Technology

Coveo Reports Fourth Quarter and Fiscal 2025 Financial Results

Published

1 year ago

May 20, 2025

Best fourth quarter new business performance in the Company’s history, accelerating expected revenue growth
Continued Generative AI momentum, with 3x y/y growth in customers
Cash Flow from Operations Activities of $11.1 million for FY25

Coveo reports in U.S. dollars and in accordance with International Financial Reporting Standards (“IFRS”)

MONTREAL and SAN FRANCISCO, May 20, 2025 /PRNewswire/ – Coveo (TSX: CVO), the leader in AI-Relevance, delivering best-in-class search and generative experiences that maximize business outcomes at every point-of-experience, today announced financial results for its fourth quarter and fiscal year 2025 ended March 31, 2025.

“We continue to see strong momentum in our business, as the market increasingly recognizes the importance of AI Search to their overall AI strategies,” said Louis Têtu, Executive Chairman of Coveo. “We said that FY25 would see a market inflecting, with our customers moving from experimentation to adoption, and our results provide clear evidence of this. With strong bookings momentum seen in the past few quarters, we are now well positioned to deliver a re-acceleration of growth.”

“Our customers continue to be a great source of validation for us. They are looking for tangible results and a clear ROI from their AI investments, and that is what our platform delivers. As we look ahead to fiscal year 2026, we will remain committed to delivering innovation, while focusing on customer excellence and operational discipline,” said Laurent Simoneau, Co-Founder and CEO of Coveo.

Fourth Quarter and Fiscal 2025 Summary Financial Highlights

The following table summarizes our financial results for the fourth quarter and fiscal year 2025:

In millions of U.S. Dollars,
except as otherwise indicated

Q4 2025

Q4 2024

Change

FY 2025

FY 2024

Change

SaaS Subscription Revenue(1)

$32.6

$30.7

6 %

$126.6

$118.6

7 %

Coveo core Platform(2)

$31.6

$28.7

10 %

$121.3

$109.1

11 %

Qubit Platform(3)

$1.0

$2.0

(50 %)

$5.3

$9.5

(44 %)

Total revenue

$34.4

$32.6

5 %

$133.3

$126.1

6 %

Gross margin

79 %

–

79 %

78 %

1 %

Product gross margin

82 %

–

82 %

–

Net loss

($6.3)

($4.1)

56 %

($13.8)

($23.6)

(42 %)

Adjusted EBITDA(4)

$0.7

$0.2

267 %

$1.0

($2.4)

142 %

Cash flows from operating activities

$6.8

$4.6

46 %

$11.1

$4.2

164 %

Fourth Quarter Fiscal 2025 Financial Highlights
(All comparisons are relative to the three-month period ended March 31, 2024, unless otherwise stated)

SaaS Subscription Revenue(1) of $32.6 million, an increase of 6% compared to $30.7 million. Within this, SaaS Subscription Revenue for Coveo’s core Platform(2) was $31.6 million, an increase of 10%.
On a constant currency and constant days basis, growth in Coveo’s core subscription was 12%(9).Total revenue was $34.4 million compared to $32.6 million, an increase of 5%.Gross margin was 79% and Product gross margin was 82%, comparable to the prior period.Adjusted EBITDA(4) was $0.7 million compared to $0.2 million last year.Operating loss was $7.6 million compared to $5.5 million. Net loss was $6.3 million compared to a net loss of $4.1 million.The operating and net loss were impacted by an impairment loss of $2.9 million related to our Qubit operations as a result of the decision to formally fully deprecate the Qubit Platform. This is part of a strategic decision to concentrate R&D, sales and marketing efforts on the Coveo core Platform.Cash flows from operating activities was $6.8 million compared to $4.6 million in the prior year.Cash and cash equivalents were $124.8 million as of March 31, 2025.Net Expansion Rate(1) of 103% as of March 31, 2025. Net Expansion Rate(1) improved to 107% excluding customer attrition from customers using the Qubit Platform(5), up 200 bps sequentially.

Full Year Fiscal 2025 Financial Highlights

(All comparisons are relative to the year ended March 31, 2024, unless otherwise stated)

SaaS Subscription Revenue(1) of $126.6 million compared to $118.6 million, an increase of 7%. Within this, SaaS Subscription Revenue for Coveo’s core Platform(2) was $121.3 million compared to
$109.1 million, an increase of 11%.Total revenue was $133.3 million compared to $126.1 million, an increase of 6%.Gross margin was 79% compared to 78% in the prior period. Product gross margin was 82%, comparable to the prior period.Adjusted EBITDA(4) was $1.0 million compared to ($2.4) million last year.Operating loss was $25.9 million compared to $29.7 million, and net loss was $13.8 million compared to $23.6 million.Cash flows from operating activities were $11.1 million, compared to $4.2 million in the prior year period.

