Technology
Coveo Reports Fourth Quarter and Fiscal 2024 Financial Results
Published
2 years agoon
By
Fourth quarter SaaS Subscription Revenue(1) of $30.7 million, at the high end of guidance
Fourth quarter operating loss reduced by 38% year-over-year; net loss reduced by 44%
Adjusted Operating Loss(2) of $0.8 million, well ahead of guidance
Fourth quarter cash flows from operating activities of $4.6 million, an improvement of 165% and well ahead of plan
Announces launch of C$50 million substantial issuer bid, and intention to renew its normal course issuer bid following completion of the substantial issuer bid
Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards (“IFRS”)
MONTREAL and SAN FRANCISCO, June 3, 2024 /PRNewswire/ – Coveo (TSX: CVO), the leading enterprise AI platform that brings AI search and GenAI to every point-of-experience, enabling remarkable personalized digital experiences that drive business outcomes, today announced financial results for its fourth quarter and fiscal year 2024 ended March 31, 2024.
“Our fiscal year 2024 has been transformative for Coveo and our industry. Enterprises worldwide are realizing that AI can create remarkable digital experiences for their customers and employees, leading to significantly improved business outcomes. With over a decade of AI experience with major clients, Coveo is well-positioned to help leading brands capture this opportunity,” said Louis Têtu, Chairman and CEO of Coveo. “Last year, we said that we would be ‘last to hype, first to results,’ and we are proud to be among the companies that have already enabled large enterprises to achieve global live production deployments of generative AI, demonstrating tangible results and significant benefits to their businesses.”
Fourth Quarter and Fiscal Year 2024 Summary Financial Highlights
The following table summarizes our financial results for the fourth quarter and full fiscal year 2024.
in millions of US dollars, except
as otherwise indicated
Q4 2024
Q4 2023
Change
FY 2024
FY 2023
Change
SaaS Subscription Revenue(1)
$30.7
$27.1
13 %
$118.6
$103.0
15 %
Coveo core platform(4)
$28.7
$24.2
18 %
$109.1
$91.4
19 %
Qubit platform(5)
$2.0
$2.9
(30 %)
$9.5
$11.6
(18 %)
Total Revenue
$32.6
$29.1
12 %
$126.1
$112.0
13 %
Gross margin
79 %
77 %
2 %
78 %
76 %
2 %
Operating Loss
($5.5)
($8.8)
38 %
($29.7)
($44.4)
33 %
Net Loss
($4.1)
($7.2)
44 %
($23.6)
($39.7)
41 %
Adjusted Operating Loss(2)
($0.8)
($4.4)
81 %
($6.3)
($20.4)
69 %
Adjusted EBITDA(2)
$0.2
($3.4)
105 %
($2.4)
($16.3)
85 %
Cash flows from (used in)
operating activities
$4.6
($7.1)
165 %
$4.2
($6.3)
167 %
Fourth Quarter Fiscal 2024 Financial Highlights
(All comparisons are relative to the three-month period ended March 31, 2023, unless otherwise stated)
SaaS Subscription Revenue(1) of $30.7 million compared to $27.1 million, an increase of 13%, and at the top end of guidance. Within this, SaaS Subscription Revenue for Coveo’s core platform(1) was $28.7 million, an increase of 18%.Total revenue was $32.6 million compared to $29.1 million, an increase of 12%, and at the top end of guidance.Gross margin was 79%, an increase of 2% compared to the prior year, and product gross margin was 82%, an increase of 1% compared to the prior year.Operating loss was $5.5 million compared to $8.8 million and net loss for the quarter was
$4.1 million compared to $7.2 million, all representing significant improvements.Adjusted Operating Loss(2) was $0.8 million compared to $4.4 million, well ahead of guidance for a loss of between $2.0 to $3.0 million.Adjusted EBITDA(2) was positive for the quarter at $0.2 million compared to ($3.4) million, representing an improvement of 105%.Cash flows from operating activities were $4.6 million for the quarter, compared to ($7.1) million, a 16% improvement.Cash and cash equivalents were $166.6 million as of March 31, 2024.
Full Year Fiscal 2024 Financial Highlights
(All comparisons are relative to the twelve-month period ended March 31, 2023, unless otherwise stated)
SaaS Subscription Revenue(1) of $118.6 million compared to $103.0 million, an increase of 15%. Within this, SaaS Subscription Revenue for Coveo’s core platform(1) was $109.1 million, an increase of 19%.Total revenue was $126.1 million compared to $112.0 million, an increase of 13%.Gross margin was 78%, an increase of 2% compared to the prior year, and product gross margin was 82%, an increase of 1% compared to the prior year.Operating loss was $29.7 million compared to $44.4 million, and net loss was $23.6 million compared to $39.7 million, all representing significant improvements.Adjusted Operating Loss(2) was $6.3 million compared to $20.2 million, and Adjusted EBITDA(2) was $2.4 million compared to $16.3 million, all representing significant improvements.Cash flows from operating activities were $4.2 million for the year, compared to ($6.3) million, a 167% improvement. The Company achieved positive cash flow from operations well ahead of previously announced plans.Net Expansion Rate(1) of 103% as of March 31, 2024. Net Expansion Rate(1) was 107% excluding customer attrition from customers using the Qubit platform(6).
Other Business Highlights
Coveo was recognized as a Leader in the May 2024 Gartner® Magic Quadrant™ for Search and Product Discovery, positioned highest for Ability to Execute among the 18 companies evaluated.(9)Recently announced that Coveo has joined the MACH Alliance, the group of independent tech companies dedicated to advocating for open, best-of-breed technology ecosystems. Its inclusion in the MACH Alliance recognizes Coveo’s strength in composable AI technology, meeting the MACH standard of modern technology: microservices based, API-first, cloud-native SaaS, and headless.Coveo’s Relevance Generative Answering product continues to see strong momentum, generating more than 20% of new bookings in the fourth quarter. Coveo currently has more than 75 generative AI projects in various stages of customer evaluations as the company enters Fiscal 2025.Appointed Nick Bowles as Coveo’s new Managing Director in Europe as the company continues to see significant momentum with customers and prospects in the region, along with continued momentum with SAP as a partner in that region. During the fourth quarter, the company also parted ways with its Chief Revenue Officer, Tom Melzl.
Financial Outlook
Coveo anticipates SaaS Subscription Revenue(1), Total Revenue, and Adjusted EBITDA(2) for Q1 FY’25 and fiscal year 2025 to be in the following ranges. Our financial outlook includes the assumption that the remaining revenue from the acquired Qubit platform will decline further, as the company continues its integration of the platform and IP that was acquired with Qubit into the Coveo core platform.
Q1 FY’25
Full Year FY’25
SaaS Subscription Revenue(1)
$30.2 – $30.5 million
$126.0 – $130.0 million
Total Revenue
$31.8 – $32.1 million
$133.0 – $138.0 million
Adjusted EBITDA(2)
($2.2) – ($2.7) million
$0.0 – $4.0 million
The company anticipates to achieve positive cash flow from operations of approximately $10 million for Fiscal 2025.
These statements are forward-looking and actual results may differ materially. Coveo’s outlook constitutes “financial outlook” within the meaning of applicable securities laws and is provided for the purpose of, among other things, assisting investors and others in understanding certain key elements of our expected financial results, as well as our objectives, strategic priorities and business outlook, and in obtaining a better understanding of our anticipated operating environment. Investors and others are cautioned that it may not be appropriate for other purposes. Please refer to the “Forward-Looking Information” section below for additional information on the factors that could cause our actual results to differ materially from these forward-looking statements and a description of the assumptions underlying same.
Launch of a Substantial Issuer Bid
Coveo announced today the launch of a substantial issuer bid (the “SIB”) pursuant to which Coveo will offer to purchase for cancellation up to C$50 million of its subordinate voting shares (the “Subordinate Voting Shares”). Holders of multiple voting shares of the Company (the “Multiple Voting Shares”) will be entitled to tender the Subordinate Voting Shares underlying their Multiple Voting Shares in the SIB. The SIB will commence on June 4, 2024 and expire on July 10, 2024, unless extended, varied or withdraw (the “Expiry Date”). The Company also announced that subject to market and other conditions and regulatory approvals, following completion of the SIB, it intends to apply to the Toronto Stock Exchange to renew its normal course issuer bid (the “NCIB”). Further details on the renewed NCIB will be provided in due course.
