Cohere Surpasses $240 Million in Annual Revenue as IPO Plans Advance

Feb 14, 2026
Canadian AI startup Cohere reported $240 million in annual recurring revenue for 2025, exceeding its $200 million target and signaling momentum ahead of a potential IPO.
Cohere Surpasses $240 Million in Annual Revenue as IPO Plans Advance
Image: Cohere

Canadian AI startup Cohere reported $240 million in annual recurring revenue for 2025, surpassing its $200 million target, according to CNBC. The company saw quarter-over-quarter growth above 50% throughout the year and maintained gross margins of around 70%.

Founded in Toronto in 2019, Cohere develops generative AI models and software tools for enterprise customers. It is backed by investors including Nvidia and Salesforce Inc., and its valuation has reached approximately $7 billion. The company said its capital-efficient model allows customers to run its models on managed cloud services or their own hardware, reducing infrastructure costs.

Cohere’s CEO Aidan Gomez previously said the company aims to go public “soon.” The startup plans to continue expanding in Europe and further develop its AI agent platform, North, in 2026 as it prepares for a potential initial public offering.

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