Other Business Highlights

Ongoing bookings momentum:The best Q4 new business bookings performance in the company’s history.Second half fiscal 2025 new business bookings, grew +50% over the comparable year ago period.Diversification across both land and expand transactions, with particular strength in expansion activity. Customers who expanded their use of Coveo in the quarter included Nestlé, The Dow Chemical Company, Arm Holdings Ltd., and Cummins among others.Coveo’s Generative AI solutions saw another strong quarter:Represented more than 25% of the company’s Q4 new business bookings.Customer count for Generative AI solutions increased ~30% sequentially and grew more than 3x from the prior year.Customers such as Docusign selected Coveo’s Generative AI solution after a competitive and extensive evaluation period where the Company demonstrated the ability to improve case deflection rates and provide tangible ROI. Other customer wins and growth across existing customers included: Okta, Athenahealth and Cymbiotika.Customers are seeing success with Coveo’s Generative AI solutions and are growing their usage. The initial cohort of customers using our Generative AI solutions are in aggregate spending >50% more on such solutions than they were initially.Commerce momentum continues:Ongoing momentum from the Company’s SAP partnership, with Q4 being the strongest quarter of bookings originating from our SAP partnership since its inception.Announced at SHOPTALK that Coveo is now a Shopify Premier Technology Partner and Coveo AI Search and Product Discovery for Shopify is now officially available for access in the Shopify App Store. Guillevin International selected Coveo via this partnership in the quarter for their B2B commerce experience.Powering Agentic solutions:Introduced Coveo for Agentforce, whereby Coveo expands its AI toolkit for developers with a suite of off-the-shelf APIs, and launched new Agentic AI Design Partner Program to make Gen AI and Agentic AI applications smarter, faster and better.

Financial Outlook

The company expects ongoing new business bookings momentum in fiscal 2026. This underpins the company’s guidance, which reflects revenue growth acceleration during fiscal 2026.

Taking into account the anticipated final churn on the Qubit platform, the revenue guidance below infers that growth in Coveo’s core SaaS Subscription revenue will be ~14% in Q1 of fiscal year 2026 and between 15-17% during the complete fiscal year 2026.

In light of the company’s growth outlook and improved operational efficiency, Coveo is making select strategic investments in innovation and go-to-market initiatives, aimed at further accelerating our growth rates. At the same time, it remains committed to operational rigor, maintaining strong unit economics, and sustaining positive operating cash flows.

Considering these factors, Coveo anticipates SaaS Subscription Revenue(1), Total Revenue, and Adjusted EBITDA(4) for Q1 FY26 and fiscal year 2026 as follows:

Q1 FY’26

FY’26

SaaS Subscription Revenue(1)

$33.5 – $34.0 million

$141.5 – $144.5 million

Total Revenue

$34.9 – $35.4 million

$147.5 – $150.5 million

Adjusted EBITDA(4)

($2.0) – ($1.0) million

Approximately breakeven

The company expects to continue to deliver positive operating cash flows based on the above guidance of approximately $10 million for fiscal year 2026.

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” and “Financial Outlook Assumptions” sections 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.

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 2025. The call will be hosted by Louis Têtu, Executive Chairman, Laurent Simoneau, Co-Founder & Chief Executive Officer and Brandon Nussey, Chief Financial Officer.

Conference Call:

https://emportal.ink/4lW5l9U

Use the link above to join the conference call without operator assistance. If you prefer to have operator assistance, please dial: 1-888-699-1199

Live Webcast:

https://app.webinar.net/2dbL6erRvNA

Webcast Replay:

