Q2 2026 Teneo AI AB (publ) Earnings Call

August 31, 2026

Per Ottosson: Am I coming through loud and clear?

Speaker #1: You're coming through loud and clear. Thank you. Great. So we're going to kick this off. It is a very different Teneo this time around than it was last time in our reporting, Q1.

Fredrik Törgren: Absolutely.

Per Ottosson: Thank you. Great. We are going to kick this off. It is a very different Teneo this time around than it was last time in our report in Q1. Most of you have seen press releases coming out, not extremely communicative, because there has been a lot of work that had to be done for each one of those. I am going to try to give a picture of where we stand. It is a totally different company. It is a totally different route to market. We are going to grow profitably. Also importantly, it is a rebuilt product. With that, I am going to start the presentation. Oh, by the way, this is being recorded as well, just to make sure everybody knows that. The presentation will be published soon on the web as well.

Speaker #1: Most of you have seen press releases coming out—not extremely communicative, because there's been a lot of work that had to be done for each one of those.

Speaker #1: So, I'm going to try to give a picture of where we stand. It is a totally different company. It's a totally different road to market.

Per Ottosson: It is a totally different company. It is a totally different route to market. We are going to grow profitably. Also importantly, it is a rebuilt product. With that, I am going to start the presentation. Oh, by the way, this is being recorded as well, just to make sure everybody knows that. The presentation will be published soon on the web as well.

Speaker #1: We're going to grow profitably, and also importantly, it's a rebuilt product. So with that, I'm going to start the presentation—oh, by the way, this is being recorded as well.

Speaker #1: Just to make sure you're on the—everybody knows—the presentation will be published soon on the web as well. So, presenting today is—I'm presenting. I'm the CEO, have been for five years here, so I'm very much responsible for what's been going on. And Fredrik, our CFO, is also going to be presenting and talking about the restructuring from a financial standpoint, but also, of course, the numbers for Q2.

Per Ottosson: Presenting today is, I am presenting, I am the CEO since 5 years here, so very much responsible for what has been going on. Fredrik, our CFO, is also going to be presenting and talking about the restructuring from a financial standpoint, but also, of course, the numbers for Q2. Starting off with that, a lot of things happened essentially from February to June, July, but very much accelerating also in April. There is no real way of sugarcoating it. What I am going to try to do is, of course, use AI to explain this in an infographic. Those of you who are avid users of AI will know that this came from Gemini. Gemini, Claude, and Microsoft Copilot, of course, get the depart of everything we do, as well as the open source models that we use internally.

Speaker #1: And starting off with that, it's a very—a lot of things happened essentially from February to June, July, but things very much accelerated also in April.

Speaker #1: So, it is a—it's—there's no real way of sugarcoating it. So, what I'm going to try to do is, of course, use AI to explain this in an infographic.

Per Ottosson: There is no real way of sugarcoating it. What I am going to try to do is, of course, use AI to explain this in an infographic. Those of you who are avid users of AI will know that this came from Gemini. Gemini, Claude, and Microsoft Copilot, of course, get the depart of everything we do, as well as the open source models that we use internally.

Speaker #1: Those of you who are avid users of AI will know that this came from Gemini. So, Gemini, Claude, and Copilot, of course, get to be part of everything we do, as well as the open-source models that we use internally.

Speaker #1: So I want to start by just going through sort of what happened and where we stand, and I'm going to use this infographic for that.

Per Ottosson: I want to start by just going through what happened and where we stand, and I am going to use this infographic for that. We became very dependent on one partner in the US, and this was not a good idea. Not necessarily because it was a partner, but more because this partner, we let them take over the control of the customer in such respect that they were building. We trained them, and they were delivering to the customer. That is the way a partnership should work. What we also needed to have is not just contractual protection against the partner taking over the business, but also we should have had more engagement directly with the customer throughout the process. That is something that we totally have learned in how we are going to be approaching this.

Speaker #1: So, we became very dependent on one partner in the US, and this was not a good idea—not necessarily because it was a partner, but more because with this partner, we let them take over the control of the customer to such an extent that they were building—and we trained them—and they were delivering to the customer.

Per Ottosson: We trained them, and they were delivering to the customer. That is the way a partnership should work. What we also needed to have is not just contractual protection against the partner taking over the business, but also we should have had more engagement directly with the customer throughout the process. That is something that we totally have learned in how we are going to be approaching this.

Speaker #1: Now, that's the way a partnership should work, but what we also needed to have is not just contractual protection against the partner taking over the business, but also, we should have had more engagement directly with the customer throughout the process.

Speaker #1: So that's something that we’ve totally learned in how we're going to be approaching this. Now, I've never seen anything like this before, but of course, it’s been discussed in both Q1 and in other press releases as well—what’s happened here.

Per Ottosson: Now, I have never seen anything like this before, but of course, it has been discussed in both Q1 and in other press releases as well. What has happened here, very bizarrely, people that have acted very differently from what I am used to in business. That is their problem and it became our problem. The challenge was also that we failed to adapt to the buying experience. The buying experience today is very much driven by people using AI themselves at home, like ChatGPT or Gemini or something else, and then feeling that the way that we were presenting ourselves was not as cool or as easy to use as these tools are. We really were not providing that experience in the first sort of phase of it. This very much was shaped by CRI, ElevenLabs, and others that were sort of providing that experience up front.

Speaker #1: Very, very bizarrely, people have acted very differently from what I'm used to in business. But that's their problem, and it became our problem.

Speaker #1: So the challenge was also that we failed to adapt to the buying experience. The buying experience today is very much driven by people using AI themselves at home, like ChatGPT or Gemini or something else, and then feeling that the way we were presenting ourselves was not as cool or as easy to use as these tools are.

Per Ottosson: The buying experience today is very much driven by people using AI themselves at home, like ChatGPT or Gemini or something else, and then feeling that the way that we were presenting ourselves was not as cool or as easy to use as these tools are. We really were not providing that experience in the first sort of phase of it. This very much was shaped by CRI, ElevenLabs, and others that were sort of providing that experience up front.

Speaker #1: So we really weren't providing that experience in the first sort of phase of it. And this very much was shaped by CRI, ElevenLabs, and others that were sort of providing that experience up front.

Per Ottosson: That is something that we missed to adapt to, and our Teneo was not really perceived as being as sexy. We tried to plug this by always going for a pilot, but even if the pilot proved that we were much better, it still was difficult to get the CXO later, essentially, to accept that they wanted to buy that product. Also what we failed to do is implement AI for our development processes. We tried many different ways to break out the old sort of Teneo stack, and we broke it up. You might remember, we made it into different pieces that communicated with each other, so it would be easier, but we still failed to really take the latest AI development tools and use them for our development. The AI development tools today are, of course, very powerful.

Speaker #1: That's something that we missed to adapt to, and our Teneo wasn't really perceived as being as sexy. We tried to plug this by always going for a pilot, but even if the pilot proved that we were much better, it still was difficult to get the CXO layer, essentially, to accept that the product was—that they wanted to buy that product.

Speaker #1: And also, what we failed to do was implement AI into our development processes. So, we tried many different ways to break out the old sort of Teneo stack, and we broke it up.

Per Ottosson: We tried many different ways to break out the old sort of Teneo stack, and we broke it up. You might remember, we made it into different pieces that communicated with each other, so it would be easier, but we still failed to really take the latest AI development tools and use them for our development. The AI development tools today are, of course, very powerful.

Speaker #1: You might remember, we made it into different pieces that communicated with each other, so it would be easier. But we still failed to really take the latest AI development tools and use them for our development.

Speaker #1: And the AI development tools today are, of course, very, very powerful, and that also meant that we had both slower development, but also we failed to adapt the organization to that.

Per Ottosson: That also meant that we had both slower development, but also we failed to adapt the organization to that. All this resulted in a significant revenue shortfall. It is not we are talking going back two, three, four years in time to see that type of revenue from Teneo, from the product. However, we still have great customers and we are seeing now also that the new product, which I will come into, is providing great feedback from customers. All this, of course, led to a liquidity crisis that was well published in press release as well. A liquidity crisis led to us not being able to pay, obviously, suppliers, but also salaries. Also, this led to a pause in the M&A process. We could not really keep discussing with the potential buyers when we were essentially in a liquidity crisis, which was breaching the covenants in the loan agreement.

