#Canada #Montreal #SaaS #Coveo #AI-Relevance

Coveo Reports Impressive Third Quarter Financial Results for Fiscal 2026

Coveo (TSX: CVO), renowned for its leadership in AI-Relevance, delivered strong financial results for its third quarter ending December 31, 2025. The company reported a substantial SaaS subscription revenue of $36.6 million, marking a 13% increase from the previous year's $32.3 million. Coveo's CEO, Laurent Simoneau, expressed satisfaction in achieving the highest level of new bookings in the company’s history, signifying robust growth across its major business segments, particularly in Generative AI and Commerce solutions.

During the quarter, Coveo's core platform also showcased remarkable performance, generating $35.8 million in revenue, an impressive 15% increase year-over-year. In addition, Coveo's total revenue saw a significant rise to $38 million, up by 12% compared to the prior year, evidencing the company's strategic importance in the enterprise AI sector.

Financial Highlights

• - Total Revenue: $38 million (up 12% from $34 million in Q3 2025)
• - SaaS Subscription Revenue: $36.6 million (up 13% from $32.3 million)
• - Gross Margin: Remained solid at 78%
• - Net Income (loss): Recorded a net loss of $7.2 million, contrasting with income of $4 million during the same period last year.

Coveo's growth was fueled by a notable increase in Generative AI solutions, which accounted for over 25% of new bookings. The company gained traction with enterprise giants like Boston Scientific and Deloitte Digital, indicating a healthy demand for advanced AI solutions designed for enhanced customer experience and operational efficiency.

Innovation and Partnerships

Coveo continues to innovate, recently introducing RAG-as-a-Service for AWS Agentic AI Services, enabling organizations to leverage their data effectively. Furthermore, the company launched a ChatGPT application by OpenAI that allows users to engage with their enterprise data naturally and effectively within compliance parameters.

In a significant partnership, Coveo entered a memorandum with the Government of Canada aimed at modernizing public services through AI, enhancing innovation and technological adoption in government functions.

Market Perspective and Future Outlook

For the upcoming fiscal year, Coveo anticipates that both SaaS subscription revenue and total revenue will meet the higher ends of previously projected guidance ranges. The company is optimistic about sustaining positive operating cash flows throughout the financial year. As Coveo continues to solidify its position in the enterprise AI field, their performance could signal an ongoing trend of AI integration across multiple sectors.

Conclusion

Coveo’s recent financial performance underscores its strategic advantage in the evolving AI landscape. As they continue to enhance AI-driven experiences, the company is well-positioned for sustained growth and innovation. Stakeholders and market enthusiasts will likely keep a close eye on Coveo as they advance their offerings and expand their market presence.