The SIB will proceed by way of a “modified Dutch auction”. Holders of Subordinate Voting Shares and Multiple Voting Shares wishing to tender to the SIB will be entitled to do so (i) by making an auction tender for a specified number of Subordinate Voting Shares at a price of not less than C$7.70 and not more than C$9.25 per Subordinate Voting Share, in increments of C$0.10 per Subordinate Voting Share; or (ii) by making a purchase price tender without specifying a price per Subordinate Voting Share, but rather agreeing to have a specified number of Subordinate Voting Shares purchased at the purchase price to be determined by the auction tenders. Shareholders who validly deposit Subordinate Voting Shares or Multiple Voting Shares without specifying the method in which they are tendering such shares will be deemed to have made a purchase price tender. The SIB does not provide shareholders with the opportunity to tender their Subordinate Voting Shares pursuant to proportionate tenders. Multiple Voting Shares taken up by the Company will be converted into Subordinate Voting Shares on a one-for-one basis immediately prior to take up. All Subordinate Voting Shares purchased by the Company under the SIB will be cancelled.
The board of directors of Coveo (the “Board”) believes that the SIB is in the best interests of the Company and its shareholders given, among other things, its significant level of cash on hand, expectations around cash flow from operations, and the current market price of the Subordinate Voting Shares, which the Board believes does not currently reflect the fundamental value of the Company. The Company intends to fund the SIB with cash on hand.
The price range offered for the Subordinate Voting Shares pursuant to the SIB represents an approximately nil to 20% premium to the closing price of the Subordinate Voting Shares on the TSX on May 31, 2024, the last trading day prior to the date of filing of the Offer Documents (as defined below) on SEDAR+. Over the 12-month period ended May 31, 2024, the closing prices of the Subordinate Voting Shares on the TSX have ranged from a low of C$7.55 to a high of C$12.48.
The SIB is optional for all shareholders, who are free to choose whether to participate, how many Subordinate Voting Shares or Multiple Voting Shares to tender and, in the case of auction tenders, at what price to tender within the specified range. Any shareholder who does not deposit any Subordinate Voting Shares or Multiple Voting Shares (or whose shares are not repurchased under the SIB) will realize a proportionate increase in its equity interest in the Company, to the extent that Subordinate Voting Shares are purchased under the SIB.
As of the date hereof, we have not been made aware that any of Coveo’s principal shareholders (i.e. a shareholder that owns 10% or more of the voting rights associated to all of Coveo’s issued and outstanding shares) intends to deposit Subordinate Voting Shares or Multiple Voting Shares under the SIB.
The final purchase price to be paid by Coveo for each validly deposited Subordinate Voting Share and Multiple Voting Share will be determined upon expiry of the SIB and will be based on the number of Subordinate Voting Shares and Multiple Voting Shares validly deposited pursuant to auction tenders and purchase price tenders, and the prices specified by shareholders making auction tenders. As a result, Coveo’s shareholders who tender their Subordinate Voting Shares and/or Multiple Voting Shares will set the purchase price for the SIB. The purchase price will be the lowest price (which will not be more than C$9.25 per Subordinate Voting Share and not less than C$7.70 per Subordinate Voting Share) that enables Coveo to purchase Subordinate Voting Shares up to the maximum amount available for auction tenders and purchase price tenders, determined in accordance with the terms of the SIB. Subordinate Voting Shares and Multiple Voting Shares validly deposited at or below the purchase price as finally determined by Coveo will be purchased at such purchase price. Subordinate Voting Shares that will not be taken up in connection with the SIB, including Subordinate Voting Shares and Multiple Voting Shares deposited pursuant to auction tenders at prices above the purchase price, will be returned to the shareholders. If the aggregate purchase price for Subordinate Voting Shares and Multiple Voting Shares validly tendered pursuant to auction tenders and purchase price tenders is greater than the amount available for auction tenders and purchase price tenders, Coveo will purchase Subordinate Voting Shares from the holders of Subordinate Voting Shares and Multiple Voting Shares who made valid purchase price tenders or tendered at or below the purchase price as finally determined by Coveo on a pro rata basis. “Odd lot” holders (holders of fewer than 100 Subordinate Voting Shares) will not be subject to proration.
The formal offer to purchase, issuer bid circular, letter of transmittal, notice of guaranteed delivery and other related documents (collectively, the “Offer Documents”), which Offer Documents collectively contain the terms and conditions of the SIB, instructions for tendering Subordinate Voting Shares and/or Multiple Voting Shares, and the factors considered by Coveo and the Board in making its decision to approve and launch the SIB, among other things, are being filed with the securities regulatory authorities in Canada today and are expected to be mailed on June 4, 2024 to registered shareholders and holders of securities convertible into, exchangeable for, or that carry the right to acquire Subordinate Voting Shares or Multiple Voting Shares prior to the Expiry Date. The Offer Documents will be available under Coveo’s SEDAR+ profile at www.sedarplus.ca.
The SIB will not be conditional upon any minimum number of Subordinate Voting Shares being tendered and will be subject to conditions customary for transactions of this nature. The SIB will, however, be subject to other conditions described in the Offer Documents and Coveo reserves the right, subject to applicable laws, to withdraw, extend or vary the SIB, if, at any time prior to the payment of deposited Subordinate Voting Shares, certain events occur.
The Company has engaged RBC Capital Markets as financial advisor and dealer manager for the SIB and TSX Trust Company (Canada) to act as depositary for the SIB.
The Board approved the making of the SIB, the size of the SIB and the purchase price range for Subordinate Voting Shares. However, none of the Company, the Board, the dealer manager or the depositary makes any recommendation to shareholders as to whether to tender or refrain from tendering any or all of their Subordinate Voting Shares or Multiple Voting Shares to the SIB. Shareholders are urged to carefully evaluate all information in the Offer Documents, consult their own financial, legal, investment, accounting and tax advisors and make their own decisions as to whether to deposit Subordinate Voting Shares or Multiple Voting Shares under the SIB and, if so, how many such shares to deposit and at what price or prices.
This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell the Company’s shares. The solicitation and the offer to buy the Subordinate Voting Shares is being made only pursuant to the Offer Documents, which contain full details of the SIB.
Any questions or requests for information may be directed to TSX Trust Company (Canada), as the depositary for the SIB, at 1-800-387-0825 (Toll Free – North America), (416) 682-3860 or shareholderinquiries@tmx.com, or to RBC Capital Markets, as dealer manager for the SIB, at CoveoSIB@rbccm.com.
Q4 Conference Call and Webcast Information
Coveo will host a conference call today at 5:00 p.m. Eastern Time to discuss its financial results for its fourth quarter and fiscal year 2024. The call will be hosted by Louis Têtu, Chairman and CEO, and other members of its senior leadership team.
Conference Call:
Use the link above to join the conference call without operator assistance. If you prefer to have operator assistance, please dial: 1-888-664-6392
Live Webcast:
https://app.webinar.net/LxXO5DAVZk0
Webcast Replay:
ir.coveo.com under the “News & Events” section
For additional information, investors and other interested persons may review our financial statements and MD&A as well as our current investor presentation on our website at ir.coveo.com.
Non-IFRS Measures and Ratios
Coveo’s annual audited consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board. The information presented in this press release includes non-IFRS financial measures and ratios, namely (i) Adjusted Operating Loss; (ii) Adjusted EBITDA; (iii) Adjusted Gross Profit, Adjusted Product Gross Profit, and Adjusted Professional Services Gross Profit (collectively referred to as our “Adjusted Gross Profit Measures”); (iv) Adjusted Gross Margin, Adjusted Product Gross Margin, and Adjusted Professional Services Gross Margin (collectively referred to as our “Adjusted Gross Margin Measures”); (v) Adjusted Sales and Marketing Expenses, Adjusted Research and Product Development Expenses, and Adjusted General and Administrative Expenses (collectively referred to as our “Adjusted Operating Expense Measures”); and (vi) Adjusted Sales and Marketing Expenses (%), Adjusted Research and Product Development Expenses (%), and Adjusted General and Administrative Expenses (%) (collectively referred to as our “Adjusted Operating Expense (%) Measures”). These measures and ratios are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement IFRS measures by providing further understanding of the company’s results of operations from management’s perspective.
Accordingly, these measures and ratios should not be considered in isolation nor as a substitute for analysis of the company’s financial information reported under IFRS. Adjusted Operating Loss, Adjusted EBITDA, the Adjusted Gross Profit Measures, the Adjusted Gross Margin Measures, the Adjusted Operating Expense Measures, and the Adjusted Operating Expense (%) Measures are used to provide investors with supplemental measures and ratios of the company’s operating performance and thus highlight trends in Coveo’s core business that may not otherwise be apparent when relying solely on IFRS measures and ratios. The company’s management also believes that securities analysts, investors, and other interested parties frequently use non-IFRS financial measures and ratios in the evaluation of issuers. Coveo’s management uses non-IFRS financial measures and ratios in order to facilitate operating performance comparisons from period to period, and to prepare annual operating budgets and forecasts.