Speaker #1: So, all this resulted in a significant revenue shortfall. It's not—we're talking going back two, three, four years in time to see that type of revenue from Teneo, from the product.

Speaker #1: However, we still have great customers, and we're seeing now also that the new product, which I'll come to, is providing great feedback from customers.

Speaker #1: So all this, of course, led to a liquidity crisis that was well publicized in press releases as well. And the liquidity crisis led to us not being able to pay, obviously, suppliers, but also salaries.

Per Ottosson: All this, of course, led to a liquidity crisis that was well published in press release as well. A liquidity crisis led to us not being able to pay, obviously, suppliers, but also salaries. Also, this led to a pause in the M&A process. We could not really keep discussing with the potential buyers when we were essentially in a liquidity crisis, which was breaching the covenants in the loan agreement.

Speaker #1: Also, this led to a pause in the M&A process. We couldn't really keep discussing with the potential buyers when we were essentially in a liquidity crisis, which was breaching the covenants in the loan agreement.

Speaker #1: So we had to do restructuring in that process as well. That is starting up again soon. I'll come back to that. So we had to make the changes during the summer in hyperdrive, and some of these changes were very painful.

Per Ottosson: We had to do restructuring in that process as well. That is starting up again soon. I will come back to that. We had to make the changes during the summer in hyperdrive, and some of these changes, very painful, but there was intense internal pressure to really save the company. I believe that that is what we have done. What we did was, sorry, I need to click apparently. What we did was we started by looking at the Teneo products already back in March, April, saying, "Okay, since we are not really managing to use AI to rebuild Teneo 8, we are just going to build a new product with the same type of concepts that we had before." It is a complete refactoring of the product that we have done, using the latest AI tools, but also building our own model for AI development.

Speaker #1: But there was intense internal pressure to really save the company. And I believe that that is what we have done. So what we did was—sorry, I need to click, apparently.

Speaker #1: What we did was, we started by looking at the Teneo product already back in March or April, saying, okay, since we're not really managing to use AI to rebuild Teneo 8, we're just going to build a new product with the same type of concepts that we had before.

Per Ottosson: What we did was we started by looking at the Teneo products already back in March, April, saying, "Okay, since we are not really managing to use AI to rebuild Teneo 8, we are just going to build a new product with the same type of concepts that we had before." It is a complete refactoring of the product that we have done, using the latest AI tools, but also building our own model for AI development.

Speaker #1: So it is a complete refactoring of the product that we've done, using the latest AI tools, but also building our own model for AI development.

Speaker #1: So, we now have our own model for building—which is the model that not only builds, but also tests the software that we're building. So that's an in-house AI model that we've been building up during this period.

Per Ottosson: We now have our own model for building, which is the model that not only builds but also tests the software that we are building. That is an in-house AI model that we have been building up during this period. That enables a lot of the changes that we have done, but it also was really crucial in order to get customers to accept the product. I am going to dive into a bit more of what it was and how that changes effects. The really regretful thing in this is that, because of the cash squeeze and the fact that, well, there essentially is still no cash, but we will come into that too, we were forced into a collective dismissal and restructuring of our Spanish entity.

Speaker #1: Now, that enables a lot of the changes that we've done, but it also was really crucial in order to get customers to accept the product.

Speaker #1: And I'm going to dive into a bit more of what it was and how that changes effects. The really regretful thing in this is that, because of the cash squeeze and the fact that—well, essentially, it's still low cash, but we'll come to that too—we were forced into collective dismissal and restructuring of our Spanish entity.

Per Ottosson: I am going to dive into a bit more of what it was and how that changes effects. The really regretful thing in this is that, because of the cash squeeze and the fact that, well, there essentially is still no cash, but we will come into that too, we were forced into a collective dismissal and restructuring of our Spanish entity.

Speaker #1: So, there's a great AI team in Spain that is now available. If somebody needs an AI team, we're going to be publishing that on channels as well. As of today, essentially, that team is no longer with us.

Per Ottosson: There is a great AI team in Spain that is now available if somebody needs an AI team, and we are going to be publishing that on channels as well. As of today, essentially, that team is no longer with us. This is very painful. It is a team that has delivered really great results, and it is definitely not the best way to part ways, but it was the only way to manage that the whole company would not have to go into due to the liquidity. Very painful restructurings during the summer, which has now resulted in, which I am going to talk more about as well, of course, the from-scratch rebuild of Teneo, which then has produced what we call Teneo 10. Teneo 10 is currently in preview.

Speaker #1: This is very painful. It's a team that's delivered really great results. And it's definitely not the best way to part ways, but it was the only way to sort of manage so that the whole company wouldn't have to go under due to the liquidity.

Speaker #1: So, very, very painful restructurings during the summer, which has now resulted in—which I'm going to talk more about as well, of course—the from-scratch rebuild of Teneo.

Per Ottosson: Very painful restructurings during the summer, which has now resulted in, which I am going to talk more about as well, of course, the from-scratch rebuild of Teneo, which then has produced what we call Teneo 10. Teneo 10 is currently in preview. Because of the changes, we cannot really implement today, so we have a slight delay in implementation because we are taking it into full production in October. That, of course, has to do with the testing schedules. We are, as you know, we have ISO, SOC, HIPAA, GDPR, EU AI Act, all these compliance things that we need to adhere to, and that is what we are testing currently.

Speaker #1: Which has then produced what we call Teneo 10. Teneo 10 is currently in preview, so because of the changes, we can't really implement it today.

Per Ottosson: Because of the changes, we cannot really implement today, so we have a slight delay in implementation because we are taking it into full production in October. That, of course, has to do with the testing schedules. We are, as you know, we have ISO, SOC, HIPAA, GDPR, EU AI Act, all these compliance things that we need to adhere to, and that is what we are testing currently. We have shown it to customers. We have done pilots with customers with Teneo 10. Great feedback. We have two customers also that already have said, "Yes, we do want to implement this." One is Medtronic. They are going to put a voice to their ServiceNow, so an AI voice to their ServiceNow implementation, meaning that Teneo is the interface that gets to talk to customers and patients and employees, rather than having an AI model doing that directly.

Speaker #1: So, we have a slight delay in implementation because we're taking it into full production in October. And that, of course, has to do with the testing schedules.

Speaker #1: So we are—as you know, we have ISO, SOC, HIPAA, GDPR, EU AI Act, all these compliance things that we need to adhere to. And that's what we're testing currently.

Speaker #1: So, we've shown it to customers. We've done pilots with customers with Teneo 10—great feedback. And we have two customers also that already have said, yes, we do want to implement this.

Per Ottosson: We have shown it to customers. We have done pilots with customers with Teneo 10. Great feedback. We have two customers also that already have said, "Yes, we do want to implement this." One is Medtronic. They are going to put a voice to their ServiceNow, so an AI voice to their ServiceNow implementation, meaning that Teneo is the interface that gets to talk to customers and patients and employees, rather than having an AI model doing that directly.

Speaker #1: And one is Medtronic. They're going to put a voice into their ServiceNow implementation—so, an AI voice for ServiceNow. That means Teneo is the interface that gets to talk to customers, patients, and employees.

Speaker #1: Rather than having an AI model doing that directly. So, very, very great message. And, of course, ServiceNow runs a lot of the business processes internally at Medtronic.

Per Ottosson: Very great message. Of course, ServiceNow runs a lot of the business processes internally at Medtronic. Then we have the telco in Turkey, which had already started, where we are now going to just move this into Teneo 10 as we move along. Those two are sort of the big potentials that are also going to bring us up to the goal that I am going to talk about going forward. Also what this enabled, and unfortunately, not in a great way as well, since these reductions in Spain happened very abruptly, is a 50% cost reduction in the company. The company is going forward with using an AI build process and also running internal processes with AI, which enables us to really restructure very quickly.

Speaker #1: And then we have the telco in Turkey, which had already started. We're now going to just move this into Teneo 10 as we move along.

Speaker #1: Those two are sort of the big potentials that are also going to bring us up to the goal that I'm going to talk about going forward.

Per Ottosson: Also what this enabled, and unfortunately, not in a great way as well, since these reductions in Spain happened very abruptly, is a 50% cost reduction in the company. The company is going forward with using an AI build process and also running internal processes with AI, which enables us to really restructure very quickly.

