2026 Q3 Earnings Release
QUARTERLY REPORT: JULY TO SEPTEMBER 2026
Debt-free. Recapitalized. Rebuilt to act.
JULY TO SEPTEMBER 2026
- Net sales in constant currency (*) amounted to 5.5 MSEK (20.4), -73%
- Net sales amounted to 5.5 MSEK (20.4), -73%
- SaaS ARR in constant currency (*) amounted to 12.6 MSEK (66.3), -81%
- Total ARR in constant currency (*) amounted to 21.4 MSEK (82.2), -74%
- Gross margin amounted to 76% (87)
- EBITDA adjusted(**) amounted to -11.3 MSEK (-4.5)
- Earnings per share amounted to -0.1 SEK (-0.0)
JANUARY TO SEPTEMBER 2026
- Net sales amounted to 23.3 MSEK (67.8), -66%
- Gross margin amounted to 77% (87)
- EBITDA adjusted(**) amounted to -31.9 MSEK (-9.9)
- Earnings per share amounted to -0.1 SEK (-0.1)
EVENTS DURING THE QUARTER
- Medtronic has partnered with Teneo to build the next generation Voice AI agent on top of ServiceNow
- Teneo 10 presented to customers in Preview form with positive feedback
- Teneo10 lets enterprises approve AI that acts in their core systems: tested, auditable, model-agnostic and deployable in-country across Europe and Regulated industries
- Monthly run rate operating expenses during September 2026 of 5 MSEK
- The debt refinancing and the rights issue of 74 MSEK completed during the quarter made Teneo AI debt free and Capital Four the largest shareholder in Teneo AI with a 29.9 % holding
- Teneo made significant restructuring measures during the second and third quarters of 2026 to simplify the legal group structure and to reduce the operating expenses following the drop in revenues from the loss of revenues from a distribution partner in the US during the first half of 2026
- A1 Bulgaria agreement extension until December 2027 confirmed
EVENTS AFTER THE QUARTER
- Decision taken to close the Spanish entity
KEY FIGURES (For definitions please see page 19)
| JUL-SEP 2026 | JUL-SEP 2025 | JAN-SEP 2026 | JAN-SEP 2025 | JAN-DEC 2025 | ||
| Net sales (MSEK) | 5.5 | 20.4 | 23.3 | 67.8 | 86.2 | |
| Net sales in constant currency (MSEK) | 5.5 | 20.4 | 23.6 | 65.6 | 84.1 | |
| Recurring revenues (MSEK) | 5.5 | 20.4 | 23.2 | 67.7 | 85.6 | |
| ARR (MSEK) | 21.6 | 82.2 | 21.6 | 82.2 | 69.9 | |
| SaaS ARR (MSEK) | 12.6 | 66.3 | 12.6 | 66.3 | 57.0 | |
| ARR in constant currency (MSEK) | 21.4 | 87.5 | 21.4 | 87.5 | 76.1 | |
| SaaS ARR in constant currency (MSEK) | 12.6 | 70.8 | 12.6 | 70.8 | 62.2 | |
| SaaS API Call Revenues (MSEK) | 0.7 | 12.9 | 6.8 | 40.3 | 51.3 | |
| SaaS API Call Volumes (average Million) | 2.8 | 55.3 | 2.8 | 55.3 | 45.0 | |
| NRR % | 23% | 121% | 23% | 121% | 93% | |
| Gross margin % | 76% | 87% | 77% | 87% | 86% | |
| EBITDA adjusted (MSEK) | -11.3 | -4.5 | -31.9 | -9.9 | -15.8 | |
| Opex Runrate | -60.5 | -113 | -60.5 | -113 | -111 | |
| Earnings per share (SEK) | -0.1 | 0.0 | -0.1 | -0.1 | -0.2 | |
| Cash flow from operating activities before changes in working capital (MSEK) | -31.5 | -7.3 | -64.1 | -20.5 | -30.5 | |
(*) Same currency rate as in the third quarter 2025
(**) Adjusted for non-recurrent and restructuring costs
CEO STATEMENT
From reset to restart
In my last letter, I described the most demanding period in Teneo’s history. In the third quarter 2026, we completed the main steps of the reset: a full debt-to-equity refinancing, a fully secured rights issue, and a cost base reduced to about half its previous level. Together, these steps make Teneo debt free and give us a platform to restart commercially with a modernised product and a much lower operating footprint.
The quarter in numbers
Net sales were 5.5 MSEK (20.4) in the third quarter 2026 and 23.3 MSEK (67.8) for the first nine months 2026. The comparison with last year still reflects the revenue we lost through our former US partner, and I will not pretend otherwise. What matters now is the base we build from:
- ARR: total ARR in constant currency was 21.4 MSEK (82.2), and SaaS ARR in constant currency was 12.6 MSEK (66.3).
