MONTREAL – October 30, 2026 -- Coveo (TSX: CVO) posted SaaS Subscription Revenue of $39.1 million for the second quarter of fiscal 2027, up 9% from $35.9 million a year earlier, and booked the strongest new business quarter in its history after closing two seven-figure-per-year deals.

The company also announced the acquisition of Anglera, a San Francisco-based, Y Combinator-backed developer of an agentic product data enrichment engine. Coveo reports in U.S. dollars under IFRS; the quarter ended September 30, 2026.

Core platform grows 12% as legacy Qubit is fully deprecated

All SaaS Subscription Revenue now comes from the Coveo core Platform following the full deprecation of the legacy Qubit platform. Core platform SaaS revenue rose 12%. Total revenue reached $40.4 million versus $37.3 million, an 8% increase.

Gross margin was 80%, against 79% a year earlier, while Product gross margin held at 82%. Operating loss narrowed to $3.0 million from $6.7 million, and net loss fell to $3.1 million from $4.4 million. Adjusted EBITDA reached $2.0 million, compared with $0.6 million.

Operating cash outflow widens to $14.9 million on working capital seasonality

Cash used in operating activities was $14.9 million, up from $10.8 million, which Coveo attributes to seasonal working capital. Cash and cash equivalents stood at $82.7 million at quarter-end. The company expects operating cash flows of more than $10 million for the full fiscal year.

Net Expansion Rate was 102%, or 105% excluding attrition from Qubit customers. Both figures are sequential increases of 300 bps.

Two seven-figure deals include Coles Supermarkets and a Fortune Global 500 tech firm

The two transactions were the previously announced Fortune Global 500 technology company and Coles Supermarkets, one of Australia's largest full-service supermarket retailers. Even excluding the previously announced largest transaction in company history, which closed early in the quarter, new business bookings would still have been the strongest second quarter on record.

Generative AI solutions accounted for more than 50% of new business bookings. Other wins and expansions named by Coveo include US Foods, LG, Intel, NetApp, Tirlan, CelcomDigi, Rochester Regional, Zespri, Wesfarmers, Keller & Kalmbach and BOC Australia.

CEO Laurent Simoneau said the commitments from leading organizations reinforce Coveo's relevance in the enterprise AI market.

Anglera deal links raw product data to AI commerce search

Coveo will combine Anglera's engine with its AI commerce search and product discovery platform. The company says this gives manufacturers, distributors and retailers a single path from raw product data to products buyers can find, compare and buy on their own sites and in AI assistants.

Coveo's Merchandising Agent is seeing early adoption: more than 70% of users engage with it multiple times, about 50% apply its recommended actions, and more than 20% of storefront optimizations are now completed through automated agentic actions. Conversational Product Discovery has moved from beta to live deployments with a handful of customers.

Coveo exits Qatar Investment Authority affiliate stake in C$9.6M buyback

Coveo repurchased 2,968,659 subordinate voting shares for cancellation during the quarter. Of these, 2,615,859 shares were bought from an affiliate of Qatar Investment Authority at C$3.75 per share, fully exiting that position, for a net price of about C$9.6 million ($6.9 million). A further 352,800 shares were repurchased through its normal course issuer bid for about C$1.5 million ($1.1 million).

Pranshu Tewari is departing as Chief Marketing Officer, and a search for his replacement is under way. Coveo also updated its Q3 and full-year fiscal 2027 outlook for SaaS Subscription Revenue, total revenue and Adjusted EBITDA.