Domo, Chapter 3: With its Two Latest SEC Filings, Domo has Apparently Checked the Final Boxes for its $400 Million Asset Sale to Progress Software, Which Domo Now Expects to Happen By 30 September 2026

EXECUTIVE SUMMARY

✅ American Fork, Utah-based Domo has filed its definitive Schedule 14C Information Statement (Form DEFM14C) with the U.S. Securities and Exchange Commission, advancing its proposed $400 million asset sale to Progress Software toward a final closing date.

✅ Domo now expects the transaction to close by the end of September, while its latest quarterly report shows the company had just $25.1 million in cash and cash equivalents as of July 31st vs. $138.3 million in debt and related fees where payments due could be accelerated.

✅ Presuming the asset sale closes (which is nearly assured), Progress Software gets substantially all of Domo’s operating business, while Domo shareholders remain invested in a to-be-renamed public company expected to hold roughly $246 million in net cash and more than $900 million in Net Operating Loss carryforwards (NOLs), after the sale but no operating business.

10 September 2026 — AMERICAN FORK, Utah and BURLINGTON, Massachusetts — American Fork, Utah-based Domo (NASDAQ:DOMO) has now filed its definitive Schedule 14C Information Statement with the U.S. Securities and Exchange Commission, moving its proposed $400 million sale of substantially all of its operating assets to Progress Software (NASDAQ:PRGS) closer to consummation.

Domo's Form DEFM14C (dated 24 August 2026), formally began the shareholder-notification period required before the transaction can be completed.

One day later, the U.S. Federal Trade Commission granted early termination of the Hart-Scott-Rodino antitrust waiting period, eliminating another closing condition.

Additionally, in its newly filed Form 10-Q for the quarter ended 31 July 2026, Domo reported that it now expects the transaction to close by the end of September, although 30 November remains the contractual deadline for completing the asset sale.

The latest filings also reinforce why closing the acquisition of the Domo assets sooner vs. later is crucial to the Utah company and its shareholders.

Domo's Financial Pressure Grows

As of 31 July 2026, Domo had $25.1 million in cash and cash equivalents on hand, a drop of nearly $14.0 million vs. its position at the end of the first quarter of 2026 (ended April 30), a decrease of ~35.8%.

Ouch.

Domo also disclosed in its most recent quarterly filing with the SEC that it remains out of compliance with the minimum annualized recurring revenue covenant under its credit facility.

That noncompliance gives its lenders the right to force the accelerated payment of $138.3 million of principal debt and related fees to them.

Domo also reported that its available cash would not be sufficient to repay those obligations if they are accelerated, and that “substantial doubt” continues to exist about its ability to remain what is known as a "going concern."

Management’s plan for addressing these conditions centers on completing the Progress Software transaction.

Period.

That extends, rather than changes, the 20 August 2026 financial-distress story by Utah Money Watch in Domo, Chapter 2, which detailed the

🔺 Covenant default,

🔺 Lender forbearance, plus

🔺 Preparations inside Domo for a possible Chapter 11 bankruptcy filing

if a strategic transaction was not completed in a timely fashion.

What Remains After the Asset Sale

The more consequential issue in this writeup is what Domo shareholders will own after Progress Software acquires essentially all of Domo's assets.

As Utah Money Watch explained in Domo, Chapter 1, Progress Software is not acquiring publicly traded Domo.

Instead, it is acquiring substantially all of its operating assets and employees.

Domo, the corporation itself, will survive as a publicly traded company, but

▪️ With a new name and

▪️ A new stock symbol, with

▪️ Domo shareholders (as of the day the purchase closes) remaining shareholders under the new name and stock symbol.

Following the asset sale closing, Domo plans to

🔴  Repay its credit facility and other obligations,

🔴  Leaving it with ~$246 million in cash and

🔴  Over $900 million in Net Operating Loss carryforwards (NOLs) and other tax attributes.

It's important to note that the NOLs could carry economic value IF the surviving company can generate enough taxable income to use them, but the NOLs are not equivalent to $900 million in cash.

That said,

Will any of that $246 million be distributed to shareholders?

I would not bet on it, but the company has not yet disclosed what its plans are post-sale.

In fact, the Domo Board of Directors expects it will evaluate multiple options for using the remaining cash, including possible acquisitions of assets or businesses generating taxable income against which the NOLs might be applied to offset corporate taxes.

However, the surviving Domo (call it NewDomo for now) will be subject to a three-year worldwide restriction against competing with the Domo business being sold to Progress Software.

In other words, this writeup — Domo, Chapter 3 — is less about revisiting how Domo got here and more about what happens to the money left behind and when?

In other words, when it comes to NewDomo, the foundational 5W's + 1H questions directly apply here:

Who? What? When? Where? Why? + How?

As of today, those NewDomo questions (and the decisions surrounding them) are

✅  Yet to be defined,

✅  Disclosed, and/or

✅  Acted upon.

So for now, we wait.

Publisher's Note

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