Domo 2026 Q1 Earnings Losses Narrow by 30.6%

Domo (DOMO) reported its fiscal 2026 Q1 earnings on June 6th, 2025. The company's results were mixed, showing a substantial narrowing of losses but with revenue remaining almost flat. Domo’s revenue was slightly above expectations, while its earnings per share (EPS) showed significant improvement compared to the same quarter last year. The guidance for the upcoming quarter and fiscal year was in line with analysts' forecasts, highlighting a focus on cash generation and billings growth.

Revenue
Domo's total revenue remained stable at $80.11 million for Q1 2026, a negligible increase from $80.10 million in the previous year. The subscription segment contributed $72.11 million, while professional services and other segments added $7.99 million, maintaining the company’s overall performance.

Earnings/Net Income
Domo reduced its loss per share to $0.45 in Q1 2026 from $0.69 in Q1 2025, marking a 34.8% improvement. The net loss also decreased to $18.05 million, a 30.6% reduction from the previous year's $26.01 million. This progress indicates a positive trend despite sustained losses over the years.

Post-Earnings Price Action Review
The strategy of purchasing DOMO shares when revenue beats expectations and holding for 30 days has historically underperformed. This approach resulted in a significant loss of 60.66%, compared to a benchmark gain of 75.13%. This discrepancy highlights a negative excess return of -135.79%. The poor performance is underscored by a Sharpe ratio of -0.26, reflecting high risk with negative returns, suggesting investors should be cautious when employing this strategy.

CEO Commentary
Joshua James, Founder and CEO of Domo, expressed optimism about the company's transition to a consumption-based model, which now represents 65% of annual recurring revenue (ARR). He noted that the company aims for this to reach 90% by the end of fiscal 2026. James highlighted the strength of their partnerships with cloud data warehouses and the positive reception from system integrators as key factors positioning Domo favorably in the market.

Guidance
For Q1 fiscal 2026, Domo projects revenue between $77.5 million and $78.5 million, with an anticipated non-GAAP net loss per share of $0.18 to $0.22. For the full fiscal year 2026, revenue is expected to be $310 million to $318 million, with a projected non-GAAP net loss per share ranging from $0.29 to $0.39.

Additional News
Domo has recently been recognized as a leader in the 2025 Nucleus Research Analytics Technology Value Matrix, emphasizing its strong market position. Additionally, the company was named to the 2025 ParityLIST for equal advancement opportunities and the Women Tech Council Shatter List for the eighth consecutive year, highlighting its commitment to diversity and inclusion. Furthermore, Domo participated in the 2025 Data + AI Summit, showcasing its advancements in AI and data products, which aim to drive real ROI for its clients. These accolades and initiatives reflect Domo's strategic focus on innovation and market leadership.