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Coveo, a leader in AI-Relevance platforms, announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company’s focus on AI-powered search and generative experiences continues to drive strong growth, particularly in its core platform and strategic partnerships, solidifying its position in enterprise AI solutions.
SaaS Subscription Revenue increased 12% to $34.2M.
Core platform revenue grew 16% to $33.1M.
Generative AI solutions drove ~50% of new business bookings.
Expanded SAP partnership enhances global AI strategy.
Total revenue rose 10% to $35.5M.
Net Expansion Rate at 108%, excluding Qubit Platform attrition.
Coveo reported a 12% year-over-year increase in SaaS Subscription Revenue, reaching $34.2 million, with its core platform contributing $33.1 million, up 16%. Total revenue grew 10% to $35.5 million, despite a 46% decline in Qubit Platform revenue to $1.0 million. "Fiscal 2026 is off to a strong start; we committed to reaccelerating revenue growth, and that is what we are delivering," said Laurent Simoneau, Co-Founder and Chief Executive Officer of Coveo. This performance highlights strong market demand for Coveo’s AI-driven solutions.
Generative AI solutions were a key driver, accounting for approximately 50% of new business bookings. Adoption from new and existing customers, including SAP, UKG, and Advanced Micro Devices (AMD), underscores Coveo’s leadership in delivering AI-powered search and generative experiences. The platform optimizes digital interactions across commerce, service, and workplace applications, enhancing business outcomes.
Coveo strengthened its partnership with SAP through a significant expansion transaction, building on its generative AI success at SAP Concur. SAP now leverages Coveo’s solutions to support its global customer experience strategy, including agentic deployments. Additionally, Coveo joined Salesforce’s Agentforce 3 as a launch partner and expanded into the Salesforce AgentExchange with MCP Servers in July 2025, improving secure data access for AI applications.
The commerce sector was Coveo’s fastest-growing use case, driven by partnerships like SAP and new customer wins, including SanMar and S.Oliver Group. Over half of new customer wins came from commerce, leveraging Coveo’s AI to enhance digital experiences. Coveo’s recognition as a Leader in the 2025 Gartner® Magic Quadrant™ for Search and Product Discovery for the second consecutive year reinforces its industry dominance.
Despite a net loss of $15.1 million, up from $6.1 million last year, Coveo improved cash flows from operating activities to $7.1 million, a 134% increase. Gross margin remained steady at 77%, with product gross margin at 81%. Adjusted EBITDA was ($1.9) million, slightly down from ($1.7) million. The Net Expansion Rate of 108%, excluding Qubit attrition, indicates strong customer retention. Coveo also repurchased 510,988 subordinate voting shares for $2.7 million under its normal course issuer bid.
Coveo’s Q1 FY2026 results highlight its leadership in the AI-Relevance market. With significant growth in generative AI, strategic partnerships, and commerce applications, Coveo is well-positioned to drive innovation and deliver value to enterprises globally.
Coveo brings superior AI-Relevance to every point-of-experience, transforming how enterprises connect with their customers and employees to maximize business outcomes.
Relevance is about moving from persona to person, the degree to which the enterprise-wide content, products, recommendations, and advice presented to a person online aligns easily with their context, needs, preferences, behavior and intent, setting the competitive experience gold standard. Every person's journey is unique, and only AI can solve the complexity of tailoring experiences across massive, diverse audiences and large volumes and variety of content and products.
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