ir.coveo.com under the “News & Events” section

Non-IFRS Measures and Ratios

Coveo’s unaudited condensed interim 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 EBITDA; (ii) Adjusted Gross Profit, Adjusted Product Gross Profit, and Adjusted Professional Services Gross Profit (collectively referred to as our “Adjusted Gross Profit Measures”); (iii) Adjusted Gross Margin, Adjusted Product Gross Margin, and Adjusted Professional Services Gross Margin (collectively referred to as our “Adjusted Gross Margin Measures”); (iv) 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”); (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) SaaS Subscription Revenue in Coveo Core Platform at constant currency and constant days, including as a growth ratio (the “Constant Currency Measure/Ratio”). 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 EBITDA, the Adjusted Gross Profit Measures, the Adjusted Gross Margin Measures, the Adjusted Operating Expense Measures, the Adjusted Operating Expense (%) Measures and the Constant Currency Measure/Ratio 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 quarter and full-year ended March 31, 2025, which is available as of the date hereof under our profile on SEDAR+ at www.sedarplus.ca for a description of these measures (except for the Constant Currency Measure/Ratio, which is defined in the tables appended to this press release). Please refer to the financial tables appended to this press release for additional information including a reconciliation of (i) Adjusted EBITDA to 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; (vii) Adjusted General and Administrative Expenses to general and administrative expenses, and (viii) SaaS Subscription Revenue in Coveo Core Platform at constant currency and constant days to SaaS Subscription Revenue.

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. For greater certainty, for purposes of this press release, a “booking” is a binding commitment by a customer to purchase a Coveo solution. Bookings reflect annualized committed revenue under binding agreements and include transactions with new customers and increased or expanded usage of our solutions by existing customers.

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, 2025 and the year ending March 31, 2026, and expectations regarding the remaining Qubit SaaS ACV, bookings performance, revenue growth and operating cash flows (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, both domestically and internationally; our ability to 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 generative AI and other new solutions, both with new and existing customers, and our ability to continue to capture the AI opportunities; our future capital requirements, and availability of capital generally; available liquidity under our credit facilities; the accuracy of our estimates of market opportunity, growth forecasts, and expectations around operating cash flows; 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; our ability to generate pipeline, and to convert pipeline into bookings, and the timeframe thereof; and our ability to execute on our expansion and growth plans more generally. 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 current and prospective macro-economic uncertainties, including without limitation as a result of trade and monetary policy worldwide, 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, 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:

Remaining Qubit SaaS ACV(6) will continue to churn in the first quarter of fiscal 2026 and until the end of fiscal 2026, with the revenue impact being that the SaaS Subscription Revenue(1) recognized in fiscal 2026 for subscriptions to the Qubit Platform will decline by more than half.Accelerating Bookings performance throughout fiscal 2026.Maintaining gross retention rates(7) 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.Customers that are in the market continuing to prioritize and adopt AI search solutions despite macroeconomic uncertainty.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(4) and Adjusted Gross Margin Measures(8).The market for our solutions showing ongoing improvements in customer buying behaviors.Our ability to attract and retain key personnel required to achieve our plans.Foreign exchange rates environment remaining consistent with end of FY25 Q4 levels, 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(4) and Adjusted Operating Expense (%) Measures(8).

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)

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.

(3)

SaaS Subscription Revenue earned through subscriptions to the Qubit Platform for the period covered.

(4)

The Adjusted Gross Profit Measures, the Adjusted Operating Expense Measures, 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.

(5)

Net Expansion Rate excluding the effect of SaaS ACV attributable to subscriptions to the Qubit Platform.

(6)

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.

(7)

Gross retention rate (“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 in retaining existing customers.

(8)

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.

(9)

SaaS Subscription Revenue in Coveo Core Platform at constant currency and constant days is a non-IFRS measure, which is also used as a non-IFRS ratio. Please see the “Non-IFRS Measures and Ratios” section below and the reconciliation tables within this release.

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, and HIPAA compatible, with a 99.999% SLA available. We are a Salesforce AppExchange Partner, an SAPⓇ Endorsed App, an Adobe Technology Gold Partner, a MACH Alliance member, Optimizely Partner, Shopify Partner 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 Loss and Comprehensive Loss
(expressed in thousands of U.S. dollars)

Three months ended
March 31,

Year ended
March 31,

2025

2024

2025

2024

Revenue

SaaS subscription

32,616

30,739

126,631

118,581

Coveo core Platform

31,605

28,730

121,329

109,107

Qubit Platform

1,011

2,009

5,302

9,474

Professional services

1,734

1,843

6,641

7,513

Total revenue

34,350

32,582

133,272

126,094

Cost of revenue

SaaS subscription

5,862

5,551

22,969

21,733

Professional services

1,385

1,448

5,424

5,915

Total cost of revenue

7,247

6,999

28,393

27,648

Gross profit

27,103

25,583

104,879

98,446

Operating expenses

Sales and marketing

15,734

13,953

59,615

55,099

Research and product development

8,537

8,769

35,904

35,804

General and administrative

5,819

6,596

25,424

26,628

Depreciation of property and equipment

582

616

2,567

2,393

Amortization and impairment of intangible assets

3,612

729

5,817

6,655

Depreciation of right-of-use assets

381

384

1,472

1,566

Total operating expenses

34,665

31,047

130,799

128,145

Operating loss

(7,562)

