Domo Inc Exceeds Q2 Guidance, Achieves First Positive Non-GAAP EPS, and Strengthens Partnerships

Domo Inc (DOMO) exceeded Q2 guidance for billings, revenue, and non-GAAP EPS, achieving its first-ever positive non-GAAP EPS and generating positive free cash flow. The company reported a Net Revenue Retention (NRR) of 108% for customers who first purchased Domo on a consumption contract, indicating strong customer engagement and potential for growth. Domo Inc has successfully transitioned over 75% of its Annual Recurring Revenue (ARR) to a consumption-based model, showcasing a significant business transformation.

Title: Domo Inc Exceeds Q2 Guidance, Achieves Positive Non-GAAP EPS

Domo Inc (DOMO) has reported strong financial results for the second quarter of fiscal 2026, exceeding market expectations and marking significant milestones in the company's transformation. The cloud-based data provider reported Q2 revenue of $79.7 million, surpassing analyst expectations of $78 million [1]. This performance was driven by a 19% year-over-year increase in Subscription Remaining Performance Obligations (RPO), reaching $409.8 million [1].

One of the most notable achievements was Domo's first positive non-GAAP EPS of $0.02, indicating improved profitability and operational efficiency. The company also generated positive free cash flow, a significant indicator of financial health. The positive EPS was driven by accelerating Annual Contract Value (ACV) and robust subscription RPO growth [1].

Domo's transition to a consumption-based pricing model has been a key driver of its success. Over 75% of its Annual Recurring Revenue (ARR) is now tied to consumption contracts, up from negligible levels just two years ago. This shift has resulted in a Net Revenue Retention (NRR) of 108% for customers who initially purchased Domo on a consumption contract, highlighting strong customer engagement and loyalty [2]. The consumption model has also enabled Domo to secure longer-term contracts, such as a three-year agreement with a cloud data warehouse (CDW) partner [2].

The company's strategic partnerships with ecosystem providers like Snowflake and AI tools like Agent Catalyst have further strengthened its position in the $30 billion AI analytics market, which is projected to grow at a 25% CAGR through 2030 [3]. These partnerships have expanded Domo's market reach and enhanced its value proposition, positioning the company as a leader in modern analytics.

Domo's financial milestones and RPO growth suggest a robust demand for its solutions and a strong pipeline for future revenue. The company expects Q3 revenue to be between $78.5 million and $79.5 million and anticipates a full-year revenue of $316 million to $320 million [1]. Despite GAAP profitability challenges, Domo's non-GAAP metrics and consumption model success create a compelling valuation case, with a market cap of ~$1.2 billion and a forward P/E ratio of 12x based on non-GAAP earnings [2].

In conclusion, Domo Inc's strategic transformation from a seat-based model to a consumption-driven, AI-first platform has positioned it as a high-conviction buy for investors seeking exposure to the data analytics revolution. The company's ability to execute on its vision, as evidenced by 19% RPO growth and positive free cash flow generation, validates its potential for long-term growth and profitability.

References
[1] Reuters. (2025). Domo fiscal Q2 revenue of $79.7 mln beats analyst expectations. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_PLX4BBC35:0-cloud-based-data-provider-domo-q2-revenue-beats-expectations/
[2] AInvest. (2025). Domo strategic transformation high conviction buy AI-driven data analytics. Retrieved from https://www.ainvest.com/news/domo-strategic-transformation-high-conviction-buy-ai-driven-data-analytics-2508/
[3] Datainsights Market. (2025). Domo, Inc. Retrieved from https://www.datainsightsmarket.com/companies/DOMO