Domo Achieves First-Ever Positive EPS and Record Non-GAAP Operating Margin in Q2 FY2026

Domo reported its first-ever positive non-GAAP EPS of $0.02 and a record non-GAAP operating margin of 8% in Q2 FY2026. Revenue (GAAP) increased 1.7% YoY, while billings rose 2.5% YoY. Operating expenses declined, and recurring revenue metrics, such as subscription RPO, showed growth. The company provided cautious guidance for Q3 FY2026 and FY2026, expecting flat or minimal top-line growth.

Domo Inc. (DOMO) reported its first-ever positive non-GAAP EPS of $0.02 and a record non-GAAP operating margin of 8% in the second quarter of fiscal year 2026. The company's revenue (GAAP) increased by 1.7% year-over-year (YoY) to $79.7 million, while billings rose by 2.5% YoY to $70.3 million. Subscription revenue, which forms the bulk of Domo's business, grew by 2.5% YoY to $72.7 million. Professional services and other revenue (GAAP) declined by 6.7% YoY [2].

Operating expenses also decreased, contributing to the company's improved financial performance. Subscription remaining performance obligations (RPO), which show contracted revenue yet to be recognized, rose by 19% YoY to $409.8 million. The current portion of RPO, expected to convert to revenue in the near term, grew by 4% YoY to $220.2 million [2].

Domo's adjusted free cash flow turned positive at $1.4 million, up from a negative figure a year prior, and net cash provided by operating activities increased by 155% YoY to $3.4 million [3]. The company's GAAP operating margin was not specified in the press release [3].

Domo's management provided cautious guidance for the third quarter of fiscal year 2026 and the full year 2026, expecting flat or minimal top-line growth. For Q3 FY2026, revenue is expected to be between $78.5 million and $79.5 million, with a non-GAAP net loss per share of $0.03 to $0.07. Full-year FY2026 revenue is expected to be between $316 million and $320 million, with a non-GAAP net loss per share of $0.11 to $0.19 [2].

Domo continues to focus on operational efficiency and cost discipline, as evidenced by the decline in sales and marketing spend by 3.6%, research and development by 13.7%, and general and administrative expenses by 11% compared to Q2 FY2025 [2].

Investors and observers should watch for evidence of accelerating revenue or billings growth, further signs of progress in upselling and retaining customers, particularly for those using Domo's consumption model, and the sustainability of recent improvements in cash flow and margins [2].

References:
[1] https://www.gurufocus.com/news/3081577/domo-inc-domo-q2-2026-everything-you-need-to-know-ahead-of-earnings
[2] https://www.nasdaq.com/articles/domo-posts-8-margin-gain-fiscal-q2
[3] https://www.morningstar.com/news/business-wire/20250827883685/domo-announces-second-quarter-fiscal-2026-financial-results