Best fourth quarter new business bookings performance in Company history
Robust Commerce momentum, driving ~60% of new business, including the largest new customer win in Company history
Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards ("IFRS")
MONTREAL, May 27, 2026 /CNW/ - Coveo (TSX:CVO), the leader in AI-Relevance, delivering best-in-class search and generative experiences, today announced financial results for its fourth quarter and full fiscal year 2026 ended March 31, 2026.
"Fiscal 2026 marked another year of meaningful progress for Coveo as organizations increasingly turned to our platform to power AI-driven digital experiences," said Laurent Simoneau, Co-Founder and CEO of Coveo. "We closed the year with the strongest fourth quarter new business performance in our history, including another landmark enterprise win representing the largest new customer deal in our history for the second consecutive quarter. The momentum we continue to see across our Generative AI and Commerce offerings reinforces the increasingly strategic role our platform plays for large global enterprises."
"As enterprises accelerate their AI initiatives, Coveo's position as an agnostic intelligence layer for modern digital experiences has become increasingly strategic," said Louis Têtu, Executive Chairman of Coveo. "Organizations are increasingly focused on deploying AI solutions that are trusted, scalable, and capable of delivering measurable business outcomes across customer and employee experiences. Coveo is uniquely positioned to help enterprises operationalize AI at scale."
Fourth Quarter and Fiscal 2026 Summary Financial Highlights
The following table summarizes our financial results for the fourth quarter and full fiscal year 2026:
In millions of U.S. dollars, except as otherwise indicated
Q4 2026
Q4 2025
Change
FY2026
FY2025
Change
SaaS Subscription Revenue(1)
$35.9
$32.6
10 %
$142.5
126.6
13 %
Coveo core Platform(2)
$35.9
$31.6
14 %
$139.8
$121.3
15 %
Qubit Platform(3)
-
$1.0
(100 %)
$2.8
$5.3
(48 %)
Total revenue
$37.4
$34.4
9 %
$148.3
$133.3
11 %
Gross margin
78 %
79 %
(1 %)
78 %
79 %
(1 %)
Product gross margin
80 %
82 %
(2 %)
81 %
82 %
(1 %)
Net loss
($2.3)
($6.3)
64 %
($28.9)
($13.8)
(110 %)
Adjusted EBITDA(4)
$0.8
$0.7
14 %
($0.8)
$1.0
(180 %)
Cash flows from operating activities
$13.7
$6.8
102 %
$10.5
$11.1
(5 %)
Fourth Quarter Fiscal 2026 Financial Highlights
(All comparisons are relative to the three-month period ended March 31, 2025, unless otherwise stated)
SaaS Subscription Revenue(1) of $35.9 million, an increase of 10% compared to $32.6 million in the prior period. With the full deprecation of the legacy Qubit platform, all SaaS Subscription Revenue came from the Coveo core Platform(2), which saw an increase in SaaS Subscription Revenue of 14% compared to the prior period.
Total revenue was $37.4 million compared to $34.4 million, an increase of 9%.
Gross margin was 78% and Product gross margin was 80%, compared to 79% and 82%, respectively, in the prior period.
Operating loss was $3.6 million compared to $7.6 million. Net loss was $2.3 million compared to $6.3 million in the prior period.
Adjusted EBITDA(4) was $0.8 million compared to $0.7 million in the prior period.
Cash flows from operating activities was $13.7 million compared to $6.8 million in the prior period.
Cash and cash equivalents were $101.9 million as of March 31, 2026.
Net Expansion Rate(1) was 100% as of March 31, 2026, and 103% excluding customer attrition from customers using the legacy Qubit platform(5).
For the three months ended March 31, 2026, the Company repurchased for cancellation a total of 1,876,500 subordinate voting shares at a weighted average price of C$6.08 per share, for a total consideration of $8.4 million.
