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.
Advisors
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:
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.