Teneo AI (TENEO) Q4 2025 earnings summary

Executive summary

• Q4 2025 was marked by a significant revenue and ARR decline due to a US partner breach, prompting legal action and a strategic review led by JPMorgan and Redeye.

• Industry-specific solutions and Teneo 8 with public APIs were launched, enhancing product capabilities and customer integration.

• Patent portfolio value increased to 191 MUSD, with more than 50 forward citations, supporting technology leadership.

• Renewal agreements secured with key clients and several pilot wins against new market entrants.

• Financing was stabilized with SEK 25 million subordinated debt from key shareholders and waived loan covenants.

Financial highlights

• Q4 2025 net sales: SEK 18.3 million to SEK 20 million, down 24–31% year-over-year; full year 2025 net sales: SEK 86.2 million, up 2%.

• SaaS ARR in constant currency: SEK 62.5 million, down 17% year-over-year; total ARR: SEK 76.6–77 million, down 26%.

• Gross margin improved to 85%, up 5 percentage points from Q4 2024.

• Adjusted EBITDA for Q4: -6.0 MSEK; full year: -15.8 MSEK.

• Cash and bank position at year-end: SEK 17.3–22.3 million, with an additional SEK 5 million collected in early 2026.

Outlook and guidance

• Full recovery of lost revenue and ARR is targeted by Q2 2026 through direct customer engagement.

• Strong sales pipeline and new customer signings are expected to drive growth.

• $20 million ARR target has been postponed due to recent setbacks.

• Strategic review may result in a sale, strategic transaction, or continued operation.