Domo 2026 Q3 Earnings Narrowed Losses Amid Flat Revenue

Domo (DOMO) reported fiscal 2026 Q3 results on Dec 9, 2025, with flat year-over-year revenue and improved profitability, though softer guidance and leadership changes raised concerns. The company narrowed its net loss by 44.6% to $10.39 million and issued revenue projections below prior expectations.

Revenue

Domo’s total revenue remained stable at $79.40 million in Q3 2026, matching $79.76 million in Q3 2025. Subscription revenue, the company’s core business, accounted for $71.88 million, while professional services and other revenue contributed $7.52 million. The flat performance reflects ongoing challenges in scaling its platform amid competitive pressures.

Earnings/Net Income

The company reduced its net loss to $10.39 million ($0.25 per share) in Q3 2026, a 44.6% improvement from $18.76 million ($0.48 per share) in Q3 2025. While the narrowing loss indicates progress in cost management, Domo has sustained losses for nine consecutive years in this quarter, underscoring persistent financial headwinds.

Price Action

DOMO’s stock price declined 0.79% in the latest trading day, 20.81% weekly, and 29.25% month-to-date. The post-earnings strategy of buying DOMO after a “beat” and holding for 30 days returned -75.92%, underperforming the benchmark by 164.22%. With a Sharpe ratio of -0.36, the strategy highlights the stock’s high-risk profile.

CEO Commentary

CEO Joshua G. James, in his reduced role due to health reasons, emphasized progress in AI adoption and consumption-based contracts. He acknowledged challenges in partner-driven sales cycles and market competition but expressed confidence in long-term margin improvements. “Our focus remains on sustainable growth through AI integration and ecosystem partnerships,” James stated, while noting the need for disciplined cost management.

Guidance

Domo issued Q4 2026 revenue guidance of $78.0–$79.0 million and full-year 2026 revenue of $317.5–$318.5 million, below prior expectations. The guidance reflects extended sales cycles and a strategic shift toward consumption-based models, which may temporarily impact growth metrics.

Additional News

Domo announced leadership changes, with CTO Daren Thayne appointed as Interim Principal Executive Officer following CEO James’ reduced duties. The company also reiterated its 2028 revenue forecast of $366 million and $47.9 million in earnings, requiring 4.8% annual growth. Analysts remain divided on valuation, with fair value estimates ranging from $14.03 to $57.69.

The post-earnings narrative underscores Domo’s balancing act between margin expansion and near-term revenue stagnation. While leadership transitions and guidance revisions add uncertainty, the company’s pivot to AI and consumption models could reshape its competitive positioning in the long term.