See the “Non-IFRS Measures” section of our MD&A for the fourth quarter and fiscal year ended March 31, 2024, which is available as of the date hereof under our profile on SEDAR+ at www.sedarplus.ca for a description of these measures. Please refer to the financial tables appended to this press release for additional information including a reconciliation of (i) Adjusted EBITDA and Adjusted Operating Loss to operating loss and net loss; (ii) Adjusted Gross Profit to gross profit; (iii) Adjusted Product Gross Profit to product gross profit; (iv) Adjusted Professional Services Gross Profit to professional services gross profit; (v) Adjusted Sales and Marketing Expenses to sales and marketing expenses; (vi) Adjusted Research and Product Development Expenses to research and product development expenses; and (vii) Adjusted General and Administrative Expenses to general and administrative expenses.
Key Performance Indicators
This press release refers to “SaaS Subscription Revenue” and “Net Expansion Rate”. They are operating metrics used in Coveo’s industry. We monitor our key performance indicators to help us evaluate our business, measure our performance, identify trends, formulate business plans, and make strategic decisions. Our key performance indicators provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors, and other interested parties frequently use industry metrics in the evaluation of issuers. Certain of our key performance indicators are measures that do not have any standardized meaning prescribed by IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers and cannot be reconciled to a directly comparable IFRS measure. Our key performance indicators may be calculated and designated in a manner different than similar key performance indicators used by other companies.
“SaaS Subscription Revenue” means the company’s SaaS subscription revenue, as presented in our financial statements in accordance with IFRS.
“Net Expansion Rate” is calculated by considering a cohort of customers at the end of the period 12 months prior to the end of the period selected and dividing the SaaS Annualized Contract Value (“SaaS ACV”, as defined below) attributable to that cohort at the end of the current period selected, by the SaaS ACV attributable to that cohort at the beginning of the period 12 months prior to the end of the period selected. Expressed as a percentage, the ratio (i) excludes any SaaS ACV from new customers added during the 12 months preceding the end of the period selected; (ii) includes incremental SaaS ACV made to the cohort over the 12 months preceding the end of the period selected; (iii) is net of the SaaS ACV from any customers whose subscriptions terminated or decreased over the 12 months preceding the end of the period selected; and (iv) is currency neutral and as such, excludes the effect of currency variation.
In this section and throughout this press release, “SaaS Annualized Contract Value” means the SaaS annualized contract value of a customer’s commitments calculated based on the terms of that customer’s subscriptions, and represents the committed annualized subscription amount as of the measurement date.
Please also refer to the “Key Performance Indicators” section of our latest MD&A, which is available under our profile on SEDAR+ at www.sedarplus.ca, for additional details on the abovementioned key performance indicators.
Forward-Looking Information
This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws, including with respect to Coveo’s “financial outlook” (within the meaning of applicable securities laws) and related assumptions (as set forth below and elsewhere in this press release) for the three months ending June 30, 2024 and the year ending March 31, 2025 (for greater certainty, for cash flows from operations, solely the year ending March 31, 2025), the launch of the SIB by Coveo and the terms thereof (including the maximum dollar value of Subordinate Voting Shares the Company may purchase under the SIB, the pricing range for the purchase of Subordinate Voting Shares under the SIB, the timing of filing of the Offer Documents, and the timing for commencement and completion of the SIB), Coveo’s intention to apply to the Toronto Stock Exchange to renew its existing normal course issuer bid (including the timing for application and renewal thereof), and expectations regarding the remaining Qubit SaaS ACV, bookings performance and gross retention rates for fiscal 2025 (collectively, “forward-looking information”). This forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “might”, “will”, “achieve”, “occur”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “target”, “opportunity”, “strategy”, “scheduled”, “outlook”, “forecast”, “projection”, or “prospect”, the negative of these terms and similar terminology, including references to assumptions, although not all forward-looking information contains these terms and phrases. In addition, any statements that refer to expectations, intentions, projections, or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates, and projections regarding future events or circumstances.
Forward-looking information is necessarily based on a number of opinions, estimates, and assumptions (including those discussed under “Financial Outlook Assumptions” below and those discussed immediately hereunder) that we considered appropriate and reasonable as of the date such statements are made. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, actual results may vary from the forward-looking information contained herein. Certain assumptions made in preparing the forward-looking information contained in herein include, without limitation (and in addition to those discussed under “Financial Outlook Assumptions” below): our ability to capitalize on growth opportunities and implement our growth strategy; our ability to attract new customers, expand our relationships with existing customers, and have existing customers renew their subscriptions; our ability to maintain successful strategic relationships with partners and other third parties; market awareness and acceptance of enterprise AI solutions in general and our products in particular; the market penetration of our new generative AI solutions, both with new and existing customers, and our ability to capture the generative AI opportunity; our future capital requirements, and availability of capital generally; the accuracy of our estimates of market opportunity, growth forecasts, and expectations around cash flow; our success in identifying and evaluating, as well as financing and integrating, any acquisitions, partnerships, or joint ventures; the significant influence of our principal shareholders; and our ability to convert pipeline into closed deals, and the timeframe thereof. Moreover, forward-looking information is subject to known and unknown risks, uncertainties, and other factors, many of which are beyond our control, that may cause the actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to macro-economic uncertainties and the risk factors described under “Risk Factors” in the company’s most recently filed Annual Information Form and under “Key Factors Affecting our Performance” in the company’s most recently filed MD&A, both available under our profile on SEDAR+ at . There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, prospective investors should not place undue reliance on forward-looking information, which speaks only as of the date made. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.
You should not rely on this forward-looking information, as actual outcomes and results may differ materially from those contemplated by this forward-looking information as a result of such risks and uncertainties. Additional information will also be set forth in other public filings that we make available under our profile on SEDAR+ at www.sedarplus.ca from time to time. The forward-looking information provided in this press release relates only to events or information as of the date hereof, and is expressly qualified in their entirety by this cautionary statement. Except as required by law, we do not assume any obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Financial Outlook Assumptions
Our financial outlook under the “Financial Outlook” section above and elsewhere in this press release is based on several assumptions, including the following, in addition to those set forth under the “Financial Outlook” section above and under the “Forward-Looking Information” section above:
The majority of the remaining Qubit SaaS ACV(7) will churn by the end of the fiscal year, with the revenue impact being that the SaaS Subscription Revenue(1) recognized in fiscal 2025 for subscriptions to the Qubit platform will decline by approximately half.Bookings performance building during fiscal 2025, with the second half exceeding the first half.Maintaining gross retention rates(8) at their historical levels.Achieving expected levels of sales of SaaS subscriptions to new and existing customers, including timing of those sales, as well as expected levels of renewals of SaaS subscriptions with existing customers.Achieving expected levels of implementations and other sources of professional services revenue.Maintaining planned levels of operating margin represented by our Adjusted Gross Profit Measures(2) and Adjusted Gross Margin Measures(3).The market for our solutions showing ongoing improvements in line with our expectations.Our ability to attract and retain key personnel required to achieve our plans.Foreign exchange rates environment remaining consistent, and similar or better inflation rates, interest rates, customer spending, and other macro-economic conditions.Our ability to collect from our customers as planned, and to otherwise manage our cash inflows (including government grants and tax credits) and outflows as we currently expect.Expected financial performance as measured by our Adjusted Operating Expense Measures(2) and Adjusted Operating Expense (%) Measures(3).
Our financial outlook does not include the impact of acquisitions that may be announced or closed from time to time.
Notes to this press release:
(1)
SaaS Subscription Revenue and Net Expansion Rate are Key Performance Indicators of Coveo. Please see the “Key Performance Indicators” section below.
(2)
The Adjusted Gross Profit Measures, the Adjusted Operating Expense Measures, Adjusted Operating Loss, and Adjusted EBITDA are non-IFRS financial measures which may not be comparable to similar measures or ratios used by other companies. Please see the “Non-IFRS Measures and Ratios” section below and the reconciliation tables within this release.
(3)
The Adjusted Gross Margin Measures, the Adjusted Operating Expense (%) Measures, and Adjusted Product Gross Margin are non-IFRS ratios. Please see the “Non-IFRS Measures and Ratios” section below and the reconciliation tables within this release.
(4)
SaaS Subscription Revenue earned in connection with subscriptions by customers to the Coveo core platform for the period, and thus excluding revenue from subscriptions to the Qubit platform.
(5)
SaaS Subscription Revenue earned through subscriptions to the Qubit platform for the period covered.
(6)
Net Expansion Rate excluding the effect of SaaS ACV attributable to subscriptions to the Qubit platform.
(7)
SaaS ACV means the SaaS annualized contract value of a customer’s commitments calculated based on the terms of that customer’s subscriptions, and represents the committed annualized subscription amount as of the measurement date.
