Teneo AI (TENEO) Q2 2025 earnings summary

Executive summary

• Achieved strong year-over-year growth in SaaS API call revenues (+81%) and volumes (+69%), with net sales up 15% and record gross margin of 88% for Q2 2025.

• Net Revenue Retention (NRR) remained robust at 129%, reflecting strong customer expansion and retention.

• Industry validation through DMG Consulting, ranking number one in all categories for conversational AI platforms.

• Strategic partnerships with Genesys and AWS Connect are progressing, with Genesys integration driving most pipeline activity.

• Notable industry acquisition: NICE acquired Cognigy for $1 billion, highlighting the value of hybrid conversational AI technology.

Financial highlights

• SaaS API call revenues reached 12.7 MSEK (+81% YoY); SaaS API call volumes rose to 53.2 million (+69% YoY).

• SaaS ARR at constant currency was $89 million/70.1 MSEK (+60% YoY); total ARR at constant currency was 89.7 MSEK (+21% YoY).

• Gross margin hit a record 88% for the quarter, up from 79% YoY.

• Adjusted EBITDA improved to SEK -3.9 million from -6.3 million YoY, with continued cost control.

• Cash and bank position at quarter-end was 41.1 MSEK, with adjusted position at 49.4 MSEK after Q3 collections.

Outlook and guidance

• Pipeline has nearly doubled since Q1, with several large opportunities in pilot, POC, or negotiation stages expected to close soon.

• Targeting $20 million (SEK 200 million) ARR by end of Q1, requiring three large or five mid-sized customer wins.

• Focus remains on growing SaaS model, increasing API call volumes, and converting customers to SaaS.

• U.S. market expansion is on track, with all key partnerships and sales resources in place for Q4 execution.

• Long-term goal is an EBITA margin exceeding 30% in a mature state.