Domo Issues Going Concern Warning, Says Deal Could be Announced Soon

By Elias Schisgall

Domo lacks the resources to pay its debts and continue operations for another year, but said it is closing in on a deal following a review of strategic alternatives.

The artificial-intelligence and data-products platform on Monday said it is in "advanced negotiations" toward a strategic transaction after its board concluded that such a deal would maximize value for shareholders, adding that the talks have led to "substantial progress."

"If negotiations continue to progress successfully, Domo anticipates that a potential transaction could be announced in the near term and completed thereafter," the company said.

No agreement has been signed and that the talks may not result in a transaction, the company said. It did not share details of the potential transaction.

The company's heavy losses from operations have created substantial doubt about its ability to continue as a going concern for the next year, it disclosed in a Monday filing with the Securities and Exchange Commission. It has an accumulated deficit of around $1.56 billion and a stockholders' deficit of $186.3 million.

With $39.1 million in cash and cash equivalents as of the end of April, Domo said, it is not able to repay the $136.6 million it owes under a credit facility secured by "substantially all" of its assets.

It said it entered into a forbearance agreement with its lender after falling out of compliance with the minimum recurring revenue requirement under its credit facility, the company said, adding that the agreement would offer it more flexibility to execute a transaction.

Shares of Domo were down 4.6% to $3.11 in after-hours trading on Monday. The stock closed up 8% at $3.26, down 61% this year.

The company on Monday reported a loss of $14.2 million, or 33 cents a share, compared with a loss of $18.1 million, or 45 cents a share, a year earlier.

On an adjusted basis, the company reported a loss of 2 cents a share. Analysts polled by FactSet were expecting an adjusted loss of 4 cents a share.

Revenue fell to $79.4 million from $80.1 million. Analysts were expecting $79.6 million in revenue.

The company last week delayed its first-quarter financial release, saying it needed more time to complete its financial statements.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

June 15, 2026 16:54 ET (20:54 GMT)

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