Domo Enters Forbearance Pact With Lenders After Missing Loan Covenants, Seeks Sale by July 31

Domo entered a forbearance agreement with lenders after reporting that its annualized recurring revenue no longer met minimum loan covenants. The company said it lacked cash to repay $137 million in principal and related fees and must reach a sale agreement by July 31.

Business Insider reported that Domo, which began exploring strategic alternatives in February, stated in June it was in advanced talks on a potential transaction.

The firm posted a 1 percent quarterly revenue decline to $79.4 million and has recorded losses every quarter since going public in 2018. Josh James founded Domo in 2010 after selling his earlier company Omniture to Adobe. The firm reached a $2.8 billion valuation in 2021, but its market capitalization stood at $133 million on Friday after an 80 percent share-price drop over the past year.

James controls 76 percent of voting power through supervoting shares. James stepped down as CEO in March 2022 after a former employee accused him of sexual assault on a business trip, an allegation he denied. He returned to the role in 2023, at which point interim CEO John Mellor, chief operating officer Catherine Wong, the chief legal officer, the chief financial officer, and three board members left the company.

James was arrested in 2025 on a DUI charge after crashing his BMW into a mailbox in Sandy City, Utah. He pleaded not guilty and faces a July hearing. On a December earnings call he said he had entered residential substance abuse treatment and reduced his duties to focus on recovery.

He resumed full-time CEO responsibilities in April. Chief operating officer Mark Maughan resigned in January under a separation agreement that included a $1.5 million cash payment, accelerated vesting of restricted stock units, and $1.9 million in stock over three years, partly to settle accusations of physical contact. James and his wife listed their Utah house for sale in September.