Good morning, it's top of the hour, it's 9:00, I suggest we get started. Just as a reminder, this presentation is being recorded, and it will be on our website later today, and you can also find the presentation on the investors site on teneo.ai.

With that said, we'll go ahead and start. Today presenting is Per and Fredrik.

It is, of course, the Q3 report. We have been around now for quite some time, Per and Fredrik, although last quarter was somewhat different than maybe we had hoped for when we started the year, and since Q1, Q2.

We do have a background from this area, both of us, quite experienced in the business of software. I'm going to start off with an update from me, and then Fredrik will go into the numbers.

It's not too much to talk about in the numbers, it's pretty much the same as we did forecast in our Q2 report, which, of course, was in connection also to the rights issue. For those of you who were there, it's not that much news, but I'll thank you all for joining again.

We have three phrases sort of to describe where we stand today. It's debt-free, recapitalized, and rebuilt to act.

It was a very demanding year and quarter. It all, of course, has to do with our former US partner that broke our contract, and there's just no way to sort of sugarcoat this.

It is a big drop in revenue, and that, of course, resulted in a severe cash squeeze. As they say, you never waste a good crisis.

In the third quarter, we worked hard to make sure that we could emerge stronger, faster, more agile than before. Debt-free, our balance sheet has been a major issue for shareholders, for M&A, and also for our large customers, and has been so since Fredrik and I joined.

What happened in the quarter is we completed a full debt-to-equity refinancing with Capital Four. We no longer have a loan, meaning that Teneo is now debt-free, and Capital Four is likely to be our largest shareholder with 29.9% of the shares.

We're also recapitalized, thank you, shareholders, for supporting us in this tough period. You contributed through a rights issue of 74 million.

We ended the quarter with 25.8 million. That has a lot to do with the fact that we, of course, had during Q2 several months where we couldn't pay the bills at all, there was also quite a lot of catch-up that we had to do, apart from also the transaction and some repayment of loans as a part of the transaction here at the rights issue.

From October, we run the company at about 5 million kronor a month, which is close to half of where we were a year ago, the cost is about half of what we had a year ago. We also say we're rebuilt to act.

What does that mean? The new organization is slim, it's small, it's agile, and the first proof of this is the delivery of Teneo 10 and its reception that we've seen in the market.

We've rebuilt Teneo, but instead of taking sort of the old code and starting to recoding it, we instead took 20 years of code and design principles, the concepts that we've been building on, the concepts that customers love, and we redesigned the platform from the ground up. Why did we do this?

There's two reasons. Number one, we want to enable an AI-driven software development lifecycle.

What does that mean? Instead of developing where all code is written by humans, both the code and the coordination is done by the AI, meaning that we have a model in the middle and then our developers are working towards that model.

This enables a far faster development at a much lower cost than before. Also, since Teneo 10 builds on everything that customers required from a contact center solution, it's the stability, it's all the confidential compute, it's the auditability, it's security, and all this in one and same platform, but now you don't really need to log on to Teneo 10 to change a flow or to build a solution in Teneo, you can simply prompt Claude or ChatGPT.

This is what's called headless. It is, of course, a big craze in the SaaS industry, because that if you charge for the people that log into your platform, charge for seats or users, this is an issue.

For us, it's not, because, of course, what we charge for is the API calls. Now we transform that into charging for minutes, but it's the same thing, we charge for volume.

That's a sort of very quick update of where we stand, and give you a summary here on what I've been talking about. There's one thing I did not mention here, but the Spain exit also completed as of this Monday.

We are holding our gross margin, we are having a much lower delivery costs with Teneo 10 as well. Going forward, we will definitely be able to climb up again on the gross margin.

We also stabilized the ARR, of course, in this quarter. A lot of senior debt has been eliminated, and, of course, that's transformed into a 29.9% stake, implicitly actually valuing the company a lot higher than what it's valued at on the stock exchange today, but that is, of course, a different matter.

Let me talk about Teneo 10. I think that's the most important thing.

This is what really is going to take the market now and what we're focusing on. We're focusing first on a few large engagements we're engaged in to roll this out, but we're also at the same time presenting this to new customers.

Was in Turkey last week, presented this. I was in London the week before, we presented this to prospects and customers, and they're loving it.