Full Year Fiscal 2026 Financial Highlights
(All comparisons are relative to the fiscal year ended March 31, 2025, unless otherwise stated)
SaaS Subscription Revenue(1) of $142.5 million, an increase of 13% compared to $126.6 million. Within this, SaaS Subscription Revenue for Coveo's core Platform(2) was $139.8 million, an increase of 15%.
Total revenue was $148.3 million compared to $133.3 million, an increase of 11%.
Gross margin was 78% and Product gross margin was 81%, compared to 79% and 82%, respectively, in the prior period.
Operating loss was $27.4 million compared to $25.9 million, and net loss was $28.9 million compared to a net loss of $13.8 million in the prior period.
Adjusted EBITDA(4) was ($0.8) million compared to $1.0 million last year.
Cash flows from operating activities was $10.5 million compared to $11.1 million in the prior year.
For the fiscal year ended March 31,2026, the Company repurchased for cancellation a total of 4,423,978 subordinate voting shares at a weighted average price of C$6.83 per share for total consideration of $22.0 million.
Other Business and Subsequent Developments:
Record fourth quarter new business bookings performance
Coveo saw strong new business bookings from both new and existing customers, with particularly strong traction in new customer acquisition.
Commerce remained Coveo's fastest growing use case, with nearly 60% of total new business bookings, with notable strength in complex B2B multi-product offering.
Coveo continues to build momentum in the manufacturing and distribution industry, adding several leading global brands during the quarter, including a Global 1000 industrial manufacturer representing the largest new customer win in the Company's history.
Coveo's SAP partnership remains a high growth and efficient channel for new customer acquisition.
Enterprise adoption of Coveo's Generative AI solutions continued to accelerate during the quarter, as customers expanded production-scale AI deployments across multiple use cases. Year-over-year, the Company's Generative AI customer count nearly doubled, and SaaS ACV attributable to Coveo Generative AI solutions now represents 13% of our total SaaS ACV.
New and existing customer wins included: Palo Alto Networks, Anglepoint, Unimax, Ellucian, Ateko, Intuit, Deloitte, Perficient, Groupe Legault, the Australian Taxation Office and several others.
Ongoing focus on innovation
Launched Coveo Conversational Product Discovery, integrating AI-powered natural language conversations directly into commerce search to enhance product discovery. The solution enables context-aware recommendations, faster path to purchase, and improved conversion, while preserving merchandising control and search performance, helping retailers turn exploration into revenue.
Announced hosted Model Context Protocol (MCP) server that enables secure integration between enterprise content and supporting interoperability between Coveo and the growing ecosystem of AI assistants and agent frameworks. The solution simplifies data connectivity, supports agentic AI workflows, and positions Coveo as a key layer for scalable enterprise AI adoption.
Other business updates
Bell and Coveo announced a strategic sovereign AI partnership integrating Coveo's AI-Relevance Platform into Bell AI Fabric to deliver secure, compliant AI solutions for governments and regulated industries. The collaboration aims to modernize digital services, enhance productivity, and keep data and AI operations within Canada, supporting a domestic, secure AI ecosystem.
The company hired a new Chief Sales Officer to lead the North American new customer team. This individual is a seasoned executive with more than 20 years of software sales experience, including executive roles at some of the largest software companies in the world. He is expected to join Coveo in June.
Financial Outlook
Expectations for SaaS Subscription Revenue(1), Total Revenue, and Adjusted EBITDA(4) for Q1 FY'27 and the Full Year FY'27 are as follows:
Q1 FY'27
FY'27
SaaS Subscription Revenue(1)
$37.1, $37.6 million
$154.0, $158.0 million
Total Revenue
$38.2, $38.7 million
$160.0, $164.0 million
Adjusted EBITDA(4)
($1.5), ($0.5) million
$2.0 - $7.0 million
The company expects to deliver operating cash flows of more than $10 million for the full fiscal year.
