Domo Stock: Q4 Earnings Beat Overshadowed by Debt Concerns

TLDR

• Domo reported Q4 EPS of $0.03, beating the consensus estimate of -$0.03 by $0.06
• Revenue came in at $79.63M, ahead of the $78.65M estimate
• The stock trades at $4.38, down 74% over the past six months, near its 12-month low of $3.45
• Citizens reiterated a Market Underperform rating with a $3.50 price target, citing debt and competition concerns
• Domo carries ~$126M in debt at a 12.2% interest rate, with only $43M cash on hand

Domo posted a surprise profit in Q4 fiscal 2026, flipping the script on analyst expectations. The cloud business intelligence company earned $0.03 per share against a consensus forecast of a $0.03 loss — a $0.06 beat.

Revenue for the quarter hit $79.63 million, topping the $78.65 million estimate. It was a clean beat on both lines.

The stock rose $0.11 on the day to $4.38, on volume of around 1.75 million — above its average of 1.27 million. But zoom out and the picture looks rougher.

Domo, Inc., DOMO

Domo is down about 74% over the past six months. Its 12-month high sits at $18.49. It’s currently trading well below both its 50-day moving average of $5.68 and its 200-day moving average of $10.47.

Despite the earnings beat, Citizens kept its Market Underperform rating and $3.50 price target on the stock. That’s below where it’s currently trading.

Debt Load Is the Core Concern

Citizens pointed to Domo’s debt as a central risk. The company has a credit facility of roughly $126 million carrying a 12.2% interest rate, due in August 2028. Against that, Domo holds just $43 million in cash.

That gives Domo a current ratio of 0.57 — meaning short-term obligations exceed liquid assets. It’s a tight spot.

The debt also comes with covenants. Domo must hit minimum annual recurring revenue of $285 million by end of fiscal Q4 2026, rising to $290 million by end of fiscal Q1 2027. It also needs to maintain adjusted EBITDA of at least $12.1 million and $15.2 million at those same checkpoints.

A liquidity covenant requires Domo to keep at least $25 million in unrestricted cash in U.S.-based pledged accounts.

Competition Isn’t Getting Easier

Citizens also flagged the competitive environment. Domo operates in the Snowflake ecosystem, where it faces pressure from vendors including Sigma Computing.

Sigma disclosed at the Citizens Technology Conference last week that it hit $200 million in annual recurring revenue — roughly doubling year-over-year. That’s the kind of growth that makes the competitive dynamics hard to ignore.

Analyst sentiment on Domo is mixed at best. TD Cowen cut its target from $16 to $9 but kept a Buy rating. Citigroup downgraded Domo from Outperform to Underperform in February. Lake Street and Wall Street Zen both moved to Hold.

Cantor Fitzgerald is the outlier, maintaining an Overweight rating with a $22 price target.

The consensus sits at “Hold” with a price target of $12.07 — nearly three times the current stock price.

On the ownership side, institutional investors hold 76.64% of the stock. Goldman Sachs increased its position by 22.5% last quarter. AQR Capital Management added 17.5% to its holdings.

The stock has a market cap of $183 million, a P/E ratio of -2.56, and a beta of 1.70. Its 12-month low is $3.45.

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