OCTOBER TO DECEMBER 2025
Net sales in constant currency(*) amounted to 20.0 MSEK (26.5), -24%
Net sales amounted to 18.3 MSEK (26.5), -31%
SaaS ARR in constant currency(*) amounted to 62.5 MSEK (75.1), -17%
Total ARR in constant currency(*) amounted to 76.6 MSEK (103.9), -26%
Gross margin amounted to 85% (80)
EBITDA adjusted amounted to -6.0 MSEK (-1.7)
Earnings per share amounted to -0.1 SEK (0.0)

JANUARY TO DECEMBER 2025
Net sales in constant currency(*) amounted to 91.5 MSEK (84.9), +8%
Net sales amounted to 86.2 MSEK (84.1), +2%
Gross margin amounted to 86% (79)
EBITDA adjusted amounted to -15.8 MSEK (-22.3)
Earnings per share amounted to -0.2 SEK (0.2)

EVENTS DURING THE QUARTER
Deviation in sales and SaaS ARR in the fourth quarter stems from a dispute with a reselling partner in the US
Renewal of SaaS subscription agreement with A1 Bulgaria and Grapetree
Renewal of license agreement with TIAA and with Italian bank, Widiba
Release of Teneo 8, the enterprise Voice AI Platform achieving 90% call resolution in any language
Teneo.ai unveils Contact Center Connector Framework to Streamline AI Agent Integration Across CCaaS Platforms
Advanced AI Agents to Help Retailers Master Peak Shopping Season launched
Started a pilot program to drive expansion with an existing customer with large call volumes

EVENTS AFTER THE QUARTER
Strategic review led by global investment bank JP Morgan initiated by the board of directors
Updated patent valuation indicating a mid-range value of 191 MUSD, +16% vs. previous valuation
ISO 27001:2022 Certification Renewed
Legal Process Initiated after Partner infringement
Agentic AI for Airlines, Automating Luggage Updates and Loyalty Support with Enterprise-Grade Control launched
Agentic AI for Major Household Appliance Brands, Automating Warranty, Troubleshooting and Service Scheduling with Enterprise-Grade Control launched
AI Agents for Utilities: Automating Outage Peaks, Billing, and Service Orchestration launched

KEY FIGURES (For definitions please see page 21)

^(*) Same currency rate as in the fourth quarter of 2024.

CEO STATEMENT
Dear Shareholders, Team Teneo.ai and Partners,
The fourth quarter 2025 was truly a mixed bag for us with an ever increasing interest from customers to automate phone calls, a partner going rogue, customers recommitting to us and new entrants making outlandish claims. The numbers are a disappointment as a result of this, and we are hard at work to rectify this.

Sales
We went into the quarter with a strong pipeline, a stronger Teneo than ever with Teneo 8 and happy customers. We exited the quarter with the same pipeline and one unhappy customer. So, what happened?

Unhappy Customer
One of our major customers in the US has been served and contracted through a partner since the beginning. Given that we were the party that brought the customer and our technologies strength the partner agreed to not compete with us, of course not at the customer, but also in the broader market. Despite this the partner decided to try to build their own solution and position this at our customer and with other prospects. We have initiated legal proceedings towards the partner to recover lost revenue. What is worse is that the customer now has a solution that does not deliver the experience or automation that they had before and they are unhappy. We are now engaged to work on supplying our software directly to the customer and anticipate having the customer back to the best solution during the second quarter 2026. This had a major impact on our revenue in the later parts of the fourth quarter 2025 and also on our ARR.

Pipeline
Our late-stage pipeline going into the first quarter 2026 is very similar to the pipeline going into the fourth quarter 2025. Why is that? During the third and fourth quarter 2025, we had several pilots where we proved that we could solve the customers problem and we had been chosen. And then the wave of inflated balance sheets and boastful claims hit the market. Investors in the US had awoken to that phone automation was in demand. And they invested. Parloa that was a German Conversational AI consulting house got 470 MUSD, Sierra.ai has raised 635 MUSD, Decagon 481 MUSD. And they all claim to be able to automate phone calls. So, in the fourth quarter 2025 and running into the first quarter 2026 we have had CEOs left right and center all of a sudden asking their teams to evaluate the new entrants. The first such evaluations have just finished as we enter the mid part of February. One that should be signed shortly is a new partner that we have courted since the beginning of 2025. They have evaluated the new entrants versus us and concluded that their customers will be best served if they implement Teneo for their clients. We compete on the quality of our technology – Hybrid AI. All the new entrants rely on Foundational models to do the heavy lifting which will inevitably result in hallucinations and poor performance.