Speaker #1: Also, what this enabled—and unfortunately, not in a great way as well, since these reductions in Spain happened very abruptly—is a 50% cost reduction in the company.

Speaker #1: So, the company is going forward with using an AI-built process, and also running internal processes with AI, which enables us to really restructure very quickly.

Speaker #1: Now, there's a bit of a lesson in this that we might go into if we have some time. But restructuring an ongoing operation with AI is quite difficult.

Per Ottosson: Now, there's a bit of a lesson in this that we might go into some time, but restructuring an ongoing operation with AI is quite difficult. This is really a complete rebuild of the company from scratch with a lot fewer people than before, but not done in the best possible way. The results are now that we're going to be at a 50% cost reduction versus before. Also, very importantly is because of the rebuild of Teneo, the cost of sales. It's a factor lower. It's a factor 10 lower, meaning that we can enable now a much larger ICP. It used to be that we dictated who we sold to by the fact that our instances cost quite a lot to provision.

Speaker #1: So this is really a complete rebuild of the company from scratch, with a lot fewer people than before, but not done in the best possible way.

Speaker #1: But the results are now that we're going to be at a 50% cost reduction versus before. Also, very, very importantly, is because of the rebuild of Teneo, the cost of sales.

Speaker #1: So, it's a factor lower—it's a factor of 10 lower. Meaning that we can now enable a much larger ICP. It used to be that we dictated who we sold to by the fact that our instances cost quite a lot to provision.

Speaker #1: So it cost a lot to set up a new customer, meaning we couldn't really sell to smaller customers, which is why we went after the 238 customers that were larger.

Per Ottosson: It cost a lot to set up a new customer, meaning we couldn't really sell to smaller customers, which is why we went after the 238 customers that we did. This ICP is much larger, and that already shows in the pipeline that we can now go after also and win business, but also make money on business that is smaller. Although that revenue footprint is not going to be as big, it's going to be as good. Well, the profitability is going to be good. Strategic focus going forward, given all this, the big restructure, the new build of the product, the rebuild of the organization, is that we're going to focus on the existing customers and pursuits to bring us to profitability, and that is the focus. We're now moving away from trying to grow into a cost structure.

Speaker #1: And that always shows in the pipeline. That we can now go after also, and with business, but also make money on business that is smaller.

Speaker #1: So, although that revenue footprint is not going to be as big, it's going to be as good. Well, the profitability is going to be good.

Per Ottosson: Well, the profitability is going to be good. Strategic focus going forward, given all this, the big restructure, the new build of the product, the rebuild of the organization, is that we're going to focus on the existing customers and pursuits to bring us to profitability, and that is the focus. We're now moving away from trying to grow into a cost structure.

Speaker #1: So strategic focus going forward, given all this, the big restructure, the new build of the product, the rebuild of the organization, is that we're going to have—we're going to focus on the existing customers and pursuits to bring us to profitability.

Speaker #1: And that is the focus. So we're now moving away from trying to grow into a cost structure. Instead, we're trying to reduce the cost structure, get back to profitability, and then build from there.

Per Ottosson: Instead, we're trying to reduce the cost structure, get back to profitability, and then build from there. Partly this is because it's obviously impossible to compete with the Americans that have billions of dollars in venture capital, and we're going to compete instead from a happy customer perspective in a traditional sense, like a true Swedish company would do as well. That is our pure focus. We're going to go cash positive. The whole organization is triggered on that, is bonused on that, and then we're going to be growing from there. Also, comment quickly on M&A and legal. M&A process will kick off again. That is not going to be the focus of the company itself, rather the board and, of course, J.P. Morgan. There is still interest in that. The technology is still very interesting in this space.

Speaker #1: Now, partly this is because it's obviously impossible to compete with the Americans that have, like, billions of dollars in venture capital. And we're going to compete instead from a happy customer perspective, in a traditional sense, like a true Swedish company would do as well.

Speaker #1: So that is our pure focus. We're going to go cash positive. The whole organization is triggered on that. It's bonused on that. And then we're going to be growing from there.

Per Ottosson: That is our pure focus. We're going to go cash positive. The whole organization is triggered on that, is bonused on that, and then we're going to be growing from there. Also, comment quickly on M&A and legal. M&A process will kick off again. That is not going to be the focus of the company itself, rather the board and, of course, J.P. Morgan. There is still interest in that. The technology is still very interesting in this space.

Speaker #1: Also, just to comment quickly on M&A and legal. The M&A process will kick off again, but that is not going to be the focus of the company itself.

Speaker #1: Rather, the board and, of course, JP Morgan. And there is still interest in that. The technology is still very interesting in the space. The legal process, we're going to also not focus on, but we are going to try to see—find somebody that finances that.

Per Ottosson: The legal process, we're going to also not focus on, but we are going to try to find somebody that finances that. We have discussions on that already. Somebody that finances the legal process, that is the process with the partner. Then the proceeds of that will, of course, come to the shareholders. This is the infographic that captures what happened during the summer. A lot of really painful restructuring. Really like to emphasize again, we have a great team in Spain that is very versatile and useful for AI development, but it's just too big for us and the revenue footprint that we have going forward today. With that, I'm going to let Fredrik talk about the main work that's been happening on the financial side and the restructuring side during the summer. Fredrik, over to you.

Speaker #1: And we have a discussion. We have discussions on that already. Somebody that finances the legal process—that is the process with the partner. And then the proceeds of that will, of course, come to the shareholders.

Speaker #1: So that's sort of—this is the infographic that captures what happened during the summer. A lot of really painful restructuring. I'd really like to emphasize again, we have a great team in Spain.

Per Ottosson: A lot of really painful restructuring. Really like to emphasize again, we have a great team in Spain that is very versatile and useful for AI development, but it's just too big for us and the revenue footprint that we have going forward today. With that, I'm going to let Fredrik talk about the main work that's been happening on the financial side and the restructuring side during the summer. Fredrik, over to you.

Speaker #1: That is very versatile and useful for AI development, but it's just too big for us—and for the revenue footprint that we have going forward today.

Speaker #1: So, with that, I'm going to let Fredrik talk about the main work that's been happening on the financial side and the restructuring side during the summer.

Speaker #1: So Fredrik, over to you.

Speaker #2: Yes, thank you. So, a lot of happenings during the summer, as most of you have followed in press releases, as Per mentioned. And one key event during the summer was the fact that we conducted discussions with our large lender, Capital Four, and agreed on a principal agreement to restructure the existing senior debt of €290 million, including accrued interest.

Fredrik Törgren: Yes. Thank you. A lot of happenings during the summer. As most of you have followed in press releases, as Per mentioned. One key event during the summer was the fact that we, in constructive discussions with our large lender, Capital Four, agreed on a principle agreement to restructure the existing senior debt of 290 million, including accrued interest. This essentially means that the company is becoming debt-free. At the same time, we also managed to receive a 10 million bridge funding from a shareholder, that will partially be offset in the rights issue that is ongoing as we speak. So 8 million will be distributed to the rights offering, and 2 million will later on be repaid to that shareholder.

Speaker #2: And this essentially means that the company is becoming debt-free. At the same time, we also managed to receive a $10 million bridge funding from a shareholder.

Fredrik Törgren: This essentially means that the company is becoming debt-free. At the same time, we also managed to receive a 10 million bridge funding from a shareholder, that will partially be offset in the rights issue that is ongoing as we speak. So 8 million will be distributed to the rights offering, and 2 million will later on be repaid to that shareholder.

Speaker #2: And that will be partially offset in the rights issue, which is ongoing as we speak. So, $8 million will be distributed to the rights offering.

Speaker #2: And $2 million will later on be repaid to that shareholder. During the summer, we also agreed with the lenders that provided $25 million in a subordinated loan earlier in Q1.

Fredrik Törgren: During the summer, we also agreed with the lenders that provided 25 million in a subordinated loan earlier in Q1 to essentially set off that against shares at 2.5 times the issue price in the ongoing rights offering. Following this transaction, Capital Four will hold close to 30% in the company, and they will also have the right to the first 25 million as similar to a profit-sharing agreement that will go to the lender in scenario of a public bid and similar. On top of that, in the rights offering, 10 million SEK will be also repaid to the lender. I think, all in all, a very favorable outcome for all parties in this transaction, I think, with the current structure. You can go to the next slide, Per. Just briefly on the rights issue that is ongoing.

