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Introduction & Market Context
Coveo Solutions Inc (TSX:CVO), the AI-powered relevance platform provider, reported its fourth quarter and full-year fiscal 2025 financial results on May 20, 2025. The company achieved positive Adjusted EBITDA for both the quarter and full year while maintaining double-digit growth in its core platform business. Coveo’s stock closed at $7.00 on the day of the announcement, within its 52-week trading range of $4.92 to $8.51.
Quarterly Performance Highlights
Coveo delivered solid Q4 FY’25 results, with SaaS subscription revenue reaching $32.6 million, representing 10% growth in its core platform business (12% on a constant currency basis). The company achieved a positive Adjusted EBITDA of $0.7 million, improving from $0.2 million in the same quarter last year. Cash flows from operating activities grew significantly to $6.8 million, a 46% year-over-year increase.
As shown in the following quarterly highlights:
The company maintained a strong product gross margin of 82% while its net expansion rate improved to 107%, up 200 basis points from the previous quarter. However, net loss increased to $6.3 million compared to $4.1 million in Q4 FY’24.
A detailed breakdown of revenue components shows the divergence between Coveo’s growing core platform and its declining Qubit platform:
Full-Year Financial Results
For the full fiscal year 2025, Coveo reported SaaS subscription revenue of $126.6 million, with 11% growth in its core platform. The company achieved positive full-year Adjusted EBITDA of $1.0 million, a significant improvement from the negative $2.4 million reported in fiscal 2024. Net loss for the year decreased substantially to $13.8 million from $23.6 million in the previous year.
The company’s full-year performance metrics demonstrate the improving financial trajectory:
Profitability measures showed notable improvement year-over-year, particularly in cash flow generation:
Strategic Initiatives & Product Development
Coveo highlighted significant momentum in its generative AI offerings, with generative AI customers increasing threefold year-over-year. The company’s fastest-growing customer use case is Coveo Commerce, which provides AI-powered search, personalization, and recommendation capabilities for e-commerce platforms.
The company’s commerce solution integrates various AI functionalities to enhance both B2C and B2B shopping experiences:
Similarly, Coveo Knowledge leverages AI to improve information discovery and knowledge management across organizations:
Coveo’s strategic positioning centers on its unified AI-relevance platform that connects various data sources and touchpoints to deliver personalized experiences:
The company is also expanding into agentic AI, piloting integrations with select customers and launching Coveo for Agentforce, a Salesforce (NYSE:CRM) integration that enhances customer service capabilities.
Forward-Looking Statements
Looking ahead, Coveo provided guidance for Q1 FY’26 and the full fiscal year 2026. For Q1, the company expects SaaS subscription revenue between $33.5 million and $34.0 million with an Adjusted EBITDA between negative $2.0 million and negative $1.0 million. For the full year, Coveo projects SaaS subscription revenue of $141.5 million to $144.5 million, representing approximately 12% growth at the midpoint, with Adjusted EBITDA expected to be approximately breakeven.
The detailed guidance figures are presented below:
Management outlined strategic priorities for 2026, focusing on being a recognized leader in AI-relevance technology, delivering rapid value to customers, expanding the addressable market, and implementing a data-driven go-to-market strategy. The company emphasized its commitment to constant customer-driven innovation while building a scalable business model.
As the digital experience landscape continues to evolve, Coveo is positioning itself at the intersection of enterprise search, AI recommendations, and generative answering capabilities, with a unified platform approach that distinguishes it in the competitive AI solutions market.
Full presentation:
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