Domo, Inc.

Total revenue was $79.4 million. Subscription revenue was $69.8 million, down 2% year over year, while professional services revenue was $9.6 million versus $8.7 million a year ago. Billings were $60.4 million compared with $63.9 million in Q1 last year. Gross retention was 86.7%, up 240 basis points year over year, and net retention was 95.5%, up 150 basis points year over year. Current subscription RPO was $222.2 million and total subscription RPO was $412.9 million. Subscription gross margin was 81.5% and total gross margin was 75.3%. Non-GAAP operating income was $4.4 million, representing a 5.6% margin. Non-GAAP net loss per share was $0.02 on 43.4 million diluted shares. Adjusted free cash flow was close to breakeven, cash from operations was $5.2 million, and cash ended at $39.1 million. The company did not provide financial guidance, citing the advanced stage of strategic discussions.

Joshua G. James framed the quarter around Domo’s strategic review and said the board concluded that pursuing a strategic transaction is the best path forward. He emphasized that enterprise AI is moving from experimentation to production, and argued that Domo’s governed data platform, apps, and AI agents are well positioned for that shift. He also highlighted a series of customer examples where Domo’s forward-deployed engineers built production AI applications quickly, often in 24 to 48 hours, and said these projects are driving deeper adoption and future expansion opportunities.

Tod Crane focused first on the balance sheet and debt, saying the existing facility is classified as current because the minimum ARR covenant was not met for the quarter. He said Domo signed a forbearance agreement with its lender to avoid acceleration while the company works toward the strategic transaction. On financials, he cited $79.4 million of revenue, 81.5% subscription gross margin, 75.3% total gross margin, $4.4 million of non-GAAP operating income, $5.2 million of operating cash flow, and $39.1 million of cash at quarter end. He also said adjusted free cash flow was close to breakeven and that Q4 FY26 renewals made for a tough billings comparison in Q1.

There was no Q&A session because management said the strategic process was too sensitive to host one. The key investor concern addressed on the call was debt and covenant compliance: management explained the debt is current under GAAP due to a missed minimum ARR covenant, but the lender agreed to forbear while the company pursues a transaction. The other major point of clarification was that Domo will not give guidance until the strategic process advances.