Enterprise software · AI search / Operating · recurring revenue / AI & Digital Assets
Coveo Solutions
TSXCVOU.S.Check broker / OTC
Coveo sells AI-powered search, recommendation and generative-answering software to enterprises, priced as a subscription. For a value reader it is the cleaner of the two businesses in our AI brief: a cash-backed, recurring-revenue model where the questions are about durability of growth, net retention and the path to free cash flow — not about whether the product exists.
The company is listed on the TSX only. We could not confirm a U.S. exchange listing; U.S. brokers may offer over-the-counter access.
Primary assets & business
- Coveo AI-Relevance Platform: enterprise search, recommendations and generative answering, sold as SaaS
- Customer base concentrated in commerce, customer service and workplace search
- Development and headquarters in Québec City, with U.S. commercial operations
Financial position
| Total revenue (quarter) | US$38.5M | Q1 FY2027 (June 30, 2026) [1] |
|---|---|---|
| SaaS subscription revenue (quarter) | US$37.4MRecurring portion of revenue. | Q1 FY2027 [1] |
| Cash & cash equivalents | US$107.1M | June 30, 2026 [1] |
| Net loss (IFRS, quarter) | US$5.8M | Q1 FY2027 [1] |
| Net expansion rate | 99%Below 100% means existing customers, net, spent slightly less. | Q1 FY2027 [1] |
| Debt | Not yet verifiedNot yet verified against the filing. | |
| Shares outstanding | Not yet verifiedNot yet verified against the filing. |
USD. Issuer-reported in the Q1 FY2027 results dated July 30, 2026.
Ownership & capital structure
| Insider ownership | Not yet verifiedCheck the latest management information circular. | |
|---|---|---|
| Stock-based compensation (quarter) | Not yet verifiedMaterial for per-share returns in software; verify from the statement of cash flows. | |
| Fully diluted shares | Not yet verified |
What has to happen next
- Next quarterly results: compare SaaS revenue growth and net expansion against the prior two quarters.
- Operating cash flow and free cash flow after capitalized development — is the loss narrowing on a cash basis?
- Any change to the share count from stock-based compensation or buybacks.
Research checkpoints, not a dated event calendar or a promise of outcomes.
Valuation context
The value case to test is enterprise value against durable subscription revenue and a credible path to free cash flow. Cash of US$107.1M [1] is a cushion, not a margin of safety on its own: the market may be charging for a net expansion rate below 100% and for competition in AI search. We publish no target and no multiple here; a dated enterprise-value bridge (market capitalization less net cash, against forward subscription revenue) belongs in the next revision of this profile.
Mandatory reading
Key risks
- Net expansion was 99%: existing customers, net, spent slightly less. Growth has to come from new logos.
- Competition from platform vendors bundling AI search into larger suites.
- Stock-based compensation and sales execution can weaken per-share returns even if revenue grows.
- A cash balance alone does not establish a margin of safety; losses continue on an IFRS basis.
- TSX-only listing: thinner U.S. access and liquidity; currency exposure for U.S. holders.
Source documents
-
1
Coveo Q1 FY2027 results (quarter ended June 30, 2026)
Issuer-reported revenue, cash and net loss.
-
2
SEDAR+ filings — Coveo Solutions Inc.
Interim financial statements and MD&A.
