Coveo Solutions (CVO) Q1 2026 earnings summary

Executive summary

• Achieved strongest Q1 bookings in company history, with SaaS subscription revenue of $34.2M and core platform revenue growth accelerating to 16% year-over-year.

• Generative AI solutions drove 50% of new business bookings, with major enterprise wins and a landmark SAP expansion powering global customer support.

• Commerce use case saw 60% year-over-year growth in new business bookings, with notable wins like S.Oliver, SanMar, and Airgas.

• Platform differentiation in AI-powered relevance, agentic RAG, and multi-tenant innovation cited as key drivers of customer adoption and retention.

• Named a Leader in the 2025 Gartner Magic Quadrant for Search and Product Discovery for the second consecutive year.

Financial highlights

• Total revenue reached $35.5M, up 10% year-over-year, with core platform revenue at $33.1M, up 16% year-over-year.

• ARR growth rate slightly outpaced core SaaS revenue growth; generative AI solutions now comprise 10% of aggregate ARR, tripling year-over-year.

• Adjusted EBITDA loss was $1.9M, compared to $1.7M loss last year; operating cash flow was $7.1M, up from $3.0M.

• Net loss widened to $15.1M from $6.1M year-over-year; operating loss was $10.9M versus $8.2M.

• Cash and cash equivalents stood at $128.5M as of June 30, 2025.

Outlook and guidance

• Q2 SaaS subscription revenue expected between $35.3M–$35.8M; total revenue $36.6M–$37.1M.

• Fiscal 2026 SaaS subscription revenue guidance reaffirmed at $141.5M–$144.5M; total revenue $147.5M–$150.5M.

• Adjusted EBITDA for Q2 expected between -$0.5M and +$0.5M; targeting break-even for the year.

• Operating cash flow for the year expected at ~$10M.

• On track to return to 20% core SaaS growth rates by year-end.