Domo's Q2 Loss Narrows to $9.6M as $400M Progress Asset Sale Nears Close
DOMO sits 89% above its 52-week low of $1.84.
Summary
Domo reported a narrower Q2 loss and detailed the assets being sold to Progress Software for $400 million, but cash of $25.1 million remains far short of the $137.2 million debt that comes due if the deal fails to close by November 30.
Key Events · Earnings and Guidance · DOMO
-
Q2 Loss Narrows to $9.6M
Revenue fell 4% to $76.8M while net loss improved to $9.6M from $22.9M a year ago, helped by a $10.2M favorable swing in warrant liability remeasurement and lower sales/marketing spend.
-
Cash Dwindles to $25.1M
Cash and equivalents dropped from $43.0M at January 31 to $25.1M at July 31, 2026, while current debt stands at $137.2M — insufficient to repay the term loan if lenders accelerate.
-
Going Concern Warning Reaffirmed
Management states substantial doubt exists about the company's ability to continue as a going concern, with the covenant default unresolved and the forbearance agreement expiring November 30, 2026.
-
$400M Asset Sale to Progress Software
The sale of substantially all operating assets is expected to close by end of September 2026; proceeds will repay the credit facility in full, leaving a debt-free shell with NOLs to monetize.
Analysis · DOMO · Technology
Domo's Q2 FY2027 results show a sharply narrower net loss of $9.6 million versus $22.9 million a year ago, driven by cost cuts and a favorable warrant remeasurement. But the real story is the balance sheet: cash has fallen to $25.1 million against $137.2 million of current debt, and the company remains in covenant default with only a forbearance agreement standing between it and lender acceleration. The $400 million Progress Software asset sale, expected to close by end of September 2026, is the sole path to repaying that debt. If the deal slips past the November 30, 2026 forbearance deadline, lenders can demand immediate repayment — cash on hand covers less than a fifth of what's owed.
How filings like this one have moved
In the 30 days to Sep 9, 2026, 36.4% of the 1919 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, DOMO was trading at $3.48 on NASDAQ in the Technology sector, with a market capitalization of approximately $178.3M. The 52-week trading range was $1.84 to $18.49. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.