Domo Inc. Reports Strong Q3 Fiscal 2026 Results Amid Positive Growth Indicators
Domo, Inc. (Nasdaq: DOMO) has announced its financial results for the third quarter of fiscal 2026, ending October 31, 2025. The results reflect a continued upward trajectory for the company, demonstrating robust growth in key areas such as revenue, subscription services, and operating cash flow.
1. Fiscal Third Quarter Highlights
In its latest earnings report, Domo reported total revenue of $79.4 million, with subscription revenue contributing $71.9 million. The company also noted billings of $73.2 million, underscoring a solid demand for its services.
Key Financial Metrics
- Subscription Remaining Performance Obligations (RPO): The total RPO stood at $405.9 million, representing a 15% year-over-year increase. The current subscription RPO, which measures money expected to be recognized as revenue in the next 12 months, reached $214.1 million, up 3% year-over-year.
- Operating Cash Flow: Domo reported $3.4 million in net cash provided by operating activities, reflecting a remarkable 125% increase compared to the previous year. Adjusted free cash flow reached $2.1 million, marking a 115% year-over-year growth.
- Profitability Metrics: Despite recording a GAAP operating margin of negative 9%, there was a notable improvement of 5 percentage points year-over-year. In contrast, Domo’s non-GAAP operating margin was positive 7%, indicating a 4 percentage point increase compared to the previous year.
- Net Loss: The company reported a GAAP net loss of $10.4 million, translating to a basic and diluted net loss per share of $0.25 based on 41.4 million shares. Conversely, Domo achieved a non-GAAP net income of $0.3 million, or $0.01 per share, based on 44.8 million diluted shares.
- Cash Position: Domo's cash and cash equivalents totaled $47.9 million as of October 31, 2025.
2. Strategic Outlook and CEO Comments
Josh James, founder and CEO of Domo, expressed optimism regarding the company’s direction. “Our ecosystem strategy is working,” he stated. He emphasized expectations of being free cash flow positive for the year, with projections indicating the fastest billings growth seen in over three years. James also highlighted anticipated improvements in gross retention, suggesting a strong outlook for sustainable growth.
3. Recent Accolades
Domo's efforts in the AI and data products sectors have not gone unnoticed, as the company received significant recognition from various industry analysts and organizations:
- Ranked #1 in the 2025 Agentic AI Report by Dresner Advisory Services.
- Named a Leader in the KMWorld 2025 Leader Group for Agentic AI.
- Acknowledged as a Leader in the Nucleus Research Embedded Analytics Technology Value Matrix 2025.
- Awarded "Best Technology" in the CRN 2025 Products of the Year Awards for Best Business Intelligence & Data Analytics.
- Ranked #2 overall in Dresner Advisory Services' Analytical Data Products Report.
These accolades reflect Domo's commitment to delivering cutting-edge solutions that enhance customer value through AI integration.
4. Business Outlook
Looking forward, Domo provided guidance for the fourth quarter and the full fiscal year:
Q4 Fiscal 2026 Guidance
- Revenue is anticipated to be between $78.0 million and $79.0 million.
- Non-GAAP net loss per share is expected to range from $0.01 to $0.05, based on an estimated 42.1 million weighted-average shares.
Full Year Fiscal 2026 Guidance
- Total revenue is projected to be between $317.5 million and $318.5 million.
- Non-GAAP net loss per share is expected to fall between $0.07 and $0.11, based on approximately 41.0 million weighted-average shares.
Domo has opted not to reconcile its guidance for non-GAAP metrics to GAAP measures due to factors beyond its control.
5. Earnings Call and Future Communications
Domo plans to host a conference call today to discuss its third-quarter results and provide further insights into its financial outlook. The call is scheduled for 3:00 p.m. MT/5:00 p.m. ET and will be available via a live webcast on the Domo Investor Relations website.
With a focus on leveraging data and AI for business transformation, Domo continues to position itself as a leader in the industry, indicating a promising path ahead as it navigates the evolving landscape of data-driven solutions.