(5,464)

(25,920)

(29,699)

Net financial revenue

(1,023)

(1,704)

(5,063)

(6,674)

Foreign exchange loss (gain)

278

(1,006)

(5,526)

321

Loss before income tax expense (recovery)

(6,817)

(2,754)

(15,331)

(23,346)

Income tax expense (recovery)

(501)

1,296

(1,578)

264

Net loss

(6,316)

(4,050)

(13,753)

(23,610)

Net loss per share – Basic and diluted

(0.07)

(0.04)

(0.14)

(0.23)

Weighted average number of shares

outstanding – Basic & diluted

95,953,133

102,377,716

98,427,800

103,318,469

The following table presents share-based payments and related expenses recognized by the company:

Three months ended
March 31,

Year ended
March 31,

2025

2024

2025

2024

Share-based payments and related expenses

SaaS subscription cost of revenue

216

278

817

944

Professional services cost of revenue

126

218

455

650

Sales and marketing

959

687

3,707

2,434

Research and product development

1,095

1,223

5,334

5,845

General and administrative

1,263

1,414

6,363

6,748

Share-based payments and related expenses

3,659

3,820

16,676

16,621

Reconciliation of Net Loss to Adjusted EBITDA
(expressed in thousands of U.S. dollars)

Three months ended
March 31,

Year ended
March 31,

2025

2024

2025

2024

Net loss

(6,316)

(4,050)

(13,753)

(23,610)

Net financial revenue

(1,023)

(1,704)

(5,063)

(6,674)

Foreign exchange loss (gain)

278

(1,006)

(5,526)

321

Income tax recovery

(501)

1,296

(1,578)

264

Share-based payments and related expenses(1)

3,659

3,820

16,676

16,621

Amortization and impairment of intangible assets

3,612

729

5,817

6,655

Depreciation expenses(2)

963

1,000

4,039

3,959

Transaction-related expenses(3)

–

388

Adjusted EBITDA

672

183

1,000

(2,366)

(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)

Depreciation expenses include depreciation of property and equipment and depreciation of right-of-use assets.

(3)

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.

Reconciliation of Adjusted Gross Profit Measures and Adjusted Gross Margin Measures
(expressed in thousands of U.S. dollars)

Three months ended
March 31,

Year ended
March 31,

2025

2024

2025

2024

Total revenue

34,350

32,582

133,272

126,094

Gross profit

27,103

25,583

104,879

98,446

Gross margin

79 %

78 %

Add: Share-based payments and related expenses

342

496

1,272

1,594

Adjusted Gross Profit

27,445

26,079

106,151

100,040

Adjusted Gross Margin

80 %

79 %

Product revenue

32,616

30,739

126,631

118,581

Product cost of revenue

5,862

5,551

22,969

21,733

Product gross profit

26,754

25,188

103,662

96,848

Product gross margin

82 %

Add: Share-based payments and related expenses

216

278

817

944

Adjusted Product Gross Profit

26,970

25,466

104,479

97,792

Adjusted Product Gross Margin

83 %

82 %

Professional services revenue

1,734

1,843

6,641

7,513

Professional services cost of revenue

1,385

1,448

5,424

5,915

Professional services gross profit

349

395

1,217

1,598

Professional services gross margin

20 %

21 %

18 %

21 %

Add: Share-based payments and related expenses

126

218

455

650

Adjusted Professional Services Gross Profit

475

613

1,672

2,248

Adjusted Professional Services Gross Margin

27 %

33 %

25 %

30 %

Reconciliation of Adjusted Operating Expense Measures and Adjusted Operating Expense (%) Measures
(expressed in thousands of U.S. dollars)

Three months ended
March 31,

Year ended
March 31,

2025

2024

2025

2024

Sales and marketing expenses

15,734

13,953

59,615

55,099

Sales and marketing expenses (% of total revenue)

46 %

43 %

45 %

44 %

Less: Share-based payments and related expenses

959

687

3,707

2,434

Adjusted Sales and Marketing Expenses

14,775

13,266

55,908

52,665

Adjusted Sales and Marketing Expenses (% of total revenue)

43 %

41 %

42 %

Research and product development expenses

8,537

8,769

35,904

35,804

Research and product development expenses (% of total revenue)

25 %

27 %

28 %

Less: Share-based payments and related expenses

1,095

1,223

5,334

5,845

Adjusted Research and Product Development Expenses

7,442

7,546

30,570

29,959

Adjusted Research & Product Development Expenses (% of total revenue)

