Canada's Coveo Q1 revenue slightly misses estimates

Coveo Solutions

30/07/2026 21:09

Overview
Canada AI search platform's Q1 revenue up 8% yr/yr, slightly missing analyst expectations
Q1 net loss widened and missed analyst expectations
Company renewed share buyback for up to 5.1 mln shares

Outlook
Coveo expects Q2 SaaS Subscription Revenue of $38.5–$39.0 mln
Company sees full-year SaaS Subscription Revenue at $154.0–$158.0 mln
Coveo expects operating cash flows of more than $10 mln for FY27

Result Drivers
CORE PLATFORM GROWTH - SaaS subscription revenue rose 9% yr/yr, driven entirely by the Coveo core platform after deprecation of the legacy Qubit platform
AI SOLUTIONS DEMAND - Company said AI, especially generative AI, featured in nearly every new customer discussion and represented a significant portion of new business bookings
LARGE CUSTOMER EXPANSIONS - Closed a seven-figure expansion with an existing customer and, after quarter end, signed the largest transaction in company history with a Fortune Global 500 technology company

Company press release: ID:nCNWMN4Z2a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$38.50 mln
$38.69 mln (7 Analysts)
Q1 Net Loss
Miss
$5.80 mln
$803,330 (3 Analysts)
Q1 Gross Margin
 
78.00%
 
Q1 Loss Per Basic Share
 
$0.06
 
Q1 Operating Income
 
-$6.92 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "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$6.00, about 34.8% above its July 29 closing price of C$4.45
The stock recently traded at 90 times the next 12-month earnings vs. a P/E of 127 three months ago

Reuters Recommended Reads
July 29 - Canada's CGI Q3 revenue slightly beats estimates
July 30 - Lightspeed Commerce beats Q1 revenue estimates, maintains FY27 outlook
July 30 - Capgemini lifts 2026 revenue growth target on AI transformation demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)