Domo to sell operating business to Progress Software in $400 million deal. Domo's board unanimously approved a $400 million asset sale to Progress Software, ending months of financial distress. Domo will retain over $900 million in tax loss carryforwards and continue as a separate public company under a new name. American Fork, Utah - July 22, 2026 Today Domo, Inc. (NASDAQ: DOMO) announced that its board of directors has unanimously approved a definitive agreement under which Progress Software Corporation (NASDAQ: PRGS) will acquire substantially all of Domo's assets, employees, and operating platform for $400 million in cash, subject to customary purchase price adjustments. The deal caps a months long strategic review process and follows a period of mounting financial pressure for the AI and data analytics company, including a lender forbearance agreement and a going concern disclosure earlier this summer. Deal structure Under the agreement, Progress will acquire Domo's operating business, technology platform, customer contracts, employees, intellectual property, vendor relationships, and foreign subsidiaries, along with certain liabilities. The sale excludes Domo's net operating loss (NOL) carryforwards, which total more than $900 million. At closing, Domo expects to hold net cash of approximately $246 million, or $4.84 per share, an 81% premium to its 30-day volume-weighted average price. The company will pay off its existing credit facility in full at closing. Domo, Inc., the Delaware holding company, will change its name and ticker and continue as a separate, publicly listed, debt-free entity with limited operating expenses. Founder and CEO Josh James will continue to lead the company and its board. The board intends to use the transaction proceeds to explore ways to monetize the NOLs, including potential deals that draw on the company's AI and automation expertise, as well as returning capital to shareholders. Domo has also adopted a tax benefits preservation plan intended to protect its NOL carryforwards by reducing the likelihood of an "ownership change" under Section 382 of the Internal Revenue Code, which could otherwise limit the company's ability to use the tax attributes. Domo's controlling shareholder, James, executed an irrevocable consent providing shareholder approval of the transaction. The deal is not subject to a financing condition and is expected to close before the end of Progress's fiscal year on November 30, 2026, pending regulatory approvals and other customary closing conditions. Until then, Domo and Progress will continue operating as separate companies. Domo said it will file a Schedule 14C information statement with the SEC, to be mailed to stockholders of record as of July 22, 2026 - this is how James's irrevocable consent gets formalized rather than a shareholder vote. Board chair Carine Clark said the sale reflects the board's conclusion, reached with outside financial and legal advisors, that the Progress deal was the best path forward for stockholders, balancing near-term value with preservation of the company's tax attributes. James framed the sale as an opportunity for Domo's platform to continue under new ownership, crediting the employees who built the company and expressing confidence that Progress can extend the impact of the team's work. Progress President and CEO Yogesh Gupta said Domo's data integration, governed analytics, automation, and AI-powered data products complement Progress's focus on context and control for enterprise AI. Jefferies LLC served as exclusive financial advisor to Domo, with Goodwin Procter LLP as legal counsel. Citi served as exclusive financial advisor to Progress, with DLA Piper LLP (US) as legal counsel. The Road to The Sale The Progress deal caps a difficult run for Domo that became increasingly public over the past few months: * February 2026: Domo's board initiated a formal strategic alternatives process aimed at maximizing shareholder value, engaging multiple parties with the support of independent financial and legal advisors. Confirmed independently in two Domo-authored primary sources: the June 15, 2026 press release (domo.com) and the company's Form 10-K, filed April 16, 2026, which references "In February 2026, we announced that our board of directors initiated a formal process to explore strategic alternatives to maximize shareholder value" in its risk factors section (sec.gov). * March 10, 2026: Domo reported fiscal fourth-quarter and full-year 2026 results. Full-year revenue came in at $318.9 million, up 0.6% year over year, with a GAAP operating margin of negative 13%, per the company's press release (domo.com). The company's 10-K, filed April 16, 2026, separately disclosed a net loss of $59.3 million for fiscal 2026, an accumulated deficit of $1,546.9 million, and $43.0 million in cash and cash equivalents as of January 31, 2026 - all three figures confirmed directly in the filing text (sec.gov). * June 15-16, 2026: Domo reported fiscal first-quarter 2027 results alongside a strategic alternatives update, per the company's press release (domo.com). Revenue declined 0.9% year over year to $79.4 million, missing Wall Street's billings and revenue expectations. The company disclosed noncompliance with the minimum annualized recurring revenue covenant under its credit facility and said it had entered a forbearance agreement with its lender, along with a going concern disclosure detailed in its Form 10-Q (referenced, not itself detailed, in the press release). The balance sheet reflected the covenant breach directly: $137.1 million in debt was reclassified from long-term to current liabilities between January 31 and April 30, 2026, and cash and cash equivalents fell from $43.0 million to $39.1 million over the same quarter - figures drawn from the balance sheet tables published with the press release. Shares fell as much as 36% in the days following the disclosure, per GuruFocus (gurufocus.com), and traded down roughly 10% in after-hours activity immediately after the earnings release, per ChartMill (chartmill.com). Note: Despite the going-concern language, Domo's operating metrics showed some signs of stabilizing heading into the sale: subscription remaining performance obligations were $412.9 million as of April 30, 2026, up 1% year over year, and non-GAAP operating margin had turned positive. * July 22, 2026: Domo and Progress Software announced the definitive agreement covered in this article, per the joint press release.

Progress Software is acquiring substantially all assets and certain liabilities of Domo for $400 million in cash. The deal, unanimously approved by Domo's board, excludes the company's net operating loss carryforwards valued at more than $900 million. At closing, Domo will have net cash of approximately $246 million, or $4.84 per share, representing an 81% premium to the 30-day volume weighted average price. Domo's operating business and platform will become part of Progress, which will continue serving customers and supporting the technology platform. After the transaction, Domo will remain a publicly listed entity with limited operating expenses and a debt-free balance sheet. The board intends to use proceeds to monetise its tax attributes and consider opportunities in AI and automation or returning capital to shareholders. The transaction is expected to close before 30 November 2026, subject to regulatory approvals.

Dynatrace emerged as a promising software stock whilst analysts recommend avoiding Domo and Asure Software, according to recent market analysis. Domo, a cloud-based business intelligence provider, showed weakness with average billings growth of just 1.3% and projected sales decline of 1.7% over the next 12 months. The company trades at $3.52 per share, or 0.5 times forward price-to-sales. Asure Software, which provides human capital management software for small and medium-sized businesses, posted 12.3% annual sales growth over two years, below typical software company performance. Its free cash flow margin of 5.3% limits investment capacity. The stock trades at $8.27 per share, or 1.4 times forward price-to-sales. Dynatrace, an AI-powered IT performance monitoring platform processing over 30 trillion data points daily, was highlighted as the sector's most attractive opportunity.