Domo (DOMO) AI Stock Analysis

• Market Cap: $164.27M
• Dividend Yield: N/A
• Average Volume (3M): 1.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.97
• Revenue Growth: -0.14%
• EPS Growth: 21.60%
• Country: US
• Employees: 888
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 38,534,832
• 10 Day Avg. Volume: 1,471,834
• 30 Day Avg. Volume: 1,305,681
• PEG Ratio: -2.79
• Price to Book (P/B): -1.84
• Price to Sales (P/S): 1.03
• P/FCF Ratio: -17.63
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.08
• Enterprise Value/Ebitda: -8.54
• 1Y Price Target: $11.08
• Price Target Upside: 208.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): -0.02
• Revenue Forecast (FY): $327.17M

• Rating: 45 Neutral
• Price Target: $3.50 ▼(-2.51% Downside)
• Action: Reiterated Date: 02/15/26
• Date: Action: Reiterated 02/15/26

The score is held down primarily by weak fundamentals (declining revenue, ongoing losses, negative equity, and deteriorating free cash flow growth) and a strongly bearish technical trend. A more constructive earnings call—improving free cash flow and operating margin guidance—provides support, but not enough to outweigh the financial and price-trend risks.

Positive Factors

High Gross Margin

A 74%+ gross margin reflects strong unit economics for Domo's cloud BI platform. Durable high gross margins mean incremental revenue largely flows to operating leverage, supporting reinvestment in product and AI while providing a structural buffer as the company scales and improves operating efficiency.

Shift to Consumption Model

Moving the majority of ARR to consumption contracts aligns revenue with customer usage and value, improving upsell potential and reducing churn risk. This structural shift increases revenue quality and predictability over time and incentivizes deeper customer engagement and expanding wallet share.

Improving Cash Flow and Margins

Material improvement to adjusted free cash flow and an operating margin that exceeded guidance indicate the company is converting revenue into sustainable cash. Continued positive FCF and margin progression reduce financing needs and provide durable flexibility to invest in AI, partners, and go-to-market expansion.

Negative Factors

Declining Revenue Trend

An 11% TTM revenue decline signals persistent demand or retention challenges for a subscription business. Sustained top-line contraction undermines operating leverage, makes margin targets harder to sustain, and compels higher investment in sales or price concessions to stabilize growth over the medium term.

Negative Stockholders' Equity

Negative equity indicates a stressed capital structure that can limit financial flexibility. It raises refinancing and covenant risk, can complicate M&A or strategic transactions, and may require external capital or asset sales to support growth initiatives—structural weaknesses lasting beyond a quarter.

Volatile Free Cash Flow

Extreme FCF volatility and weak operating cash conversion relative to losses show historically limited cash-generation reliability. Even with recent improvements, inconsistent cash flow raises questions about the company's ability to sustain investments, fund growth, and reach stable profitability without external funding.

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 generates revenue through a subscription-based model, offering its platform on a Software as a Service (SaaS) basis. Customers pay for access to the Domo Business Cloud, with pricing typically based on the number of users, data connectors, and features utilized. Additional revenue streams may come from professional services, such as implementation support, training, and consulting. Domo has formed strategic partnerships with major technology companies, enabling it to enhance its product offerings and expand its customer base, which contributes to its overall earnings. The company also focuses on upselling and cross-selling capabilities, encouraging existing customers to adopt more features and services over time.

Domo Financial Statement Overview

Summary

Financial performance is weak overall: revenue declined (-11.3% TTM), profitability remains negative (net margin -21.71% TTM with negative EBIT/EBITDA margins), and free cash flow growth dropped sharply (-232.20% TTM). The balance sheet is a key risk with negative stockholders’ equity, despite a strong gross margin (74.39% TTM).

Income Statement

Domo's income statement reveals challenges with profitability and growth. The company has a negative net profit margin of -21.71% TTM, indicating losses. Revenue has declined by 11.3% TTM, showing a negative growth trajectory. Gross profit margin remains strong at 74.39%, but EBIT and EBITDA margins are negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, leading to a negative debt-to-equity ratio. Return on equity is positive at 43.10% TTM, but this is due to the negative equity base. The equity ratio is negative, indicating potential financial instability.

Cash Flow

Cash flow analysis highlights volatility, with a significant decline in free cash flow growth of -232.20% TTM. The operating cash flow to net income ratio is low at 0.08, suggesting limited cash generation relative to net losses. However, free cash flow to net income is positive at 0.50, indicating some cash flow efficiency despite losses.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	318.00M	317.04M	318.99M	308.64M	257.96M	210.18M
Gross Profit	236.56M	236.05M	243.52M	235.57M	190.81M	153.43M
EBITDA	-29.83M	-50.05M	-47.51M	-82.96M	-83.11M	-68.32M
Net Income	-69.05M	-81.94M	-75.57M	-105.55M	-102.11M	-84.63M
Balance Sheet
Total Assets	201.60M	214.34M	225.66M	242.12M	244.59M	216.44M
Cash, Cash Equivalents and Short-Term Investments	47.87M	45.26M	60.94M	66.50M	83.56M	90.79M
Total Debt	138.46M	135.53M	129.48M	128.78M	124.18M	104.97M
Total Liabilities	393.54M	391.59M	379.21M	388.52M	370.57M	299.90M
Stockholders Equity	-191.93M	-177.25M	-153.55M	-146.40M	-125.98M	-83.46M
Cash Flow
Free Cash Flow	9.65M	-18.50M	-9.15M	-18.89M	-6.14M	-21.58M
Operating Cash Flow	19.42M	-9.05M	2.58M	-10.89M	379.00K	-15.87M
Investing Cash Flow	-9.77M	-9.45M	-11.76M	-8.00M	-6.52M	12.24M
Financing Cash Flow	-2.92M	3.39M	3.47M	2.42M	-561.00K	13.10M

Domo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.59 is below the 20-day moving average (MA) of 4.54, below the 50-day MA of 6.38, and below the 200-day MA of 11.85, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 32.50 is Neutral, neither overbought nor oversold. The STOCH value of 27.72 is Neutral, 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
VTEX	69 Neutral	$632.20M	765.06	8.18%	―	3.62%	-20.45%
DSP	65 Neutral	$632.45M	383.71	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	59 Neutral	$384.93M	-8.80	-23.42%	―	13.09%	32.34%
BMBL	51 Neutral	$342.73M	-1.60	-25.34%	―	-7.43%	61.36%
LAW	46 Neutral	$222.92M	-4.89	-41.00%	―	6.33%	-66.34%
DOMO	45 Neutral	$164.27M	-2.29	―	―	-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.

Domo CEO Reduces Duties Due to Health Reasons

Domo, Inc. announced that its CEO, Joshua G. James, will reduce his duties effective December 4, 2025, due to health reasons. Daren Thayne, the current CTO and Executive VP of Product, will step in as the Interim Principal Executive Officer, maintaining his existing compensation and with no familial or transactional ties requiring disclosure.

The most recent analyst rating on (DOMO) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Domo stock, see the DOMO Stock Forecast page.