SaaS Subscription Revenue(1) of $39.1 million

Record new business bookings driven by ongoing large deal momentum,

with two seven-figure per year transactions closed during the quarter

Announces acquisition of Anglera, a leading agentic product data enrichment engine

Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards ("IFRS")

MONTREAL, Oct. 29, 2026 /PRNewswire/ -- Coveo (TSX: CVO), the Experience AI leader, delivering best-in-class search and generative experiences, today announced financial results for its second quarter of fiscal year 2027 ended September 30, 2026 and separately announced the acquisition of Anglera, a leading agentic product data enrichment engine company based in San Francisco and backed by Y Combinator.

"Two seven-figure per year transactions helped us achieve the strongest new business bookings quarter in our history," said Laurent Simoneau, Co-Founder and CEO of Coveo. "The commitment from leading organizations reinforces our strategic relevance in the enterprise AI market. Customers trust our platform to turn complex enterprise data into secure, relevant and high-performing AI experiences. To build on that momentum, we are excited to welcome Anglera to Coveo, adding agentic product data enrichment to our AI commerce capabilities."

"People now expect conversational and intelligent experiences with AI," said Louis Têtu, Coveo's Executive Chairman. "Enterprises can turn every intent into a better outcome, help millions of people buy confidently, technicians solve problems faster, help customers self-serve and workers be more effective. Not only does it set the new competitive gold standard; it drives tangible and measurable return on investment for our customers. This is Experience AI, and our ambition is to make Coveo the defining company of this fast-growing category."

Second Quarter Fiscal 2027 Summary Financial Highlights

The following table summarizes our financial results for the second quarter of fiscal year 2027:

Second Quarter Fiscal 2027 Financial Highlights

(All comparisons are relative to the three-month period ended September 30, 2025, unless otherwise stated)

- SaaS Subscription Revenue(1) of $39.1 million, an increase of 9% compared to $35.9 million in the prior period. With the full deprecation of the legacy Qubit platform, all SaaS Subscription Revenue came from the Coveo core Platform(2), for which SaaS Subscription Revenue(1) increased by 12% compared to the prior period.

- Total revenue was $40.4 million compared to $37.3 million, an increase of 8%.

- Gross margin was 80% and Product gross margin was 82%, compared to 79% and 82%, respectively, in the prior period.

- Operating loss was $3.0 million compared to $6.7 million. Net loss was $3.1 million compared to $4.4 million in the prior period.

- Adjusted EBITDA(4) was $2.0 million compared to $0.6 million in the prior period.

- Cash flows used in operating activities was $14.9 million compared to $10.8 million in the prior period, reflecting the seasonality of working capital.

- Cash and cash equivalents were $82.7 million as of September 30, 2026.

- Net Expansion Rate(1) was 102% as of September 30, 2026. Net Expansion Rate(1) was 105% excluding customer attrition from customers using the legacy Qubit platform(5), in each case, a sequential increase of 300 bps.

Other Business Developments:

- Coveo delivered the strongest new business bookings quarter in its history. Even when excluding the previously announced largest transaction ever, which closed early in the quarter, new business bookings would have represented the Company's strongest second quarter performance on record.

- Large deal momentum continued, with Coveo closing two seven-figure per year transactions during the quarter including the previously announced Fortune Global 500 technology company and Coles Supermarkets, one of Australia's largest full-service supermarket retailer, with multi-million customer transactions every day.

- Other customer wins and existing customer expansions included: A global commercial equipment parts distributor, a North American industrial gases and equipment supplier, US Foods, LG, Intel, NetApp, Tirlan, CelcomDigi, Rochester Regional, Zespri, Wesfarmers, Keller & Kalmbach, BOC Australia and several others.

- Generative AI solutions continue to show strong momentum, accounting for more than 50% of new business bookings in the quarter.

