Coveo Solutions (TSE:CVO)
TSX:CVO
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Coveo Solutions
(TSX:CVO)
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Rating:53Neutral
Price Target:
C$4.50
▲(4.41% Upside)
Action:ReiteratedDate:03/21/26
The score is held back primarily by ongoing losses and a bearish technical setup (price below major moving averages with weak momentum). These are partially offset by improving cash flow, strong gross margins and low leverage, plus a constructive earnings call with reaffirmed guidance and expectations for breakeven EBITDA and positive operating cash flows.
Positive Factors
High Gross Margins
Sustained >80% product gross margins indicate strong unit economics from the SaaS platform. High margins provide durable operating leverage as revenue scales, enabling the company to reinvest in R&D and sales while moving toward operating profitability without requiring proportionate revenue growth.
Negative Factors
Ongoing Operating and Net Losses
Despite improving metrics, sustained negative margins and operating losses signal the company has not yet achieved profitable scale. Continued losses depress ROE and equity, constrain returns for shareholders, and require consistent progress on margins or continued external funding to support growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Sustained >80% product gross margins indicate strong unit economics from the SaaS platform. High margins provide durable operating leverage as revenue scales, enabling the company to reinvest in R&D and sales while moving toward operating profitability without requiring proportionate revenue growth.
Read all positive factors
Coveo Solutions (CVO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$404.16M
Dividend YieldN/A
Average Volume (3M)173.02K
Price to Earnings (P/E)―
Beta (1Y)1.59
Revenue Growth12.20%
EPS Growth-8.46%
CountryCA
Employees743
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.11
Shares Outstanding53,777,240
10 Day Avg. Volume192,042
30 Day Avg. Volume173,021
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)2.91
Price to Sales (P/S)2.77
P/FCF Ratio38.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$9.83Price Target Upside128.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-0.22
Revenue Forecast (FY)C$167.12M
Coveo Solutions Business Overview & Revenue Model
Company Description
Coveo Solutions Inc. provides applied artificial intelligence (AI) solutions. Its cloud-native, multi-tenant software as a service (SaaS) platform is the intelligence layer that injects search, recommendations, and personalization solutions into d...
How the Company Makes Money
Coveo primarily makes money by selling access to its software platform on a subscription basis (software-as-a-service), where customers pay recurring fees to use Coveo’s search, recommendation, and personalization capabilities in production. Reven...
Coveo Solutions Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum and product differentiation: record bookings, above‑guide revenue, high product margins, meaningful expansions with large customers, new platform launches and strategic partnerships. Financially the company remains well‑capitalized with improving operating cash flow. Near‑term negatives were modest: a small adjusted EBITDA shortfall versus prior year influenced by one‑time severance, the completed deprecation of the Qubit product (removing a revenue stream), a one‑time contract renegotiation that slightly lowered NER, and a cautious sequential Q4 guide driven partly by calendar timing. Overall, highlights around growth, bookings, product strength and cash significantly outweigh the limited operational and one‑time headwinds discussed on the call.Positive Updates
Record Bookings and Customer Momentum
Strongest new bookings performance in company history; broke records in subscription bookings and net bookings. Secured largest new customer win (7‑figure) with a Fortune 500 industrial customer and expanded 80+ subscriptions with existing customers (e.g., Deloitte, United Airlines, Ticketmaster, Cardinal Health, Thomson Reuters, USAA, Vanguard, Workday).
Negative Updates
Adjusted EBITDA Decline and One‑time Costs
Adjusted EBITDA was negative $0.2M in Q3 versus positive $0.6M a year ago. Adjusted EBITDA and operating cash flow include $1.4M of one‑time severance expense related to workforce optimization.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Bookings and Customer Momentum
Strongest new bookings performance in company history; broke records in subscription bookings and net bookings. Secured largest new customer win (7‑figure) with a Fortune 500 industrial customer and expanded 80+ subscriptions with existing customers (e.g., Deloitte, United Airlines, Ticketmaster, Cardinal Health, Thomson Reuters, USAA, Vanguard, Workday).
