Coveo Solutions (CVO) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year results, with Q4 SaaS subscription revenue at $32.6M and full-year at $126.6M, and total revenue at $34.4M for Q4 and $133.3M for the year.

• Adjusted EBITDA was $0.7M for Q4 and $1.0M for the year, with operating cash flow reaching $11.1M for the year; Q4 net loss was $6.3M, full-year net loss $13.8M.

• Bookings in the second half grew over 50% year-over-year, with Q4 being the strongest ever; generative AI customer base tripled year-over-year.

• Net Expansion Rate for the core platform rose to 107% as of March 31, 2025, up 200 basis points sequentially.

• Strategic focus shifted to the core platform, with Qubit platform being deprecated and major new customers including Docusign, Nestlé, and Dow Chemical.

Financial highlights

• SaaS subscription revenue grew 6% in Q4 and 7% for the year; core platform subscription revenue increased 10% in Q4 and 11% for the year.

• Total revenue increased 5% in Q4 and 6% for the year; gross margins remained strong at 79%, with product gross margins at 82%.

• Adjusted EBITDA improved from $0.2M to $0.7M in Q4 and from a $2.4M loss to $1.0M profit for the year.

• Operating cash flow was $6.8M in Q4 and $11.1M for the year, representing 8% of revenue.

• Ended the year with $124.8M in cash and no debt.

Outlook and guidance

• Q1 FY26 SaaS subscription revenue expected at $33.5M–$34.0M (10% YoY growth), with core platform growth at 14%.

• Full-year FY26 SaaS subscription revenue guidance is $141.5M–$144.5M (13% YoY growth), with core platform growth of 15–17%.

• Total revenue guidance for FY26 is $147.5M–$150.5M; adjusted EBITDA expected to be approximately breakeven.

• Positive operating cash flows of ~$10M anticipated for FY26.

• Targeting 20%+ ARR growth rates on the core platform in the latter part of FY26.