These statements are forward-looking and actual results may differ materially. Coveo's outlook constitutes "financial outlook" within the meaning of applicable securities laws and is provided for the purpose of, among other things, assisting investors and others in understanding certain key elements of our expected financial results, as well as our objectives, strategic priorities and business outlook, and in obtaining a better understanding of our anticipated operating environment. Investors and others are cautioned that it may not be appropriate for other purposes. Please refer to the "Forward-Looking Information" and "Financial Outlook Assumptions" sections below for additional information on the factors that could cause our actual results to differ materially from these forward-looking statements and a description of the assumptions underlying same.
Q4 and Full Year Conference Call and Webcast Information
Coveo will host a conference call today at 5:00 p.m. Eastern Time to discuss its financial results for the fourth quarter and full year 2026. The call will be hosted by Laurent Simoneau, Co-Founder & Chief Executive Officer, Louis Têtu, Executive Chairman and Karine Hamel, Chief Financial Officer.
Conference Call:
https://emportal.ink/4f2453I
Use the link above to join the conference call without operator assistance. If you prefer to have operator assistance, please dial: 1-888-699-1199
Live Webcast:
https://app.webinar.net/po2a47QWb9R
Webcast Replay:
ir.coveo.com under the "News & Events" section
Non-IFRS Financial Measures and Ratios
Coveo's audited annual consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board. The information presented in this press release includes non-IFRS financial measures and ratios, namely (i) Adjusted EBITDA; (ii) Adjusted Gross Profit, Adjusted Product Gross Profit, and Adjusted Professional Services Gross Profit (collectively referred to as our "Adjusted Gross Profit Measures"); (iii) Adjusted Gross Margin, Adjusted Product Gross Margin, and Adjusted Professional Services Gross Margin (collectively referred to as our "Adjusted Gross Margin Measures"); (iv) Adjusted Sales and Marketing Expenses, Adjusted Research and Product Development Expenses, and Adjusted General and Administrative Expenses (collectively referred to as our "Adjusted Operating Expense Measures"); and (v) Adjusted Sales and Marketing Expenses (%), Adjusted Research and Product Development Expenses (%), and Adjusted General and Administrative Expenses (%) (collectively referred to as our "Adjusted Operating Expense (%) Measures"). These measures and ratios are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement IFRS measures by providing further understanding of the company's results of operations from management's perspective.
Accordingly, these measures and ratios should not be considered in isolation nor as a substitute for analysis of the company's financial information reported under IFRS. Adjusted EBITDA, the Adjusted Gross Profit Measures, the Adjusted Gross Margin Measures, the Adjusted Operating Expense Measures, and the Adjusted Operating Expense (%) Measures are used to provide investors with supplemental measures and ratios of the company's operating performance and thus highlight trends in Coveo's core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. The company's management also believes that securities analysts, investors, and other interested parties frequently use non-IFRS financial measures and ratios in the evaluation of issuers. Coveo's management uses non-IFRS financial measures and ratios in order to facilitate operating performance comparisons from period to period, and to prepare annual operating budgets and forecasts.
See the "Non-IFRS Financial Measures and Ratios and Reconciliation of Non-IFRS Financial Measures and Ratios" section of our MD&A for the year ended March 31, 2026, which is available as of the date hereof under our profile on SEDAR+ at www.sedarplus.ca for a description of these measures. Please refer to the financial tables appended to this press release for additional information including a reconciliation of (i) Adjusted EBITDA to net loss; (ii) Adjusted Gross Profit to gross profit; (iii) Adjusted Product Gross Profit to product gross profit; (iv) Adjusted Professional Services Gross Profit to professional services gross profit; (v) Adjusted Sales and Marketing Expenses to sales and marketing expenses; (vi) Adjusted Research and Product Development Expenses to research and product development expenses; and (vii) Adjusted General and Administrative Expenses to general and administrative expenses.
Key Performance Indicators
This press release refers to "SaaS Subscription Revenue" and "Net Expansion Rate". They are key performance indicators and operating metrics used in Coveo's industry. We monitor our key performance indicators to help us evaluate our business, measure our performance, identify trends, formulate business plans, and make strategic decisions. Our key performance indicators provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use industry metrics in the evaluation of issuers. Certain of our key performance indicators are measures that do not have any standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers and cannot be reconciled to a directly comparable IFRS measure. Our key performance indicators may be calculated and designated in a manner different than similar key performance indicators used by other companies.