22 %

23 %

24 %

General and administrative expenses

5,819

6,596

25,424

26,628

General and administrative expenses (% of total revenue)

17 %

20 %

19 %

21 %

Less: Share-based payments and related expenses

1,263

1,414

6,363

6,748

Less: Transaction-related expenses

–

388

Adjusted General and Administrative Expenses

4,556

5,084

18,673

19,782

Adjusted General and Administrative Expenses (% of total revenue)

13 %

16 %

14 %

16 %

Reconciliation of SaaS Subscription Revenue and SaaS Subscription Revenue at Constant Currency and Constant Days of the Coveo core Platform
(expressed in thousands of U.S. dollars)

Three months ended
March 31, 2025

SaaS Subscription Revenue, as reported

32,616

SaaS Subscription Revenue in Coveo core Platform(1)

31,605

Foreign exchange impact

351

Additional SaaS Subscription Revenue Day(2) impact

336

SaaS Subscription Revenue in Coveo core Platform in constant currency and constant days

32,292

Growth at constant currency and constant days(3)

12 %

(1)

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

(2)

As defined immediately below.

(3)

Growth in SaaS Subscription Revenue in the Coveo Core Platform at constant currency and constant days means the year-over-year change in SaaS Subscription Revenue in the Coveo Core Platform at constant currency including, for the current period, the Additional SaaS Subscription Revenue Day, divided by the SaaS Subscription Revenue in the Coveo Core Platform in the prior period of $28.7 million.

In this table, SaaS Subscription Revenue in currencies other than US dollars are converted into US dollars using the exchange rates from the prior period rather than the actual exchange rates in effect during the current period. Furthermore, SaaS Subscription Revenue of the Coveo core Platform for the current period is adjusted to add the Additional SaaS Subscription Revenue Day, as the prior period had one more full day of SaaS Subscription Revenue recognition as a result of calendar year 2024 being a leap year with 366 days.

“Additional SaaS Subscription Revenue Day” means an amount equal to the SaaS Subscription Revenue of the Coveo core platform for the three-month period ended March 31, 2025, divided by the number of days in the three-month period ended March 31, 2025, and multiplied by the number of days in comparative period of fiscal year 2024.

“SaaS Subscription Revenue in Coveo Core Platform at constant currency and constant days” means the SaaS Subscription Revenue of the Company 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, adjusted for the impact of foreign currency exchange fluctuations and to reflect the Additional SaaS Subscription Revenue Day.

Consolidated Statements of Financial Position
(expressed in thousands of U.S. dollars)

March 31,

2025

March 31,

2024

Assets

Current assets

Cash and cash equivalents

124,752

166,586

Trade and other receivables

36,564

29,947

Government assistance

6,280

9,987

Prepaid expenses

9,845

8,622

177,441

215,142

Non-current assets

Contract acquisition costs

10,908

10,168

Property and equipment

4,192

5,608

Intangible assets

3,012

8,710

Right-of-use assets

5,179

6,032

Deferred tax assets

3,337

4,265

Goodwill

26,290

25,960

Total assets

230,359

275,885

Liabilities

Current liabilities

Trade payable and accrued liabilities

18,602

21,822

Deferred revenue

77,387

64,731

Current portion of lease obligations

1,999

2,153

97,988

88,706

Non-current liabilities

Lease obligations

5,464

6,885

Deferred tax liabilities

–

1,771

Total liabilities

103,452

97,362

Shareholders’ Equity

Share capital

768,754

836,271

Contributed surplus

76,273

40,484

Deficit

(669,351)

(655,598)

Accumulated other comprehensive loss

(48,769)

(42,634)

Total shareholders’ equity

126,907

178,523

Total liabilities and shareholders’ equity

230,359

275,885

Consolidated Statements of Cash Flows
(expressed in thousands of U.S. dollars)

2025

2024

Cash flows from operating activities

Net loss

(13,753)

(23,610)

Items not affecting cash

Amortization of contract acquisition costs

4,354

4,426

Depreciation of property and equipment

2,567

2,393

Amortization and impairment of intangible assets

5,817

6,655

Depreciation of right-of-use assets

1,472

1,566

Share-based payments

17,309

15,214

Interest on lease obligations

415

532

Deferred income tax recovery

(1,034)

(705)

Unrealized foreign exchange loss (gain)

(4,223)

105

Changes in non-cash working capital items

(1,856)

(2,376)

11,068

4,200

Cash flows used in investing activities

Additions to property and equipment

(1,484)

(1,098)

