Domo Reports First NonGAAP Profit
(NASDAQ:DOMO) reported fiscal second quarter 2026 earnings on August 28, 2025, delivering $79.7 million in GAAP revenue, $70.3 million in billings, its first positive non-GAAP EPS ($0.02), and $1.4 million in positive adjusted free cash flow. Management emphasized a successful transformation to a consumption-based model, rapidly expanding cloud data warehouse (CDW) partnership activity, and rising net revenue retention (NRR), particularly among new consumption customers, which reached 108%. The following insights examine the company's business model inflection, emerging competitive strengths, and investment implications. (Fiscal year 2026 refers to the period ending January 31, 2026.)
The company's annual recurring revenue (ARR) mix reached over 75% consumption-based contracts, up from just a few percentage points two years ago, with management aiming to exit fiscal 2026 above 85%. Consumption customer NRR for those who initiated purchases on the new model was 108%, while total ARR net retention rate was over 94%, marking the fourth consecutive sequential increase.
This historic mix shift to consumption contracts, coupled with surging sales productivity and annual contract value (ACV) momentum, signals structurally higher growth capacity and improves Domo’s long-term operating leverage, as well as customer expansion potential.
Source Fool.com
Domo Stock
With 14 Buy predictions and not the single Sell prediction the community is currently very high on Domo.
As a result the target price of 13 € shows a very positive potential of 68.7% compared to the current price of 7.71 € for Domo.
