Domo revenue dips in Q1 as it pursues strategic sale amid debt covenant breach

Domo

15/06/2026 21:16

Overview
U.S. AI and data platform's fiscal Q1 revenue was a slight miss versus analyst expectations
Adjusted loss per share for fiscal Q1 was lower than analysts expected
Company in advanced talks on strategic transaction; entered forbearance after covenant breach

Outlook
Domo is in advanced negotiations regarding a potential strategic transaction
Company is not providing financial guidance at this time
Domo recently entered a forbearance agreement with its lender to address liquidity needs

Result Drivers
OPERATING MARGIN IMPROVEMENT - Co reported improved GAAP and non-GAAP operating margins year over year
SUBSCRIPTION RPO TRENDS - Subscription RPO rose 1% year over year, while current subscription RPO fell 2%
CAPITAL STRUCTURE ACTIONS - Co entered forbearance agreement with lender after noncompliance with recurring revenue covenant

Company press release: ID:nBw9YHwpza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$79.4 mln
$79.75 mln (6 Analysts)
Q1 Adjusted EPS
Beat
-$0.02
-$0.07 (6 Analysts)
Q1 Billings
 
$60.4 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Domo Inc is $6.50, about 115.2% above its June 12 closing price of $3.02

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)