Canada's Coveo beats Q3 revenue estimates

Coveo Solutions

29/01/2026 21:13

Overview

Canada AI-Relevance platform's Q3 revenue rose 12%, beating analyst expectations

Net loss for Q3 was $7.2 mln, missing analyst estimates

Company achieved record new business bookings, driven by Generative AI and Commerce offerings

Outlook

Coveo expects Q4 SaaS Subscription Revenue between $35.6 mln and $36.1 mln

Company anticipates full-year SaaS Subscription Revenue of $142.2 mln to $142.7 mln

Coveo projects Q4 and full-year Adjusted EBITDA to be approximately breakeven

Result Drivers

RECORD BOOKINGS - Coveo achieved the highest new business bookings in its history, driven by Gen AI and Commerce offerings

GEN AI CONTRIBUTION - Generative AI solutions accounted for over 25% of new bookings, with new and expanded customer usage

COMMERCE GROWTH - Commerce new business bookings reached record levels, influenced by the SAP partnership

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$38 mln
$37.29 mln (8 Analysts)
Q3 Net Income
Miss
-$7.20 mln
$276,670 (3 Analysts)
Q3 Adjusted EBITDA
-$200,000
Q3 Gross Margin
78.00%
Q3 Basic EPS
-$0.08
Q3 Operating Income
-$6.26 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Coveo Solutions Inc is C$11.00, about 60.8% above its January 28 closing price of C$6.84

Press Release: ID:nCNWl7NvYa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)