Additions to intangible assets

(46)

(23)

(1,530)

(1,121)

Cash flows used in financing activities

Proceeds from exercise of stock options

1,371

2,376

Tax withholding for net share settlement

(2,861)

(1,452)

Payments on lease obligations

(2,456)

(2,313)

Shares repurchased and cancelled

(46,868)

(29,649)

Repurchase of stock options

–

(4,553)

(50,814)

(35,591)

Effect of foreign exchange rate changes on cash and cash equivalents

(558)

646

Decrease in cash and cash equivalents during the year

(41,834)

(31,866)

Cash and cash equivalents – beginning of year

166,586

198,452

Cash and cash equivalents – end of year

124,752

166,586

Cash

63,785

25,731

Cash equivalents

60,967

140,855

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SOURCE Coveo Solutions Inc.

Technology

Genesis Wealth Welcomes Veteran $725MM JPMorgan Advisor

Published

10 minutes ago

June 18, 2026

Latest addition underscores Genesis Wealth’s drive to become a preferred destination for highly experienced breakaway advisors as new office opens in Chicago’s North Shore

CHICAGO, June 18, 2026 /PRNewswire/ — Genesis Wealth, a leading wealth management platform and non-OSJ branch office within LPL Financial, today announced the addition of a veteran advisor, Alan Feutz, CFP®, from JPMorgan Securities, who has previously overseen $725 million in client assets. Feutz, who joins Genesis Wealth as Partner and Wealth Advisor, is based in Deerfield, IL, and brings 26 years of industry experience. He currently serves high-net-worth and ultra-high-net-worth clients. The move continues Genesis Wealth’s recruiting momentum among experienced bank-based advisors.

Feutz has built a reputation for delivering highly personalized wealth management and long-term client relationships grounded in trust and transparency. Focused on customized wealth planning for affluent households, he attributes the strength of his practice to attentive listening and guiding clients through all market environments – an approach enhanced by serving a smaller number of households to deepen engagement and deliver highly personalized advice.

“We are delighted to welcome Alan to our young and burgeoning firm,” said Kosta Tanglis, Founder and Managing Partner at Genesis Wealth. “This transition further validates Genesis Wealth’s platform and supported independence model, as experienced advisors increasingly seek a better way to serve clients while maintaining the infrastructure and support they need to grow.”

The transition reflects growing demand among experienced advisors for supported independence models that allow greater flexibility, autonomy and client customization. For advisors seeking more freedom from traditional bank constraints, the Genesis platform enables deeper planning relationships and tailored advice. Feutz’s decision reinforces Genesis as a destination for breakaway advisors and validates the Genesis platform and advisor-first structure.

“Alan shares our commitment to personalized planning and client care,” said Genesis Wealth Managing Director Jack Kennedy. “The advisors joining Genesis Wealth are looking for more than independence – they want a platform that empowers them to deliver customized advice while being surrounded by partners who share the same client-first mindset.”

New Genesis Office Opens in Chicago’s North Shore

The addition of Feutz also marks Genesis Wealth’s expansion into Chicago’s North Shore, one of the Midwest’s most established wealth management markets. Recently recognized by Forbes as one of Illinois’ Best-in-State Wealth Advisors for 2026, Feutz will operate from Genesis Wealth’s newly opened North Shore office in Deerfield.

Designed to support the firm’s continued growth, the approximately 10,000-square-foot office accommodates more than 20 advisors and staff and features private advisor offices, a large conference room equipped with hybrid meeting technology, oversized digital displays and dedicated collaboration spaces. The office also includes an employee lounge and ergonomic workspaces designed to support productivity and client engagement.

Located in the heart of Deerfield, the office will initially be home to Feutz and his client service team, Genesis Wealth founding advisor Joel Feiger and his team, as well as Managing Director Jack Kennedy. The location establishes a strategic presence in Chicago’s North Shore while creating capacity for future advisor recruitment and expansion throughout the region.

ABOUT GENESIS WEALTH

Genesis Wealth (GW) is a partner in the growth and success of bank-based advisors who are ready to transition to fully supported independence, operating through LPL Financial as its broker-dealer and Registered Investment Adviser (RIA). Founded in January 2024, GW officially launched under the Genesis Wealth brand in July 2025 and its advisors currently service more than $3 billion in client assets. Genesis Wealth’s high-caliber, growth-oriented advisors are enriched by and strengthen the collective culture and enterprise value of the firm. For more information about Genesis Wealth, please visit the firm’s site at genesiswealth.com

MEDIA CONTACT

Mitch Manning

424 317 4858

mmanning@haventower.com

View original content:https://www.prnewswire.com/news-releases/genesis-wealth-welcomes-veteran-725mm-jpmorgan-advisor-302804654.html

SOURCE Genesis Wealth

Technology

79% of Global Data Center Capacity Faces Elevated Climate Risk

Published

11 minutes ago

June 18, 2026

New research from First Street finds the world’s largest and fastest-growing data center markets are concentrated in locations exposed to flooding, extreme heat, wildfire, wind and drought risk.

