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Coveo Solutions
(TSX:CVO)
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Rating:64Neutral
Price Target:
C$5.00
▲(17.65% Upside)
Action:Reiterated
Date:10/30/26
The score is driven primarily by improving financial quality (positive and growing free cash flow with low leverage) and a strong earnings call featuring record bookings, large enterprise wins, and constructive guidance. Technicals add moderate support with positive momentum. Valuation remains the main constraint due to ongoing net losses (negative P/E) and no dividend yield data.
Positive Factors
Generative AI Monetization
Generative AI is becoming a meaningful commercial driver rather than remaining an experimental feature. Its growing share of ARR and bookings, alongside reported higher contract values and stronger expansion, can support durable platform relevance and recurring revenue growth.
Negative Factors
Unprofitable Operations
Coveo has not yet converted its strong software gross margins into sustainable operating or net profitability. Continued losses and negative returns on equity can constrain internally funded growth and leave earnings quality dependent on further operating leverage and disciplined expense management.
Read all positive and negative factors
Positive Factors
Negative Factors
Generative AI Monetization
Generative AI is becoming a meaningful commercial driver rather than remaining an experimental feature. Its growing share of ARR and bookings, alongside reported higher contract values and stronger expansion, can support durable platform relevance and recurring revenue growth.
Read all positive factors
Coveo Solutions (CVO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$467.98M
Dividend YieldN/A
Average Volume (3M)231.36K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth9.70%
EPS Growth11.90%
CountryCA
Employees748
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.21
Shares Outstanding58,120,190
10 Day Avg. Volume207,126
30 Day Avg. Volume231,356
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)3.15
Price to Sales (P/S)1.95
P/FCF Ratio30.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$7.50Price Target Upside76.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.03
Revenue Forecast (FY)C$162.08M
Coveo Solutions Business Overview & Revenue Model
Company Description
Coveo Solutions Inc. specializes in delivering artificial intelligence (AI) solutions for practical business applications. Its foundational offering is a cloud-native, multi-tenant Software-as-a-Service (SaaS) platform that functions as a critical...
How the Company Makes Money
Coveo makes money primarily by selling access to its cloud software platform on a subscription basis. Revenue is typically generated from (1) recurring subscription fees for use of its AI-powered search, recommendations, and relevance capabilities...
Coveo Solutions Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 08, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by record bookings, multiple large strategic transactions, above-guidance revenue and adjusted EBITDA, improving core net expansion, increasing generative AI monetization and a raised full-year SaaS revenue floor. The company also highlighted continued product investment, customer expansion and strategic progress in commerce and agentic AI. Offsetting items included negative quarterly operating cash flow due to seasonality, lower expected professional services revenue, legacy Qubit pressure on reported retention, and modest near-term Anglera revenue contribution.Positive Updates
Record Bookings and Results Above Guidance
Coveo delivered the strongest bookings quarter in its history, including in what is typically its seasonally slowest quarter. SaaS subscription revenue and total revenue came in slightly above guidance, while adjusted EBITDA was $2 million versus $0.6 million a year ago and above expectations.
Negative Updates
Negative Operating Cash Flow in the Quarter
Cash flow from operating activities was negative $14.9 million, reflecting the seasonality of Coveo's cash collection cycle and the timing of working capital movements.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Bookings and Results Above Guidance
Coveo delivered the strongest bookings quarter in its history, including in what is typically its seasonally slowest quarter. SaaS subscription revenue and total revenue came in slightly above guidance, while adjusted EBITDA was $2 million versus $0.6 million a year ago and above expectations.