"SaaS Subscription Revenue" means the company's SaaS subscription revenue, as presented in our financial statements in accordance with IFRS.
"Net Expansion Rate" is calculated by considering a cohort of customers at the end of the period 12 months prior to the end of the period selected and dividing the SaaS Annualized Contract Value ("SaaS ACV", as defined below) attributable to that cohort at the end of the current period selected, by the SaaS ACV attributable to that cohort at the beginning of the period 12 months prior to the end of the period selected. Expressed as a percentage, the ratio (i) excludes any SaaS ACV from new customers added during the 12 months preceding the end of the period selected; (ii) includes incremental SaaS ACV made to the cohort over the 12 months preceding the end of the period selected; (iii) is net of the SaaS ACV from any customers whose subscriptions terminated or decreased over the 12 months preceding the end of the period selected; and (iv) is currency neutral and as such, excludes the effect of currency variation.
In this section and throughout this press release, "SaaS Annualized Contract Value" means the SaaS annualized contract value of a customer's commitments calculated based on the terms of that customer's subscriptions, and represents the committed annualized subscription amount as of the measurement date.
Please also refer to the "Key Performance Indicators" section of our latest MD&A, which is available under our profile on SEDAR+ at www.sedarplus.ca, for additional details on the abovementioned key performance indicators.
Forward-Looking Information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including with respect to Coveo's "financial outlook" (within the meaning of applicable securities laws) and related assumptions (as set forth below and elsewhere in this press release) for the three months ending June 30, 2026 and the year ending March 31, 2027 (for greater certainty, for operating cash flows, solely the year ending March 31, 2027) collectively, "forward-looking information"). This forward-looking information is identified by the use of terms and phrases such as "may", "would", "should", "could", "might", "will", "achieve", "occur", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe", "continue", "target", "opportunity", "strategy", "scheduled", "outlook", "forecast", "projection", or "prospect", the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. In addition, any statements that refer to expectations, intentions, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates, and projections regarding future events or circumstances.
Forward-looking information is necessarily based on a number of opinions, estimates, and assumptions (including those discussed under "Financial Outlook Assumptions" below and those discussed immediately hereunder) that we considered appropriate and reasonable as of the date such statements are made. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, actual results may vary from the forward-looking information contained herein. Certain assumptions made in preparing the forward-looking information contained in herein include, without limitation (and in addition to those discussed under "Financial Outlook Assumptions" below): our ability to capitalize on growth opportunities and implement our growth strategy; our ability to attract new customers, both domestically and internationally; our ability to expand our relationships with existing customers, and have existing customers renew their subscriptions; the success of our efforts to expand our product portfolio and market reach; our ability to maintain successful strategic relationships with partners and other third parties; market awareness and acceptance of enterprise artificial intelligence ("AI") solutions in general and our products in particular; the market penetration of our generative AI and other new solutions, both with new and existing customers, and our ability to continue to capture the AI opportunities; assumptions regarding our future capital requirements, and availability of capital generally; the accuracy of our estimates of market opportunity, growth forecasts, and expectations around operating cash flows; our success in identifying and evaluating, as well as financing and integrating, any acquisitions, partnerships, or joint ventures; the significant influence of our principal shareholders; our ability to generate pipeline, and to convert pipeline into bookings, and the timeframe thereof; and our ability to execute on our expansion and growth plans more generally. Moreover, forward-looking information is subject to known and unknown risks, uncertainties, and other factors, many of which are beyond our control, that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to macro-economic uncertainties and the risk factors described under "Risk Factors" in the company's most recently filed Annual Information Form and under "Key Factors Affecting our Performance" in the company's most recently filed MD&A, both available under our profile on SEDAR+ at www.sedarplus.ca. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events ...