Speaker #2: To essentially set off that against shares at 2.5 times the issue price in the ongoing rights offering. And following this transaction, Capital Four will hold close to 30% of the company.

Speaker #2: And they will also have the right to the first $25 million, similar to a profit-sharing agreement. That will go to the lender in the scenario of a public bid and similar situations.

Speaker #2: And on top of that, in the rights offering, $10 million SEC will also be repaid to the lender. So I think, all in all, a very favorable outcome for all parties in this transaction.

Fredrik Törgren: On top of that, in the rights offering, 10 million SEK will be also repaid to the lender. I think, all in all, a very favorable outcome for all parties in this transaction, I think, with the current structure. You can go to the next slide, Per. Just briefly on the rights issue that is ongoing.

Speaker #2: I think with the current structure, we can go to the next slide, Per. Just briefly on the rights issue—that is ongoing—there is a fully secured rights offering.

Fredrik Törgren: There is a fully secured rights offering, bringing in 74 million SEK to the company, excluding transactional costs. This was also then announced on 10 August. Subscription price will be 0.05 SEK per share. The rights offering was covered with 20% of existing shareholders, including board and management, and 80% was covered through a guarantee led by Pareto. I am coming back a bit on use of proceeds, et cetera. As we mentioned, 10 million from the rights offering will be used to repay the lender as part of the agreement. 2 million will also be repaid to the bridge loan financier. There will be some repayments, and then we will also have some transactional cost of approximately 10 million for the different transactions related to this kind of joint transaction. I think they are all dependent on each other.

Speaker #2: Bringing in 74 million SEK to the company, excluding transactional costs. This was also then announced on August 10th. The subscription price will be 0.05 SEK per share.

Speaker #2: The rights offering was covered by 20% of existing shareholders, including the board and management, and 80% was covered through a guarantee led by Pareto.

Fredrik Törgren: I am coming back a bit on use of proceeds, et cetera. As we mentioned, 10 million from the rights offering will be used to repay the lender as part of the agreement. 2 million will also be repaid to the bridge loan financier. There will be some repayments, and then we will also have some transactional cost of approximately 10 million for the different transactions related to this kind of joint transaction. I think they are all dependent on each other.

Speaker #2: And yeah, I'm coming back a bit on use of proceeds, etc. But as we mentioned, $10 million from the rights offering will be used to repay the lender as part of the agreement.

Speaker #2: $2 million will also be repaid to the bridge loan financier, so there will be some repayments. And then we will also have some transaction costs of approximately $10 million for the different transactions related to these kinds of joint transactions.

Speaker #2: I think they are all dependent on each other. So, yeah, the intention now, as Per mentioned, is basically to fund the operations and the development of Teneo 10.

Fredrik Törgren: The intention now with, as Per mentioned, it is basically to fund the operations and the development of Teneo 10 until we can hit cash flow positive. So very much as a smaller company at a lower cost base, and then driving growth from there. As you can see, also the dilution for shareholders not participating in the rights offering is quite substantial. So, hopefully as many existing shareholders as possible will subscribe in the rights offering. I think we can move to the next slide, Per. Just recapping on what Per already said. Unfortunately, we have been forced to take measures in order to reduce the cost base.

Speaker #2: Until we can hit cash flow positive. So, very much as a smaller company and a lower cost base, and then driving growth from there.

Speaker #2: And as you can see, the dilution for shareholders not participating in the rights offering is quite substantial. So, hopefully, as many existing shareholders as possible will subscribe to the rights offering.

Speaker #2: I think we can move to the next slide, Per. Yes, recapping on what Per already said, unfortunately, we have been forced to take measures in order to reduce the cost base.

Speaker #2: And part of that is also that we are actually today dismissing, and will dismiss over the autumn, all employees in Spain. Which is a really sad day for us, since it's a lot of well-reputed and skilled people in Spain.

Fredrik Törgren: Part of that is also that we are actually today dismissing, and will dismiss over the autumn, all employees in Spain, which is a really sad day for us, since it is a lot of well-reputed and skilled people in Spain. That has also been measures that we have been required to do in order to also save the company, given this challenging situation that we have been in during the summer and following the exit of the partner that Per mentioned earlier. I think we can. Over to you, I think.

Speaker #2: But that has also been, I mean, measures that we have been required to do in order to also save the company, given this challenging situation that we have been in during the summer.

Speaker #2: And following the exit of the partner that Per mentioned earlier, I think we can hand over to you now.

Speaker #1: Yep. So maybe just to add to Fredrik's there. As I shared, it has been looking at asking us questions. Apparently, our press releases have not been informative enough.

Per Ottosson: Yeah. So maybe just add to Fredrik's there. Affärsvärlden has been looking at asking these questions. Apparently, our press releases have not been informative enough, but it has been in Affärsvärlden as well. Fredrik, so the CTO, CFO, COO, so we are four people in management team today, and we are all taking our pro rata of this. Maybe that is an important thing. Now, if we have been, press releases have not been informative enough, it has been very, very difficult negotiations with many stakeholders at the same time. Sometimes things could not be published, and sometimes they could. That is why we are trying to bring everybody up to speed now so everybody has the same information. But yes, we are taking our pro rata, of course, in this.

Speaker #1: But it's been enough. I shared as well. Fredrik—so the CTO, CFO, COO, so we're four people in the management team today. And we're all taking our pro rata of this.

Speaker #1: Maybe that's an important thing. Now, if our press releases have not been informative enough, it has been very, very difficult negotiations with many stakeholders at the same time.

Per Ottosson: Now, if we have been, press releases have not been informative enough, it has been very, very difficult negotiations with many stakeholders at the same time. Sometimes things could not be published, and sometimes they could. That is why we are trying to bring everybody up to speed now so everybody has the same information. But yes, we are taking our pro rata, of course, in this.

Speaker #1: And sometimes things could not be published, and sometimes they could. That's why we're trying to bring everybody up to speed now, so everybody has the same information.

Speaker #1: But yes, we are taking our pro rata, of course, in this. And if you look at the valuation of the 30% versus $300 million, essentially, the lender is covered to get a $1 billion valuation, SEC.

Per Ottosson: If you look at the valuation of the 30% versus 300 million, essentially, the lender is converting at a billion valuation SEK which is kind of interesting in this as well. Of course, aligned interest, which is a lot easier for us as a management team. So focus is obviously lower cost base, no debt, very focused. We have a broader ICP, so we can sell to more customers, which is what we are going to be focusing on. Selling and serving Teneo, nothing else. The management team is going to be focused on that. On the board, focused on JPMorgan, potentially a separate entity or separate organization might be focused on the process with the partner, the legal process with the partner. But we are going to focus everything on Teneo 10 and converting that into revenue and getting back to profitability.

Speaker #1: Which is kind of interesting in this as well. And of course, aligned interest, which is much easier for us as a management team. So, focus is obviously lower cost base.

Speaker #1: No debt. We're very focused, and we have a broader ICP, so we can sell to more customers, which is what we're going to be focusing on, right?

Speaker #1: Selling and serving Teneo, nothing else. The management team is going to be focused on that. Now, the Board focuses on JP Morgan. Potentially, a separate entity or separate organization might be focused on the process with the partner—the legal process with the partner.

Per Ottosson: Selling and serving Teneo, nothing else. The management team is going to be focused on that. On the board, focused on JPMorgan, potentially a separate entity or separate organization might be focused on the process with the partner, the legal process with the partner. But we are going to focus everything on Teneo 10 and converting that into revenue and getting back to profitability.

Speaker #1: But we're going to focus everything on Teneo 10 and converting that into revenue and getting back to profitability. Essentially, this is how we've been working through this process.

Per Ottosson: Essentially, this is how we have been working through this process. We have a revenue base right now of 2 million. Now, Fredrik is going to dive in more to that. We have commitments to start as soon as we get Teneo 10 implemented, to lift that into 1 million already. Then we have growth in the existing customer and baseline that lifts us an additional 2, which gets us to 5 million cost, 5 million revenue. Our aim is to do this during Q1, to get to that break-even line during Q1, and then build from that. So it is not to invest before, but now it is reducing the cost and making sure that we can grow profitably going forward with this great product. I want to talk a bit about the great product. We called it Teneo X in our development.

