Domo posted QQ1 2026 revenue of $80.1 million with a non-GAAP gross margin profile that supports a low‑to‑mid teens gross margin under GAAP and an 81.6% non-GAAP subscription gross margin. The company continues to execute its transition to a consumption‑based model anchored by a robust ecosystem and AI agent capabilities. Key profitability indicators improved meaningfully: non-GAAP operating margin reached 1.3% in the quarter and adjusted free cash flow was positive at $1.3 million, marking a notable step toward operating leverage after years of burn. Management framed these results as evidence that the multi‑year transition to a consumption and ecosystem-centric growth engine is delivering higher usage, stronger retention, and longer-duration contracts, setting the stage for sustainable growth and margin expansion in FY2026 and FY2027.
RPO growth accelerated meaningfully: current subscription RPO +5% YoY to $226 million and total subscription RPO +24% YoY to $408 million, with long‑term RPO up 61% YoY. Gross retention stabilized at 86% (up from 85%), while net retention rose to 94% (sequential improvement). Consumption now accounts for roughly 70% of ARR and is expected to approach 90% by year-end, implying a material shift in the revenue base toward higher‑velocity, value-based consumption.
Management provided explicit FY2026–FY2027 guidance, underscoring a gradual path to profitable growth: exit FY2026 with 5% billings growth and 5% operating margin, and exit FY2027 with 10% billings growth and 10% operating margin. The company continues to emphasize AI-driven adoption, expanded partner ecosystem work with CDWs (e.g., Snowflake, Databricks, Oracle, Google), and multiyear contracts as core levers for margin expansion and durable growth.