New Large Customer Delivered, SaaS Growth Strong, Again Doubling Pipeline Q-o-Q
JULY TO SEPTEMBER 2025
- SaaS API Call revenues amounted to 12.9 (9.3) MSEK, +39%
- SaaS API Call volumes amounted to 55.3 million (41.0), +35%
- SaaS ARR in constant currency(*) amounted to 70.8 MSEK (54.3), +30%, and +22% in nominal growth
- Total ARR in constant currency(*) amounted to 87.5 MSEK (84.3), +4%, and -3% in nominal growth
- Net Revenue Retention Rate (NRR) +121% (127)
- Net sales in constant currency(*) amounted to 21.7 MSEK (21.2), +3% and -4% in nominal growth
- Gross margin amounted to 87% (79)
- EBITDA adjusted amounted to -4.5 MSEK (-5.9), +24%
- Earnings per share amounted to -0.0 SEK (-0.1)
JANUARY TO SEPTEMBER 2025
- SaaS API Call revenues amounted to 40.3 (21.5) MSEK, +88%
- Net sales amounted to 67.8 MSEK (57.6), +18%
- Gross margin amounted to 87% (79)
- EBITDA adjusted amounted to -9.9 MSEK (-20.6), +52%
- Earnings per share amounted to -0.1 SEK (-0.2)
EVENTS DURING THE QUARTER
- New SaaS agreement signed with a leading HR and Staffing company
- Renewal of SaaS agreement with CGI regarding one of the largest National Healthcare providers in the world
- Renewal of SaaS agreement with MedHelp Care, one of Sweden's most used health platforms
- Renewal of License agreement with a large Swedish food retailer
- Existing customer, Banco BPM, transitions from non-SaaS to SaaS environment
- Teneo.ai invited to speak at Genesys customer event in Nashville
- Teneo.ai achieves top scores in DMG Consulting's 2025 Conversational AI Solutions Report
- Teneo.ai achieves UK Cyber Essentials Certification, Boosting Global Trust and Public Sector Readiness
EVENTS AFTER THE QUARTER
- Released Teneo 8, the enterprise Voice AI Platform achieving 91% call resolution in any language
- Teneo.ai unveils Contact Center Connector Framework to Streamline AI Agent Integration Across CCaaS Platforms
- Started a pilot program to drive expansion with an existing customer with large call volumes
KEY FIGURES (For definitions please see page 18)
| JUL-SEP 2025 | JUL-SEP 2024 | JAN-SEP 2025 | JAN-SEP 2024 | JAN-DEC 2024 | |||
| Net sales (MSEK) | 20.4 | 21.2 | 67.8 | 57.6 | 84.1 | ||
| Net sales in constant currency (MSEK) | 21.7 | 21.2 | 69.7 | 57.0 | 82.7 | ||
| Recurring revenues (MSEK) | 20.4 | 21.1 | 67.7 | 57.2 | 83.5 | ||
| ARR (MSEK) | 82.2 | 84.3 | 82.2 | 84.3 | 103.9 | ||
| SaaS ARR (MSEK) | 66.3 | 54.3 | 66.3 | 54.3 | 75.1 | ||
| ARR in constant currency (MSEK) | 87.5 | 84.3 | 87.5 | 84.3 | 101.5 | ||
| SaaS ARR in constant currency (MSEK) | 70.8 | 54.3 | 70.8 | 54.3 | 73.2 | ||
| SaaS API Call Revenues (MSEK) | 12.9 | 9.3 | 40.3 | 21.5 | 36.3 | ||
| SaaS API Call Volumes (average Million) | 55.3 | 41.0 | 55.3 | 41.0 | 60.3 | ||
| NRR % | 121% | 127% | 121% | 127% | 135% | ||
| Gross margin % | 87% | 79% | 87% | 79% | 79% | ||
| EBITDA adjusted (MSEK) | -4.5 | -5.9 | -9.9 | -20.6 | -22.3 | ||
| Opex Runrate | -113 | -116 | -113 | -116 | -115 | ||
| Earnings per share (SEK) | 0.0 | -0.1 | -0.1 | -0.2 | -0.2 | ||
| Cash flow from operating activities before changes in working capital (MSEK) | -7.3 | -16.4 | -20.5 | -29.2 | -30.6 | ||
(*) Same currency rate as in the third quarter of 2024.
