📊 DOMO Key Takeaways
Is Domo, Inc.. (DOMO) a Good Investment?
Domo faces critical financial distress with negative stockholders' equity of -$186.1M and a deteriorating liquidity position (current ratio 0.57x), indicating potential solvency concerns. Stagnant revenue growth (0.6% YoY) combined with persistent operating losses (-$12.3% margin) and negative free cash flow (-$2.0M) demonstrate the business cannot achieve profitability at current scale. While improving losses suggest potential path to viability, the company's weak balance sheet and cash constraints create imminent risk of covenant violations or capital crisis.
Domo’s fundamentals remain weak: revenue is slightly declining, operating losses are still material, and net margins are deeply negative despite strong gross margins. The balance sheet is a major concern, with negative stockholders’ equity, low liquidity, and meaningful long-term debt, while free cash flow is only modestly positive and provides limited cushion.
Domo, Inc.. Key Strengths (DOMO)
- Strong gross margin of 75% demonstrates pricing power and product-market fit
- Operating cash flow positive at $7.9M shows core business generates some cash
- Year-over-year loss improvement (27.6%) and EPS improvement (31.9%) indicate operational trajectory is positive
- High gross margin of 74.4% indicates a scalable software revenue model
- Positive operating cash flow and free cash flow suggest some improvement in cash discipline
- Recurring software revenue base appears relatively stable despite slight top-line decline
DOMO Stock Risks: Domo, Inc.. Investment Risks
- Negative stockholders' equity of -$186.1M - company is technically insolvent on book value basis
- Severe liquidity crisis with current ratio of 0.57x - insufficient current assets to cover short-term liabilities
- Revenue stagnation at 0.6% YoY growth eliminates path to profitability without dramatic efficiency gains
- Negative free cash flow (-$2.0M) with only $43M cash against $126.5M long-term debt creates refinancing risk
- Persistent operating losses (-$39.1M) indicate business cannot operate profitably
- Negative stockholders’ equity and a current ratio of 0.49x point to significant balance sheet and liquidity stress
- Revenue declined 0.6% year over year, raising concerns about growth durability
- Operating margin of -11.9% and net margin of -21.5% show the business has not reached sustainable profitability
Key Metrics to Watch
- Quarterly revenue growth rate - needs to accelerate above 5% to justify continued operations
- Path to operating profitability - monitor quarterly operating margin trajectory toward break-even
- Cash balance and covenant compliance - critical given negative equity and debt obligations
- Customer retention and net revenue retention - key indicator of business stability in low-growth environment
- Capital efficiency and operating expense reduction - necessary to close gap to profitability
- Revenue growth reacceleration and billings quality
- Free cash flow consistency and liquidity improvement
Domo, Inc.. (DOMO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DOMO Profit Margin, ROE & Profitability Analysis
DOMO vs Technology Sector: How Domo, Inc.. Compares
How Domo, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Domo, Inc.. Stock Overvalued? DOMO Valuation Analysis 2026
Based on fundamental analysis, Domo, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Domo, Inc.. Balance Sheet: DOMO Debt, Cash & Liquidity
DOMO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Domo, Inc..'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.10 indicates the company is currently unprofitable.
DOMO Revenue Growth, EPS Growth & YoY Performance
DOMO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $79.4M | -$10.4M | $-0.25 |
| Q2 2026 | $78.4M | -$18.1M | $-0.51 |
| Q1 2026 | $80.1M | -$18.1M | $-0.45 |
| Q3 2025 | $79.7M | -$16.1M | $-0.45 |
| Q2 2025 | $78.4M | -$16.1M | $-0.45 |
| Q1 2025 | $79.5M | -$24.4M | $-0.69 |
| Q3 2024 | $79.0M | -$16.1M | $-0.45 |
| Q2 2024 | $75.5M | -$16.1M | $-0.45 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Domo, Inc.. Dividends, Buybacks & Capital Allocation
DOMO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Domo, Inc.. (CIK: 0001505952)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DOMO
What is the AI rating for DOMO?
Domo, Inc.. (DOMO) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 87% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DOMO's key strengths?
Claude: Strong gross margin of 75% demonstrates pricing power and product-market fit. Operating cash flow positive at $7.9M shows core business generates some cash. ChatGPT: High gross margin of 74.4% indicates a scalable software revenue model. Positive operating cash flow and free cash flow suggest some improvement in cash discipline.
What are the risks of investing in DOMO?
Claude: Negative stockholders' equity of -$186.1M - company is technically insolvent on book value basis. Severe liquidity crisis with current ratio of 0.57x - insufficient current assets to cover short-term liabilities. ChatGPT: Negative stockholders’ equity and a current ratio of 0.49x point to significant balance sheet and liquidity stress. Revenue declined 0.6% year over year, raising concerns about growth durability.
What is DOMO's revenue and growth?
Domo, Inc.. reported revenue of $318.9M.
Does DOMO pay dividends?
Domo, Inc.. does not currently pay dividends.
Where can I find DOMO SEC filings?
Official SEC filings for Domo, Inc.. (CIK: 0001505952) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DOMO's EPS?
Domo, Inc.. has a diluted EPS of $-1.45.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is DOMO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Domo, Inc.. has a D grade with 87% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is DOMO stock overvalued or undervalued?
Valuation metrics for DOMO: ROE of N/A (sector avg: 22%), net margin of -18.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is DOMO's AI grade for 2026?
Our dual AI analysis gives Domo, Inc.. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DOMO's free cash flow?
Domo, Inc..'s operating cash flow is $7.9M, with capital expenditures of $10.0M. FCF margin is -0.6%.
How does DOMO compare to other Technology stocks?
Vs Technology sector averages: Net margin -18.6% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.57 (avg: 2.5).