2026 Q2 Earning Release
QUARTERLY REPORT: APRIL TO JUNE 2026
Debt-free and recapitalized — new cash from a fully secured rights issue, a materially lower cost base, and a step change in product usability.
APRIL TO JUNE 2026
- Net sales in constant currency (*) amounted to 6.6 MSEK (22.1), -70%
- Net sales amounted to 6.4 MSEK (22.1), -71%
- SaaS ARR in constant currency (*) amounted to 12.2 MSEK (65.2), --81%
- Total ARR in constant currency (*) amounted to 21.4 MSEK (83.7), -74%
- Gross margin amounted to 70% (88)
- EBITDA adjusted amounted to -17.0 MSEK (-3.9)
- Earnings per share amounted to -0.0 SEK (-0.0)
January to june 2026
- Net sales amounted to 17.8 MSEK (47.4), -63%
- Gross margin amounted to 75% (87)
- EBITDA adjusted amounted to -29.1 MSEK (-5.4)
- Earnings per share amounted to -0.1 SEK (-0.1)
EVENTS DURING THE QUARTER
- Our partner FGS started implementation of Teneo in a very large Turkish Telco
- EXL (exlservice.com) chooses Teneo for Voice AI for their customers after extensive evaluations
- New top tier legal counsel retained with contingency engagement possible
- AGM held on June 16, 2026 and annual report published on May 26, 2026
EVENTS AFTER THE QUARTER
- Teneo AI reached agreement with lenders on full debt-to-equity swap refinancing
- Medtronic has partnered with Teneo to build the next generation Voice AI agent on top of ServiceNow
- Teneo AI is in the process of concluding a fully secured rights issue of at least 74 MSEK following the debt conversion refinancing
- The refinancing and the rights issue will make Teneo AI debt free and the senior lender Capital Four will become shareholder owning 29.9% of Teneo AI after transaction completions
- Teneo AI has initiated major cost reductions across the group including dismissals of employees, contractors and vendors to lower the operating expenses following the drop of revenues from the loss of revenues from a distribution partner in the US
- Teneo 10 presented to customers in Preview form with positive feedback
KEY FIGURES (For definitions please see page 18)
| APR-JUN 2026 | APR-JUN 2025 | JAN-JUN 2026 | JAN-JUN 2025 | JAN-DEC 2025 | ||
| Net sales (MSEK) | 6.4 | 22.1 | 17.8 | 47.4 | 86.2 | |
| Net sales in constant currency (MSEK) | 6.6 | 22.1 | 18.2 | 47.4 | 91.0 | |
| Recurring revenues (MSEK) | 6.5 | 22.0 | 18.1 | 47.3 | 85.6 | |
| ARR (MSEK) | 20.9 | 83.7 | 20.9 | 83.7 | 69.9 | |
| SaaS ARR (MSEK) | 12.0 | 65.2 | 12.0 | 64.8 | 57.0 | |
| ARR in constant currency (MSEK) | 21.4 | 83.7 | 21.4 | 83.7 | 76.1 | |
| SaaS ARR in constant currency (MSEK) | 12.2 | 70.1 | 12.2 | 83.3 | 62.2 | |
| SaaS API Call Revenues (MSEK) | 6.0 | 12.7 | 5.7 | 27.3 | 51.3 | |
| SaaS API Call Volumes (average Million) | 2.9 | 53.2 | 2.9 | 53.2 | 45.0 | |
| NRR % | 23% | 129% | 23% | 129% | 93% | |
| Gross margin % | 70% | 88% | 75% | 87% | 86% | |
| EBITDA adjusted (MSEK) | -17.0 | -3.9 | -29.1 | -5.4 | -15.8 | |
| Opex Runrate | -60 | -117 | -60 | -117 | -111 | |
| Earnings per share (SEK) | -0.0 | -0.0 | -0.1 | -0.1 | -0.2 | |
| Cash flow from operating activities before changes in working capital (MSEK) | -18.7 | -4.0 | -32.6 | -13.3 | -30.5 | |
(*) Same currency rate as in the second quarter of 2025.
