Coveo Solutions Reports Q1 Revenue of $35.5M, Operating Loss of $10.9M, and Net Loss of $15.1M.

Coveo Solutions reported Q1 revenue of $35.5 million, with a gross margin of 77% and product gross margin of 81%. However, the company's operating loss increased to $10.9 million from $8.2 million, and net loss rose to $15.1 million from $6.1 million.

Coveo Solutions, Inc. (CVO) reported its first-quarter fiscal 2026 results, showcasing a 12% increase in SaaS subscription revenue to $34.2 million, up from $30.6 million in Q1 2025 [3]. The company's total revenue also grew by 10% to $35.5 million, compared to $32.2 million in the same period last year [3].

Despite the revenue growth, Coveo Solutions faced an operating loss of $10.9 million, up from $8.2 million in Q1 2025 [3]. The net loss increased to $15.1 million from $6.1 million in the previous quarter [3]. The company's adjusted EBITDA also worsened, decreasing to ($1.9) million from ($1.7) million last year [3].

Coveo Solutions' gross margin remained at 77%, while the product gross margin slightly decreased to 81% from 82% in Q1 2025 [3]. The company's cash flow from operating activities improved significantly, increasing by 134% to $7.1 million [3].

The company's net expansion rate (excluding customer attrition from the Qubit Platform) was 108%, up 100 bps sequentially [3]. Generative AI solutions drove ~50% of new business bookings in the quarter, demonstrating strong momentum in this area [3].

Coveo Solutions' strategic partnerships, such as its broadened relationship with SAP, also contributed to the company's growth [3]. The company's suite of generative AI solutions showed significant momentum, with adoption from new and existing customers including SAP, UKG, and Advanced Micro Devices (AMD) [3].

In summary, while Coveo Solutions' Q1 2026 results indicate strong revenue growth, the company continues to face significant operating losses and net losses. The company's focus on generative AI solutions and strategic partnerships is driving new business momentum, but the company's financial performance remains a concern.

References:
[1] https://www.tipranks.com/stocks/tse:cvo
[2] https://seekingalpha.com/news/4476151-coveo-solutions-and-nbsp-reports-q1-results
[3] https://www.prnewswire.com/news-releases/coveo-reports-first-quarter-fiscal-2026-financial-results-302518913.html