CEO STATEMENT
Dear Shareholders, Team Teneo.ai and Partners,
The third quarter 2025 delivered to plan! Shifting our customer base with emphasis on gross margin, maintaining costs, while investing in new sales and on top of that launching the biggest remake of Teneo ever. And growing ARR Y-O-Y! Thank you team!
Results and Financials
Our profitability continues to be driven by the strong performance of our core SaaS API business. This quarter, API call volumes grew by a robust 35% year-over-year, a clear indicator of sustained customer engagement and the real ROI our platform delivers.
Our deliberate focus on high-value customers, a strategy we accelerated in the second quarter 2025 preparing for Teneo 8, is yielding significant results. Gross margins have expanded from 79% to 87% y-o-y. This strategic shift has also led to a planned reduction in lower-margin legacy revenue, further strengthening our financial profile.
On the operational side, we have successfully maintained a stable cost base, demonstrating strong discipline. We are confident we can sustain this lean cost structure, with only modest increases, as we scale towards our 20 MUSD Annual Recurring Revenue (ARR) target. This quarter lays the foundation in Teneo for a sustained period of profitable growth.
Looking ahead, we are proactively managing our capital structure. With our current debt maturing at the end of 2026, we have initiated the refinancing process. We anticipate securing new debt at a reasonable, albeit higher, interest rate, which is projected to increase our annual financial costs beginning in 2027. We are confident that this approach is the most favorable for our shareholders, as it avoids dilution and supports our growth trajectory.
Sales
During this quarter, the sales pipeline progressed with the execution of the first significant enterprise agreement. Several comparable opportunities remain in advanced stages of negotiation, and two further signings are required to meet the target of 20 million USD ARR by the end of the first quarter 2026.
Pilot implementation has commenced with a current customer, potentially enabling up to 40 million monthly phone calls, equivalent to approximately 240 million API calls monthly on average. This initiative is a key focus for the team in the fourth quarter due to both the high volume and the increased visibility it provides among other customers.
During the quarter our focus has been large Genesys customers as the Genesys Contact Centre platform leads in its robust functionality and scalability suited to large enterprises. Teneo participation, with speaker slots, as well as a booth at Genesys Xperience in Nashville led to the addition of nine qualified deals to the pipeline. Our hybrid AI technology, and the ability to automate at scale is highly interesting to these US-based clients. The weighted pipeline has expanded significantly as opportunities progress, enhancing both the probability of deal closure and the introduction of new prospects in earlier stages. Overall, pipeline growth reached 91% compared to the close of the second quarter 2025. Again, almost a doubling of this important metric.
Technology
Teneo 8 release to the general market after the quarter close is our most significant release of our platform ever. With Teneo 8, enterprises no longer have to choose between cost savings and customer satisfaction. Our hybrid AI platform uses LLMs where creativity is valuable and deterministic logic where accuracy is essential-enabling scalable, compliant AI agents that actually solve customer problems. Teneo has 99% understanding of inbound calls and knows what your customers care about in real time. As a result of this development, we have also initiated the filing of a new patent for a novel way of keeping LLM hallucinations at bay.
We frequently get the question from customers why they shouldn't just have their developers build a simple interface to an LLM with a RAG setup (ok slightly technical here but bear with me). And our response you could absolutely! Producing 100,000 lines of code can be averaged to take 8 developer years. Teneo is over 2 million rows of production tested code delivering 99.999% availability today. This code treats all the edge cases of conversations and enterprise security that we have encountered over decades. And we produce, test and deploy another 15,000 lines of code per month on average. So, when will you catch up? Teneo connects to the same models but in order to automate millions of calls so much more needs to be managed than just input and output. Some listen and some others first need to be convinced by trying themselves and go off and build. But in the long run we are certain that our approach is the right to get highly accurate Customer Care automation.