It is a very, very big upgrade to the usability of the platform, not to the stability, not to the confidentiality, not to the auditability, but to the usability, to make it easier and faster, even easier and faster to build. The typical voice AI today, which we've seen hundreds of companies pop up to do, is that they have the language model to both generate facts and actions.

They use OpenAI, they use Claude or some other language model, and the language model goes into your backend systems, look at a bit, it has read-only access, because nobody allows the LLMs to write into a backend system, into SAP, into Dynamics, into Salesforce, into ServiceNow, because if you would, you'd probably get dumb data into your system of record, which you don't want. The language model in a typical implementation, Sierra, Parloa, and the others, it generates the facts and the actions.

This means that the owners of the systems, say ServiceNow, SAP, or some other backend system, the security people and the compliance people cannot prove what the LLM agent will do, therefore they're saying, "No, stop, we're not going to allow you to interact with our backend systems." This is very much what we saw at Medtronic, where other LLM systems could not interact back to ServiceNow and then also to the patients or the users of their devices.

What happens instead is, in a traditional voice AI implementation, it answers the question, but then a person still does the work. You still have a person to sort of check and make sure or go into this backend system to actually enter what the LLM has sort of decided to do.

Instead, what you see on the right is the Teneo approach here. We have all facts and actions running through a controlled, tested, auditable layers.

What does that mean? It's not going to put out anything that is not correct.

It's not going to put out anything that you can't afterwards see why it put out that answer, where did that come from, and who did it give the answer to. It's very, very important for enterprises.

It's even more important in the EU today, and even more important in regulated industry. The language model, which we still use, we still use LLMs, but it will only take the words and answers that were already verified.

If there's a placeholder which is a fact, it's never going to change that. It's just going to be able to change the sort of dialogue around this, making it a more natural-sounding dialogue.

All the three roles, the security person, the owner of the system, and the compliance people that typically block these projects can say yes. That's, of course, why we have read/write access into customers' backend systems, because we can prove that Teneo is not going to change things which are incorrect.

What we also have now is replaceable models. During Q1, Q2, we primarily used the American LLMs.

What we found is that customers are no longer, and that is both in the US and in Europe, customers no longer trust these models. Of course, a lot of that has to do with what's happened in Anthropic, where Anthropic says they're retaining your information, they retain the right to also train on it, meaning that they can take your processes, your way of working, and train on that.

Also in Europe, a lot of customers are asking for either European, like a Mistral, or a local LLM, having no US ownership. Most of our competitors today have US ownership, all the big ones that you might hear about that have lots of money, they're all US-owned.

This is quite a unique selling point for us that we're not US-owned, we're obviously owned by you guys on this call. We can also deploy anywhere, and this is quite important in, for example, Turkey.

It's also becoming more and more important in Europe, and in Germany next week, where this is becoming quite important, too. It's security concerns and it's concerns about the US in general.

We can deploy now Teneo 10 in the cloud, as usual, we sell it as software-as-a-service. We can provide a private cloud solution, if you have Azure private cloud, Microsoft private cloud, we can provide there, which is in-country, in your data center.

That gives customers a lot of flexibility to meet the demands that are coming, the EU AI Act, it's the GDPR, it's KVKK, it's new ISO standards. One of the most important factors is that we have a fixed price per minute.

This is the API call translated into minutes, but it's a fixed price. The cost of your solution before you even start writing a line of code.

That is not the case for any other voice AI solution based on LLMs, because the LLMs will always charge you per token. You don't know upfront how much cost your solution is going to cost, which also means you don't know the ROI of the solution upfront.

Whereas with us, you get a fixed price, because we don't need to use that LLM in the actual production, meaning that we can price according to we know our own compute instead of somebody else's token cost. You probably saw the numbers this morning in Wall Street Journal that Anthropic lost $74.6 billion, which in the first nine months of this year, which, of course, means that they're going to need to raise the prices at some point.

This token cost thing is a big issue. We've seen customers paying $1.50 for simple FAQ calls or simple answer question calls about facts on your website essentially, to these voice AI providers.

Teneo 10 has a hybrid AI margin lever, that's for the customer and for us, meaning we provide a fixed cost, but we also know our cost in the background, we don't have to use the LLM. The hybrid AI is good for that, but also, of course, for making sure that you provide the right answer.