Speaker #1: We have a cost and revenue base right now of $2 million. Now Frederick is going to dive more into that. We have commitments to start, as soon as we get Teneo 10 implemented, to lift that to $1 million already.

Speaker #1: And then we have growth in the existing customer and baseline that lifts us an additional $2 million, which gets us to $5 million cost, $5 million revenue.

Speaker #1: And our aim is to do this during Q1—to get to that break-even line during Q1 and then build from there. So it's not to invest before, but now it's about reducing the cost and making sure that we can grow profitably going forward with this great product.

Per Ottosson: Our aim is to do this during Q1, to get to that break-even line during Q1, and then build from that. So it is not to invest before, but now it is reducing the cost and making sure that we can grow profitably going forward with this great product. I want to talk a bit about the great product. We called it Teneo X in our development.

Speaker #1: I want to talk a bit about the great product. We called it Teneo X during our development. It has been totally refactored and rebuilt, and that enables several different things.

Per Ottosson: It has been totally refactored, rebuilt, and that enables several different things. Before we dive deeper in the financials, I really want to talk about this because I think this is the meat of the company. I do want to mention one thing also before on the focus going forward. We did try with our patents that have been valued at very high valuations. We have been trying to get somebody to either buy them or to license them. But it turns out that process of getting there is very expensive, meaning that with our balance sheet and with our, it is just not something that is doable, and it is probably not financially viable to do that at all. That is why I am no longer talking about the patent strategy. We did try.

Speaker #1: So, before we dive deeper into the financials, I really want to talk about this, because I think this is the meat of the company.

Speaker #1: Actually, I do want to mention one thing also before moving on to the focus going forward. We did try with our patents that have been valued at very high valuations.

Speaker #1: We've been trying to get somebody to either buy them or to license them, but it turns out that the process of getting there is very expensive.

Per Ottosson: We have been trying to get somebody to either buy them or to license them. But it turns out that process of getting there is very expensive, meaning that with our balance sheet and with our, it is just not something that is doable, and it is probably not financially viable to do that at all. That is why I am no longer talking about the patent strategy. We did try.

Speaker #1: Meaning that, with our balance sheet and with our—it's just not something that's doable. And it's probably not financially viable to do that at all, right?

Speaker #1: So that's why I'm no longer talking about the patent strategy. We did try. We tried several different avenues. But really, the focus is now M&A.

Per Ottosson: We tried several different avenues, but really the focus is now M&A, where there is most interest before we had this blow-up where everything went on pause. We are going to reactivate that actually starting, I believe, next Wednesday. Then it is Teneo 10. Let me get into Teneo 10. First of all, we always used what we called hybrid AI. But hybrid AI is a margin lever for us, but it is also a margin lever for our customers. We are going to be much more focused on explaining this to customers now that we see that a lot of customers are getting upset about the fact that they are paying too much for LLM tokens. Very much hybrid AI is important to us and the customers. We put a totally different observability on this. What does that mean?

Speaker #1: Where there's both interest, before we had this blowup where everything went on pause. We're going to reactivate that, actually starting, I believe, next Wednesday.

Speaker #1: And then it's Teneo 10. So let me get into Teneo 10. First of all, we've always used what we call hybrid AI. But hybrid AI is a margin lever for us.

Speaker #1: But it's also a margin lever for our customers. And we're going to be much more focused on expanding this to customers now that we see that a lot of customers are getting upset about the fact that they are paying too much for LLM tokens.

Per Ottosson: We are going to be much more focused on explaining this to customers now that we see that a lot of customers are getting upset about the fact that they are paying too much for LLM tokens. Very much hybrid AI is important to us and the customers. We put a totally different observability on this. What does that mean?

Speaker #1: So, very, very much, hybrid AI is important to us and the customers. We put a totally different observability on this. What does that mean?

Speaker #1: A lot of our customers were actually still sending Teneo and other data to India for transcription to data-mine where customers are talking about.

Per Ottosson: A lot of our customers were actually still sending Teneo and other data to India for transcription to data mine what customers are talking about. That is no longer needed. With Teneo, you have everything in one product. This is a separate thing that customers had to do to get real analysis. No longer. Observability here is full. You get everything served through this internal AI model that we built. So brilliant grasp of what your customers are talking about. We are adding the voice telephony thing directly into the product. If a customer wants, we can provide them with a phone number, the speech-to-text, the text-to-speech, the full solution rather than just a part of the solution. Now, that turns out to be very important, especially slightly below the enterprise level. With our all 283 customers, not that important, but with this layer.

Speaker #1: That is no longer needed. With Teneo, you have everything in one product. So this is a separate sort of thing that customers have to do to get real analysis.

Speaker #1: No longer observability here is full. You get everything served through this internal AI model that we built. So brilliant grasp of what your customers are talking about.

Speaker #1: We're adding the voice telephony feature directly into the product. So, if a customer wants, we can provide them with a phone number. They speak, it converts speech to text, and then text to speech.

Per Ottosson: We are adding the voice telephony thing directly into the product. If a customer wants, we can provide them with a phone number, the speech-to-text, the text-to-speech, the full solution rather than just a part of the solution. Now, that turns out to be very important, especially slightly below the enterprise level. With our all 283 customers, not that important, but with this layer.

Speaker #1: The full solution, rather than just a part of the solution—now, that turns out to be very important, especially slightly below the enterprise level.

Speaker #1: So with our all 283 customers, not that important. But with this layer—so Medtronic wouldn't be using that—but our sort of customers below that would probably be, are looking very happy about this.

Per Ottosson: Medtronic wouldn't be using that, but our customers below that would probably be or are looking very happy about this, and we are in discussions with a few such smaller customers today about doing this. That is going to change slightly our cost of sales, since we are now we are going to put input in, but it is also going to increase our revenue. Since we have revenue, we are going to be adding revenue, of course, on top of that. So margin on top of that. The authoring UI is totally changed. You can now go into Claude and build your product. You can directly work from Claude, for example. So prompting. It is also very graphical and it is very much what people are now used to from developing in Claude Code or Codex in OpenAI. Much faster to develop and get a solution up to speed.

Speaker #1: And we're in discussions with a few such smaller customers today about doing this. That is going to change slightly our cost of sales, since now we're going to put input in.

Speaker #1: But it's also going to increase our revenues, since we have revenue—we're going to be adding revenue, of course, on top of that. So our margin on top of that.

Per Ottosson: Since we have revenue, we are going to be adding revenue, of course, on top of that. So margin on top of that. The authoring UI is totally changed. You can now go into Claude and build your product. You can directly work from Claude, for example. So prompting. It is also very graphical and it is very much what people are now used to from developing in Claude Code or Codex in OpenAI. Much faster to develop and get a solution up to speed.

Speaker #1: The authoring UI has totally changed. You can now go into Claude and build your product, so you can work directly from Claude, for example.

Speaker #1: So, prompting—it is also very graphical. And it's very much what people are now used to from developing in Claude, Code, or Codex in OpenAI.

Speaker #1: So it's much, much faster to develop and get a solution up to speed. The testing suite we built in now was something our customers used to rely on an external source for.

Per Ottosson: The testing suite we built in now was something our customers used to rely on an external source. That is something that is now built in. The system tests itself. We have agents that actually run the process that you built. The business process you built is run by agents through the telephony or through the chat or whatever you want to implement. It is tested before it comes out. Then, of course, it is still that proven at scale technology, but now delivered at a much lower unit cost. We are talking a factor 10 of the unit cost for us to deliver. With that, I am going to again give it over to Fredrik to go through some of the financials, which again, are not looking great at this point. But this is where we start.

Speaker #1: That is something that is now built in, so the system tests itself. We have agents that actually run the process that you built.

Speaker #1: So the business process you built is built is run by agents. At through the telephony or through the chat or whatever you want to implement.

Speaker #1: It's tested before it comes out. And then, of course, it's still that proven-at-scale technology, but now delivered at a much lower unit cost.

Per Ottosson: Then, of course, it is still that proven at scale technology, but now delivered at a much lower unit cost. We are talking a factor 10 of the unit cost for us to deliver. With that, I am going to again give it over to Fredrik to go through some of the financials, which again, are not looking great at this point. But this is where we start.

Speaker #1: So we're talking about a factor of 10 in the unit cost for us to deliver. With that, I'm going to hand it over to Frederick again to go through some of the financials.

