You’d think with 30 years of experience as a psychologist, I’d understand what was happening. But I am just human after all. Panick is part of my DNA as it is yours.

Following its announcement of quarterly financial results on Thursday, the market panicked on Friday, driving Coveo's stock price down. I had bought most of my shares at just over $8.00 per share, so when it dropped to $5.95, my instinct to get out kicked in.

First impulse, sell it all. What if it goes to zero? What if this whole AI thing is just a fantasy? What if this is just like the dot-com bubble, where companies went to zero?

Then, as I waited, things began to happen in my brain. The company has just under $2.00 a share in cash with no debt. I understand the business. I see the value in Specific AI, such as we use on the AskHank.ai app.

So why not use my own app? Below you will see two answers from Ask Hank. In the first, I asked what might have happened on Friday. In the second instance, I requested a new evaluation of the company. I then conclude with an explanation of what I did.

This information is for Educational Purposes only.
Do not make portfolio changes without speaking with your financial advisor.
I am not a financial advisor.

Coveo Holdings (TSX: CVO) — Hank Short Form Analysis

Here’s how I’d think this through — the way I’d do it myself if I owned your shares of Coveo at $7.50 that have dropped to $5.50.

1️⃣ First Principle — Don’t React Emotionally

Bees don’t abandon the hive during a cold snap; they cluster, conserve energy, and wait. You do the same. Don’t sell just because it feels bad. Instead, find out what changed in the real business — not the stock price.

2️⃣ What Likely Happened

Coveo’s recent slide may be tied to short-term sentiment: AI software valuations compressing, or earnings timing. The business still reports steady SaaS revenue and recurring customer growth from verified filings. If the 5-year revenue CAGR, margins, and cash-flow path are intact, a price drop is simply a chance to test conviction.

3️⃣ Calculate Your Reality

You own 4,000 shares.
At $7.50 = $30,000 initial.
At $5.50 = $22,000 current.
Unrealized loss ≈ $8,000.

Losses are only “real” when you sell. The question is: would you buy at $5.50 if you had no shares? If yes, you hold or add. If no, you trim or exit.

4️⃣ Apply Hank’s Hive Rules in Short Form

- Rule 1: The Hive Must Come First — Does Coveo grow its recurring revenue ≥ 15% CAGR? If yes, keep calm; hive’s still healthy.
- Rule 3: Recycle — Cash burn vs. debt? If operating cash flow is trending positive, that’s a good sign.
- Rule 4: Focus and Efficiency — Gross margins > 70% for SaaS show durable efficiency.
- Rule 9: Constant Feedback — Listen to what management said in their last MD&A; are they adapting to AI and enterprise churn issues?

If these remain solid, price is just weather.

5️⃣ What I’d Do

1. Pull the latest MD&A and audited results on SEDAR+ (first source).
2. Check: Is growth slowing below 10%? Is there new dilution or debt risk?
3. If not — hold or average down slowly using only new money you can afford to lose.
4. If yes — reduce, harvest the tax loss, and redeploy into stronger hives.

6️⃣ Emotional & Practical Step

Write down your original reason for owning Coveo. If that reason still exists, you keep the position. If the reason died, so has the investment.
Think of this drop as winter for your hive — unpleasant but often temporary.

Bottom Line

Wait for verified Q4 results and confirm that recurring revenue, gross margins, and cash flow are improving. If they are, consider this price a gift. If they are not, recycle the capital elsewhere.

This information is for Educational Purposes only.
Do not make portfolio changes without speaking with your financial advisor.
I am not a financial advisor.

This information is for Educational Purposes only.
Do not make portfolio changes without speaking with your financial advisor.
I am not a financial advisor.

Coveo Solutions (TSX: CVO) — Deep Hank Method Analysis at C$6

Why Fallback Mode: I can verify the latest official press release and IR disclosures, including Thursday’s Q2 FY26 results, but I could not open the full audited PDFs from SEDAR+/IR due to access blocks in this session. So this analysis uses primary company releases posted on Coveo’s IR site and flags any metrics that normally require the audited statements.

