Q3 2026 Coveo Solutions Inc Earnings Call Transcript
Key Points
- Coveo Solutions Inc (CVOSF) reported record-breaking subscription and net bookings in the third quarter, marking the strongest performance in the company's history.
- Total revenue and SaaS revenue exceeded guidance, leading the company to reaffirm its fiscal 2026 guidance and expect revenue at the top end of the previously guided range.
- The company secured significant new contracts with major brands such as GE, Liberty Mutual, and a seven-figure deal with a Fortune 500 industrial leader.
- Coveo Solutions Inc (CVOSF) expanded over 80 subscriptions with existing customers, including notable names like Deloitte, United Airlines, and Ticketmaster.
- The company announced a strategic partnership with Deloitte and a memorandum of understanding with the Canadian government to modernize digital services using Coveo AI.
- Despite strong bookings, the adjusted EBITDA for the quarter was $0.2 million, down from $0.6 million in the prior year.
- The company faced a 3% headwind from a one-time contract renegotiation, impacting net expansion rate (NER) which stood at 105%.
- Q4 guidance reflects the end of life of the Qubit platform, with no further revenue expected from it, impacting sequential revenue comparison.
- The company incurred a $1.4 million one-time severance expense related to workforce optimization actions.
- Despite positive momentum, the company remains cautious about getting ahead of itself, indicating a dynamic market environment and the need for disciplined execution.
Good afternoon ladies and gentlemen, and welcome to the Coveyo Solutions 3rd quarter fiscal 2026 financial results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press 0 for the operator. This call is being recorded on Thursday, January 29, 2026, and I would now like to turn the conference over to Mr. Adhir Kadway, head of investor relations. Please go ahead.
Good afternoon, everyone, and thank you for joining us. With me to discuss Covelo's fiscal third quarter 2026 results are Lavince Simonon, CoVO's co-founder and Chief Executive Officer, Louis Teo.
Covelo's executive Chairman, Brandon Nussi, Covallo's Chief Financial Officer, and Kevin Hamel, Covallo's incoming interim Chief Financial Officer.
A reminder that some remarks made today will be forward-looking statements within the meaning of applicable securities
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