Executive Summary
Domo reported QQ4 2025 revenue of $78.8 million, with subscription revenue comprising 91% of the total. The quarter closed with Subscription RPO at $403.6 million, up 14% year over year, marking a material step-change in contract duration and visibility. Management emphasized a strategic shift to an ecosystem-centric GTM, amplified by AI enhancements and a transition to consumption pricing that aligns pricing with delivered value. While the company remains unprofitable on a GAAP basis and posted a net loss of $17.68 million in the quarter, it generated positive operating cash flow and improved free cash flow to $6.0 million, aided by a cash balance of $45.3 million. The company guided FY2026 billings of $310–$320 million and GAAP revenue of $310–$318 million, with non-GAAP EPS in a loss position but with expected improvement in operating margins to around 2% in FY2026. The highlights include: (1) robust RPO growth and a pronounced shift toward longer-duration, multiyear contracts; (2) the acceleration of consumption-led ARR, with consumption customers achieving gross retention >90% and net retention >100% in FY2025; (3) a broad AI narrative, backed by industry awards and an AI services layer that supports multiple model providers within a governed environment; (4) a thriving partner ecosystem (CDWs, SI partners, and Domo Everywhere) that is driving higher win rates and an expanding pipeline, albeit with near-term timing shifts as customers convert to consumption.
Key Performance Indicators
QoQ: -138.46% | YoY:11.76%
Key Insights
Revenue: $78.77m; YoY -1.76%, QoQ -1.25%. Gross margin: 74.4% (gross profit $58.58m). Operating income: -$12.26m; EBITDA: -$10.14m; Net income: -$17.68m; EPS: -$0.45. Subscription RPO: $403.6m, up 14% YoY; Beyond 12 months RPO: +38% YoY. Gross retention: 85% in Q4; 3Q cycle shows persistence at/near 85%+; ARR net retention: improving sequentially; Free cash flow: +$6.0m in Q4; Operating cash flow: $8.92m; Cash balance: $45.3m; Total debt: $131.1m; Net debt: $100.9m; Cash conversion cycle: 37.03 ...
Financial Highlights
Revenue: $78.77m; YoY -1.76%, QoQ -1.25%. Gross margin: 74.4% (gross profit $58.58m). Operating income: -$12.26m; EBITDA: -$10.14m; Net income: -$17.68m; EPS: -$0.45. Subscription RPO: $403.6m, up 14% YoY; Beyond 12 months RPO: +38% YoY. Gross retention: 85% in Q4; 3Q cycle shows persistence at/near 85%+; ARR net retention: improving sequentially; Free cash flow: +$6.0m in Q4; Operating cash flow: $8.92m; Cash balance: $45.3m; Total debt: $131.1m; Net debt: $100.9m; Cash conversion cycle: 37.03 days. Balance sheet: Total assets $214.34m; Total liabilities $391.59m; Total stockholders’ equity: -$177.25m (negative, as common for growth SaaS with elevated intangibles and intangible assets). FY2026 guidance implies operating margin expansion to ~2% and continued cash generation. RPO growth and 65% consumption ARR share by FY2025 indicate material progress toward a more predictable revenue base.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
78.77M |
-1.76% |
-1.25% |
| Gross Profit |
58.58M |
3.28% |
-2.05% |
| Operating Income |
-12.26M |
8.14% |
-10.62% |
| Net Income |
-17.68M |
5.39% |
5.78% |
| EPS |
-0.45 |
11.76% |
-138.46% |
Key Financial Ratios
operatingProfitMargin
-15.6%
operatingCashFlowPerShare
$0.23
freeCashFlowPerShare
$0.17
Management Commentary
Key management insights from the earnings call include: - Josh James emphasized that Q4 beat guidance across billings, revenue, non-GAAP EPS, and adjusted free cash flow, and highlighted a decisive shift to a consumption model that aligns pricing with value delivered. He stated: “RPO was over the $400 million mark for the first time ever” and “consumption is driving longer-term strategic relationships with our customers as evidenced by 38% long-term subscription RPO growth.” He also outlined a four-pillar retention plan: stop charging for seats, partner with CDWs, accelerate consumption, and improve multi-year renewals to lift gross retention. - James stressed that the ecosystem is the focus of 2026, with partnerships (CDWs, SIs, and Domo Everywhere) delivering higher conversion rates and larger share of new logo activity, potentially enabling material billings growth in subsequent quarters. He cited a roughly 5x higher lead conversion from ecosystem-generated leads and 2–3x higher close rates at Stage 3 versus non-ecosystem leads. - Todd Crane reinforced the near-term profitability trajectory, noting gross retention around 85% in Q4 and the expectation of at least a two-percentage-point improvement in FY2026. He confirmed a $5 million shift of renewals into later quarters due to consumption conversions and highlighted a milestone of $6 million in quarterly free cash flow as a proof-point of improving cash generation. - The execs discussed Databricks, Snowflake, and broader CDW partnerships as a tailwind for go-to-market efficiency, with management describing a “friction-reduction” revenue model where channel partners facilitate faster deployments and greater adoption of AI-enabled capabilities. Quotes gathered from the transcript include: “RPO was over the $400 million mark for the first time ever,” “consumption customers had gross retention of over 90% and net retention of over 100%,” and “we expect to be cash flow positive in both Q1 and FY 2026.”
"RPO was over the $400 million mark for the first time ever."
— Josh James
"Consumption customers had gross retention of over 90% and net retention of over 100%."
— Josh James
Forward Guidance
Management provided FY2026 guidance centered on improving profitability and sustaining cash generation while growing revenue. Key points: - FY2026 billings guidance of $310–$320 million and GAAP revenue guidance of $310–$318 million; non-GAAP net loss per share of $0.29–$0.39 (assuming 40.9 million weighted shares). - Q1 guidance: billings of $62–$63 million; GAAP revenue of $77.5–$78.5 million; non-GAAP net loss per share of $0.18–$0.22 (assuming 39.7 million shares). - The company expects gross retention to hold near current levels in Q1 and to improve at least two percentage points in FY2026, driven by longer-durations and consumption-adoption, with consumption renewals contributing a larger share of renewals over time. - The key achievability considerations include: (a) sustained expansion of the partner-led pipeline (CDWs, ISVs, hyperscalers, SIs, and Domo Everywhere), (b) continued AI feature adoption and governance alignment, and (c) a steady conversion of consumption-led ARR into billings. Potential risks include macro spending volatility, execution risk in scaling the partner network, and potential slowdowns in enterprise IT budgets despite AI momentum. Investors should monitor: pace of renewal shifts, the mix of new logo versus expansion within existing customers, the cadence of partner-driven deals, and the ramp of AI-related monetization through Domo Everywhere and AI services.