Domo
Domo sells cloud dashboards and analytics that pull data from other business apps.
On the record
Checkpoint: Deadline to sign a definitive sale agreement under BlackRock forbearance
The call
Domo's product fight with AI copilots is now secondary to a lender-forced sale process that must produce a signed deal by the end of July 2026.
Domo sells business intelligence software that helps companies turn data into charts and reports. The company is being forced to sell itself because it borrowed $137 million but only has $39 million in cash left, and the lender (BlackRock) says the loan deal is broken. Microsoft (Power BI) and Salesforce (Tableau) are winning with cheaper tools built into their existing software packages, and newer AI-powered alternatives like Sigma are starting to replace Domo's core functions. The one thing that could matter now is who buys Domo and whether they keep its AI features and data connectors working independently, because shareholders are unlikely to get paid anything meaningful in this sale.
Why
01
AI pressure: Microsoft Copilot and Salesforce Tableau Next/Agentforce. AI copilots now answer the data questions dashboards used to, and 34% of Domo's churned customers cite cheaper AI-native rivals. Could AI do the core job? Yes, likely.
02
Bigger players: Microsoft (Power BI bundled into M365) and Salesforce (Tableau Next). Both bundle BI and AI query tools into suites customers already pay for, squeezing out standalone tools like Domo. Could a giant copy it? Yes, easily.
03
What protects it. 76% of customers sit on multi-year contracts and 89% of revenue is consumption-based, which slows the exit even as usage erodes.
What would change this call
Whether Domo signs a definitive sale agreement by July 31, 2026. Shows if the lender-forced deadline is met or if BlackRock accelerates the debt.
Named acquirer identity disclosed (e.g., Snowflake, Databricks, ServiceNow, Thoma Bravo). Determines which company absorbs Domo's product and customer base.
Whether Domo.AI and connector library survive as standalone or get folded into buyer's stack. Indicates whether Domo's product line continues independently or disappears.
Named acquirer identity disclosed (e.g., Snowflake, Databricks, ServiceNow, Thoma Bravo). Determines which company absorbs Domo's product and customer base.
Whether Domo.AI and connector library survive as standalone or get folded into buyer's stack. Indicates whether Domo's product line continues independently or disappears.
Key numbers
- $137M BlackRock debt vs $39.1M cash
- Subscription revenue down 2% YoY to $69.8M
- Market cap near $150M, stock at $3.44
Named risks
- Lender-forced sale deadline: sign by July 31, 2026, close by November 30, 2026, or face default on ~$137M debt.
- Liquidity crisis: $39.1 million cash vs current ratio 0.57 as of June 16, 2026.
- Revenue stagnation for 12+ consecutive quarters undermines any acquirer's growth case.
- Core BI features being commoditized by bundled AI copilots from Microsoft and Salesforce.
- Withdrawn financial guidance and canceled earnings Q&A reduce investor visibility ahead of deal news.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Microsoft (Power BI/Copilot) | losing to | Copilot bundled directly into Power BI/M365/Azure at near-zero marginal cost, per June 24 2026 buyer's guide |
| Salesforce (Tableau Next/Agentforce) | losing to | Shipped Tableau Semantics agentic analytics layer as of June 24, 2026 |
| Sigma Computing | losing to | Cited as cheaper AI-native alternative pulling churned customers as of June 2, 2026 |
| ThoughtSpot | losing to | Named among warehouse-native tools commoditizing Domo's dashboard layer, June 2026 |
| Qlik (Thoma Bravo owned) | contesting | Direct self-service BI competitor per June 24, 2026 buyer's guide |
Questions people ask
- Is Domo profitable in 2026?
- No. Domo's FY2026 revenue was roughly flat at $317.0 to $318.5 million, and subscription revenue actually fell 2% year over year to $69.8 million in Q1 FY2027 (quarter ended April 30, 2026), with gross margin slipping to about 73.2% as of July 2026.
- Is Domo being sold or acquired?
- Yes. Domo's board opened a strategic alternatives review in February 2026 and by June 14, 2026 confirmed it was in advanced sale negotiations. A BlackRock forbearance agreement requires a signed deal by July 31, 2026 and a closed deal by November 30, 2026.
- Why is Domo in financial trouble?
- Domo breached a minimum ARR covenant on its roughly $137 million BlackRock debt facility, disclosed June 16, 2026. Cash on hand was only $39.1 million with a current ratio of 0.57, forcing a lender-imposed sale timeline rather than normal operations.
- Who is Domo's biggest competitor?
- Microsoft's Power BI with Copilot and Salesforce's Tableau Next/Agentforce are the largest threats, both bundling agentic AI analytics into existing suites as of June 2026. Domo also competes with cheaper AI-native tools like Sigma and ThoughtSpot that are undercutting its pricing.
- Could AI replace Domo's product?
- AI copilots are already absorbing Domo's core dashboard, natural-language query, and basic ETL functions, per a June 24, 2026 buyer's guide. Domo's own Domo.AI push has not reaccelerated growth, with subscription revenue down 2% year over year as of June 2026.
- What is Domo's stock price and market cap in 2026?
- As of July 20, 2026, Domo traded near $3.44 per share with a market capitalization of roughly $147 to $157 million, far below its 52-week high of $18.49 and its all-time high of $98.35 (per gurufocus.com).
Timeline
- 2026-11-30Deadline under BlackRock forbearance to close a sale transaction
- 2026-07-31Deadline under BlackRock forbearance to sign definitive sale agreement
- 2026-07-20Stock trades near $3.44, market cap roughly $147-157 million (vendor site gurufocus.com)
- 2026-07-09Seeking Alpha reports revenue flat for 12+ quarters, gross margin near 73.2%
- 2026-06-16Citizens cuts price target to $2.25 citing covenant breach; cash $39.1M, current ratio 0.57
- 2026-06-15Q1 FY2027 results: subscription revenue $69.8M, down 2% YoY; gross retention 86.7%
- 2026-06-14Board confirms advanced negotiations on strategic sale
- 2026-02-18Domo board opens formal strategic alternatives review
Revision history
21 July 2026
First assessed. Little protection left. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Domo to Explore Strategic Alternatives and Reaffirms Certain FY2026 Guidance (2026-02-18)
- Domo Announces First Quarter Fiscal 2027 Financial Results and Provides Strategic Alternatives Process Update (2026-06-14)
- Citizens cuts Domo stock price target on covenant breach concerns (2026-06-16)
- Full Transcript: Domo Q1 2027 Earnings Call (2026-06-15)
- Domo outlines strategic transaction talks as gross retention rises to 86.7% (2026-06-15)
- Domo (DOMO) Investor Relations, Earnings Summary & Outlook (2026-07-06)
- gurufocus.com (2026-07-20)
- 10 Best Domo Alternatives & Competitors (2026 Comparison) (2026-06-02)
- Domo Announces Fourth Quarter and Fiscal 2026 Financial Results (2026-03-09)
- Buyer's Guide: Business Intelligence & Analytics (2026-06-24)
- Domo outlines strategic transaction talks as gross retention rises to 86.7% (2026-06-15)
- 10 Qlik Alternatives and Competitors in 2026 (2026-04-14)