—	$78.5–$79.5	Introduced
Non-GAAP Net Loss per Share ($)	Q3 FY26	—	$(0.03) to $(0.07)	Introduced
Billings ($USD Millions)	Q3 FY26	—	$75.5–$76.5	Introduced
Revenue ($USD Millions)	FY26	$312–$320	$316–$320	Raised
Non-GAAP Net Loss per Share ($)	FY26	$(0.18) to $(0.26)	$(0.11) to $(0.19)	Raised
Billings ($USD Millions)	FY26	—	$317–$321	Introduced
“Rule of 40” Exit Metrics	FY26 Exit	5% billings growth + 5% op margin (prior commentary)	6% billings growth + 6% op margin	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY25, Q1 FY26)	Current Period (Q2 FY26)	Trend
AI/Agentic solutions	“Made for rapidly evolving AI/data environment; Domo.AI awards”	AWS strategic collaboration; Agent Catalyst focus; enhanced BigQuery; strong CDW demand	Up
Partner ecosystem (CDWs/hyperscalers)	Ecosystem focus; guiding to billings growth	Expanded Snowflake marketplace solution; Databricks/Snowflake events “electric”; higher CDW close rates	Up
Consumption model	Foundation for durable growth ; strategy fueling profitable growth	>75% ARR on consumption; 108% NRR for consumption cohort; marketplace procurement benefit	Up
International/Japan	—	Japan: ACV nearly doubled YoY; TCV ATH; renewal NRR ~130%	Up
Retention	—	Gross retention 85% (flat); expected to improve meaningfully in Q4 on multi-year consumption	Improving ahead
Margins & FCF	Non-GAAP OM 4% in Q4; FY25 ACF negative	Record non-GAAP OM ~7.7% (press 8%); Adjusted FCF +$1.38M; subscription GM 81.9%	Up
Product integration	—	Deeper Snowflake/BigQuery integrations; cloud-agnostic approach highlighted	Up

Management Commentary

“Our accelerating ACV, strong subscription RPO, and expanding partnerships are powering Domo’s growth engine… first ever positive non-GAAP EPS… 108% NRR for customers who started with Domo on a consumption contract.” — Josh James
“Operating margin in the quarter was 7.7%, the highest in company history… adjusted free cash flow in Q2 was $1.4M… subscription gross margin rose to 81.9%.” — Tod Crane
“BI as a simple dashboard concept is dead… we built a complete integrated modern AI and analytics stack from day one,” positioning Domo with CDW partners to capture AI infrastructure spend .
On partnerships: “Expanded collaboration with Snowflake for a fully managed AI-powered analytics solution… several Palantir takeouts” ; AWS SCA to accelerate GenAI agent adoption .
On Japan: “New ACV there nearly doubled… NRR on renewals close to 130%” .

Q&A Highlights

CDW/hyperscaler pipeline conversion: CDW-led leads are moving to later stages and closing at materially higher rates; expected to impact numbers starting in Q3 .
Consumption model mechanics: Consumption cohorts expand easier (marketplace procurement, fewer seat constraints), driving higher NRR and expected improvement in gross retention from Q4 onward .
International: Japan is outsized for Domo with broad vertical success, longer decision cycles but high retention; heavy services upfront ensure strong implementations .
Competitive dynamics and use cases: Replacing seat-based BI (e.g., Power BI) with Domo’s consumption and platform breadth (ETL, integration, AI agents) enabling “wall-to-wall” deployments .
Financial trajectory: Raised FY exit metrics to 6% billings growth and 6% non-GAAP operating margin; margin may dip short term due to incremental partner investments in Q3 .

Estimates Context

Metric	Q2 FY26 Consensus	Q2 FY26 Actual	Beat/Miss
Revenue ($USD Millions)	$78.07*	$79.72	Bold beat
Primary EPS ($)	$(0.052)*	$0.02	Bold beat
EBITDA ($USD Millions)	$4.70*	$(6.55)*	Bold miss

Notes: Actual EBITDA from S&P Global shows a negative figure, likely reflecting non-operating items (e.g., $10.44M warrant liability remeasurement in other expense), despite positive non-GAAP operating income . Values retrieved from S&P Global.*

Forward look vs estimates:

Q3 FY26 revenue consensus $79.03M* vs guidance $78.5–$79.5 — guidance brackets consensus.
FY26 revenue consensus $318.08M* vs guidance $316–$320 — guidance aligned.

Key Takeaways for Investors

Domo’s pivot to a consumption-led, partner-centric model is manifesting in record non-GAAP operating margin, first positive non-GAAP EPS, and rising subscription gross margin; near-term margin may be modestly lower due to partner investments, but the medium-term trajectory is improving .
RPO strength and >75% ARR on consumption, with 108% cohort NRR, underpin visibility; expect gross retention to inflect in Q4 as multi-year consumption contracts renew, supporting FY26 growth setup .
AI catalyst: AWS SCA and deeper Snowflake/BigQuery integrations position Domo in budgets where AI infrastructure spend is growing faster than broader IT, with solution-led co-selling improving conversion rates .
Watch Japan and enterprise channels for incremental upside: Japan’s ACV/NRR momentum, and marketplace procurement routes (AWS/GCP/CDWs) shorten cycles and expand use cases across business units .
Estimate revisions: Expect upward revisions to EPS and revenue for Q2 actuals; however, some models using EBITDA may need adjustments to reflect non-operating items and warrant remeasurement volatility .
Trading lens: The combination of beats on revenue/EPS, raised FY guide, and partner ecosystem updates are positive catalysts; monitor Q3 margin commentary and CDW/hyperscaler pipeline conversion in the next print .
Risk checks: Deferred revenue decline and persistent GAAP net losses (warrant volatility) are watch items; execution on retention improvements and consumption renewals remains key .

S&P Global disclaimer: Asterisk-marked values are retrieved from S&P Global consensus/actuals via GetEstimates.*

DOMO, INC. (DOMO)·Q2 2026 Earnings Summary