Teneo AI (TENEO) Q2 2026 earnings summary

Executive summary

• Major restructuring and organizational overhaul followed a liquidity crisis and loss of a key US partner, with cost reductions of nearly 50% and a full rebuild of the core product as Teneo 10, now in customer preview and receiving positive feedback.

• Debt was eliminated through a comprehensive debt-to-equity swap and fully secured rights issue, with Capital Four becoming a 29.99% shareholder.

• Strategic focus shifted to profitability, cost reduction, and serving a broader customer base, moving away from high-cost, large enterprise sales.

• Collective dismissal and closure of Spanish operations resulted in the loss of a skilled AI team and full exit of Spanish cost base.

• New partnerships with Medtronic, EXL, and a Turkish telco are piloting Teneo 10, with potential for substantial future revenue.

Financial highlights

• Net sales for Q2 2026 were SEK 6.6 million (6.4 MSEK in some reports), down 70–71% year-over-year; H1 2026 net sales were 17.8 MSEK, down 63%.

• SaaS ARR dropped to SEK 12.2 million, down 81%, and total ARR to SEK 21.4 million, down 74%.

• Gross margin was 70% in Q2 2026, down from 88% a year earlier.

• Adjusted EBITDA for Q2 2026 was minus SEK 17 million (vs. minus SEK 3.9 million last year); H1 2026 was minus SEK 29.1 million (vs. minus SEK 5.4 million).

• Cash position as of June 30, 2026, was SEK 1.4–3.5 million, with SEK 74 million raised in a fully secured rights offering post-period.

Outlook and guidance

• Targeting break-even and cash-flow positivity by Q1 2027, with a fixed monthly cost base of SEK 5 million.

• Focused on converting Teneo 10 preview interest into signed customers and expanding the addressable market.

• Strategic review and M&A process to restart, led by the board and JPMorgan.