Cohere Blows Past Revenue Target With $240M ARR
AI startup Cohere exceeded its $200M ARR goal, posting 50%+ quarter-over-quarter growth with strong margins.
Enterprise AI startup Cohere is having a moment. According to a February investor memo, the company hit roughly $240M in annual recurring revenue in 2025 — comfortably clearing its $200M target.
The numbers are hard to argue with. Quarter-over-quarter growth exceeded 50%, and average gross margins held steady around 70% throughout the year. That's serious enterprise traction.
Cohere has been carving out its niche selling AI tools to business customers, even as heavyweights like Google crowd the space. The memo signals the company is gaining real momentum despite increasingly fierce competition.
Margins north of 70% suggest Cohere isn't just burning cash to buy growth — it's building a business that actually works economically. For an AI startup in this climate, that distinction matters more than ever.