We have the observability, which is something that, for example, Medtronic could never be without. There's no way to provide information about a pacemaker without afterwards being able to say what information you provided if something goes wrong.

We have a voice gateway today that we built in, meaning that we have both voices and STT engines that we can reprice in our minute price, which means that there's less third-party spend for somebody else, but also we can retain larger portion of the margin, we can provide a larger portion of the total value to the customer. The authoring UI, our own UI, is very fast, very easy to connect MCP connections into.

It also has, of course, a more like customers now expecting a chat, like an OpenAI ChatGPT-type interface. It also has the graphic interface that sort of more trained developers are going to need.

We have a testing suite built in, that's quite important, because it's going to be testing the solution and providing recommendations as you go, meaning you can improve the solution without really taking human talent to use that, either. It's still the endpoint and engine that had 120 million interactions last year at Microsoft, with an accuracy and scale that really hasn't been proven anywhere else.

You get all the good stuff of the new way of developing, all the good stuff of security and compliance, and then all the good stuff from a proven model. I want to talk briefly also about the team, it's a lean leadership team today built to first take the company to cash flow positive and then grow from there.

We slimmed down the organization enormously, and we're now 22, 23 people, but retaining that 5 million cost baseline, which is the most important thing for us, including compute, of course, that we're providing to customers. We have Johan, our Chairman, Per, it's, of course, me.

Marie now runs, she's our Chief Revenue and Marketing Officer. Marie has a long background in both sales and marketing, from Sweden, also from Qlik in the US during their stock introduction, and also in our space in the US in a private company as well.

Patrik has worked both in sales, presales, and Chief Operations Officer roles before, also manages our existing customers. Fredrik, of course, on the call, our Chief Financial Officer.

Then Andreas, and this is where our biggest organization sits, under Andreas. He's our CTO.

We have Head of Cloud and Ops there, and then we have Product Marketing and Head of Product sitting under him. Head of Product, of course, there's AI and there's people underneath there, and, of course, also in cloud and operations.

We are operating a 24/7 a 24/7 operation for our customers, of course, in the SaaS product. Also important just to mention, we're keeping M&A and the legal position with the board, with some external parties working on that.

The M&A project is ongoing, it's managed by the board. It's not something that we as management team spend time on, except when we have to present something, but it's not our focus.

Same thing for the legal case in the US. We, of course, do not have the money to finance that legal case, we're working still to find a financing partner for the case, and I present in those, but I'm not involved in the whole process and all from that perspective.

It is really very much a focus on sales. We focus on growing the revenue and reaching that positive cash flow.

The way we do that is primarily to focus on our existing engagements. It is Medtronic, it is FTS in Turkey.

FTS is our partner in Turkey, which has several customers, one of them being the telco there, which is our initial implementation here. We had to, because of the data center implementation, it's not in our data center, this is on-prem, this is in a Turkish data center owned by this partner.

We have to compress the onboarding now, because we've been a bit delayed in the local data center, and that has to do with the fact that the data center's moving technologies, going from VMware to OpenShift, which is something a lot of data centers do today, but in the middle of that, we can't really deploy. So instead of going live in September, as we were projecting, we're going live in November.

What we're doing is we're training, for example, the B2B sellers now. We're also going to be selling the solution to the telco's customers.

Right today, actually tomorrow, we're training the business-to-business sellers at the telco, and we're also working on starting to build the first flows in workshops, although we don't have the live data center yet, but that's to speed things up and to work while we wait for the deployment. We also have a Nordic telco that is projecting to go live in December.

These go-lives are not fully controlled by us, but we're very focused on them, because of this is what's going to take us to cash positive. AI Call Guardian going into production in Nordic telco.

What is AI Call Guardian? I didn't talk a lot about that before here today.

AI Call Guardian is essentially a receptionist in the network. The network, the telco, in the network, has a receptionist which picks up a phone call that goes to you, Axel.

Axel picks up the phone for you, says, "Why are you calling me today?" or whatever greeting you would like to have.

You talk to it in some language that you choose, and then the person calling, the person's phone gets an SMS and says, "Would you like to let this person through?" You can also, of course, filter and say, "Do not let these types of calls through," etc., you don't even have to get the SMS.