- During the quarter, Coveo continued to execute on its capital deployment strategy and bought back a total of 2,968,659 subordinate voting shares for cancellation, including 2,615,859 shares repurchased from an affiliate of Qatar Investment Authority at C$3.75 per share (minus transaction fees), which resulted in the full exit of their position, for a total net repurchase price of approximately C$9.6 million ($6.9 million), and 352,800 shares repurchased through its normal course issuer bid for a total consideration of approximately C$1.5 million ($1.1 million).

- Coveo has made a change in its marketing leadership, with Pranshu Tewari departing as Chief Marketing Officer. A search for Mr. Tewari's replacement is under way.

Product and Innovation Highlights:

- Coveo announced separately and concurrently the acquisition of Anglera, a San Francisco based, Y Combinator backed, AI native company that operates an agentic product data enrichment engine. The acquisition combines Anglera's engine with Coveo's AI commerce search and product discovery platform, giving manufacturers, distributors and retailers one path from raw product data to products buyers can find, compare and buy, on their own sites and in AI assistants.

- Coveo's Conversational Product Discovery has successfully progressed from an early beta program to live deployments with a handful of customers. Initial traction has been very encouraging, with a growing pipeline spanning new customer opportunities and meaningful expand potential within the existing customer base.

- Coveo's Merchandising Agent, a key agentic capability within the Coveo Merchandising Hub, is also generating strong early adoption and engagement:

- More than 70% of users engage with the product multiple times.

- Approximately 50% of users apply the Agent's recommended actions.

- More than 20% of storefront optimizations are now completed through automated agentic actions.

- Coveo's Forward Deployed Engineering initiative continues to gain momentum and is already making a contribution to the product innovation pipeline, while creating additional opportunities to strengthen customer expansion and retention.

Financial Outlook

Updated expectations for SaaS Subscription Revenue(1), Total Revenue, and Adjusted EBITDA(4) for Q3 FY'27 and the Full Year FY'27 are as follows:

The company expects to deliver operating cash flows of more than $10 million for the full fiscal year.

These statements are forward-looking and actual results may differ materially. Coveo's outlook constitutes "financial outlook" within the meaning of applicable securities laws and is provided for the purpose of, among other things, assisting investors and others in understanding certain key elements of our expected financial results, as well as our objectives, strategic priorities and business outlook, and in obtaining a better understanding of our anticipated operating environment. Investors and others are cautioned that it may not be appropriate for other purposes. Please refer to the "Forward-Looking Information" and "Financial Outlook Assumptions" sections below for additional information on the factors that could cause our actual results to differ materially from these forward-looking statements and a description of the assumptions underlying same.

Q2 Fiscal 2027 Conference Call and Webcast Information

Coveo will host a conference call today at 5:00 p.m. Eastern Time to discuss its financial results for the second quarter of fiscal year 2027 and its acquisition of Anglera. The call will be hosted by Laurent Simoneau, Co-Founder & Chief Executive Officer, Louis Têtu, Executive Chairman and Karine Hamel, Chief Financial Officer.

Non-IFRS Financial Measures and Ratios

Coveo's audited annual consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board. The information presented in this press release includes non-IFRS financial measures and ratios, namely (i) Adjusted EBITDA; (ii) Adjusted Gross Profit, Adjusted Product Gross Profit, and Adjusted Professional Services Gross Profit (collectively referred to as our "Adjusted Gross Profit Measures"); (iii) Adjusted Gross Margin, Adjusted Product Gross Margin, and Adjusted Professional Services Gross Margin (collectively referred to as our "Adjusted Gross Margin Measures"); (iv) Adjusted Sales and Marketing Expenses, Adjusted Research and Product Development Expenses, and Adjusted General and Administrative Expenses (collectively referred to as our "Adjusted Operating Expense Measures"); and (v) Adjusted Sales and Marketing Expenses (%), Adjusted Research and Product Development Expenses (%), and Adjusted General and Administrative Expenses (%) (collectively referred to as our "Adjusted Operating Expense (%) Measures"). These measures and ratios are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement IFRS measures by providing further understanding of the company's results of operations from management's perspective.

Accordingly, these measures and ratios should not be considered in isolation nor as a substitute for analysis of the company's financial information reported under IFRS.