SaaS Subscription Revenue
(1)
of $35.9 million, exceeding guidance
Core Coveo SaaS Subscription Revenue
(2)
growth of 17%
Commerce remains Coveo's fastest-growing use case, fueled by expanding SAP partnership
Continued Generative AI momentum with ~2.5x year-over-year growth in customers and revenue
Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards ("IFRS")
MONTREAL and SAN FRANCISCO, Oct. 30, 2025 - Coveo (TSX: CVO), the leader in AI-Relevance, delivering best-in-class search and generative experiences that maximize business outcomes at every point-of-experience, today announced financial results for its second quarter of fiscal year 2026 ended September 30, 2025.
"Our customers see industry leading results when they integrate our platform into their AI strategies," said Laurent Simoneau, Co-Founder and CEO of Coveo. "The momentum in our core growth drivers and the expansion of our customer relationships underscore Coveo's long-term growth opportunity."
"Generative and agentic AI represent the most significant opportunities of our time," said Louis Têtu, Executive Chairman of Coveo. "While many enterprises are still chasing tangible results, Coveo customers and partners are already realizing meaningful ROI from our platform, and this quarter once again demonstrated that."
Second Quarter and Year-to-Date Fiscal 2026 Summary Financial Highlights
The following table summarizes our financial results for the second quarter of fiscal year 2026:
|
In millions of U.S. Dollars, except as otherwise indicated |
Q2 2026 |
Q2 2025 |
Change |
YTD |
YTD |
Change |
|
SaaS Subscription Revenue(1) |
$35.9 |
$31.2 |
15 % |
$70.1 |
$61.7 |
13 % |
|
Coveo core Platform(2) |
$35.0 |
$29.9 |
17 % |
$68.1 |
$58.6 |
16 % |
|
Qubit Platform(3) |
$0.9 |
$1.2 |
(24 %) |
$2.0 |
$3.1 |
(37 %) |
|
Total revenue |
$37.3 |
$32.7 |
14 % |
$72.9 |
$65.0 |
12 % |
|
Gross margin |
79 % |
79 % |
- |
78 % |
79 % |
(1 %) |
|
Product gross margin |
82 % |
82 % |
- |
81 % |
82 % |
(1 %) |
|
Net loss |
($4.4) |
($5.4) |
18 % |
($19.4) |
($11.5) |
(69 %) |
|
Adjusted EBITDA(4) |
$0.6 |
$1.5 |
(61 %) |
($1.4) |
($0.2) |
(482 %) |
|
Cash flows from operating activities |
($10.8) |
$1.4 |
(858 %) |
($3.7) |
$4.5 |
(183 %) |
Second Quarter Fiscal 2026 Financial Highlights
(All comparisons are relative to the three-month period ended September 30, 2024, unless otherwise stated)
- SaaS Subscription Revenue(1) of $35.9 million, an increase of 15% compared to $31.2 million. Within this, SaaS Subscription Revenue for Coveo's core Platform(2) was $35.0 million, an increase of 17%.
- Total revenue was $37.3 million compared to $32.7 million, an increase of 14%.
- Gross margin was 79% and Product gross margin was 82%, comparable to the prior period.
- Operating loss was $6.7 million compared to $4.8 million. Net loss was $4.4 million compared to a net loss of $5.4 million.
- Adjusted EBITDA(4) was $0.6 million compared to $1.5 million last year.
- Cash flow from operating activities was ($10.8) million compared to $1.4 million in the prior year.
- Cash and cash equivalents were $108.2 million as of September 30, 2025.
- Net Expansion Rate(1) of 104% as of September 30, 2025. Net Expansion Rate(1) was 105% excluding customer attrition from customers using the Qubit Platform(5). The decline of 300 basis points from June 30, 2025 primarily reflects a reduction in annual contract value from a single large customer at renewal.
Other Business and Subsequent Developments:
- Commerce Momentum
- Commerce remains Coveo's fastest-growing use case, representing approximately 50% of total new business bookings during the quarter, fueled by the company's ongoing partnership with SAP.
- Commerce saw one of the best quarters ever for new business bookings. New customers included Elite Supplements, Hornbach, CarltonOne, and Gosselin
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