Domo (DOMO) investor relations material

Executive summary

• Q2 FY26 revenue was $79.7 million, with subscription revenue at $72.7 million and billings at $70.3 million; subscription revenue comprised 91% of total revenue.

• Achieved first ever positive non-GAAP EPS ($0.02) and record non-GAAP operating margin (8%), while GAAP net loss was $22.9 million.

• Over 75% of ARR is now on the consumption model, up from just a few percent two years ago, and 72% of customers are under multi-year contracts.

• International momentum was strong, with Japan nearly doubling new ACV year-over-year and achieving record TCV.

• Recognized as a leader in industry reports and for workplace diversity and advancement.

Financial highlights

• Subscription revenue increased 3% year-over-year to $72.7 million; professional services revenue declined 7% to $7.0 million.

• Subscription gross margin rose to 81.9% (GAAP 81%, non-GAAP 82%), the second consecutive quarter of improvement.

• GAAP operating margin improved to -9%, up 9 percentage points year-over-year; non-GAAP operating margin was 8%.

• Adjusted free cash flow was $1.4 million, up 125% year-over-year; cash and cash equivalents were $47.1 million as of July 31, 2025.

• Non-GAAP net income was $0.9 million; net loss per share (GAAP) was $(0.56) for the quarter.

Outlook and guidance

• Q3 guidance: billings of $75.5M–$76.5M, GAAP revenue of $78.5M–$79.5M, non-GAAP net loss per share of $0.03–$0.07.

• Full-year FY26 guidance: billings of $317M–$321M, GAAP revenue of $316M–$320M, non-GAAP net loss per share of $0.11–$0.19.

• Management expects continued margin improvement and sustained positive cash flow through cost control and sales alignment.

• Expects to exit FY26 with 6% billings growth and non-GAAP operating margin, up from prior 5% guidance.

• Macroeconomic headwinds are expected to continue impacting sales cycles and renewals in the near term.