Domo, Inc. (DOMO)
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
$3.88+2.37%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-09-04
Warn: Primary pillar under pressure — Positive cash flow from operations: OCF $5.17M vs $5.17M target.
Domo is improving cash flow from -$6.17M to $5.17M by 2027-Q1. Net losses fell from -$19.49M to -$14.17M in the same period. Revenue is steady near $318M for fiscal 2026. These show progress toward profitability and stability.
Domo still loses money and profit margins are flat near $58M. Key leaders left recently, which may hurt execution. Revenue growth is weak, near 1% expected by analysts.
The market expects about 1% revenue growth and values Domo well below our fair value. Our fair value is about 191% above the Street median, reflecting more optimism on recovery.
Breaks if: gross profit falls below $55 million next year
Focus on improving gross profit margins to enhance overall profitability.
Stated as a priority in 3 of last 3 quarters. Gross profit margin was about 74% in 2026-Q2 and improved slightly to about 77% in 2027-Q2. Management has maintained focus on margin improvement but progress is modest. The trajectory shows limited progress on improving gross profit margins.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story, as DOMO is working to improve its financial performance and reduce losses. The current thesis state is mixed, with some positive momentum but significant challenges remain.
The market seems to have priced in a low expectations gap, suggesting that investors are not overly optimistic about DOMO's near-term performance. The valuation is considered cheap compared to peers, but there is a divergence in expectations.
Fundamentally, DOMO is on track to achieve positive cash flow and reduce net losses, which indicates some improvement. However, the recent financial performance has been weak, and there is a near-term risk of missing earnings expectations.
The long-term thesis hinges on management's ability to successfully execute strategic transactions and improve financial metrics. Additionally, broader market conditions, such as potential interest rate cuts and performance from sector leaders, will play a crucial role.
The most important moves since the prior daily snapshot.
Company quality rose by 11.8 points (from 27.4 to 39.2).
Company momentum rose by 16.8 points (from -1.5 to 15.3).
Confidence changed from 'medium' to 'high'.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Gross profit was $59.2 million on revenue of $76.8 million.”
“Gross profit was $58.5 million on revenue of $79.4 million.”
“Gross profit was $58.8 million on revenue of $79.7 million.”
Breaks if: cash flow from operations falls below $0 million next year
Focus on generating positive cash flow from operating activities to improve financial stability.
Stated as a priority in 3 of last 3 quarters. Cash from operating activities was $5.17 million in both 2027-Q1 and 2027-Q2, indicating positive cash flow. Management emphasized positive cash flow and meaningful EBITDA in 2026-Q2. The trajectory is delivering on this priority with consistent positive cash flow.
“Cash from operating activities was $5.17 million, showing positive cash flow.”
“Cash from operating activities was $5.17 million, reflecting positive cash flow.”
“Management stated the business is generating positive cash flow and meaningful EBITDA.”
Breaks if: net losses worsen beyond -$14.17M next year
Continue efforts to reduce net losses and improve profitability over time.
Stated as a priority in 3 of last 3 quarters. GAAP net loss improved from $18.1 million in 2026-Q1 to $14.2 million in 2026-Q2 and further to $9.6 million in 2027-Q2. Management has reiterated focus on reducing net losses. The trajectory shows delivering progress on reducing net losses.
“Net loss was $9.6 million, showing improvement from prior quarters.”
“Net loss was $14.2 million, improved from previous quarters.”
“GAAP net loss was $14.2 million, improved from $18.1 million in prior quarter.”
Breaks if: revenue falls below $300 million in FY26
In the next 1 to 3 years, DOMO's path will depend on its execution of strategic priorities and external market factors. Not investment advice.
Signal changed from 'mixed' to 'mild_favorable'.
Row no longer provisional (all expected sub-scores present).
Mixed, the news cuts both ways. The latest earnings beat supports the read. However, revenue fell short of estimates, which threatens the goal of achieving positive cash flow from operations.
as of 2026-09-04