DOMO, INC.DOMO

DOMO, INC. Fair Value Disclosure

10-KFiled Apr 16, 20263 min read
Fair Value Measurements
Assets Measured at Fair Value on a Recurring Basis
Financial instruments recorded at fair value in the financial statements are categorized as follows:
•Level 1: Observable inputs that reflect quoted prices for identical assets or liabilities in active markets.
•Level 2: Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Unobservable inputs reflecting management's assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available.
The following tables summarize the assets measured at fair value on a recurring basis as of January 31, 2025 and January 31, 2026 by level within the fair value hierarchy (in thousands):
January 31, 2025
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$15,056 $— $— $15,056 
Financial liability:
Warrant liability$— $— $11,208 $11,208 
January 31, 2026
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$5,491 $— $— $5,491 
Financial liability:
Warrant liability$— $— $9,249 $9,249 
Level 3 instruments consisted of a liability related to warrants to purchase Class B common stock, which were issued in connection with the credit facility. See Note 11 "Debt" for further details surrounding this issuance. The warrant liability was recorded at fair value upon issuance and is remeasured at each subsequent quarterly period end date as long as the warrants are outstanding. Generally, increases (decreases) in the fair value of the underlying stock and estimated term would result in a directionally similar impact to the fair value measurement, and are recognized in other income (expense), net in the condensed consolidated statements of operations.

The changes in the fair value of the warrant liability were as follows (in thousands):
Balance as of January 31, 2024$— 
Issuance of Class B common stock warrants11,058 
Change in fair value of Class B common stock warrants150 
Balance as of January 31, 202511,208 
Change in fair value of Class B common stock warrants(1,959)
Balance as of January 31, 2026$9,249 
The value of the warrant liabilities are estimated using the Black-Scholes option-pricing model with the following assumptions:
Year ended January 31,
2025
2026
Expected stock price volatility
70% - 79%
63% - 72%
Expected term
3.0 - 4.0 years
2.1 - 3.3 years
Risk-free interest rate
3.81% - 4.80%
3.52% - 3.89%
Expected dividend yield——
During the years ended January 31, 2025 and 2026, the Company had no transfers between levels of the fair value hierarchy of its assets and liabilities measured at fair value.
Fair Value of Other Financial Instruments
The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, accounts payable, accrued liabilities, and other liabilities approximate fair value due to their short-term maturities and are excluded from the fair value tables above.

Historical Timeline

Fiscal YearFiled
2026Apr 16, 2026Showing above
2025Apr 4, 2025
2024Mar 28, 2024

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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