Speaker #1: Which, again, I'm not looking great at this point. But this is where we start.

Speaker #2: Thank you, Per. Now, indeed, and I'll try to be quite brief on this. Net sales in constant currency amounted to $6.6 million versus $22.1 million.

Fredrik Törgren: Thank you, Per. Indeed, and I will try to be quite brief on this. Net sales in constant currency amounted to SEK 6.6 million versus SEK 22.1 million the same period last year. So a significant drop and Per already mentioned the reasons for this decline. I will not reiterate that again. Same with SaaS ARR in constant currency amounted to SEK 12.2 million versus SEK 65.2 million. So also a significant decline. Total ARR in constant currency amounted to SEK 21.4 million, versus SEK 83.7 million last year. This is obviously, not to reiterate too much, but linked to mainly the full exit of our previous distribution partner in the US. Also this forms a bit, as you could see on previous slides presented by Per, where we are starting at roughly a revenue base of SEK 2 million per month, and that is the starting point.

Speaker #2: The same period last year, so a significant drop. And Per already mentioned the reasons for this decline, so I will not reiterate them again.

Speaker #2: SaaS ARR in constant currency amounted to $12.2 million versus $65.2 million, so also a significant decline. Total ARR in constant currency amounted to $21.4 million.

Fredrik Törgren: Total ARR in constant currency amounted to SEK 21.4 million, versus SEK 83.7 million last year. This is obviously, not to reiterate too much, but linked to mainly the full exit of our previous distribution partner in the US. Also this forms a bit, as you could see on previous slides presented by Per, where we are starting at roughly a revenue base of SEK 2 million per month, and that is the starting point.

Speaker #2: Versus $83.7 million last year. And this is obviously—I mean, not to reiterate too much—but it's mainly linked to the full exit of our previous distribution partner in the US.

Speaker #2: And also, this forms a bit—as you could see on previous slides presented by Per—where we are starting at roughly a revenue base of 2 million SEK per month.

Speaker #2: And that's the starting point. And also there, where we— I will come into that later, also on our current cost base of roughly $5 million going forward.

Fredrik Törgren: Also there where I will come into that later also on our current cost base of roughly SEK 5 million going forward. Gross margin amounted to 70%, so a drop from 88% last year, and that is mainly related to the decline in volumes. As many of you recall, we have had, even if we now have a lower delivery cost going forward with a Teneo 10. We are still dependent on also having volumes again to bring up gross margin. EBITDA adjusted amounted to -SEK 17 million versus -SEK 3.9 million last year. So a significant impact there also from the drop in volumes. Adjusted cash position as of June was SEK 3.5 million and the actual reported cash position was SEK 1.4 million. I will come back a bit on the cash later on in the presentation. I think we can move to the next slide, Per.

Speaker #2: Gross margin amounted to 70%, so a drop from 88% last year, and that's mainly related to the decline in volumes, as many of you recall.

Speaker #2: We have had, even if we now have a lower delivery cost going forward with Teneo 10, we are still dependent on also having volumes again to bring up the gross margin.

Fredrik Törgren: We are still dependent on also having volumes again to bring up gross margin. EBITDA adjusted amounted to -SEK 17 million versus -SEK 3.9 million last year. So a significant impact there also from the drop in volumes. Adjusted cash position as of June was SEK 3.5 million and the actual reported cash position was SEK 1.4 million. I will come back a bit on the cash later on in the presentation. I think we can move to the next slide, Per.

Speaker #2: Adjusted EBITDA amounted to minus $17 million, versus minus $3.9 million last year. So, a significant impact there also from the drop in volumes. Adjusted cash position as of June was $3.5 million.

Speaker #2: And the actual reported cash position was $1.4 million. I'll come back to the cash position later in the presentation. So I think we can move on to the next slide, Per.

Speaker #2: Also here, SaaS ARR and total ARR—in yellow. And SaaS ARR in purple. As you can see, same as on the previous slide, but also over time.

Fredrik Törgren: Also here, SaaS ARR and total ARR in yellow, and SaaS ARR in purple. As you can see, same as on previous slide, but also over time. We have had a very tough H1 and a quarter. That is where we are starting off with this rebuild of Teneo, essentially. I think we can move to next slide, Per. Yeah. This is also, as I said on the first slide on the financial parts, 70% gross margin, and an effect essentially of lower volumes. We can move to the next slide, Per. OPEX, important aspect here. As you can see to the left side, we have Q2 2025 and Q2 2026 annual operating run rate costs. So, close to SEK 115 million. As Per also mentioned, we are bringing down the costs approximately 50%.

Speaker #2: So, we have had a very tough half-year and a quarter, and that's where we're starting off with this rebuild of Teneo, essentially. I think we can move to the next slide, Per.

Speaker #2: Yeah. This is also, as stated on the first slide, regarding the financial parts: 70% gross margin. And in effect, essentially due to lower volumes. We can move to the next slide, Per.

Fredrik Törgren: This is also, as I said on the first slide on the financial parts, 70% gross margin, and an effect essentially of lower volumes. We can move to the next slide, Per. OPEX, important aspect here. As you can see to the left side, we have Q2 2025 and Q2 2026 annual operating run rate costs. So, close to SEK 115 million. As Per also mentioned, we are bringing down the costs approximately 50%.

Speaker #2: OPEX is an important aspect here. As you can see, on the left side we have Q2 2025 and Q2 2026—annual operating run rate costs. So, yeah, close to $115 million.

Speaker #2: And as Per also mentioned, we are bringing down the costs by approximately 50%. So when we start in September, we expect to have roughly a cost base of SEK 60 million in operating expenses.

Fredrik Törgren: When we start September, we expect to have roughly a cost base of SEK 60 million in operating expenses. That is equivalent to SEK 5 million per month. That is how we are steering the business going forward with roughly SEK 2 million in revenues and then SEK 5 million in cost base. Then the intention is to, as quickly as possible, bring in more customers and reduce the cash gap, essentially, to become cash flow positive. You can move to next slide, Per. Just quickly on cash. We had, as I said, SEK 1.4 million in cash and bank positions as of 30 June, and adjusted SEK 3.5 million. We are now bringing in SEK 74 million in the ongoing rights offering. This will also make the company debt-free. We can move to next slide, Per. Also, just to recap on what has been happening.

Speaker #2: So that is equivalent to $5 million per month. And that's how we're steering the business going forward, with roughly $2 million in revenues and then a $5 million cost base.

Speaker #2: And then the intention is to, as quickly as possible, bring in more customers and reduce the cash gap—essentially, to become cash flow positive.

Speaker #2: Can you move to the next slide, Per? Just quickly on cash: we had, as I said, $1.4 million in cash and bank positions as of June 30th.

Fredrik Törgren: Just quickly on cash. We had, as I said, SEK 1.4 million in cash and bank positions as of 30 June, and adjusted SEK 3.5 million. We are now bringing in SEK 74 million in the ongoing rights offering. This will also make the company debt-free. We can move to next slide, Per. Also, just to recap on what has been happening.

Speaker #2: And adjusted $3.5 million. And we are now bringing in $74 million in the ongoing rights offering, and this will also make the company debt-free.

Speaker #2: We can move to the next slide, Per. Also, just a bit to recap on what has been happening. So, when we ended June, we had $1.4 million in cash in the bank.

Fredrik Törgren: When we ended June, we had SEK 1.4 million in cash in the bank. Following that, we agreed with a shareholder on a bridge loan of SEK 10 million, adding to our cash position. Then we are now adding SEK 66 million, aside from the SEK 8 million of the bridge loan that will be converted into rights offering as well, adding up to SEK 74 million in total. Then we added SEK 66 million there, when we get the funds in from the rights offering. Following the rights offering, we have agreed with Capital Four to repay SEK 10 million to the lender, and then also SEK 2 million to the bridge loan provider. That roughly means that we have SEK 65 million, as a pro forma balance as of 30 June. This is excluding transactional costs. That is where we stood pro forma in June.

Speaker #2: Following that, we agreed with a shareholder on a bridge loan of $10 million, adding to our cash position. Then we are now adding $66 million, aside from the $8 million of the bridge loan that will be converted into the rights offering as well.

Speaker #2: Adding up to 74 million in total. But then we added 66 million there when we get the funds in from the rights offering. And following the rights offering, we have agreed with Capital Four to repay 10 million to the lender.

