Domo (DOMO) AI Stock Analysis

• Market Cap: $149.22M
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.86
• Revenue Growth: -0.14%
• EPS Growth: 21.60%
• Country: US
• Employees: 888
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 38,534,832
• 10 Day Avg. Volume: 4,348,619
• 30 Day Avg. Volume: 2,330,126
• PEG Ratio: 0.13
• Price to Book (P/B): -1.29
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -119.10
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: -24.61
• 1Y Price Target: $8.58
• Price Target Upside: 123.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): <0.01
• Revenue Forecast (FY): $322.42M

• Rating: 44 Neutral
• Price Target: $3.50 ▼(-8.85% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down primarily by weak financial performance (ongoing losses, negative equity, and still-negative free cash flow) and a still-bearish longer-term technical trend. These are partially offset by a constructive earnings call showing better billings/retention, margin expansion, and improved cash flow, while valuation remains constrained by negative earnings and no dividend.

Positive Factors

Revenue re-acceleration & margins

Sustained revenue re-acceleration alongside ~75% gross margins indicates a scalable SaaS economics profile. High gross margins preserve operating leverage as sales scale, enabling incremental profitability if OPEX growth is managed and supporting long-term margin sustainability.

Improving cash generation

A pivot to positive operating cash flow signals improving core cash conversion and tighter working-capital control. Durable cash generation reduces near-term reliance on external financing, increases optionality for reinvestment or M&A, and underpins a path toward sustained free cash flow.

Retention & consumption-led growth

High retention and rising net retention from consumption-based pricing reflect strong product stickiness and ability to expand within accounts. Record billings and AI/agentic deployments show platform adoption that supports recurring revenue durability and monetization upside over the medium term.

Negative Factors

Negative equity

Material negative equity reflects accumulated losses and weak capital buffer, limiting financial flexibility. This structural weakness raises refinancing risk, constrains strategic options in downturns, and can complicate raising dilutive or debt capital without meaningful cost.

Persistent losses & margins

Despite improvements, sustained negative operating and net margins mean the business has not yet achieved self-sustaining profitability. Ongoing losses constrain internal investment capacity, keep reliance on external capital, and lengthen the timeline to durable free cash flow generation.

Limited visibility & flat GAAP outlook

A formal strategic-review process combined with a flat GAAP revenue outlook reduces forward visibility and can delay longer-term planning. Transaction processes or conservative revenue recognition versus billings may postpone evident top-line growth and complicate execution of multi-quarter operating plans.

Domo Business Overview & Revenue Model

Company Description

Domo, Inc. operates a cloud-based business intelligence platform in the United States, Japan, and internationally. Its platform digitally connects from the chief executive officer to the frontline employee with the people, data, and systems in an organization, giving them access to real-time data and insights, and allowing them to manage business from smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.

How the Company Makes Money

Domo primarily makes money by selling subscriptions to its cloud software platform (SaaS). Customers typically pay recurring fees—often under multi-year contracts—based on factors such as the edition/capabilities purchased and the scale of deployment (e.g., number of users and/or consumption/usage components where applicable). In addition to recurring subscription revenue, Domo can generate revenue from professional services associated with implementing and enabling the platform (e.g., onboarding, configuration, integration support, and training). The company’s ability to earn revenue is supported by its ecosystem of pre-built connectors and integrations with third-party data sources and cloud applications, which helps drive adoption and retention, as well as sales motions that may include direct enterprise sales and partner-assisted deals; specific partner revenue contributions are null.

Domo Financial Statement Overview

Summary

Improving fundamentals (TTM revenue +26.9%, ~75% gross margin, operating cash flow turned positive), but overall financial quality remains weak due to persistent net losses, negative EBIT/EBITDA margins, negative equity (-$186M), and still-negative TTM free cash flow.

Income Statement

Revenue growth has re-accelerated in TTM (Trailing-Twelve-Months) (+26.9%) after being roughly flat in FY2025, and gross margins remain strong (~75%), consistent with a software model. However, profitability is still weak: EBIT and EBITDA margins remain negative in TTM (about -10%), and the company continues to post meaningful net losses (net margin about -18.6%). The trajectory shows improving losses versus prior years, but the business has not yet reached sustained profitability.