This is a very powerful solution today, but it's even more powerful when you consider the fact that, for example, I use Grok bot today when I need to book a hotel or something, and I have Grok bot call hotels, which means that now people are getting calls from bots. The amount of scam calls or sales calls or calls you got before are just going to multiply as soon as somebody has your number in some database.

This is, I think, quite important development, AI Call Guardian, as well. Then we're projecting that with these, we're going to be in Q1, around Q1, we're going to be able to have that revenue flow, which is for a breakeven target.

Very much a focus on existing, and then, of course, a few of us are also spending time building up a pipeline on the side for the going forward. That has a lot to do with enabling partners, and it's a different set of partners than we had before.

We learned quite a lot about how to work with partners from this big debacle in the US. Let me start with the last point here.

What we're looking at here is smaller mid-sized partners that sell to smaller mid-sized customers, so, for example, contact center providers, and not the large ones, the ones that are going to have the money to be able to try to build something themselves on top of an LLM. That's the voice AI, the left side of what I was showing, which a lot of these large ones are building, like Genesys, for example.

Remember, we did have a great partnership with Genesys at one point until they thought that they would build their own voice AI on top of LLMs. Smaller players in the market where we can be, where we know that they're not going to be able to develop this themselves, that's our focus right now.

Bringing existing projects into revenue from the top here, AI Call Guardian, of course, very important, FTS important, Medtronic very important. Medtronic is also important because it's on top of ServiceNow.

We're going to go hard after the ServiceNow market once this is done, not by going necessarily through ServiceNow, but through all their smaller partners. Strict cost control, very much on Fredrik's plate to make sure that we maintain this rate.

We can't have cost overruns that we need to find things to tune, which is much easier in the new setup than it was in our old setup, of course. Then the Teneo 10 that we've been around showing, of course, we want to convert that into signed contracts.

What we see is that regulated European companies, very, very important to them what we provide in Teneo 10, the fact that we can provide a purely European solution. This is where we're aiming also as we speak, and at this point, that's the main focus.

With that, I'm going to hand it over to the financials. Again, it's not much more than what I said, but so we have the supporting slides, but I think Fredrik will go through this and give us a sort of top-line view of it.

Fredrik, the floor is yours.

Thank you, Per. Yeah.

In line with what you said, Per, what we see in terms of revenues and costs is essentially where we operate from as a new organization. Also, already mentioned, the pure and sole focus for the management team now is very much to increase the revenue line, and the increased revenue is going to take us to cash flow positive, and with the existing organization that we currently have.

Significantly smaller organization, lower costs, obviously, and key here now is to drive revenue expansion. That's what we are all working every day and every hour on reaching, essentially.

For that reason, I will not go into too much details on the financial slide, because I think it's rather straightforward. As you all are aware of on this call, the main deviation that we see in the revenue line, in sales and SaaS ARR in the third quarter is very much linked to the decline in sales from a former reselling partner, as we have mentioned in a number of calls and also in the reports in great detail.

I will not cover too much about that. As also Per presented, the company's pipeline of ongoing engagement is continuing to develop favorably during the third quarter and fourth quarter, and we expect that to also generate revenue growth going forward.

In the quarter, net sales in constant currency amounted to 5.5 million, a significant decline from the previous quarter last year of 20.4. SaaS ARR in constant currency amounted to 12.6 million versus 66.3 million in the same quarter last year.

Total ARR in constant currency amounted to 21.4 million versus 82.2 million in the same quarter last year. A significant drop in top-line growth in all those metrics.

Gross margin-wise, we deliver a 76% gross margin despite the significant volume decline, and as Per also mentioned, we expect to improve the gross margin going forward with higher volumes combined with also a significantly lower delivery cost. That is what we have worked a lot with Teneo 10.

In the second and third quarter, we have reduced all costs possible in order to adjust the cost base to the lower sales volume, and that has also resulted in that we are reporting an adjusted EBITDA in Q3 2026 of 11.3 million SEK. This number is obviously adjusted for one-off costs and restructuring costs.

At the end of the month, we also report a adjusted cash position of 27.7 million as of September 30th, 2026. With that, I think we can go to the next slide, Per.

