Domo Reports $76.8 Million Revenue, Plans $400 Million Asset Sale to Progress Software

Domo, Inc. reported a total revenue of $76.8 million for the three months ended July 31, 2026, a decrease of 4% from $79.7 million in the same period last year. For the six months ended July 31, 2026, revenue was $156.2 million, down from $159.8 million in the prior year. Subscription revenue, which constitutes the majority of the company's income, fell to $70.4 million from $72.7 million year-over-year. The company also experienced a net loss of $9.6 million for the quarter, significantly reduced from a loss of $22.9 million in the same quarter of the previous year. The accumulated deficit as of July 31, 2026, stood at $1.57 billion.

Domo's financial performance reflects a strategic shift as the company prepares for an asset sale to Progress Software Corporation for $400 million, announced on July 22, 2026. This transaction, which includes the sale of substantially all of Domo's assets and employees, is expected to close by November 30, 2026. The proceeds from the sale will be used to pay off existing debts and explore opportunities to monetize the company's net operating loss carryforwards. Following the sale, Domo plans to operate as a publicly listed entity with a focus on leveraging its expertise in AI and automation.

Operationally, Domo's customer base has seen fluctuations, with over 2,300 customers reported as of July 31, 2026. The company noted that 77% of its customers were under multi-year contracts, which enhances revenue predictability. However, the total customer count decreased compared to the previous year, indicating challenges in customer retention and expansion. The company’s gross retention rate was reported at 86%, slightly improved from 85% in the prior year, but still reflects the impact of macroeconomic conditions on customer renewals.

Domo's total liabilities decreased to $362.3 million as of July 31, 2026, down from $421.6 million at the end of January 2026. The company is currently in a forbearance agreement with its lenders due to noncompliance with financial covenants related to its credit facility. As of July 31, 2026, Domo had $25.1 million in cash and cash equivalents, which raises concerns about its liquidity and ability to meet obligations if the asset sale does not proceed as planned.

Looking ahead, Domo's management has expressed a commitment to completing the asset sale and utilizing the proceeds to stabilize the company’s financial position. The company aims to identify new opportunities for growth and profitability while managing the challenges posed by the current economic environment. The outlook remains cautious, with significant reliance on the successful execution of the asset sale and subsequent strategic initiatives to enhance shareholder value.