The trap of seeing how productive GenAI is in general use for us as individuals and thinking that can easily be adopted for my enterprise is real and understandable, but research is catching up here. In August 2025 an MIT report followed up by Harvard Business Review pointed to the extreme difficulty in going live with pure GenAI solutions. Pure GenAI meaning a solution where customers use prompts and their own data and then let the LLM (like OpenAI or Gemini) understand and answer the customer query. (https://hbr.org/2025/08/beware-the-ai-experimentation-trap).
For us this means that we have retooled the sales organization a bit within the same cost envelope as before. We have added more builders of pilots and proof of concepts. Customers have projects and budgets for a Customer Care solution but are disillusioned which is why we build quick proofs in the process. Seeing is believing and we believe this will speed up the sales process significantly.
Hybrid AI, Teneo AI, is the way forward.
Market
The market for great customer experience is heating up. Thoma Bravo acquired Verint to merge with already owned Calabrio. Nice acquired Cognigy. And All players are talking AI. I recently attended a JP Morgan Tech Stars conference where software companies mixed with investors created a great environment for market research. I did not find anyone that did not see AI in Customer Care as a big growth area. But also no one that could point to a great implementation of the same. Chatbots underwhelm and Voice AI struggles with short utterances and hallucinations. Our customers do not have such issues!!!
Summary and Customer Story
We are proud to see our technology used to solve meaningful, real-world problems. A prime example of this is our expanding work with Medtronic. They are using our Teneo platform to power VirtuEarl, an AI agent that is transforming patient communication.
Named poignantly after Medtronic's founder, Earl Bakken, VirtuEarl will interact with patients, clinicians, customers, and employees/contingents by orchestrating intents to the correct Teneo solution. Earl and his other Teneo counterparts will be proactive by reaching out to patients who may be experiencing alerts/issues with their lifesaving medical device monitoring.
A heartwarming story for autumn that I will use to express my sincere gratitude to our dedicated team, our valued partners, and exceptional customers for their continued collaboration. And of course, to our shareholders who continue to support us on this journey!
Thank you all for your continued support and confidence.
Sincerely,
Per Ottosson, CEO
Teneo.ai
This information is information that Teneo.ai is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-10-23 07:30 CEST.
For further information, please contact:
Fredrik Törgren, CFO, Teneo.ai
e-Mail: fredrik.torgren@teneo.ai
About Teneo AI AB
Teneo.ai (SSME:TENEO)?delivers the most advanced Agentic AI solutions for contact center automation-helping enterprises resolve customer inquiries faster, reduce wait times, and elevate service quality. Our AI Agents achieve up to 99% accuracy, automate over 60% of interactions, and enable up to 50% in operational cost savings.
Trusted by global leaders like AT&T, HelloFresh, Swisscom, and Telefónica, the Teneo platform combines Conversational AI, Generative AI, and Large Language Models to drive measurable improvements in containment, first contact resolution (FCR), CSAT, NPS, and overall CX efficiency.
Teneo-powered AI Agents handle millions of conversations daily across voice and digital channels with enterprise-grade scalability and performance. Our patented technology integrates seamlessly with leading CCaaS and CX platforms-including Genesys, Five9, Microsoft, AWS, Google, and NICE-maximizing automation without disrupting existing workflows.
We make your AI Agents the smartest-delivering consistent, human-like experiences that accelerate growth and ROI.
Teneo.ai is listed on Nasdaq First North Growth Market in Stockholm with short name TENEO. Redeye is the Company's Certified Adviser.
Learn more at?www.teneo.ai/investors.
This report and previous financial reports are available on the company's webpage for Financial Reports.