(8)
Gross retention rate or GRR is generally calculated for a period by subtracting SaaS ACV contractions and losses over the period selected from SaaS ACV at the beginning of the period selected and dividing the result by the SaaS ACV from the beginning of the period selected. We use GRR to provide insight into the company’s success retaining existing customers.
(9)
Gartner©, Magic QuadrantTM for Search and Product Discovery, May 2024. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. The Gartner content described herein (the “Gartner Content”) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and are not representations of fact. Gartner Content speaks as of its original publication date (and not as of the date of this press release), and the opinions expressed in the Gartner Content are subject to change without notice. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, and MAGIC QUADRANT is a registered trademark of Gartner, Inc. and/or its affiliates and are used herein with permission. All rights reserved.
About Coveo
We strongly believe that the future is business-to-person. That experiences are today’s competitive front line, a make or break for every business. We also believe that remarkable experiences not only enhance user satisfaction but also yield significant gains for enterprises. That is what we call the AI-experience advantage – the degree to which the content, products, recommendations, and advice presented to a person online aligns easily with their needs, intent, preferences, context, and behavior, resulting in superior business outcomes.
To realize this AI-experience advantage at scale, enterprises require a robust, spinal and composable infrastructure capable of unifying content securely and delivering AI search, AI recommendations, true personalization, and a trusted generative experience at every touchpoint with each individual customer, partner and employee. Coveo is dedicated to bringing this advantage to every point-of-experience, using powerful data and AI models to transform the enterprise in commerce, customer service, website, and workplace.
The Coveo platform is ISO 27001 and ISO 27018 certified, SOC2 compliant, HIPAA compatible, with a 99.999% SLA available. We are a Salesforce AppExchange ISV Partner, an SAP EndorsedⓇ App, an Adobe Technology Gold Partner, MACH Alliance member and a Genesys AppFoundry ISV Partner.
Coveo is a trademark of Coveo Solutions Inc.
Stay up to date on the latest Coveo news and content by subscribing to the Coveo blog, and following Coveo on LinkedIn, Twitter, and YouTube.
Consolidated Statements of Loss and Comprehensive Loss
(expressed in thousands of US dollars, except share and per share data, audited)
Three months ended March 31,
Year ended March 31,
2024
2023
2024
2023
$
$
$
$
Revenue
SaaS subscription
30,739
27,099
118,581
102,960
Self-managed licenses and maintenance
–
–
–
912
Product revenue
30,739
27,099
118,581
103,872
Professional services
1,843
2,011
7,513
8,130
Total revenue
32,582
29,110
126,094
112,002
Cost of revenue
Product
5,551
5,118
21,733
19,573
Professional services
1,448
1,646
5,915
7,101
Total cost of revenue
6,999
6,764
27,648
26,674
Gross profit
25,583
22,346
98,446
85,328
Operating expenses
Sales and marketing
13,953
14,650
55,099
57,100
Research and product development
8,769
8,225
35,804
35,025
General and administrative
6,596
6,125
26,628
29,042
Depreciation of property and equipment
616
597
2,393
2,548
Amortization and impairment of intangible assets
729
1,117
6,655
4,454
Depreciation of right-of-use assets
384
397
1,566
1,578
Total operating expenses
31,047
31,111
128,145
129,747
Operating loss
(5,464)
(8,765)
(29,699)
(44,419)
Net financial revenue
(1,704)
(1,709)
(6,674)
(4,613)
Foreign exchange loss (gain)
(1,006)
302
321
(279)
Loss before income tax expense (recovery)
(2,754)
(7,358)
(23,346)
(39,527)
Income tax expense (recovery)
1,296
(125)
264
205
Net loss
(4,050)
(7,233)
(23,610)
(39,732)
Net loss per share – Basic and diluted
(0.04)
(0.07)
(0.23)
(0.38)
Weighted average number of shares
outstanding – Basic and diluted
102,377,716
104,572,190
103,318,469
104,572,190
Consolidated Statements of Loss and Comprehensive Income Loss
(expressed in thousands of US dollars, audited)
The following table presents share-based payments and related expenses recognized by the company:
Three months ended March 31,
Year ended March 31,
2024
2023
2024
2023
$
$
$
$
Share-based payments and related expenses
Product cost of revenue
278
123
944
697
Professional services cost of revenue
218
98
650
564
Sales and marketing
687
993
2,434
5,438
Research and product development
1,223
914
5,845
5,522
General and administrative
1,414
1,077
6,748
6,483
Share-based payments and related expenses
3,820
3,205
16,621
18,704
Reconciliation of Net Loss to Adjusted Operating Loss and Adjusted EBITDA
(expressed in thousands of US dollars)
Three months ended March 31,
Year ended March 31,
2024
2023
2024
2023
Net loss
(4,050)
(7,233)
(23,610)
(39,732)
Net financial revenue
(1,704)
(1,709)
(6,674)
(4,613)
Foreign exchange loss (gain)
(1,006)
302
321
(279)
Income tax expense (recovery)
1,296
(125)
264
205
Operating loss
(5,464)
(8,765)
(29,699)
(44,419)
Share-based payments and related expenses (1)
3,820
3,205
16,621
18,704
Amortization and impairment of acquired intangible assets (2)
727
1,116
6,650
4,449
Acquisition-related compensation (3)
–
–
–
407
Transaction-related expenses (4)
98
89
98
413
Adjusted Operating Loss
(819)
(4,355)
(6,330)
(20,446)
Depreciation expense (5)
1,000
994
3,959
4,126
Other amortization and impairment of intangible assets
2
1
5
5
Adjusted EBITDA
183
(3,360)
(2,366)
(16,315)
(1)
These expenses relate to issued stock options and share-based awards under our share-based plans to our employees and directors as well as related payroll taxes that are directly attributable to the share-based payments. These costs are included in product and professional services cost of revenue, sales and marketing, research and product development, and general and administrative expenses.
(2)
These expenses represent the amortization and impairment of intangible assets acquired through the acquisition of Qubit. These costs are included in amortization and impairment of intangible assets. It includes an impairment of customer relationships acquired through the business combination with Qubit as described in note 8 of the consolidated financial statements for the year ended March 31, 2024.
(3)
These expenses relate to non-recurring acquisition-related compensation in connection with acquisitions. These costs are included in product and professional services cost of revenue, and sales and marketing, research and product development, and general and administrative expenses.
(4)
These expenses relate to professional, legal, consulting, accounting, advisory, and other fees relating to transactions that would otherwise not have been incurred. These costs are included in general and administrative expenses.
(5)
Depreciation expense include depreciation of property and equipment and depreciation of right-of-use assets.
Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Margin Measures
(expressed in thousands of US dollars)
Three months ended March 31,
Year ended March 31,
2024
2023
2024
2023
$
$
$
$
Total revenue
32,582
29,110
126,094
112,002
Gross profit
25,583
22,346
98,446
85,328
Gross margin
79 %
77 %
78 %
76 %
Add: Share-based payments and related
expenses
496
221
1,594
1,261
Add: Acquisition-related compensation
–
–
–
172
Adjusted Gross Profit
26,079
22,567
100,040
86,761
Adjusted Gross Margin
80 %
78 %
79 %
77 %
Product revenue
30,739
27,099
118,581
103,872
Product cost of revenue
5,551
5,118
21,733
19,573
Product gross profit
25,188
21,981
96,848
84,299
Product Gross margin
82 %
81 %
82 %
81 %
Add: Share-based payments and related
expenses
278
123
944
697
Add: Acquisition-related compensation
–
–
–
134
Adjusted Product Gross Profit
25,466
22,104
97,792
85,130
Adjusted Product Gross Margin
83 %
82 %
82 %
82 %
Professional services revenue
1,843
2,011
7,513
8,130
Professional services cost of revenue
1,448
1,646
5,915
7,101
Professional services gross profit
395
365
1,598
1,029
Professional services gross margin
21 %
18 %
21 %
13 %
Add: Share-based payments and related
expenses
218
98
650
564
Add: Acquisition-related compensation
–
–
–
38
Adjusted Professional Services Gross Profit
613
463
2,248
1,631
Adjusted Professional Services Gross Margin
33 %
23 %
30 %
20 %
Reconciliation of Adjusted Operating Expense Measures and Adjusted Operating Expense (%) Measures
(expressed in thousands of US dollars)
Three months ended March 31,
Year ended March 31,
2024
2023
2024
2023
$
$
$
$
Sales and marketing expenses
13,953
14,650
55,099
57,100
Sales and marketing expenses (% of total revenue)
43 %
50 %
44 %
51 %
Less: Share-based payments and related
expenses
687
993
2,434
5,438
Less: Acquisition-related compensation
–
–
–
77
Adjusted Sales and Marketing Expenses
13,266
13,657
52,665
51,585
Adjusted Sales and Marketing Expenses (% of total
revenue)
41 %
47 %
42 %
46 %
Research and product development expenses
8,769
8,225
35,804
35,025
Research and product development expenses (% of
total revenue)
27 %
28 %
28 %
31 %
Less: Share-based payments and related
expenses
1,223
914
5,845
5,522
Less: Acquisition-related compensation
–
–
–
143
Adjusted Research and Product Development Expenses
7,546
7,311
29,959
29,360
Adjusted Research and Product Development
Expenses (% of total revenue)
23 %
25 %
24 %
26 %
General and administrative expenses
6,596
6,125
26,628
29,042
General and administrative expenses (% of total revenue)
20 %
21 %
21 %
26 %
Less: Share-based payments and related
expenses
1,414
1,077
6,748
6,483
Less: Acquisition-related compensation
–
–
–
15
Less: Transaction-related expenses
98
89
98
413
Adjusted General and Administrative Expenses
5,084
4,959
19,782
22,131
Adjusted General and Administrative Expenses (% of
total revenue)
16 %
17 %
16 %
20 %
Consolidated Statements of Financial Position
(expressed in thousands of US dollars, audited)
March 31,
2024
March 31,
2023
$
$
Assets
Current assets
Cash and cash equivalents
166,586
198,452
Trade and other receivables
29,947
24,233
Government assistance
9,987
7,142
Prepaid expenses
8,622
8,707
215,142
238,534
Non-current assets
Contract acquisition costs
10,168
11,148
Property and equipment
5,608
6,846
Intangible assets
8,710
15,107
Right-of-use assets
6,032
7,645
Deferred tax assets
4,265
3,896
Goodwill
25,960
25,642
Total assets
275,885
308,818
Liabilities
Current liabilities
Trade payable and accrued liabilities
21,822
21,435
Deferred revenue
64,731
55,260
Current portion of lease obligations
2,153
1,929
88,706
78,624
Non-current liabilities
Lease obligations
6,885
8,940
Deferred tax liabilities
1,771
2,721
Total liabilities
97,362
90,285
Shareholders’ equity
Share capital
836,271
868,409
Contributed surplus
40,484
25,949
Deficit
(655,598)
(631,988)
Accumulated other comprehensive loss
(42,634)
(43,837)
Total shareholders’ equity
178,523
218,533
Total liabilities and shareholders’ equity
275,885
308,818
Consolidated Statements of Cash Flows
(expressed in thousands of US dollars, audited)
Year ended March 31,
2024
2023
$
$
Cash flows from operating activities
Net loss
(23,610)
(39,732)
Items not affecting cash
Amortization of contract acquisition costs
4,426
4,428
Depreciation of property and equipment
2,393
2,548
Amortization and impairment of intangible assets
6,655
4,454
Depreciation of right-of-use assets
1,566
1,578
Share-based payments
15,214
19,022
Interest on lease obligations
532
630
Deferred income tax recovery
(705)
(2)
Unrealized foreign exchange loss (gain)
105
(422)
Changes in non-cash working capital items
(2,376)
1,239
4,200
(6,257)
Cash flows used in investing activities
Business combination, net of cash acquired
–
(675)
Additions to property and equipment
(1,098)
(1,585)
Additions to intangible assets
(23)
(5)
(1,121)
(2,265)
Cash flows used in financing activities
Proceeds from exercise of stock options
2,376
1,740
Tax withholding for net share settlement
(1,452)
(1,643)
Payments on lease obligations
(2,313)
(2,525)
Shares repurchased and cancelled
(29,649)
–
Repurchase of stock options
(4,553)
–
(35,591)
(2,428)
Effect of foreign exchange rate changes on cash and cash equivalents
646
(13,670)
Decrease in cash and cash equivalents during the period
(31,866)
(24,620)
Cash and cash equivalents – beginning of period
198,452
223,072
Cash and cash equivalents – end of period
166,586
198,452
Cash
25,731
22,036
Cash equivalents
140,855
176,416
View original content to download multimedia:https://www.prnewswire.com/news-releases/coveo-reports-fourth-quarter-and-fiscal-2024-financial-results-302162409.html
SOURCE Coveo Solutions Inc.
You may like
Technology
Mosaic Raises $18M Series A To Build AI-Driven Operating System For Deal Makers
Published
59 minutes agoon
April 22, 2026By
Radical Ventures leads financing to expand Mosaic’s deterministic deal modeling platform across investing workflows and asset classes
NEW YORK, April 22, 2026 /CNW/ — Mosaic, the AI-driven deal modeling platform built for private markets, today announced it has raised an $18 million Series A led by Radical Ventures. Mosaic will use the new funding to deepen product capabilities across private equity workflows and accelerate expansion into adjacent markets including investment banking and private credit.
Mosaic is building the operating system for the world’s most sophisticated investors and their advisors by automating the deal modeling analyses historically built and maintained manually in Excel. Mosaic combines deterministic, rules-based calculations with AI-driven ingestion and agentic workflows to help deal teams move faster, reduce spreadsheet errors, and focus on applying investment judgment rather than performing mechanical tasks.
Today, Mosaic is used by leading private market institutions including Warburg Pincus, Bridgepoint, CVC, New Mountain, and Evercore. Customers report up to 20x faster completion of core deal analyses such as LBOs and DCFs while completely eliminating spreadsheet “mis-link” errors through Mosaic’s rules-based modeling engine.
In 2025, Mosaic was selected by five of the top ten global private equity firms as their AI-driven deal modeling platform of choice, and by two of the world’s most prolific investment banks to reimagine how they model and analyze transactions for clients.
“Before Mosaic, thousands of investors (myself included) spent hundreds of hours iterating on generic spreadsheet templates to rebuild and refine the same calculation scaffolding for each new investment opportunity,” said Ian Gutwinski, Founder & CEO of Mosaic. “Yet all those hours do nothing to improve investment outcomes. We built Mosaic so investors and bankers can spend less time linking and more time thinking. Our platform gives users the speed of automation and the reliability of deterministic calculations, so they can trust the analysis every time.”
Unlike Excel copilots and other probabilistic approaches, Mosaic’s modeling engine is designed to produce replicable, audit-ready outputs that teams can standardize across workflows, creating a foundation for institutional memory and better decision-making over time. As all models are created and stored in a centralized, standardized database siloed to each client, firms can increasingly analyze underwriting patterns across their proprietary deal data and benchmark assumptions against actual outcomes.
Mosaic Autopilot: Agentic Modeling From a Single Email
Mosaic’s flagship agentic AI feature, Mosaic Autopilot, enables users to kick off model creation via an emailed prompt to Mosaic’s agent, “Mo,” who ingests supporting documents (including CIMs), applies firm-specific defaults, and generates an “MD-ready” model in an email reply within 5 minutes.
“When I worked in Investment Banking and Private Equity, I was always shocked at how much time some of the most expensive talent in the world spent trying to fix broken models with sheer brute force” said Ryan Shannon, Partner at Radical Ventures, who himself used to spend hundreds of hours updating deal models as an Associate at Private Equity giant TPG. “With Mosaic, that same expensive talent can instead spend their time thinking about the crucial decisions that separate good investments from great ones.”
Use of Funds
Mosaic will expand its New York-based team across:
Engineering & product, to expand workflow coverage and scale enterprise deploymentsCustomer enablement, to support training and adoption across enterprise clientsGo-to-market, to expand Mosaic’s presence across private equity, private credit, and investment banking firms
Mosaic currently has 16 employees and expects to grow to 40+ by the end of 2026.
Board Updates
As part of the Series A, Ryan Shannon, Partner at Radical Ventures, and Troy Pospisil, Founder & CEO of legal tech leader Ontra.ai (and Mosaic’s first investor), will join Mosaic’s Board of Directors. John Megrue, Vice Chairman of Radical Ventures and former CEO of Apax, will serve as a strategic advisor to Mosaic’s CEO.
“There’s a ton of noise in the financial services world right now when it comes to AI tools. Unfortunately, the vast majority of these offerings overpromise and underdeliver, and are not delivering real value to firms,” said John Megrue. “Mosaic is a rare exception of a team that deeply understands what the top investment banks, private equity funds, and private credit funds need, and is one of the few products actually delivering value today.”
“I’m excited to be joining Mosaic’s Board after backing the company early as a personal investor,” said Troy Pospisil. “Mosaic is tackling a complex problem for a market I care deeply about, and I believe Ian and the world-class team he’s assembled around him possess the unique mix of industry experience, technical depth, and relentlessness to actually change embedded behavior that hasn’t evolved in 50 years. Amidst an AI hype cycle, Mosaic is sticking to the first principles of entrepreneurship that I admire: being customer-obsessed and using every available technology and resource – whether AI, workflow, or world-class support – to deliver outcomes that its customers truly value.”
