📊 DOMO Key Takeaways
Is DOMO a Good Investment? Thesis Analysis
Domo exhibits severe financial distress with negative stockholders' equity of -$191.9M, indicating the company has lost more than its net worth. Despite strong gross margins of 74.4%, the company is unprofitable with -21.5% net margins and critically weak liquidity (0.49x current ratio), creating imminent solvency concerns. Minimal revenue growth (-0.6% YoY) combined with persistent operating losses (-$28.5M) and high debt burden ($124.2M) suggest structural business challenges that require urgent resolution.
Why Buy DOMO? Key Strengths
- Strong gross margin of 74.4% demonstrates pricing power and efficient cost of goods sold management
- Positive operating cash flow of $10.7M provides some near-term breathing room despite net losses
- Software-as-a-Service business model with recurring revenue potential remains intact
DOMO Investment Risks to Consider
- Negative stockholders' equity of -$191.9M indicates technical insolvency and significant shareholder dilution risk
- Critical liquidity crisis with current ratio of 0.49x - liabilities exceed current assets by 2x, creating going concern questions
- Stalled revenue growth (-0.6% YoY) combined with operating losses (-$28.5M) and high debt servicing costs ($124.2M long-term debt) threaten financial viability
- Persistent net losses (-$51.4M) and negative ROA of -25.5% indicate operational model is destroying shareholder value
Key Metrics to Watch
- Quarterly revenue growth trajectory and customer retention metrics
- Path to operating profitability and operating margin expansion
- Debt refinancing events and covenant compliance status
- Cash burn rate and runway given current cash position of $47.9M
DOMO Financial Metrics
💡 AI Analyst Insight
The relatively thin 1.3% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
DOMO Profitability Ratios
DOMO vs Technology Sector
How DOMO, INC. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DOMO Overvalued or Undervalued?
Based on fundamental analysis, DOMO, INC. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DOMO Balance Sheet & Liquidity
DOMO 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: DOMO, INC.'s revenue has grown significantly by 52% over the 5-year period, indicating strong business expansion. The most recent EPS of $-3.10 indicates the company is currently unprofitable.
DOMO Growth Metrics (YoY)
DOMO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $79.4M | -$10.4M | $-0.25 |
| Q2 2026 | $78.4M | -$18.1M | $-0.51 |
| Q1 2026 | $80.1M | -$18.1M | $-0.45 |
| Q3 2025 | $79.7M | -$16.1M | $-0.45 |
| Q2 2025 | $78.4M | -$16.1M | $-0.45 |
| Q1 2025 | $79.5M | -$24.4M | $-0.69 |
| Q3 2024 | $79.0M | -$16.1M | $-0.45 |
| Q2 2024 | $75.5M | -$16.1M | $-0.45 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DOMO Capital Allocation
DOMO SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for DOMO, INC. (CIK: 0001505952)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DOMO
What is the AI rating for DOMO?
DOMO, INC. (DOMO) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DOMO's key strengths?
Claude: Strong gross margin of 74.4% demonstrates pricing power and efficient cost of goods sold management. Positive operating cash flow of $10.7M provides some near-term breathing room despite net losses.
What are the risks of investing in DOMO?
Claude: Negative stockholders' equity of -$191.9M indicates technical insolvency and significant shareholder dilution risk. Critical liquidity crisis with current ratio of 0.49x - liabilities exceed current assets by 2x, creating going concern questions.
What is DOMO's revenue and growth?
DOMO, INC. reported revenue of $239.2M.
Does DOMO pay dividends?
DOMO, INC. does not currently pay dividends.
Where can I find DOMO SEC filings?
Official SEC filings for DOMO, INC. (CIK: 0001505952) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DOMO's EPS?
DOMO, INC. has a diluted EPS of $-1.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DOMO a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, DOMO, INC. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DOMO stock overvalued or undervalued?
Valuation metrics for DOMO: ROE of N/A (sector avg: 22%), net margin of -21.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy DOMO stock in 2026?
Our dual AI analysis gives DOMO, INC. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DOMO's free cash flow?
DOMO, INC.'s operating cash flow is $10.7M, with capital expenditures of $7.6M. FCF margin is 1.3%.
How does DOMO compare to other Technology stocks?
Vs Technology sector averages: Net margin -21.5% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.49 (avg: 2.5).