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Coveo Achieves Record Business Bookings in Q3 Fiscal 2026

Coveo, a pioneer in AI-Relevance, recently unveiled its financial results for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported substantial growth across its diverse offerings, exceeding expectations with its SaaS subscription revenue reaching $36.6 million, marking a 13% increase compared to the same period last year. This noteworthy performance reflects Coveo's commitment to delivering robust AI-driven solutions that cater to both new and existing customers.

Financial Highlights

Q3 2026 Performance Overview

• - SaaS Subscription Revenue: $36.6 million (up 13% from Q3 2025)
• - Core Platform Revenue: $35.8 million (up 15% from Q3 2025)
• - Total Revenue: $38.0 million (12% increase from Q3 2025)
• - Gross Margin: Steady at 78%
• - Net Loss: $7.2 million, a significant drop from the previous year's net income of $4.0 million
• - Cash Flow from Operations: Increased to $0.5 million from a loss of $0.2 million last year

During the conference call, CEO Laurent Simoneau highlighted that this quarter achieved the highest new business bookings in Coveo's history. This achievement underscores the company's strategic importance as it farmers its place in the enterprise AI technology landscape.

Record New Business Performance

The surge in new business performance was attributed to robust demand for Coveo's generative AI and commerce solutions. New bookings for generative AI solutions alone accounted for over 25% of the total new bookings during the quarter. Coveo further expanded its customer base, adding renowned brands such as Boston Scientific and Deloitte Digital to its roster. The overwhelming success of Coveo's partnership with SAP significantly contributed to the growth of its commerce bookings, which represented nearly half of all new bookings this quarter.

Innovation and New Developments

Coveo's innovative spirit continues to drive growth, with the introduction of RAG-as-a-Service for AWS agentic AI services. This new offering allows enterprises to seamlessly integrate AWS services with their internal knowledge bases. Additionally, Coveo launched a dedicated application for ChatGPT, enabling users to interact with enterprise data using natural language, thereby enhancing accessibility and user experience.

In a landmark collaboration, Coveo announced its partnership with the Government of Canada on December 17 to leverage AI in modernizing public services—a strategic move aimed at boosting innovation across the nation.

Financial Outlook

Looking ahead, Coveo anticipates positive operating cash flows for the full fiscal year and expects to meet revenue targets at the high end of previously stated guidance. Both SaaS Subscription Revenue and Total Revenue projections for FY'26 have been adjusted upward, forecasting SaaS at $142.2 - $142.7 million for the year.

In summary, Coveo's third-quarter results reflect a strong market position bolstered by innovative AI solutions and strategic partnerships. As demand for AI-driven technologies continues to grow, Coveo is poised for a fruitful 2026, reaffirming its role as a leader in the AI relevance space.