Learn More
To book a demo, visit https://www.mosaic.pe/demo
To explore open roles, visit https://mosaic.pe/careers
About Mosaic
Mosaic is the leading AI-driven deal modeling platform for private markets. The company automates and standardizes fundamental analyses, such as LBOs and DCFs, using deterministic, rules-based calculations combined with AI-powered ingestion and agentic workflows. Mosaic helps private equity firms, private credit firms, hedge funds, and investment banks reduce time spent on mechanical modeling work and increase time spent on investment judgment.
Less time linking, more time thinking.
About Radical Ventures
Radical Ventures is a Toronto-based venture capital firm focused exclusively on investing in artificial intelligence and deep technology. Founded in 2017, the firm partners with early and growth-stage companies building transformative AI applications across science, industry, and technology. Radical manages more than US$2.5 billion in assets and has invested in category leaders such as Cohere, Waabi, World Labs, and Writer AI.
Press Contact
Manasa Grandhi
Director of Operations
press@mosaic.pe
https://mosaic.pe
View original content to download multimedia:https://www.prnewswire.com/news-releases/mosaic-raises-18m-series-a-to-build-ai-driven-operating-system-for-deal-makers-302749548.html
SOURCE Investor Technology Group, Inc.
Technology
Best Premium Cooler for Outdoor Leaders and Enthusiasts (2026): Coleman Snap N’ Go Cooler Named World’s First Collapsible Hard-Sided Cooler by Consumer365
Published
59 minutes agoon
April 22, 2026By
NEW YORK, April 22, 2026 /PRNewswire/ — A recent article from Consumer365 highlights a growing shift in how outdoor equipment is designed, with a focus on solving everyday challenges like limited storage and difficult transport. At the center of the feature is the Coleman Snap N’ Go Collapsible Hard Cooler, presented as a new type of hard cooler that prioritizes storability without sacrificing performance.
Best Premium Cooler for Outdoor Leaders and Enthusiasts
Coleman Snap N’ Go Cooler – durable, collapsible hard cooler offering multi-day cold retention, compact storability, and versatile portability for outdoor leaders and enthusiasts managing trips, gear, and group outings efficiently
Outdoor leaders and enthusiasts are increasingly planning longer trips, coordinating group activities, and managing multiple pieces of equipment at once. In this context, a cooler is no longer just for keeping drinks cold. It plays a role in organization, transportability, and overall trip efficiency. This shift has led to greater attention on how gear performs not only during use, but also before and after each outing.
Coleman’s Snap N’ Go cooler reflects this change through an innovative design that combines durability with improved portability.
A New Approach to Hard Cooler Design
Traditional hard coolers are known for their strength and insulation, but their fixed size often creates storage challenges. Even when empty, they take up significant space in homes, vehicles, or storage areas. Soft coolers improve portability, yet they may not offer the same level of durability or cold retention.
The Snap N’ Go cooler introduces a different solution. Its structure allows it to collapse to 1/3 of its size in seconds, depending on the model. This feature improves storability while preserving the core function of a hard cooler when fully expanded.
Key design elements include:
Collapsible hard-sided construction for compact storageQuick transition between expanded and collapsed formsA multi-carrying system that supports portabilityA layout designed to improve transportability across different environments
This design allows users to store the cooler under beds, in closets, or alongside other gear without needing to dedicate permanent space to it.
Midway through the article, Consumer365 notes that this type of development reflects a growing need for equipment that adapts to real-life constraints rather than assuming unlimited storage capacity.
Balancing Durability with Everyday Portability
While the collapsible structure is a defining feature, performance remains a priority. The cooler is built with a fully insulated body and lid, supporting cold retention for up to 48 hours under standard use conditions. This makes it suitable for multi-day trips where consistent cooling is necessary.
Durability is also a central focus. When expanded, the cooler is engineered to support up to 200 pounds of weight. This reflects a reinforced build designed to handle regular outdoor use, including loading, unloading, and transport over uneven terrain.
For outdoor leaders, durability is essential. Equipment is often exposed to repeated handling and changing environments. A cooler that maintains structural integrity while improving portability offers a practical advantage, reducing the need to compromise between strength and convenience.
Designed for Easier Cleaning and Reuse
Maintenance is another important factor, particularly for users who rely on their gear frequently. The Snap N’ Go cooler includes a removable waterproof liner with antimicrobial protection. This feature helps reduce leaks and limit odor buildup over time.
After use, the liner can be removed, cleaned, and dried separately before being stored with the collapsed cooler. This supports better hygiene and simplifies post-trip routines, especially for those managing food and beverages across multiple outings.
The liner’s compatibility with the collapsible structure also contributes to overall storability, ensuring that all components remain compact and easy to manage between uses.
Size Options for Different Trip Demands
The Snap N’ Go series is available in three sizes, allowing users to select a model that fits their specific needs. Each size maintains the same core features, including insulation, durability, and portability.
Holds up to 64 cans without iceCollapses to half its sizeSuitable for short trips or smaller groups
Holds up to 76 cans without iceCompresses to 1/3 of its size in secondsBalances capacity with improved transportability
Holds up to 93 cans without iceCompresses to 1/3 of its size in secondsDesigned for extended trips and larger groups
This range allows users to prioritize either compact storage or higher capacity, depending on the type of outing. At the same time, the consistent design across all models ensures reliability regardless of size.
Why It Matters for Outdoor Leaders and Enthusiasts
For those organizing outdoor trips, managing equipment efficiently is often as important as the activity itself. A cooler that reduces storage space, improves portability, and maintains durability can simplify preparation and reduce logistical challenges.
The Snap N’ Go cooler addresses several of these needs:
Reduced storage requirements through its collapsible structureFaster setup and packing during tripsReliable cold retention for extended useImproved transportability across different settings
For enthusiasts, the cooler offers flexibility. It can be used across a range of scenarios, from casual day trips to longer outdoor stays, without requiring separate gear. This adaptability supports a more streamlined approach to packing and planning.
A More Flexible Option for Outdoor Trips
The development of a collapsible hard cooler reflects a practical response to the evolving needs of outdoor users. By combining durability, insulation, and compact storage into a single system, the Coleman Snap N’ Go cooler introduces a new way to think about traditional equipment.
As highlighted by the Consumer365 article, this innovative approach places equal importance on performance and storability. For outdoor leaders and enthusiasts, it represents a shift toward gear that is not only reliable in use but also easier to manage before and after every trip.
About Coleman
Coleman is an established outdoor brand known for producing equipment designed for camping, travel, and recreational use. Its product range includes coolers, tents, lighting, and cooking systems developed to support consistent performance in a variety of environments. The company focuses on practical and innovative design improvements that address real-world challenges, including portability, durability, and storability. Through continuous product development, Coleman aims to refine traditional outdoor gear to better suit modern travel needs and evolving user expectations.
About Consumer365.org: Consumer365 provides consumer news and industry insights. As an affiliate, Consumer365 may earn commissions from sales generated using links provided.
SOURCE Consumer365.org
Technology
TE Connectivity delivers results above guidance with 15% sales growth and over 20% EPS growth in second quarter of fiscal 2026
Published
59 minutes agoon
April 22, 2026By
Third quarter guidance reflects double digit sales and EPS growth
GALWAY, Ireland, April 22, 2026 /PRNewswire/ — TE Connectivity plc (NYSE: TEL) today reported results for the fiscal second quarter ended March 27, 2026.
Second Quarter Highlights
Net sales were $4.74 billion, an increase of 15% on a reported basis year over year, driven by growth in both the Industrial and Transportation segments, and 7% organically.GAAP diluted earnings per share (EPS) from continuing operations was $2.90. Adjusted EPS was a record $2.73, an increase of 24% year over year.GAAP operating margin was 20%, an increase of 200 basis points year over year. Adjusted operating margin expanded 130 basis points year over year to 22%, driven by strong operational performance across both segments.Record orders of $5.3 billion, an increase of 25% year over year with double-digit order growth in both segments and growth in all businesses.Cash flow from operating activities during the first half of the fiscal year was $1.8 billion. Free cash flow was $1.3 billion, up 17% year over year.Returned $1.2 billion to shareholders during the first half and announced 10% increase in quarterly cash dividend.
“Our teams delivered another quarter of results above guidance, including double-digit sales growth and record adjusted EPS,” said CEO Terrence Curtin. “This performance and our record orders were driven by our strategic positioning in key trends including AI, next generation transportation and electric grid modernization, along with the broadening of growth across our portfolio. We’re well positioned to capitalize on the proliferation of data and power to provide our customers with leading interconnect technologies. Our strong margin performance reflects the resilience we’ve built to mitigate the dynamic environment we continue to operate in around the world.