NEW YORK, June 18, 2026 /PRNewswire/ — A new First Street analysis finds that climate risk is emerging as a critical factor in data center investment performance, with physical hazards increasingly shaping operating costs, infrastructure reliability, financing conditions, and long-term asset values across global markets.

The research, Climate Risk in Global Data Center Markets: Implications for Investment and Performance, examines 97 global data center markets and finds that many of the industry’s largest and fastest-growing hubs are concentrated in locations facing elevated exposure to flooding, extreme heat, wildfire, wind, and drought. As trillions of dollars flow into digital infrastructure to support cloud computing and artificial intelligence, the analysis suggests climate risk is becoming a key determinant of which markets can deliver durable returns.

Global data center capacity has expanded rapidly over the past decade and is expected to nearly double again by 2030. Yet while investors have traditionally focused on power availability, connectivity, land access, and demand growth, climate risk remains largely absent from many underwriting and valuation frameworks despite its direct influence on uptime, operating costs, insurance availability, and infrastructure reliability.

By analyzing climate exposure across global data center markets, First Street finds:

54% of global data center capacity is located in markets exposed to chronic climate stress, including extreme heat and drought, which increase cooling costs, reduce efficiency, and put operating margins under pressure.79% of global capacity faces elevated acute climate hazards, including flooding, wind, and wildfire risks that can disrupt operations, increase downtime, and drive insurance and repair costs.Chronic exposure varies significantly across major investment markets. Exposure reaches 89% of capacity in APAC, compared with 50% in the Americas and 46% in EMEA, creating meaningful differences in operating performance.The industry’s largest growth markets rank among its most climate-exposed. Major hubs including Northern Virginia, Johor, and Marseille sit in the highest climate-risk tier globally, while lower-risk Nordic markets rank among the least exposed.

The findings suggest that climate risk is increasingly differentiating data center markets that may appear similar based on traditional investment metrics but face very different long-term operating conditions.

“Where you build a data center determines a large share of what it will cost to run for the next 20 or 30 years. Climate is a big part of that: cooling, water, and reliability all depend on location,” said Dr. Jeremy Porter, Chief Economist at First Street. “But most valuations still focus on growth and treat climate as a secondary concern.”

“Most underwriting for real assets still uses historical data, but the climate is no longer behaving the way the historical record would predict. As heat, drought, and water stress increase, outdated models simply don’t offer a complete view of risk anymore,” said Matthew Eby, Founder and CEO of First Street. “Investors who incorporate these factors into underwriting and capital allocation decisions will be better positioned to identify resilient markets and avoid mispriced risk.”

The full report is available at firststreet.org/research.

To learn more or to request a demo, visit firststreet.org or reach out to bd@firststreet.org.

About First Street:

At First Street, we are on a mission to connect climate and financial risk. For nearly a decade, our scientists have created transparent, peer-reviewed physical climate risk models that quantify the financial impacts of perils such as flooding, wildfire, and extreme wind events for every property in the world. In December 2024, we launched the First Street Enterprise Suite, a global software platform that transforms our models into actionable financial signals for decision-makers worldwide. First Street is the standard for Climate Risk Financial Modeling, empowering asset owners, asset managers, governments, real estate investors, corporations, and millions of homebuyers every day to make climate-informed decisions.

Logo – https://mma.prnewswire.com/media/2776647/FirstStreet_Logo.jpg

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Technology

iLEAD Schools and School Pathways Expand Their Partnership with the Launch of iLEAD Flex in Lancaster

Published

11 minutes ago

June 18, 2026

With the California moratorium on the creation of new non-classroom-based (NCB) charter schools lifted this year, iLEAD is expanding into new communities, using the School Pathways SIS Suite to run its operations.

CHICO, Calif., June 18, 2026 /PRNewswire/ — iLEAD Schools, a California network of tuition-free public charter schools serving TK–12 learners through classroom-based, hybrid, online, and independent home study models, announces the expansion of its charter network into Lancaster, California, adding a new charter school in their network beginning in 2026. The announcement builds on iLEAD’s longstanding partnership with School Pathways and its continued use of the SIS Suite, which has supported the network’s operations and compliance since 2021.