Fredrik Törgren: Then we added SEK 66 million there, when we get the funds in from the rights offering. Following the rights offering, we have agreed with Capital Four to repay SEK 10 million to the lender, and then also SEK 2 million to the bridge loan provider. That roughly means that we have SEK 65 million, as a pro forma balance as of 30 June. This is excluding transactional costs. That is where we stood pro forma in June. Now we are approaching September, and with full focus on delivering in new customers, essentially. Over to you, Per.

Speaker #2: And then also $2 million to the bridge loan provider. That roughly means that we have $65 million as a pro forma balance as of June 30th.

Speaker #2: And this is excluding transactional costs. So that's where we stood pro forma in June. And now we're approaching September, with full focus on delivering to new customers, essentially.

Fredrik Törgren: Now we are approaching September, and with full focus on delivering in new customers, essentially. Over to you, Per.

Speaker #2: Over to you, Per.

Speaker #1: Thank you for that, so I'm going to summarize. But before I do that, I actually have two questions in the chat.

Per Ottosson: Thank you, Fredrik. I am going to summarize, but before I do that, I actually have two questions in the chat, so I am just going to start with those right away. We are talking about addressing smaller customers with Teneo 10. Essentially, a smaller customer here would be SEK 1 million annual revenue. That is a lot smaller than our traditional customer base that we address. That is something that is going to be sold through partner channels, but with a totally different partner governance structure than we have had before. Essentially offering partners a complete solution for their type of customers. Then there is a question there, Fredrik, in the chat, which I think is more for you. "SEK 5 million monthly OPEX run rate excludes cost of sales.

Speaker #1: So I'm just going to start with those right away. We're talking about addressing smaller customers with Teneo 10. Essentially, a smaller customer here would be one with SEK 1 million in annual revenue.

Speaker #1: So, a lot smaller than our traditional customer base that we address. Now, that is something that's going to be sold through our partner channels.

Per Ottosson: That is something that is going to be sold through partner channels, but with a totally different partner governance structure than we have had before. Essentially offering partners a complete solution for their type of customers. Then there is a question there, Fredrik, in the chat, which I think is more for you. "SEK 5 million monthly OPEX run rate excludes cost of sales. With the Q2 gross margin of 30%, how does SEK 5 million monthly revenue in February result in break even against the SEK 5 million monthly cost base? SEK 60 million. Yeah.

Speaker #1: But with a totally different partner governance structure than we've had before. But that is, so essentially, offering partners a complete solution for their type of customers.

Speaker #1: And then there's a question for Frederick in the chat, which I think is more for you. The SEK 5 million monthly OPEX run rate excludes cost of sales.

Speaker #1: With the Q2 gross margin of 30%, how does SEK 5 million monthly revenue in February result in break-even against the SEK 5 million monthly cost base?

Per Ottosson: With the Q2 gross margin of 30%, how does SEK 5 million monthly revenue in February result in break even against the SEK 5 million monthly cost base? SEK 60 million. Yeah.

Speaker #1: SEC 60 million. Yeah.

Speaker #2: Yeah. I would say that with higher volumes, we will also improve gross margin. But as a counterweight to that, we may also bring in customers with lower volumes.

Fredrik Törgren: I would say that we will also, with higher volumes, improve gross margin. But also as a counterweight to that, we may also bring in customers at lower volumes. That is also one of the reasons we also rebuilt Teneo 10, to have a lower delivery cost. I think we will have an opportunity to also to bring the gross margin up from this when we bring in new customers.

Speaker #2: And that's also why we have rebuilt one of the reasons we also rebuilt Teneo 10, right? To have a lower delivery cost. So I think the actual I think we will have an opportunity to also to bring the gross margin up from this when we bring in new customers.

Speaker #1: And then we have a question on the OPEX run rate. From September, it's critical to cash flow guidance. How much of those are already completed and contracts are secured?

Per Ottosson: Then we have a question on the OpEx run rate from September is critical to get us for guidance. How much of those are already completed and contracts are secured? What can we say there, Fredrik? A large portion is what I would maybe-

Speaker #1: What can we say there, Frederick? A large portion is—well, maybe that's what we can say. A large portion of that is secured, Peter.

Fredrik Törgren: Yeah

Per Ottosson: That is what we can say.

Fredrik Törgren: Yeah.

Per Ottosson: Large portion of that is secured, Peter. We are quite sure we are going to get to the 5 million in cost. Halil has another question, which I will probably just get back to this. Tom, I will take your question. I will just get back to this from Halil first here. How much shorter and cheaper is a typical Teneo in term implementation? What we have done is we have basically given customers a choice. They can go from AI first, that would be the Sierra, Decagon, the sort of what I call LLM wrapper approach, very fast. We are talking, today, we take a customer's website, and in a few minutes, we have a working solution where in the first meeting with the customer, they can call and talk about flows that are on their website. That obviously is not integrated into their environment.

Speaker #1: So we're quite sure we're going to get to the $5 million in cost. Alin has another question, which I'll probably just get back to this.

Speaker #1: And Tom, I'll take your question. I'll just get back to this from Halil first here. How much shorter and cheaper is the typical Teneo-in-10 implementation?

Speaker #1: So what we've done is we've basically given customers a choice. They can go from AI first—that would be the Sierra Decagon, the sort of what I call 'LLM wrapper' approach.

Per Ottosson: What we have done is we have basically given customers a choice. They can go from AI first, that would be the Sierra, Decagon, the sort of what I call LLM wrapper approach, very fast. We are talking, today, we take a customer's website, and in a few minutes, we have a working solution where in the first meeting with the customer, they can call and talk about flows that are on their website. That obviously is not integrated into their environment.

Speaker #1: Very fast. I mean, we're talking today—we take a customer's website and, in a few minutes, we have a working solution where, in the first meeting with the customer, they can call and talk about flows that are on their website.

Speaker #1: Now, that obviously is not integrated into their environment. That is the portion that might take some more time, and usually, that is when our balanced approach comes in.

Per Ottosson: That is the portion that might take some more time, and usually there is when our balanced approach comes in. We have the LLM-y type conversation, but we use the old hybrid AI approach, so a lot of deterministic values as well, so that we ensure that we can go in with compliance into the backend systems. This is typically a problem with what I call LLM wrappers. You do not open up your backend systems to OpenAI and Claude, et cetera, especially if you are in a regulated industry or bank finance, et cetera. Then the fully controlled, that is the one that is more for pharmaceutical or companies that really need no hallucination in the dialogue, let alone in the output. The output we always guarantee from balanced. From stage 2 and onwards, we guarantee that the output is 100%.

Speaker #1: So, we have the LLM-type conversation, but we use the old hybrid AI approach. So, there are a lot of deterministic values as well, so that we can ensure compliance when interacting with the backend systems.

Speaker #1: This is typically a problem with what I call LLM wrappers. You don't open up your backend systems to OpenAI and Claude, et cetera.

Per Ottosson: You do not open up your backend systems to OpenAI and Claude, et cetera, especially if you are in a regulated industry or bank finance, et cetera. Then the fully controlled, that is the one that is more for pharmaceutical or companies that really need no hallucination in the dialogue, let alone in the output. The output we always guarantee from balanced. From stage 2 and onwards, we guarantee that the output is 100%.

Speaker #1: Especially if you're in a regulated industry or banking, finance, et cetera. And then the fully controlled—that's the one that's more for pharmaceutical companies or companies that really need no hallucination in the dialogue.

Speaker #1: Let alone in the output, right? The output we always guarantee from balanced, so from stage two and onwards, we guarantee that the output is 100%.

Speaker #1: However, this is also an area where the conversation needs to be fully controlled. So you can't let it flow naturally; it has to be fully controlled.

Per Ottosson: However, this is somewhere where also the conversation needs to be fully controlled. You cannot let it flow naturally. It has to be fully controlled. Now customers talk with AI first, but that is very fast. Then the implementation also needs integrations. Now we are looking at that in the ongoing. Again, like I said, the getting to the 5 million revenue line, keeping the cost line at 5 million, including the cost of sales. Getting to that is going to be very much done in the ones that we are already in the timely stages of implementation. In those implementations, integrations does take an additional 3, 4 weeks. That is for the customer to open up their internal systems. The first comment here on the total remuneration, that is something for the board to comment and not for me to comment myself, of course.