“Looking ahead to the third quarter, our ongoing orders momentum across all businesses positions us to deliver double digit sales growth to $5 billion, with continued strong operational performance to drive a double-digit increase in EPS. We continue to invest in innovative products and technologies that support our global customers and fuel our future growth.”
Third Quarter FY26 Outlook
For the third quarter of fiscal 2026, the company expects sales of approximately $5 billion, an increase of 10% on a reported basis and 9% organically year over year. Adjusted EPS is expected to be approximately $2.83, an increase of 17% year over year. GAAP EPS from continuing operations is expected to be approximately $2.44, an increase of 14% year over year.
Information about TE Connectivity’s use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.
Conference Call and Webcast
The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:
At TE Connectivity’s website: investors.te.comBy telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 715-9871 and for international callers, the dial-in number is (646) 307-1963.A replay of the conference call will be available on TE Connectivity’s investor website at investors.te.com at 11:30 a.m. ET on April 22.
About TE Connectivity
TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram.
Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.
The following provides additional information regarding our non-GAAP financial measures:
Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.
Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.
Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any.
Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.
Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.
Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.
Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.
TE CONNECTIVITY PLC
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Quarters Ended
For the Six Months Ended
March 27,
March 28,
March 27,
March 28,
2026
2025
2026
2025
(in millions, except per share data)
Net sales
$
4,744
$
4,143
$
9,413
$
7,979
Cost of sales
2,999
2,684
5,929
5,160
Gross margin
1,745
1,459
3,484
2,819
Selling, general, and administrative expenses
536
454
1,074
881
Research, development, and engineering expenses
237
203
462
391
Acquisition and integration costs
8
9
11
14
Restructuring and other charges, net
10
45
20
95
Operating income
954
748
1,917
1,438
Interest income
21
22
46
45
Interest expense
(32)
(14)
(62)
(20)
Other income (expense), net
(1)
(1)
2
(2)
Income from continuing operations before income taxes
942
755
1,903
1,461
Income tax expense
(87)
(742)
(297)
(920)
Income from continuing operations
855
13
1,606
541
Loss from discontinued operations, net of income taxes
—
—
(1)
—
Net income
$
855
$
13
$
1,605
$
541
Basic earnings per share:
Income from continuing operations
$
2.92
$
0.04
$
5.46
$
1.81
Loss from discontinued operations
—
—
—
—
Net income
2.92
0.04
5.46
1.81
Diluted earnings per share:
Income from continuing operations
$
2.90
$
0.04
$
5.43
$
1.80
Loss from discontinued operations
—
—
—
—
Net income
2.90
0.04
5.42
1.80
Weighted-average number of shares outstanding:
Basic
293
298
294
299
Diluted
295
300
296
301
TE CONNECTIVITY PLC
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 27,
September 26,
2026
2025
(in millions, except share data)
Assets
Current assets:
Cash and cash equivalents
$
1,110
$
1,255
Accounts receivable, net of allowance for doubtful accounts of $52 and $44, respectively
3,454
3,403
Inventories
2,995
2,699
Prepaid expenses and other current assets
682
609
Total current assets
8,241
7,966
Property, plant, and equipment, net
4,473
4,312
Goodwill
7,437
7,126
Intangible assets, net
2,145
2,227
Deferred income taxes
2,337
2,507
Other assets
1,046
943
Total assets
$
25,679
$
25,081
Liabilities, redeemable noncontrolling interests, and shareholders’ equity
Current liabilities:
Short-term debt
$
102
$
852
Accounts payable
2,224
2,021
Accrued and other current liabilities
2,039
2,247
Total current liabilities
4,365
5,120
Long-term debt
5,553
4,842
Long-term pension and postretirement liabilities
750
767
Deferred income taxes
198
198
Income taxes
306
414
Other liabilities
1,125
1,010
Total liabilities
12,297
12,351
Commitments and contingencies
Redeemable noncontrolling interests
148
145
Shareholders’ equity:
Preferred shares, $1.00 par value, 2 shares authorized, none outstanding
—
—
Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding
—
—
Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 295,773,434 and 302,889,075
shares issued, respectively
3
3
Accumulated earnings
13,900
13,932
Ordinary shares held in treasury, at cost, 3,632,502 and 8,330,931 shares, respectively
(818)
(1,356)
Accumulated other comprehensive income
149
6
Total shareholders’ equity
13,234
12,585
Total liabilities, redeemable noncontrolling interests, and shareholders’ equity
$
25,679
$
25,081
TE CONNECTIVITY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Quarters Ended
For the Six Months Ended
March 27,
March 28,
March 27,
March 28,
2026
2025
2026
2025
(in millions)
Cash flows from operating activities:
Net income
$
855
$
13
$
1,605
$
541
Loss from discontinued operations, net of income taxes
—
—
1
—
Income from continuing operations
855
13
1,606
541
Adjustments to reconcile income from continuing operations to net cash
provided by operating activities:
Depreciation and amortization
243
192
502
378
Deferred income taxes
82
603
159
701
Non-cash lease cost
39
35
78
69
Provision for losses on accounts receivable and inventories
6
2
49
43
Share-based compensation expense
42
34
92
69
Other
(29)
22
(25)
34
Changes in assets and liabilities, net of the effects of acquisitions and
divestitures:
Accounts receivable, net
20
(317)
(59)
(171)
Inventories
(30)
(14)
(331)
(132)
Prepaid expenses and other current assets
(34)
72
(14)
140
Accounts payable
38
(4)
177
146
Accrued and other current liabilities
(47)
(3)
(264)
(298)
Income taxes
(129)
25
(84)
55
Other
(109)
(7)
(74)
(44)
Net cash provided by operating activities
947
653
1,812
1,531
Cash flows from investing activities:
Capital expenditures
(270)
(230)
(528)
(435)
Proceeds from sale of property, plant, and equipment
3
1
4
2
Acquisition of businesses, net of cash acquired
(200)
4
(200)
(321)
Other
(3)
1
—
(7)
Net cash used in investing activities
(470)
(224)
(724)
(761)
Cash flows from financing activities:
Net increase in commercial paper
100
1,155
100
1,245
Proceeds from issuance of debt
750
773
750
773
Repayment of debt
(851)
(579)
(851)
(579)
Proceeds from exercise of share options
20
25
64
59
Repurchase of ordinary shares
(414)
(306)
(819)
(609)
Payment of ordinary share dividends to shareholders
(208)
(193)
(417)
(382)
Other
(12)
(6)
(58)
(33)
Net cash provided by (used in) financing activities
(615)
869
(1,231)
474
Effect of currency translation on cash
(3)
2
(2)
(9)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(141)
1,300
(145)
1,235
Cash, cash equivalents, and restricted cash at beginning of period
1,251
1,254
1,255
1,319
Cash, cash equivalents, and restricted cash at end of period
$
1,110
$
2,554
$
1,110
$
2,554
Supplemental cash flow information:
Income taxes paid, net of refunds
$
135
$
115
$
223
$
164
TE CONNECTIVITY PLC
RECONCILIATION OF FREE CASH FLOW (UNAUDITED)
For the Quarters Ended
For the Six Months Ended
March 27,
March 28,
March 27,
March 28,
2026
2025
2026
2025
(in millions)
Net cash provided by operating activities
$
947
$
653
$
1,812
$
1,531
Capital expenditures, net
(267)
(229)
(524)
(433)
Free cash flow (1)
$
680
$
424
$
1,288
$
1,098
(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
SEGMENT DATA (UNAUDITED)
For the Quarters Ended
For the Six Months Ended
March 27,
March 28,
March 27,
March 28,
2026
2025
2026
2025
($ in millions)
Net Sales
Net Sales
Net Sales
Net Sales
Transportation Solutions
$
2,422
$
2,314
$
4,889
$
4,557
Industrial Solutions
2,322
1,829
4,524
3,422
Total
$
4,744
$
4,143
$
9,413
$
7,979
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Income
Margin
Income
Margin
Income
Margin
Income
Margin
Transportation Solutions
$
503
20.8
%
$
445
19.2
%
$
1,004
20.5
%
$
891
19.6
%
Industrial Solutions
451
19.4
303
16.6
913
20.2
547
16.0
Total
$
954
20.1
%
$
748
18.1
%
$
1,917
20.4
%
$
1,438
18.0
%
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Income (1)
Margin (1)
Income (1)
Margin (1)
Income (1)
Margin (1)
Income (1)
Margin (1)
Transportation Solutions
$
522
21.6
%
$
495
21.4
%
$
1,045
21.4
%
$
990
21.7
%
Industrial Solutions
507
21.8
351
19.2
1,020
22.5
640
18.7
Total
$
1,029
21.7
%
$
846
20.4
%
$
2,065
21.9
%
$
1,630
20.4
%
(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)
Change in Net Sales for the Quarter Ended March 27, 2026
versus Net Sales for the Quarter Ended March 28, 2025
Net Sales
Organic Net Sales
Growth (Decline)
Growth (Decline) (1)
Translation (2)
Acquisition
($ in millions)
Transportation Solutions:
Automotive
$
27
1.6
%
$
(67)
(3.8)
%
$
94
$
—
Commercial transportation
76
21.3
62
17.1
14
—
Sensors
5
2.3
(7)
(3.0)
12
—
Total Transportation Solutions
108
4.7
(12)
(0.5)
120
—
Industrial Solutions:
Digital data networks
232
48.1
222
46.1
10
—
Automation and connected living
67
13.1
42
8.2
25
—
Aerospace, defense, and marine
34
9.1
21
5.4
13
—
Energy
166
59.5
31
11.2
15
120
Medical
(6)
(3.3)
(7)
(3.5)
1
—
Total Industrial Solutions
493
27.0
309
16.9
64
120
Total
$
601
14.5
%
$
297
7.2
%
$
184
$
120
Change in Net Sales for the Six Months Ended March 27, 2026
versus Net Sales for the Six Months Ended March 28, 2025
Net Sales
Organic Net Sales
Growth
Growth (Decline) (1)
Translation (2)
Acquisitions
($ in millions)
Transportation Solutions:
Automotive
$
190
5.5
%
$
45
1.3
%
$
145
$
—
Commercial transportation
134
20.0
113
16.7
21
—
Sensors
8
1.9
(12)
(2.7)
20
—
Total Transportation Solutions
332
7.3
146
3.2
186
—
Industrial Solutions:
Digital data networks
526
58.8
510
57.0
16
—
Automation and connected living
137
13.8
97
9.8
39
1
Aerospace, defense, and marine
81
11.4
57
8.0
24
—
Energy
356
71.9
63
12.7
22
271
Medical
2
0.6
1
0.4
1
—
Total Industrial Solutions
1,102
32.2
728
21.3
102
272
Total
$
1,434
18.0
%
$
874
11.0
%
$
288
$
272
(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.
