Domo, Inc. announced that its Board of Directors has begun a formal process to explore strategic alternatives, including a strategic investment, sale, or business combination. The announcement was made on Thursday, February 19 2026, and the company reaffirmed its fiscal‑year 2026 guidance of $317.5 million to $318.5 million in revenue and a non‑GAAP net loss per share of $0.07 to $0.11.
The company is in the midst of a transition to a consumption‑based pricing model, which accounted for more than two‑thirds of its business by March 2025. This shift is intended to align revenue with customer usage and improve retention. Concurrently, Domo has invested heavily in artificial intelligence, launching new features such as the Domo.AI framework, AI Chat, and Agent Catalyst to enhance its platform.
Financially, Domo reported Q3 FY2025 revenue of $79.76 million, up 0.1% year‑over‑year, and a net margin of –21.71%. In Q4 FY2024, revenue was $80.2 million, up 1% YoY. The company has struggled with profitability, consistently reporting net losses, but has seen modest improvements in operating margin and cash flow. The FY2026 guidance signals confidence in modest growth while acknowledging ongoing challenges.
CEO Josh James said the company has made significant progress in strengthening its product platform and expanding AI capabilities, and believes this is an appropriate time to evaluate opportunities that could accelerate growth and maximize shareholder value. He also emphasized a continued focus on customers and employees.
Analysts and investors have expressed mixed views. Some analysts have downgraded the company, while others maintain a buy stance. The announcement has highlighted valuation concerns and the need for a strategic review to unlock value.
The strategic review could lead to a transaction that changes ownership or structure, potentially accelerating growth or improving financial performance. Domo remains committed to its consumption‑based model and AI initiatives, which are expected to drive long‑term value.
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