Domo (DOMO) AI Stock Analysis

• Market Cap: $279.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.90
• 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: 993,230
• 30 Day Avg. Volume: 1,038,811
• 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: 2.36
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: -22.07
• 1Y Price Target: $15.25
• Price Target Upside: 144.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.09
• Revenue Forecast (FY): $317.89M

• Rating: 44 Neutral
• Price Target: $6.50 ▲(4.17% Upside)

The score is held down primarily by weak financial performance (losses, declining revenue, negative equity) and bearish technical signals (below all major moving averages with weak momentum). The latest earnings call is a relative bright spot, highlighting improving free cash flow and margin progress, but it does not yet outweigh the current fundamental and trend risks; valuation is also constrained by negative earnings.

Positive Factors

High Gross Margin

Domo's ~74% gross margin reflects SaaS-level unit economics that support scalable profitability. High gross margins provide durable flexibility to reinvest in R&D, partner integrations and AI features while protecting operating leverage as the business scales.

Shift to Consumption-Based Revenue

Transitioning the majority of ARR to consumption contracts aligns pricing with customer value and usage. This structural change increases customer stickiness, improves upsell potential, and reduces reliance on large upfront bookings, making recurring revenue more predictable over time.

Improving Cash Generation and Margin Trajectory

Generating positive adjusted free cash flow and beating operating margin guidance shows improving cash conversion and operating discipline. A stated path to full-year positive FCF and higher margins supports sustainable self-funding of growth and reduced reliance on external capital over multiple quarters.

Negative Factors

Declining Revenue Trend

An 11% trailing revenue decline erodes scale and compresses operating leverage, making margin recovery harder. Persistent top-line contraction limits the company's ability to invest in sales, product and partnerships and complicates meeting multi-year growth and billings targets.

Weak Balance Sheet / Negative Equity

Negative stockholders' equity indicates a strained capital structure that can restrict borrowing capacity and heighten financing risk. This reduces strategic flexibility for M&A, product investment or cyclical cushioning and can force dilutive or costly capital raises over the medium term.

Executive Turnover and Succession Risk

The CEO reducing duties for health and the COO's resignation create near-term leadership discontinuity during a strategic shift. This can slow execution on consumption, partner expansion and AI initiatives, raising organizational and executional risk over the next several quarters.

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

Domo's financial performance is concerning, with negative net profit margins, declining revenues, and a weak balance sheet characterized by negative stockholders' equity. Although gross profit margins are strong, operational inefficiencies and declining cash flow growth pose significant risks.

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

Domo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 6.24 is below the 20-day moving average (MA) of 8.25, below the 50-day MA of 9.97, and below the 200-day MA of 12.23, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 19.50 is Positive, neither overbought nor oversold. The STOCH value of 3.19 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
VTEX	66 Neutral	$639.67M	90.66	6.53%	―	3.62%	-20.45%
DSP	65 Neutral	$724.85M	452.27	4.45%	―	22.97%	49.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$603.94M	-12.53	-26.69%	―	13.09%	32.34%
LAW	54 Neutral	$419.94M	-6.79	-41.00%	―	6.33%	-66.34%
BMBL	51 Neutral	$404.73M	-1.92	-25.34%	―	-7.43%	61.36%
DOMO	44 Neutral	$279.21M	-3.63	―	―	-0.14%	21.60%

Domo Corporate Events

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.