Domo, Inc. — Earnings Quality Grade F
DOMO · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 15 days (82 → 98)
Small-cap context: DSO swings on a small revenue base are more often quarterly customer-mix effects than red flags.
AR outpaced revenue for 2 consecutive years
Revenue 0.6%, CFFO 187.6%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 5.4% vs revenue 0.6%. Normal
SG&A/Gross Profit = 82.4%, exceeds 70%
Gross margin 75.0%, change +0.5pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -28.6%. Low accruals
Cash $0.0B covers only 27% of debt $0.1B
Balance Sheet Health
Goodwill+Intangibles $0.0B = -6% of equity. Manageable
Debt/EBITDA = -5.4x. Healthy
Other assets -4.8% vs revenue 0.6%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -5% YoY. Normal
Manipulation Score
M-Score = -3.58 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25