Balance Sheet

The balance sheet is pressured by consistently negative stockholders’ equity (TTM: -$186M), which reduces financial flexibility and signals accumulated losses. Total debt is moderate in absolute dollars (TTM: ~$140M), but with negative equity, leverage optics remain elevated and risk-sensitive. Total assets are relatively stable (~$236M TTM), yet the capital structure remains the key weakness despite improving earnings losses over time.

Cash Flow

Cash generation has improved: operating cash flow turned positive in TTM (about $7.7M) versus negative in FY2025, indicating better underlying cash discipline. That said, free cash flow is still negative in TTM (about -$2.2M) and deteriorated versus FY2025, implying ongoing investment needs and/or working-capital volatility. Overall cash flow quality is improving, but the company has not consistently converted operations into sustainable free cash flow.

Breakdown	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	318.86M	317.04M	318.99M	308.64M	257.96M
Gross Profit	239.12M	236.05M	243.52M	235.57M	190.81M
EBITDA	-10.35M	-50.05M	-47.51M	-82.96M	-83.11M
Net Income	-59.34M	-81.94M	-75.57M	-105.55M	-102.11M
Balance Sheet
Total Assets	235.53M	214.34M	225.66M	242.12M	244.59M
Cash, Cash Equivalents and Short-Term Investments	42.95M	45.26M	60.94M	66.50M	83.56M
Total Debt	139.64M	135.53M	129.48M	128.78M	124.18M
Total Liabilities	421.60M	391.59M	379.21M	388.52M	370.57M
Stockholders Equity	-186.06M	-177.25M	-153.55M	-146.40M	-125.98M
Cash Flow
Free Cash Flow	-2.02M	-18.50M	-9.15M	-18.89M	-6.14M
Operating Cash Flow	7.93M	-9.05M	2.58M	-10.89M	379.00K
Investing Cash Flow	-9.95M	-9.45M	-11.76M	-8.00M	-6.52M
Financing Cash Flow	-2.20M	3.39M	3.47M	2.42M	-561.00K

Domo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DOMO, the sentiment is Negative. The current price of 3.84 is below the 20-day moving average (MA) of 4.10, below the 50-day MA of 5.15, and below the 200-day MA of 11.41, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 41.07 is Neutral, neither overbought nor oversold. The STOCH value of 5.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DOMO.

Domo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSP	75 Outperform	$720.96M	8.21	19.72%	―	22.97%	49.49%
VTEX	69 Neutral	$638.35M	17.45	8.24%	―	3.62%	-20.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$343.53M	-15.25	-22.88%	―	13.09%	32.34%
BMBL	57 Neutral	$463.44M	-0.53	-106.91%	―	-7.43%	61.36%
LAW	46 Neutral	$259.65M	-10.79	-32.94%	―	6.33%	-66.34%
DOMO	44 Neutral	$149.22M	-7.75	31.73%	―	-0.14%	21.60%

Domo Corporate Events

Domo Launches Strategic Alternatives Review, Reaffirms 2026 Outlook

On February 19, 2026, Domo announced that its board had launched a formal review of strategic alternatives aimed at maximizing shareholder value, including options such as a strategic investment, sale or business combination. The board, which has hired Jefferies as financial adviser and Goodwin Procter as legal counsel, has not set a timetable and warned there is no assurance the process will yield a transaction or favorable terms.

At the same time, Domo reaffirmed its previously issued fiscal 2026 outlook, projecting revenue between $317.5 million and $318.5 million and a non-GAAP net loss per share of $0.07 to $0.11, based on 41 million shares. The move signals management’s confidence in the company’s operating trajectory even as it evaluates potential strategic shifts, a combination that could influence investor expectations around both near-term performance and longer-term ownership or capital structure.

The most recent analyst rating on (DOMO) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Domo stock, see the DOMO Stock Forecast page.

Domo COO Resigns and Transitions to Consulting Role

On January 11, 2026, Domo, Inc. entered into a separation and settlement agreement with its Chief Operating Officer, Mark Maughan, under which he resigned from his role effective immediately and transitioned to a consulting position under a separate consulting agreement dated the same day. Under the separation terms, Maughan is to receive a $1.5 million cash payment within 30 days of the effective date, full accelerated vesting of his outstanding restricted stock units, and an additional 245,000 fully vested RSUs over three years, with any unpaid amounts accelerating upon a change in control; both parties also agreed to mutual releases of claims and Maughan committed to a non-compete during his consulting period, highlighting a structured leadership change with defined economic and legal protections for both sides.

The most recent analyst rating on (DOMO) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Domo stock, see the DOMO Stock Forecast page.