Already mentioned, SaaS ARR and total ARR in constant currency of 12.6 million and 21.4 million SEK. Apparently, as you can see here in this historical overview, what I already mentioned in the previous slide, we have seen this significant decline due to the reselling partner, and the loss of that client, essentially, as the main driver for the decline that we now see.

We are stabilizing, but also see somewhat increase as well on the revenue lines quarter versus quarter. Some positive, but as mentioned earlier, focus is very much to drive revenue growth ahead from the ongoing engagement that we are working on, and which also develop really favorable.

We can move to the next slide, Per. Gross margin-wise, nothing really more to say.

We are at 76%. We expect this to improve with higher sales volumes, and also with the lower delivery cost going forward.

Next slide, Per. As mentioned, during Q2 and Q3, the company concluded a number of cost reduction measures across the group, including dismissal of approximately 50 employees and consultants since the first quarter of 2026.

As a consequence, the operating expenses in September amounted to approximately 60 million SEK on an annual run rate basis, so that is linked to the 5 million target that we set in the Q2 report, and which we now also have seen in actual adjusted numbers for September. This is where we operate and tune going forward.

I think we can go to the next slide, Per. Cash position, we have a reported cash position of 25.8 million at the end of the quarter, adjusted also then for that is 27.7 7 million due to collected accounts receivable following the quarter end.

What we can mention here is also when we look on cash, we brought in a bit more than 75 million as a combination of the rights issue and a bridge loan from one shareholder, which was partially offset with the rights issue. Consequently, I think we have been through a long period of working on this refinancing, I would say two to more than two quarters, I think, we have worked on the refinancing, rights issue, and also agreeing with our lenders on a new financing structure for the company ahead, and that obviously also have driven a lot of costs associated with that.

That also explains a significant part of the cash position that we have now. We brought in 76 million in new cash during the second and third quarter, and then we have also had costs associated with repayments of loans, and we have also had a number of fees related to the rights issue and guarantee fees, etc., but also coupled to that also significant legal fees and other advisor fees related to the refinancing.

Has been a rather costly quarters here from that perspective, but also very much necessary. On top of that, we also had deferred payments that we have had to pay during the quarter as well.

When we enter Q4, I think we are in a very good position, both from an equity perspective, being completely debt-free, which we believe will favor our operations and business ahead. Very much, a restart, recapitalized, as we mentioned in the headline in the earnings release.

With that, I leave over for you, Per.

Sorry, I was muted. This is in summary.

Obviously, it's a company that now is totally different from a balance sheet perspective. Obviously, we have a totally different delivery model.

We have a much lower cost to deliver to customers. We also have a much lower cost base in total.

We still have a very strong product. It is sort of difficult to understand, I would say, and I get that question a lot from shareholders, why aren't we selling more of the product if it's so good?

I think that the difficulty in the market is that there's so much going on around the LLMs that a lot of people just want to play with them and do things with them first. We see now the third generation, I call them.

First you had the people that were working with the old way that we were also working four, five years ago, pure machine learning, and the second wave is people are building pure LLM, and now the third wave, now customers are waking up to things like compliance, making sure the backend systems can actually be operated, and we've seen reports from Gartner recently that only 23% of all projects based on LLMs actually get to talk to backend systems, and those are mostly things that are analytical. That's our Teneo 10 product that's going to attack this market full-on.

Of course, we are building towards profit, not necessarily we're having to increase the revenue a lot, but we have to add 3 million SEK per month to get there. With that, I'm going to move over to Q&A.

It is, as usual, a double muting. I will warn that we've had some issues with this before, but this is a Teams functionality that should work.

You raise your hand, and then I un-mute you, and then you un-mute yourself. I see a raised hand from Forbes.

Let me go to Forbes here and un-mute him. Oh, why can't I un-mute there?

Forbes, un-muted from my side, now you can un-mute.

Yep, all good. Thank you.

Thank you so much. I have a couple of questions.

Maybe we can start with the pipeline opportunity, and you're talking about Medtronic, FTS in Turkey, and another Nordic telco. How confident are you in these three opportunities, and how

All of them are in the implementation phase, right? That's what we're building on right now.

It's not they're sold already, right, it's in the implementation phase. Okay.

How confident are you in those scaling to your target, another 3 million in ARR, to say, per month?

