Earnings
Coveo Reports First Quarter Fiscal 2026 Financial Results
CVO · Price
Executive Summary
- Coveo reported Q1 FY 2026 revenue of $35.5 M, up 10% YoY, with core platform SaaS revenue rising 16% to $33.1 M.
- Net loss widened to $15.1 M (‑147% YoY) while operating cash flow more than doubled to $7.1 M.
- Management highlighted strong new‑business momentum, ~50% of bookings driven by Generative AI solutions, and an expanded partnership with SAP.
Key Details
- Revenue: Total $35.5 M (Q1 2025: $32.2 M) – 10% increase.
- SaaS Subscription Revenue: $34.2 M (+12%). Core platform SaaS $33.1 M (+16%); Qubit Platform SaaS $1.0 M (‑46%).
- Gross Margin: 77% (down 1 pt); Product gross margin 81% (down 1 pt).
- Net Loss: $(15.1) M vs. $(6.1) M prior year (+147%).
- Adjusted EBITDA: $(1.9) M vs. $(1.7) M prior year (‑14%).
- Operating Cash Flow: $7.1 M vs. $3.0 M prior year (+134%).
- Cash Position: $128.5 M as of June 30 2025.
- Net Expansion Rate: 105% (108% excl. Qubit churn).
Business Highlights
- New‑business bookings hit record Q1 level; generative AI solutions accounted for ~50% of new bookings.
- Major customer wins: SanMar, S.Oliver Group, Watchguard, National Bank of Canada, etc.
- SAP expanded its use of Coveo’s Generative AI suite, deepening the partnership globally.
- Salesforce collaborations announced (Agentforce 3 launch partner; expansion of AgentExchange).
- Coveo listed in Gartner Magic Quadrant 2025 as a Leader for Search & Product Discovery (2nd consecutive year).
Share Repurchase Activity
- Purchased 510,988 subordinate voting shares at C$7.23/share ($2.7 M) during the quarter.
- Total repurchases to date: 2,690,573 shares at weighted avg C$6.43/share ($12.6 M).
- Renewed NCIB on July 15 2025 for up to 5,423,244 shares over next 12 months; automatic securities purchase plan also renewed.
Financial Outlook (Guidance)
| Q2 FY’26 | FY 2026 | |
|---|---|---|
| SaaS Subscription Revenue | $35.3‑$35.8 M | $141.5‑$144.5 M |
| Total Revenue | $36.6‑$37.1 M | $147.5‑$150.5 M |
| Adjusted EBITDA | ($0.5)‑$0.5 M | Approximately breakeven |
| * Expected positive operating cash flow of ~US$10 M for FY 2026. |
Conference Call
- Date/Time: July 31 2025, 5:00 p.m. ET
- Participants: CEO Laurent Simoneau, Executive Chairman Louis Têtu, CFO Brandon Nussey.
Notable Quotes
“Fiscal 2026 is off to a strong start; we committed to re‑accelerating revenue growth, and that is what we are delivering.” – Laurent Simoneau, Co‑Founder & CEO
“Our ongoing success with strategic customers and partners such as SAP reflects the growing recognition of the role we are playing in this evolving landscape.” – Louis Têtu, Executive Chairman
Materiality Assessment: Material – Neutral (significant revenue growth and cash generation offset by widened net loss; information is material to investors).
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