(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 27, 2026
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Amortization
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Expense (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
503
$
—
$
1
$
18
$
—
$
522
Industrial Solutions
451
8
9
39
—
507
Total
$
954
$
8
$
10
$
57
$
—
$
1,029
Operating margin
20.1
%
21.7
%
Income tax expense
$
(87)
$
(2)
$
2
$
(12)
$
(114)
$
(213)
Effective tax rate
9.2
%
20.9
%
Income from continuing operations
$
855
$
6
$
12
$
45
$
(114)
$
804
Diluted earnings per share from
continuing operations
$
2.90
$
0.02
$
0.04
$
0.15
$
(0.39)
$
2.73
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 28, 2025
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Amortization
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Expense (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
445
$
—
$
33
$
17
$
—
$
495
Industrial Solutions
303
12
12
24
—
351
Total
$
748
$
12
$
45
$
41
$
—
$
846
Operating margin
18.1
%
20.4
%
Income tax expense
$
(742)
$
(2)
$
(11)
$
(8)
$
574
$
(189)
Effective tax rate
98.3
%
22.2
%
Income from continuing operations
$
13
$
10
$
34
$
33
$
574
$
664
Diluted earnings per share from
continuing operations
$
0.04
$
0.03
$
0.11
$
0.11
$
1.91
$
2.21
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Represents income tax expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Six Months Ended March 27, 2026
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Amortization
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Expense (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
1,004
$
—
$
5
$
36
$
—
$
1,045
Industrial Solutions
913
14
15
78
—
1,020
Total
$
1,917
$
14
$
20
$
114
$
—
$
2,065
Operating margin
20.4
%
21.9
%
Income tax expense
$
(297)
$
(3)
$
(1)
$
(23)
$
(114)
$
(438)
Effective tax rate
15.6
%
21.4
%
Income from continuing operations
$
1,606
$
11
$
19
$
91
$
(114)
$
1,613
Diluted earnings per share from
continuing operations
$
5.43
$
0.04
$
0.06
$
0.31
$
(0.39)
$
5.45
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Six Months Ended March 28, 2025
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Amortization
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Expense (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
891
$
—
$
65
$
34
$
—
$
990
Industrial Solutions
547
17
30
46
—
640
Total
$
1,438
$
17
$
95
$
80
$
—
$
1,630
Operating margin
18.0
%
20.4
%
Income tax expense
$
(920)
$
(3)
$
(20)
$
(15)
$
587
$
(371)
Effective tax rate
63.0
%
22.4
%
Income from continuing operations
$
541
$
14
$
75
$
65
$
587
$
1,282
Diluted earnings per share from
continuing operations
$
1.80
$
0.05
$
0.25
$
0.22
$
1.95
$
4.26
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Includes income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended June 27, 2025
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Amortization
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Expense (1)
(Non-GAAP) (2)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
462
$
—
$
7
$
17
$
486
Industrial Solutions
395
30
7
35
467
Total
$
857
$
30
$
14
$
52
$
953
Operating margin
18.9
%
21.0
%
Income tax expense
$
(208)
$
(7)
$
1
$
(11)
$
(225)
Effective tax rate
24.6
%
23.9
%
Income from continuing operations
$
638
$
23
$
15
$
41
$
717
Diluted earnings per share from
continuing operations
$
2.14
$
0.08
$
0.05
$
0.14
$
2.41
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 26, 2025
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Amortization
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Expense (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
1,818
$
—
$
75
$
70
$
—
$
1,963
Industrial Solutions
1,393
57
51
120
—
1,621
Total
$
3,211
$
57
$
126
$
190
$
—
$
3,584
Operating margin
18.6
%
20.8
%
Income tax expense
$
(1,361)
$
(12)
$
(13)
$
(37)
$
618
$
(805)
Effective tax rate
42.5
%
22.5
%
Income from continuing operations
$
1,843
$
45
$
113
$
153
$
618
$
2,772
Diluted earnings per share from
continuing operations
$
6.16
$
0.15
$
0.38
$
0.51
$
2.07
$
9.27
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY PLC
RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES
TO FORWARD-LOOKING GAAP FINANCIAL MEASURES
As of April 22, 2026
(UNAUDITED)
Outlook for
Quarter Ending
June 26,
2026
Diluted earnings per share from continuing operations
$
2.44
Acquisition-related charges
0.02
Restructuring and other charges, net
0.22
Amortization expense
0.15
Adjusted diluted earnings per share from continuing operations (1)
$
2.83
Net sales growth
10.3
%
Translation
(1.1)
(Acquisitions) divestitures, net
—
Organic net sales growth (1)
9.2
%
(1) See description of non-GAAP financial measures.
View original content to download multimedia:https://www.prnewswire.com/news-releases/te-connectivity-delivers-results-above-guidance-with-15-sales-growth-and-over-20-eps-growth-in-second-quarter-of-fiscal-2026-302749413.html
SOURCE TE Connectivity plc
Mosaic Raises $18M Series A To Build AI-Driven Operating System For Deal Makers
Best Premium Cooler for Outdoor Leaders and Enthusiasts (2026): Coleman Snap N’ Go Cooler Named World’s First Collapsible Hard-Sided Cooler by Consumer365
TE Connectivity delivers results above guidance with 15% sales growth and over 20% EPS growth in second quarter of fiscal 2026
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
Send Rakhi to UK swiftly with UK Gifts Portal
New Gooseneck Omni Antennas Offer Enhanced Signals in a Durable Package
Why You Should Build on #NEAR – Co-founder Illia Polosukhin at CV Labs
Whiteboard Series with NEAR | Ep: 45 Joel Thorstensson from ceramic.network
NEAR End of Year Town Hall 2021: The Open Web World, MetaBUILD 2 Hackathon and 2021 recap
Trending
-
Technology5 days agoInterfaith America Works to Promote Free, Fair and Peaceful Elections
-
Technology5 days agoDynamite Integrates Biometric Cryptography and AI into its Wallet Product
-
Technology3 days agoHarmonic Enables DIRECTV to Reimagine Nationwide DTH Service
-
Near Videos5 days agoWe Have Only Scratched The Surface Of The Agentic Future
-
Coin Market5 days agoFrench finance minister backs euro-pegged stablecoins to compete with US
-
Coin Market5 days agoSingapore Gulf Bank adds stablecoin mint and redeem for 24/7 settlement
-
Coin Market4 days agoBitcoin mining difficulty falls, but projected to rise in next adjustment
-
Technology5 days ago2026 Infrared Sauna Buyer’s Guide: 8 Leading Brands Compared Across Heat, Safety, Warranty, and Design
