Coveo Reports Second Quarter Fiscal 2026 Financial Results

Executive Summary

• Coveo reported Q2 FY 2026 SaaS Subscription Revenue of $35.9 M, up 15% YoY and beating its own guidance.
• Net loss narrowed to $4.4 M from $5.4 M a year earlier; Adjusted EBITDA fell to $0.6 M but the company expects breakeven adjusted EBITDA for Q3 FY 2026 and full‑year FY 2026.
• The firm announced a new Chief Marketing Officer, revised upward its revenue guidance range, and reaffirmed its positive cash‑flow outlook for the full fiscal year.

Key Details

• Revenue Highlights – SaaS Subscription Revenue: $35.9 M (Q2 2026) vs. $31.2 M (Q2 2025), +15%; Core Platform revenue $35.0 M (+17%); Total revenue $37.3 M (+14%).
• Margin & Profitability – Gross margin 79%, product gross margin 82% (flat YoY). Net loss $(4.4) M, improved 18% from prior year; Adjusted EBITDA $(0.6) M, down 61% YoY.
• Cash Position – Cash & cash equivalents $108.2 M as of Sept‑30‑2025; operating cash flow ($10.8) M vs. +$1.4 M a year ago.
• Operating Metrics – Net Expansion Rate 104% (down 300 bps YoY due to one large contract renewal).
• Growth Drivers – Commerce bookings ~50% of new business, driven by SAP partnership; Generative AI accounts for >35% of new bookings with 2.5× year‑over‑year customer/revenue growth. New customers added: Elite Supplements, Hornbach, CarltonOne, Gosselin Photo, Halliburton, Deckers Outdoor Corp., Intermountain Healthcare, BMR Group, etc.
• Awards & Recognitions – Received SAP® Global Customer Experience Award for Partner Excellence 2025; earned AWS Generative AI Competency.
• Leadership Changes – Pranshu Tewari appointed Chief Marketing Officer (effective Nov 10); COO John Grosshans to depart effective Nov 1.
• Financial Outlook – Revised upper‑end revenue guidance; Q3 FY 2026 SaaS Subscription Revenue forecast $35.7–$36.2 M, total revenue $37.1–$37.6 M; FY 2026 SaaS Subscription Revenue $141.5–$142.5 M, total revenue $147.5–$148.5 M. Adjusted EBITDA expected to be approximately breakeven for both Q3 and full year. Positive operating cash flow anticipated for FY 2026.
• Conference Call – Management (CEO Laurent Simoneau, Executive Chairman Louis Têtu, CFO Brandon Nussey) hosted a call on Oct 30 2025; webcast link provided.

Notable Quotes

“Our customers see industry‑leading results when they integrate our platform into their AI strategies,” – Laurent Simoneau, Co‑Founder & CEO.
“Generative and agentic AI represent the most significant opportunities of our time,” – Louis Têtu, Executive Chairman.