- Adjusted EBITDA: -11.3 MSEK (which excludes non-recurrent and restructuring costs).
The cost reductions we started in the summer are now in place, across our organization, contractors and vendors. Our cost base going forward is close to half of what it was a year ago.
A clean balance sheet
During the third quarter 2026 we reached agreement with our lender, Capital Four, on a full debt-to-equity swap. Together with a fully secured rights issue of at least 74 MSEK, the refinancing makes Teneo debt free. Capital Four is now a significant shareholder owning 29.9% of the company.
The new capital gives us the runway to execute. Positive cash flow is now our overriding financial target, and it replaces the earlier 20 MUSD revenue ambition. Our aim is to reach cash flow positive with our current engagements while nurturing our pipeline for further growth.
I want to thank our shareholders who are taking part, and our lender, now a significant shareholder, for choosing a structure that gives Teneo a future. I also want to thank the colleagues who carried the company through the summer. Many of them left as part of the restructuring. What we have today was built by them.
Why we rebuilt Teneo
Real crises are when inventions happen. When we lost most of our revenue, we did not just cut costs. We rebuilt. We used 20 years of code and design principles and redesigned Teneo from the ground up. Today our development is an AI-Driven Development Life Cycle (AIDLC). Our customers want stability, predictability and auditability from their solution. Teneo10 still builds on every such requirement that customers place on a contact center solution, and it can now also run headless. Headless enables our customers to develop using for example prompting Claude.
That matters because enterprise software is increasingly becoming headless: users and AI agents interact through integrations and workflows rather than through traditional graphical interfaces. Most SaaS companies price per seat, and AI agents are removing seats: more work runs through integrations instead of screens, so fewer people need to log in. What does not go away is the layer that decides what an AI may do in a company's core systems, and being able to prove it afterwards. That is our layer.
Run headless, Teneo10 can sit underneath any channel, application or partner product and provide that control. It is also how our partners can build Teneo into their own offerings for smaller customers.
A sharper answer to a real problem
We have used the restructuring to sharpen how we sell, and what it costs us to operate a customer. Many enterprise voice assistants struggle to reach production. The reason is rarely the model. It is permission. The system owner, the security team and compliance will not let an AI change a customer's record when nobody can prove what it will do. So the assistant answers questions, a person still does the work, and the business case never arrives.
Teneo10 is built for exactly that moment. Facts and actions are never generated by a language model. They run through a controlled, tested and auditable layer, and the language model only words answers that have already been verified. That makes the LLM model replaceable, including with a European or locally hosted one. It also lets the three roles who block most projects say yes.
This matters most in Europe and in regulated industries across the rest of the world. Boards now ask two questions about AI: what it may do, and who controls it. Teneo is a Swedish company listed in Stockholm, with IP built here. We can deploy in the cloud, in a private cloud or entirely inside a customer's own country. Few voice AI vendors are positioned to make that claim credibly. We will lead with it, with regulated European enterprises such as banks, insurers, telcos and utilities as our core focus. Our own sales effort goes to large regulated enterprises. Partners that we are establishing during the fourth quarter 2026 will take Teneo10 to smaller customers, where its lower implementation cost now makes enterprise-grade control affordable.
We have also simplified how we engage and price. We start with a working session with the people who have to sign off, rather than a demo. The first working flows run on the customer's own use case within days, and we price per minute at a fixed rate, so customers can model the cost before a line of code is written rather than having to guess at how much token spend they will have.
Customers and partners
Medtronic is building its next-generation patient and customer agent on Teneo10, writing directly into ServiceNow. Highly regulated and highly confidential environments are where Teneo10 fits best.
In Türkiye, our deployment with FGS runs in a local data centre, which is key to complying with Turkish law. That data centre and our implementation have gone through major changes, which delayed our in-country implementation. We now expect to go live in November rather than September. We have adjusted the project plan to compress customer onboarding, so that we recover as much of the lost time as we can.
Looking ahead
We are a small boat on a very big ocean, full of much bigger ships. We will not win on size. We win on focus, and by turning faster than our competition can. Our priorities going forward are simple:
- Bring existing projects into revenue while maintaining strict cost control, with positive cash flow as the overriding target.
- Convert Teneo10 interest into signed contracts.
- Enable selected partners to sell Teneo-based solutions to smaller and mid-sized customers.
The legal claims arising from this year are being handled separately, including discussions with potential financing partners, so management can remain focused on the business.
A year ago we were a company that depended on a few very large implementations. Today we have a lower cost base, no debt, a recovering gross margin and a proven product built for the question every enterprise board is now asking. Now our job is to sell it.
Per Ottosson, CEO Teneo.ai