Teneo AI (TENEO) Q3 2025 earnings summary

Executive summary

• Achieved strong year-over-year growth in SaaS API call revenues (up 39%) and API call volumes (up 35%), with a stable 87% gross margin and net revenue retention (NRR) of 121%.

• Released Teneo 8, featuring enhanced integration, security, public APIs, and a low-code agent builder, enabling OEM/white-label opportunities and improved AI agent capabilities.

• Secured new and renewed SaaS agreements with major clients in HR, staffing, healthcare, retail, and banking sectors, including Banco BPM and Medtronic.

• Pipeline expanded significantly, with strong inbound interest, especially from Microsoft, and a 91% sequential increase in pipeline growth.

• Maintains commitment to $20 million ARR target by end of Q1, supported by rapid scaling of pilots and robust sales pipeline.

Financial highlights

• SaaS API call revenues grew 39% year-over-year to 12.9 MSEK; SaaS ARR increased 30% in constant currency to 70.8 MSEK; total ARR up 4% to 87.5 MSEK.

• Gross margin reached 87%, up from 79% in Q3 2024.

• Adjusted EBITDA improved to -4.5 MSEK for Q3 2025.

• Cash and bank position as of September 30, 2025, was 33.3 MSEK, with adjusted cash (including Q4 receivables) at 40.1 MSEK.

• Net sales in constant currency rose 3% year-over-year to 21.7 MSEK.

Outlook and guidance

• Confident in reaching $20 million ARR by end of Q1 2026, requiring two more large enterprise signings and scaling of large API call customers.

• Continued investment in sales and marketing for 2025 and 2026, with cost control measures and alignment to customer wins.

• No explicit profitability guidance for 2026, but gross margin expected to remain strong and costs to rise only slightly due to inflation.

• Long-term EBITA margin goal set at over 30% in a mature state.

• Initiated refinancing process for debt maturing in 2026, expecting higher interest costs from 2027.