I'm sorry, I should have listened to the full question. [laughter]

Sorry. Yeah.

Yes, the total volume far exceeds that in those three, right? The total revenue far exceeds that.

What we essentially need to get to is somewhere in the range of 40%, 50% of the opportunity in that timeframe. We're certainly aiming for it, we're certainly going for it.

Do I have 100% confidence? No, I would say probably 60%, 70% confidence.

Do I have 100% confidence we'll reach it before the summer? Yes.

The aim is, like I said, to do it before end of Q1.

Great. In terms of other opportunities, can you talk about how many proof of concepts or other engagements you're working with at the moment on Teneo 10?

Right. We are working with three large opportunities with Teneo 10 as we speak.

We have a slightly different way of addressing the market right now, where we do workshops and build the first use case instead of doing proof of concepts, maybe you call it proof of concept, but we call it workshop. We have three such workshops planned now the next two, three weeks.

Then we still have some opportunities from before that sort of halted when we had this press release in June, which was about our cash position, and those are being reactivated as well. We do have a pipeline of other deals as well, but we are not sort of betting on those for the cash flow positive side.

Those are sort of icings on the cake as we go forward. Our main focus is going to be this, and then selling new is going to be once we're at that more stable level, because that's the main priority by far for us right now.

Good, thank you. In terms of pricing, you said that you're moving to a price per minute model compared to the previous API call model.

How does that impact your ARR and gross margins looking forward?

Essentially three API calls are a minute. It's a rounding, it's going to go a bit up and down if we go from minutes to APIs, but it's essentially the same metric.

It's just that the market has moved to minutes instead of API calls, we had to do the same. It's not going to have any impact on the revenue per call necessarily, right, it's going to be the same, as long as there's more than one call.

If you have a collection of calls, let's say 100 calls, it's going to be the same number.

Good. I think that's all from me.

Thanks.

Thank you, Forbes. Do we have any other questions?

Raise your hand, and I'll un-mute, and then we un-mute you. Mats Karlsson, let me un-mute you.

Un-mute. There we go, Mats.

Now you can un-mute yourself.

Yes, thanks, and thanks for the presentation. One question on Spain.

Can you elaborate a little bit more on that process? Are there any associated costs that we can expect going forward from that?

What happens to the patents? Etc.

Thanks.

I could just take the patent question. We don't have a lot of focus on the patents going forward.

We have tried to sell those. As long as we're such a small company, it doesn't really matter with that.

The patents are only valuable in connection with a Teneo customer base. If there is necessity to have those, then those would be connected to our software.

Right now we're not going after the patent litigation at all, because of our size, right, we found that we're way too small for that. On the cost side, Fredrik, I think all costs have been booked, right?

Yeah. On the cost side, I think we will probably have, yeah, relatively few costs going forward, and with that, I mean more hundreds of kSEK, relatively small costs associated with Spain.

I think that will be the only cash impact that we will have. Relatively, I would say, minor costs ahead.

Costs have been taken and we have had relatively small cash impact from those costs, and that's also what we expect going forward.

I guess it's fair to say then with the current costs of 5 million per month and revenue of approximately 2 million per month, you have 9, 10 months of runway, if no improvement, that is. Is that fair to say?

Right, but the revenue, of course, is going to start increasing now, so, yes. You're correct.

If we did nothing else, it's 9, 10 months of runway.

Yeah. Thanks.

Any other questions? Okay.

I will close the call as it is. I just would like to share something that is the reality for people that are building on pure LLMs, which we thought was very very interesting, and I just wanted to show that.

Of course, the call is finished, you don't need to watch this if you don't want to, but this is the OpenAI presentation from is it last week or the week before, I can't remember now, of their latest AI agents that are supposed to work in the contact center. You should buy those from OpenAI instead of from Teneo, sort of what's the assertion.

One of the things we always say is accuracy and there's no service level agreement on any LLM model in the world, because you can never know how long it's going to take for it to answer. That's purely stochastic.

Let me just show you this, which I thought was quite amusing when they showed the contact center version. Billions of dollars, but at the end of the day, a stochastic probabilistic technology is a stochastic probabilistic technology.

Thank you, all, and thank you, all shareholders, for your support, very much also thank you, of course, Capital Four, now our shareholder. Thank you, all.