Read all positive updates
Company Guidance
For Q3, Coveo expects SaaS subscription revenue to be between $39.7 million and $40.2 million, representing approximately 11% to 12% growth for the Coveo core platform, total revenue to be between $40.6 million and $41.1 million, and adjusted EBITDA to be between $1 million and $2 million. For the full year, SaaS subscription revenue is expected to be $156 million to $158 million, or approximately 12% to 13% growth for the Coveo core platform, total revenue is expected to be $160 million to $162 million, adjusted EBITDA is expected to be between $2 million and $7 million, and operating cash flow is expected to be more than $10 million; adjusted EBITDA and operating cash flow expectations remain unchanged.Coveo Solutions Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
63
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 149.88M | 148.34M | 133.27M | 126.09M | 112.00M | 86.49M |
| Gross Profit | 114.30M | 115.67M | 104.88M | 98.45M | 85.33M | 65.03M |
| EBITDA | -14.99M | -20.64M | -5.06M | -12.20M | -30.32M | -36.23M |
| Net Income | -19.10M | -28.88M | -13.75M | -23.61M | -39.73M | 418.28M |
Balance Sheet | ||||||
| Total Assets | 197.65M | 212.97M | 230.36M | 275.88M | 308.82M | 345.50M |
| Cash, Cash Equivalents and Short-Term Investments | 106.96M | 101.91M | 124.75M | 166.59M | 198.45M | 223.07M |
| Total Debt | 14.43M | 15.24M | 7.46M | 9.04M | 10.87M | 13.09M |
| Total Liabilities | 112.81M | 120.99M | 103.45M | 97.36M | 90.28M | 90.06M |
| Stockholders Equity | 84.84M | 91.98M | 126.91M | 178.52M | 218.53M | 255.44M |
Cash Flow | ||||||
| Free Cash Flow | 11.56M | 9.56M | 9.54M | 3.08M | -7.85M | -37.57M |
| Operating Cash Flow | 12.11M | 10.49M | 11.07M | 4.20M | -6.26M | -35.42M |
| Investing Cash Flow | -932.70K | -929.00K | -1.53M | -1.12M | -2.27M | 36.62M |
| Financing Cash Flow | -32.42M | -32.90M | -50.81M | -35.59M | -2.43M | 163.40M |
Coveo Solutions Technical Analysis
Positive
4.25
Price Trends
4.41
Positive
4.36
Positive
4.73
Positive
Market Momentum
0.14
Positive
56.53
Neutral
44.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CVO, the sentiment is Positive. The current price of 4.25 is below the 20-day moving average (MA) of 4.70, below the 50-day MA of 4.41, and below the 200-day MA of 4.73, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 56.53 is Neutral, neither overbought nor oversold. The STOCH value of 44.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CVO.
Coveo Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$7.54B | 66.79 | 10.62% | ― | 13.76% | ― | |
64 Neutral | C$467.98M | -16.53 | -19.77% | ― | 9.70% | 11.90% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | C$20.79M | -3.07 | 112.09% | ― | -32.68% | 70.60% | |
41 Neutral | C$2.92M | -0.28 | 70.08% | 714.29% | -15.68% | -47.54% |
* Technology Sector Average
TSE:CVO
Coveo Solutions
4.77
-1.23
-20.50%
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Coveo Solutions Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Coveo Delivers Record Bookings and Acquires Anglera as Core AI Platform Drives Growth
Positive
Oct 30, 2026
Coveo reported second quarter fiscal 2027 results showing SaaS subscription revenue of $39.1 million, up 9% year over year, all driven by its core platform after retiring the legacy Qubit offering. Total revenue rose 8% to $40.4 million, gross mar...
Business Operations and StrategyM&A Transactions
Coveo buys Anglera to boost AI-driven product discovery
Positive
Oct 30, 2026
Coveo has acquired San Francisco-based Anglera, an AI-native product data enrichment specialist backed by Y Combinator, and will integrate its agentic enrichment platform into Coveo’s Commerce offering. The move aims to turn richer, more acc...
Business Operations and StrategyStock Buyback
Coveo to Buy Back Shares as Qatar Fund Fully Exits Stake
Positive
Sep 22, 2026
Coveo has agreed to repurchase and cancel 2,615,859 subordinate voting shares from Al-Rayyan Holding, a subsidiary of Qatar Investment Authority, for about C$9.8 million at a 10.5% discount to the latest closing price, funded with cash on hand. In...
Business Operations and StrategyShareholder Meetings
Coveo Shareholders Strongly Back Board and Auditor at 2026 AGM
Positive
Sep 22, 2026
Coveo reported the voting outcomes of its 2026 annual general meeting, where shareholders overwhelmingly backed the full slate of seven director nominees, each receiving more than 99% of votes cast in favor. The strong support for the board signal...
Business Operations and StrategyFinancial Disclosures
Capstone Copper Posts Record Q2 Revenue and EBITDA as Growth Projects Advance
Positive
Jul 30, 2026
Capstone Copper reported a strong second quarter of 2026, posting record revenue of $739.7 million and record adjusted EBITDA of $354 million, driven by higher copper prices and robust performance at Mantoverde, Mantos Blancos and Cozamin. Net inc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.