CEO STATEMENT
A heavy summer — and a product our customers love
This has been the most demanding period in Teneo's history. We lost a large share of our revenue, largely as a result of the contractual breach by our former partner in the US. There is no Sugar Coating it. Our strategy and product made us too dependent on very large implementations and therefore a few customers. In response we have restructured the company and rearchitected our Teneo from the ground up, taken our forward-looking cost base down by close to 50 percent, reducing the cost to deliver our service and settled our debt. Teneo is today a debt-free company. At the same time we have completed a rearchitected platform, Teneo 10, that customers, prospects and partners genuinely love. Those three facts define where we now stand: a much smaller cost base, no debt, and a materially stronger product — and together they point forward rather than back. Teneo 10 gives us and our partners a broader customer base to sell into, a debt-free balance sheet gives us the freedom to act, and new technology lets us carry a lower cost base while continuing to develop the platform.
Restructuring and balance sheet
The revenue loss forced decisive action. We have carried out a major restructuring that reduces our operating run rate cost base by close to 50 percent on a going-forward basis. Our debt has been renegotiated in full and the company is now debt free. As part of that settlement, the first SEK 25 million of value generated to shareholders will go to the former lender, and the lender will hold 29.99 percent of the shares in the company following the rights issue currently in process.
Our Spanish subsidiary, Artificial Solutions Iberia S.L.U., initiated a pre-insolvency procedure as the first formal step. This mechanism notifies the commercial court that the company is negotiating with creditors and grants a statutory protective period — typically 3 months — during which individual creditor enforcement actions are stayed, allowing the company to pursue a restructuring or, failing that, to prepare an orderly insolvency filing. This is similar to company reconstruction (Sw:Företagsrekonstruktion).
As part of this pre-insolvency procedure, the company negotiated with the employee worker representatives with a view to reaching a resolution. It has not been possible to reach an outcome on commercial terms acceptable to Teneo AI. As a consequence, the company is now in the process of concluding a collective dismissal procedure (ERE) affecting all employees in Spain, with the termination of all employment in Spain taking effect on August 31, 2026. As the company is unable to meet its obligations, outstanding wages and statutory severance will be covered by FOGASA, the Spanish public wage guarantee fund, up to the statutory limits.
These are the hardest decisions I have been part of. Many great colleagues have left us and some are in the process of leaving Teneo. Those who remain have shown extraordinary commitment — including working without pay under very difficult circumstances. I want to state clearly that the position Teneo is in today is a direct result of that commitment.
Teneo 10
Over the last few quarters, we have been building an AI model to help us build a faster and more efficient Teneo. The result is a completely rearchitected platform: Teneo 10. It allows us to operate with far fewer development resources, and it significantly reduces compute usage in customer implementations. AI is the enabler here: it lets us take cost out of the business without losing the capacity to keep developing the platform and to support our existing customers at the level they expect. The commercial consequence matters more than the technical one — we can now bring enterprise-grade compliance and security profitably to smaller companies than before, which materially widens the customer base we and our partners can address. Where our old economics required very large implementations, Teneo 10 lets us win and serve a far broader range of customers, directly reducing the concentration risk that hurt us this year.
Customers
We continue to work with our Turkish telco customer to bring Teneo Experiences to more customers. We have also been selected by our customer Medtronic to build the next generation AI agent for customers and patients, in both chat and voice. Giving ServiceNow a voice. These are the kinds of mandates that validate the architecture we have just completed.
Focus going forward
The company will focus on the business, and on nothing else. The legal pursuits arising from the events of this year can be run for the benefit of shareholders as separate ventures, and this is being formalized during the autumn. That separation keeps management attention where it creates value while preserving the shareholder upside in those claims.
This has been a very heavy summer. But we come out of it with a lower cost base, no debt, a focused organization, and a product in Teneo 10 that customers, prospects and partners love. That is the foundation we build from — and from here the work is growth: converting Teneo 10 preview enthusiasm into signed customers, using our partners to reach a broader and less concentrated customer base, and doing it on a cost base that new technology lets us keep low without slowing product development or the support our existing customers rely on.
Per Ottosson, CEO Teneo.ai