Technology, patents and strategic review
That customers are renewing with us is of course the ultimate testament to the technologies value. And with Teneo 8 we now have the tool to build ready-made solutions for industries where customer implementation times are cut even further. The industry leading accuracy of 99% understanding of customers conversations is and remains the key strength that is not delivered by another technology.
Over the past months we have launched a set of industry-specific solutions covering Healthcare, Telco, Utilities and Retail — and the response has been encouraging. Each comes with a purpose-built voice agent that understands the language, compliance requirements and customer expectations of that particular vertical.

In Healthcare, agents handle HIPAA-compliant triaging and appointment booking. In Telco, they manage account inquiries and troubleshooting across multiple languages at scale. For Utilities, it is billing, outage reporting and service requests, and in Retail, order tracking, returns and product inquiries around the clock. The thinking behind these is simple: customers have been telling us they want voice AI but do not want to spend months building everything from scratch. By packaging industry-specific flows into ready-to-deploy solutions — with built-in integrations to the leading contact center platforms — we have taken what used to be a six-month custom project and turned it into something that can be live in weeks. We expect these to be a meaningful driver of new business going forward.

We know that it’s really difficult to automate phone calls at scale. We have seen that large companies like Google, Amazon and Microsoft have not succeeded in this space although they have all tried multiple times. There is a myriad of small choices on how to manage edge cases, it´s a long journey that needs to be made with a great and stable team over many years. You need to stay the course. Thanks to our customers and investors we have been allowed to stay the course for more than 20 years. And as we have defined and solved key challenges, we have patented this technology. With the new entrants we have seen the need to update our patent report from 2021 and spoiler alert – the citations of our patents has grown. But the new entrants are not on that list – nor do they have any patents in this space. Teneo has a unique technology in a hot market that on top of that is protected by patents. An external patent valuation company has reviewed our patents for a few months and concluded the work in February 2026 with a valuation opinion report at a mid-range value point of 191 MUSD, equivalent to approximately 1.7 bn SEK.

It is in light of this that the board has initiated a strategic review. The aim is to find ways to increase distribution reach for Teneo and, as a consequence, increase shareholder value. The team working on this is an international team from JP Morgan, the number one Investment bank in the world supported locally by the experts on Nordic growth Redeye. JP Morgan of course has relationships into the C-Suite of all the participants in our market, and they are hard at work to unlock the intrinsic value in our company.  
Commitment to our goal
We are disappointed and sorry for the setbacks during the fourth quarter 2025. But not withstanding any other potential changes, as a result of the strategic review, we are committed to getting back to our goal of 20 MUSD ARR. We need to move the goalpost until end of the third quarter 2026. As a team we remain committed to rebuilding the foundation (winning back the customer that was stolen) and closing on the large opportunities we have in our pipeline.

We have also agreed with our current lender CapitalFour that they waive the financial liquidity covenant until August 31, 2026 (from which it will apply at a level of SEK 10 MSEK) as well as all other covenants in the current loan agreement until maturity of the loan on December 22, 2026. In addition, the company secures 25 MSEK in subordinated debt financing from key shareholders. The new subordinated debt carries an interest rate of 15 per cent per annum (PIK), matures on December 31, 2026, and can be converted into equity at maturity or in connection with an equity financing round on the same terms and conditions as any other shareholder and subject to approval by a general meeting.

With this solution, the company has secured its current financing need. We thank the key shareholders for their strong support and alignment with our goals.

Thank you all for your continued support and confidence.
Sincerely,
 
Per Ottosson, CEO
Teneo.ai