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Coveo Reports Strong Financial Growth for Q1 Fiscal 2026

On July 31, 2025, Coveo Solutions Inc. published an impressive report detailing their financial performance for the first quarter of fiscal year 2026, which ended on June 30, 2025. As a recognized leader in AI relevance, Coveo continues to enhance its offerings, providing substantial search and generative experiences to elevate business success.

Coveo's Co-Founder and CEO Laurent Simoneau emphasized, "Fiscal 2026 has commenced with robust momentum; we are witnessing a pronounced resurgence in revenue growth that reflects our strategic focus." With a deep-rooted commitment to innovation in the AI space, Coveo is capitalizing on the increasing demand for personalized solutions among enterprises aiming to refine their commerce strategies and transform their operations with generative AI.

Louis Têtu, Executive Chairman of Coveo, noted the long-term groundwork laid in AI is now yielding significant outcomes. "We are increasingly recognized for the pivotal role we play in the evolving landscape of AI technology,” stated Têtu, referring to the expanding partnerships with influential organizations like SAP, which further solidifies Coveo's position as a vital AI partner across industries.

Key Financial Highlights

In the report, Coveo outlined several impressive figures that underline their growth trajectory:

• - SaaS Subscription Revenue: Reached $34.2 million, marking a 12% increase compared to $30.6 million in Q1 2025.
• - Coveo Core Platform Revenue: Increased to $33.1 million, up 16% compared to the previous year.
• - Total Revenue: Rose to $35.5 million, demonstrating a 10% growth from $32.2 million.
• - Gross Margin: Remained high at 77%, slightly down from 78%, indicating efficiency in operations.

Despite reporting a net loss of $15.1 million compared to $6.1 million in the same quarter last year, Coveo improved its cash flows from operations significantly, amounting to $7.1 million—up 134% from $3.0 million in the prior year.

Momentum in New Business Ventures

Coveo saw a vigorous increase in new business bookings, which were the highest for the first quarter in the company’s history. This success was attributed to a diverse array of new and existing customers spanning various sectors, including significant names like Watchguard, the National Bank of Canada, and Loto-Québec. "The suite of generative AI solutions continues to capture attention and drive our business forward," Simoneau added.

Generating nearly half of this quarter’s new bookings, Coveo’s generative AI solutions showcased remarkable traction, highlighting its adaptability and relevance across multiple use cases. Partnerships with established companies, including SAP, UKG, and AMD (Advanced Micro Devices), affirm the growing trust in Coveo’s AI capabilities.

Expanding Relationships and Sales Channels

The relationship with SAP has intensified, marking a strategic expansion in the use of Coveo's generative AI capabilities. The collaboration is set to support SAP's broader customer experience strategy worldwide, enabling enhanced interactions and operational growth for clients.

Additionally, Coveo has significantly paved paths for accessibility by becoming a launch partner in Salesforce's new offerings and joining the AWS Marketplace AI Agents and Tools Category, streamlining the discovery and deployment of Coveo tools for customers.

Future Financial Outlook

Looking ahead, Coveo projects promising growth for the upcoming quarters while maintaining positive cash flow. The management anticipates Q2 SaaS Subscription Revenue to land between $35.3 million and $35.8 million, with Total Revenue expected to range from $36.6 million to $37.1 million, reflecting optimistic forecasts for fiscal year 2026.

As Coveo progresses through FY'26, expectations remain high on capitalizing on the ever-evolving AI market trends, with the team poised to break into new segments while nurturing existing relationships. With a focus on innovation and strategic partnerships, Coveo stands ready to shape the future of digital customer experience through advanced AI technologies.

Conclusion

Coveo's Q1 fiscal results paint a positive picture of growth and innovation, reinforcing its status as a leader in AI-Relevance. Investors and industry observers should prepare for an exciting trajectory as Coveo continues to enhance its offerings, meeting the growing demand for personalized, efficient digital solutions. As businesses increasingly turn to AI for their operational needs, Coveo emerges as a key player in facilitating this technological transformation.