A New Opening for Flex-Based Charter Schools

Since the statewide moratorium on new nonclassroom-based charters concluded on January 1, 2026, mission-driven networks like iLEAD have been moving quickly to bring their programs to communities that have long lacked access to flexible, learner-centered options. For iLEAD, the moment reflects over a year of preparation. The decision to open in Lancaster was driven by the needs of families in the Antelope Valley, where a combination of school closures and strong community demand made the case for iLEAD Flex clear.

With California’s oversight standards for flex-based programs continuing to evolve, iLEAD’s investment in purpose-built compliance infrastructure, anchored by the School Pathways SIS Suite, positions the network to launch and grow responsibly.

“School Pathways has been a great partner in our beginning stages of growth. Their team is responsive, collaborative, and always willing to troubleshoot challenges as they arise, helping us build strong systems and processes as we expand,” said iLEAD Chief Integration Officer Cassandra Coleman. “We value the relationships we have built with their team.”

A Flexible Learning Model for Every Family

iLEAD Flex will open in August 2026, a community where iLEAD already has a strong presence. The TK–12 campus introduces a new level of flexibility to that community, offering families a choice between full classroom-based instruction, Independent Study, or hybrid options on campus each week.

Each pathway is designed to be adaptable as a student’s needs evolve, and all three are grounded in iLEAD’s established educational approach, which includes hands-on project-based learning, a social-emotional curriculum, and individualized instruction to meet the needs of every unique child. At the high school level, iLEAD Flex students will have access to dual enrollment with the local community college, allowing them to earn college credits at no cost while completing high school requirements. The campus is also developing Career Technical Education (CTE) pathways in partnership with local businesses and community leaders to build leadership and career readiness skills.

iLEAD Flex is expected to open with approximately 750 learners, bringing iLEAD’s total network enrollment to nearly 7,000 students. The launch is part of a longer growth plan that includes iLEAD Innovate, the network’s next planned campus, which would be their first school outside of Los Angeles County and is expected to open in fall 2027.

School Pathways and the iLEAD Partnership

The partnership supports iLEAD’s broader ten-year goal of positively impacting 10,000 learners across California with sustainable launches of new schools over the coming years. From guiding the scope and launching iLEAD Flex on a compressed timeline to maintaining clean data, streamlined CALPADS reporting, and efficient workflows across the organization, School Pathways has supported iLEAD’s growth at every stage with consistent, responsive support. As the network continues to grow, iLEAD also plans to leverage School Pathways’ AI-powered features to manage enrollment and administrative workloads, allowing staff to focus on serving learners and families.

School Pathways brings more than 20 years of experience partnering with charter and non-traditional schools across California and currently works with 300+ schools statewide. The integrated SIS suite includes a student lottery system, online registration, Student Information System, and a platform for Independent Study program management, all built specifically for hybrid, virtual, and non-traditional learning environments.

For iLEAD, the platform supports the full range of the network’s needs across all learning modalities, including:

Enrollment management with online registrationCALPADS reporting and state compliance for Independent Study programsLearning agreements, student activity tracking, and program documentationFamily and educator access to real-time student records and progress

“The lift of the moratorium marks a meaningful turning point for flex-based education in California and for the schools that have been doing this work with intention,” said School Pathways CEO Kacie Jester. “iLEAD is a strong example of a network that invested in the right systems, maintained compliance through a challenging regulatory period, and is now in a position to grow. We’re proud to support them, and to be the platform that schools across California trust to make that kind of expansion possible.”

About iLEAD Schools

iLEAD Schools is a network of tuition-free public charter schools in California committed to helping every learner become a lifelong learner, empathetic citizen, authentic individual, and design thinker. With classroom-based, hybrid, online, and independent home study options serving grades TK–12, iLEAD provides personalized, project-based learning experiences that celebrate each student’s individuality and inspire them to lead. For more information, visit ileadschools.org.

About School Pathways

School Pathways is a California-based education software company with more than 20 years of experience serving charter and non-traditional schools. We provide solutions for virtual, hybrid, and Independent Study programs that simplify school operations and foster student success in a variety of learning environments. In addition to a Student Information System better-built for non-traditional learning environments, we offer software that enables our clients to manage online learning agreements, student activity tracking, re-engagement communications, audit preparation, adult education, and more. For more information, please visit schoolpathways.com.

Media Contact:
Elena Chow
Growth Marketing Manager
elena@schoolpathways.com

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SOURCE School Pathways