Read all positive updates
Company Guidance
Coveo guided Q4 FY2026 SaaS subscription revenue of $35.6–36.1M and total revenue of $37.1–37.6M, and reiterated full-year FY2026 exits at the high end with SaaS subscription revenue $142.2–142.7M and total revenue $148.0–148.5M; management expects adjusted EBITDA to be approximately breakeven and positive operating cash flows for the fiscal year. For context, Q3 results included SaaS subscription revenue $36.6M (+13% YoY), Coveo Core subscription $35.8M (+15% YoY), total revenue $38.0M (+12% YoY), Core net expansion rate 105% (would have been 108% excluding a one‑time contract renegotiation), product gross margin ~81% and overall gross margin ~78%, adjusted EBITDA of -$0.2M, operating cash flow $0.5M, cash of $100.8M and no debt; Q3 also included a $1.4M one‑time severance charge, $4.7M deployed to retire ~1.1M shares under the NCIB, and management noted Q4 will have two fewer calendar days (≈$0.8M sequential revenue impact) and will consist solely of Coveo Core revenue following full deprecation of Qubit.Coveo Solutions Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 144.78M | 133.27M | 126.09M | 112.00M | 86.49M | 64.86M |
| Gross Profit | 111.90M | 104.88M | 98.45M | 85.33M | 65.03M | 48.45M |
| EBITDA | -8.69M | -5.06M | -12.20M | -30.32M | 249.60M | -468.47M |
| Net Income | -32.56M | -13.75M | -23.61M | -39.73M | 418.28M | -600.02M |
Balance Sheet | ||||||
| Total Assets | 215.30M | 230.36M | 275.88M | 308.82M | 345.50M | 194.04M |
| Cash, Cash Equivalents and Short-Term Investments | 100.81M | 124.75M | 166.59M | 198.45M | 223.07M | 131.87M |
| Total Debt | 16.05M | 7.46M | 9.04M | 10.87M | 13.09M | 209.84M |
| Total Liabilities | 118.67M | 103.45M | 97.36M | 90.28M | 90.06M | 1.19B |
| Stockholders Equity | 96.63M | 126.91M | 178.52M | 218.53M | 255.44M | -999.08M |
Cash Flow | ||||||
| Free Cash Flow | 2.26M | 9.54M | 3.08M | -7.85M | -37.57M | 2.19M |
| Operating Cash Flow | 3.35M | 11.07M | 4.20M | -6.26M | -35.42M | 5.78M |
| Investing Cash Flow | -1.47M | -1.53M | -1.12M | -2.27M | 36.62M | 30.71M |
| Financing Cash Flow | -21.17M | -50.81M | -35.59M | -2.43M | 163.40M | 2.18M |
Coveo Solutions Technical Analysis
Negative
4.31
Price Trends
5.44
Negative
5.88
Negative
7.06
Negative
Market Momentum
-0.35
Negative
31.38
Neutral
41.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CVO, the sentiment is Negative. The current price of 4.31 is below the 20-day moving average (MA) of 4.56, below the 50-day MA of 5.44, and below the 200-day MA of 7.06, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 31.38 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | C$2.84B | 43.05 | 3.01% | ― | -9.05% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | C$404.16M | -16.02 | -28.39% | ― | 12.20% | -8.46% | |
45 Neutral | C$5.84M | -0.41 | ― | ― | -13.42% | -126.00% | |
45 Neutral | C$8.66M | -3.84 | 286.87% | ― | 17.18% | 79.56% |
* Technology Sector Average
TSE:CVO
Coveo Solutions
4.31
-1.06
-19.74%
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Coveo Solutions Corporate Events
Business Operations and Strategy
Bell and Coveo Forge Sovereign AI Alliance to Power Canada’s Public Sector
Positive
Mar 10, 2026
Bell and Coveo have formed a strategic sovereign AI partnership that integrates the Coveo AI-Relevance Platform into Bell’s AI Fabric to serve Canadian federal and provincial governments and regulated industries. The collaboration aims to mo...
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.