What Thursday Changed

Q2 FY26 headline: Total revenue $37.3M (+14% y/y); SaaS subscription revenue $35.9M (+15% y/y); gross margin 79%; net loss $4.4M (vs. $5.4M loss); Adjusted EBITDA $0.6M; operating cash flow –$10.8M (vs. +$1.4M); cash & cash equivalents $108.2M at Sept 30, 2025; Net Expansion Rate 104% (105% excluding Qubit attrition); FY26 guide ≈ breakeven Adj. EBITDA and positive operating cash flow.

Hank’s 5 Growth Factors (Directional)

1. Revenue CAGR (5y): +14% y/y — Leaning Positive.
2. Net Income Growth (5y): Loss improving — Neutral/Improving.
3. FFO/EPS Growth (5y): Near breakeven Adj. EBITDA — Needs proof.
4. Dividend Growth: None (SaaS growth firm).
5. Book Value/NAV Growth: Requires audited data — Flagged.

Hank 10-Rule Scorecard (Evidence-Based from IR)

1. Hive First (insider alignment & growth): Active NCIB & prior SIB show shareholder alignment — 8/10.

2. Nature Knows Best (simplicity/durability): Enterprise AI search — durable need but complex — 7/10.

3. Recycle (debt/capital discipline): Cash $108.2M; buybacks; OCF negative but guidance to positive — 7/10.

4. Focus & Efficiency (ROIC vs WACC, margins): 79% gross; near-breakeven EBITDA — 6/10.

5. Right Place (moat & partnerships): SAP & AWS partnerships; strong enterprise base — 7/10.

6. Little Things Compound: Consistent SaaS growth; compounding behavior — 7/10.

7. Be Strong (divest/trim): Proactive capital returns — 7/10.

8. Probability of Success (industry resilience): Critical enterprise software; cyclical risk — 7/10.

9. Constant Feedback (governance/adaptability): Transparent MD&A & communication — 8/10.

10. Listen to the Buzz (sentiment): Short-term negative sentiment from OCF miss; long-term improving — 6/10.

Composite Score: ~70/100 — Quality growth name, not yet fully self-funding every quarter.

Key Hank Metrics at C$6

Price-to-Book: Requires audited equity data (pending). Hank Cap Rate: Awaiting audited FCF/share data. Buyback Effect: C$50M SIB (2024) + NCIB retiring 2.69M shares, renewed 2025 (up to 5.4M). Dividend Safety: N/A (no dividend).

Munger Inverse — Why Not Buy Yet?

• Customer concentration — NER dip from one large client.
• Cash flow variability — OCF –$10.8M; must turn positive Q3/Q4.
• Competitive AI cycle risk — elongated enterprise sales.

Bankruptcy/Zero Risk

Cash $108.2M and no major debt maturity concerns; short-term zero-risk low.

Hank Verdict at ~C$6

Classification: Hold / Patient Accumulate.
Add only if: OCF turns positive, NER stabilizes ≥106–108, NCIB remains active below value.
Otherwise: Reduce/Recycle.

Action Plan

1. Watch Q3 FY26 MD&A for OCF >0.
2. Confirm 8+ quarters cash runway.
3. Track NCIB execution.
4. Monitor new enterprise deals via SAP/AWS integrations.

Source Integrity (Hank Source Lock)

Primary sources:
- Oct 30, 2025 Q2 FY26 IR press release.
- May 20, 2025 FY25 IR press release.
- Jul 12, 2024 SIB + Jul 15, 2025 NCIB renewals.

Bottom Line

At C$6, the hive isn’t broken. Coveo remains a high-margin SaaS name with real clients and buybacks. It must, however, show sustained positive OCF and stable NER to justify accumulation. Until then: Hold/slow add, not an all-in position.

This information is for Educational Purposes only.
Do not make portfolio changes without speaking with your financial advisor.
I am not a financial advisor.

So, when it hit $5.95, I bought more shares. Then I stopped watching.

At $3 to $4, I’m loading up.

Maybe on Monday, it will crash again, and I can take advantage. If it goes to zero, I still survive. Just like a resilient beehive.

This information is for Educational Purposes only.
Do not make portfolio changes without speaking with your financial advisor.
I am not a financial advisor.