Coveo Solutions (CVO) Q2 2026 earnings summary

Executive summary

• SaaS subscription revenue reached $35.9M, up 17% year-over-year for the core platform, with total revenue at $37.3M, a 14% increase year-over-year, and adjusted EBITDA at $0.6M.

• Generative AI and commerce use cases drove over 35% and about 50% of new business bookings, respectively, with notable SAP partnership impact and ~2.5x growth in generative AI customers and revenue.

• Net loss improved to $4.4M from $5.4M, while product gross margin remained robust at 82% and adjusted product gross margin at 83%.

• The platform's high-precision, secure AI-powered experiences and resilience during AWS outages attracted large enterprise customers.

• Leadership changes included the appointment of Pranshu Tewari as CMO and the departure of John Grosshans and the COO.

Financial highlights

• SaaS subscription revenue for the core platform grew 17% year-over-year to $35.0M; Qubit platform revenue declined 24% to $0.9M.

• Total revenue for Q2 FY'26 was $37.3M, up 14% from $32.7M in Q2 FY'25.

• Adjusted EBITDA was $0.6M, down from $1.5M a year ago; net loss improved to $4.4M.

• Gross margin and product gross margin were 79% and 82%, respectively; adjusted product gross margin was 83%.

• Cash flow from operations was -$10.8M, with cash and equivalents at $108.2M and no debt.

Outlook and guidance

• Q3 SaaS subscription revenue expected between $35.7M-$36.2M; total revenue between $37.1M-$37.6M.

• Full-year SaaS subscription revenue guidance is $141.5M–$142.5M; total revenue $147.5M–$148.5M.

• Adjusted EBITDA and operating cash flow are expected to be approximately breakeven for Q3 and the full year.

• ARR growth expected to exit the year in the mid-teens, reflecting a 3% impact from a renegotiated Salesforce contract.

• Guidance revised to reflect reduced contract value from a single customer; positive operating cash flow still expected for the full year.