Speaker #1: So now customers talk with AI first, so that's very fast. Then the implementation also needs integrations. Now, we're looking at that as ongoing. So again, like I said, getting to the $5 million revenue line, keeping the cost line at $5 million, including the cost of sales.

Speaker #1: Getting to that is going to be very much done in the ones that we are already in late planning stages of implementation. And in those implementations, integration does take an additional three to four weeks.

Per Ottosson: Getting to that is going to be very much done in the ones that we are already in the timely stages of implementation. In those implementations, integrations does take an additional 3, 4 weeks. That is for the customer to open up their internal systems. The first comment here on the total remuneration, that is something for the board to comment and not for me to comment myself, of course. You also mentioned management would participate pro rata in the rights issue. How much does this represent in SEK?

Speaker #1: That is for the customer to open up their internal systems. So, the first comment here on total remuneration— that is something for the board to comment on and not for me to comment myself, of course.

Speaker #1: You also mentioned management participate pro rata in the rights issue. How much does this represent in SEK?

Per Ottosson: You also mentioned management would participate pro rata in the rights issue. How much does this represent in SEK?

Speaker #2: So, just to be clear on that: the board and the management team will subscribe for close to 5% of the rights offering—so, close to three and a half million, I would say.

Fredrik Törgren: So just to be clear on that. Board and the management team will subscribe for close to 5% of the rights offering, so close to SEK 3.5 million, I would say.

Speaker #1: And the ownership position—so that is essentially that 5% as well? For instance, that's pro rata 5, right?

Per Ottosson: And the ownership position, so that is essentially then 5% as well, for instance, that is pro rata 5, right?

Speaker #2: Yes.

Speaker #1: Yes. Great. Those were the questions out of the chat. What I will do, okay, as for management—not including the board—I don't know, Fredrik, if you know that.

Fredrik Törgren: Yes.

Per Ottosson: Yes. Great. Those were the questions out of the chat. What I will do. As for management, not including board. I do not know, Fredrik, if you know that.

Speaker #2: I think it's roughly half.

Fredrik Törgren: I think it is roughly half to 2.

Speaker #1: Roughly half.

Speaker #2: Two. Yeah.

Per Ottosson: Roughly half, right?

Fredrik Törgren: Yeah.

Speaker #1: With that, I'm going to move over from the chat questions to allowing you to raise your hand. I will unmute you, and then you can unmute yourself right after that.

Per Ottosson: With that, I am going to move on over from the chat questions to you may raise your hand. I will unmute you, and then you can unmute yourself right after doing that. There was another question in the chat before I start that. Hang on 2 seconds. No, the 2 million is what we expect the actual recognized revenue to be. Like I said, the September number that I was looking at is 2 plus 1. The 1 is what we are working on, but that is going to be delayed somewhat now since Teneo 10 is essentially live 1 October. That is when we take those customers live. But that 1 million is an already built implementation. But we are now doing the last testing of that. 2 million is the ARR number, sorry, the monthly recurring number.

Speaker #1: There was another question in the chat before I start that. Hang on a second. No, the $2 million is what we expect the actual recognized revenue to be.

Speaker #1: Like I said, the September number that I was looking at is 2 plus 1. The 1 is what we're working on, but that is going to be delayed somewhat now, since Teneo 10 is essentially live October 1st.

Per Ottosson: Like I said, the September number that I was looking at is 2 plus 1. The 1 is what we are working on, but that is going to be delayed somewhat now since Teneo 10 is essentially live 1 October. That is when we take those customers live. But that 1 million is an already built implementation. But we are now doing the last testing of that. 2 million is the ARR number, sorry, the monthly recurring number.

Speaker #1: That's when we take those customers live. But that $1 million is an already built implementation, and we're now doing the last testing of that.

Speaker #1: So $2 million is the ARR number—sorry, the monthly recurring number. So with that, let's see if I can see everybody so I can see if any hands are raised.

Per Ottosson: With that, let us see if I can see everybody so I can see any hand raised. Maybe I will just stop sharing quickly so I can see all the. See if there is any raised hands here. Give that a few more minutes. Okay, I do not see any raised hands. Let me quickly do the summary, and then we will. Yes, I can give an expected ARR contribution from those three. Actually, from the two. It is not something I can do with EXL, since with EXL, we are essentially working towards their customers. Basically, they go to their customers and present that they have this capability, and we do not have full visibility of the pipeline on that. But the ones we are really looking at when we are looking at the 5 million is the Medtronic and Turkish telco. The Turkish telco is very big. So that is a traditional, really big enterprise.

Speaker #1: Maybe I'll just stop sharing quickly so I can see if there are any raised hands here. Let's give that a few more minutes.

Speaker #1: Okay, I don't see any raised hands. Let me quickly do the summary, and then we'll—yes, I can give an expected ARR contribution from those three—actually, from the two.

Per Ottosson: Actually, from the two. It is not something I can do with EXL, since with EXL, we are essentially working towards their customers. Basically, they go to their customers and present that they have this capability, and we do not have full visibility of the pipeline on that. But the ones we are really looking at when we are looking at the 5 million is the Medtronic and Turkish telco. The Turkish telco is very big. So that is a traditional, really big enterprise.

Speaker #1: It's not something I can do with EXL, since with EXL we're essentially working towards their customers. So, basically, they go to their customers and present that they have this capability.

Speaker #1: And we don't have full visibility of the pipeline on that. But for the ones we're really looking at, when we're looking at the $5 million, it's the Medtronic and Turkish Telco.

Speaker #1: The Turkish Telco is very big, so that is a traditionally really big enterprise. Whereas Medtronic is not, since they don't have a lot of—they don't have a lot of interactions.

Per Ottosson: Whereas Medtronic is not, since they do not have a lot of interactions, it is just very important interactions that they have. What we also see with Medtronic, I will come back to some fully built-out numbers there, but what is really key with Medtronic is that it is on top of ServiceNow, which opens up a market that is very interesting. Because ServiceNow is now very prevalent in US regulated industries. And giving a voice to the ServiceNow data is something a lot of customers are looking at. So that is what we are going to be using as a reference there once that is up. For the Turkish telco, the total built-out volume with our pricing, we moved our pricing slightly from API to minutes, but it is essentially the same thing. It just translates to the same thing.

Speaker #1: It's just very important interactions. That they have. What we also see with Medtronic I'll come back to some fully built-out numbers there. But the Medtronic, what we're really what is really key with Medtronic is that it is on top of ServiceNow.

Speaker #1: Which opens up a market that's very interesting, because ServiceNow is now very prevalent in US regulated industries. And giving a voice to the ServiceNow data is something a lot of customers are looking at.

Per Ottosson: And giving a voice to the ServiceNow data is something a lot of customers are looking at. So that is what we are going to be using as a reference there once that is up. For the Turkish telco, the total built-out volume with our pricing, we moved our pricing slightly from API to minutes, but it is essentially the same thing. It just translates to the same thing.

Speaker #1: So that's what we're going to be using as a reference there once that is. For the Turkish Telco, the total built-out volume with our pricing—we moved our pricing slightly from API to minutes, but it's essentially the same thing.

Speaker #1: It just translates to the same thing. But if you look at the volumes we have addressable, it's about $1 million per month in total.

Per Ottosson: But if you look at the volumes we have addressable, it is about a million dollars per month in total. We are not counting on getting there within this time window at all, right? So we are just counting on getting that first initial baseline revenue, which is the project that is in scope right now. But the total volume in the Turkish telco is very big. Because the Turkish telco also runs customers' contact center. So it is not just their own contact center, but it is also the customer's contact center. I am just going to move quickly over to a summary, and then we will see if there is more questions as well. No, the strategic review went on pause due to all this that happened during April, May, June, July. The strategic review went on pause, and it is being restarted, but this is now going to be a board responsibility fully.

Speaker #1: We don't—we're not counting on getting there within this time window at all, right? So we're just counting on getting that first initial baseline revenue, which is the project that is in scope right now.

Speaker #1: But the total volume in the Turkish telco is very big, because the Turkish telco also runs customers' contact centers. It's not just their own contact center, but it's also the customers' contact centers.

Per Ottosson: So it is not just their own contact center, but it is also the customer's contact center. I am just going to move quickly over to a summary, and then we will see if there is more questions as well. No, the strategic review went on pause due to all this that happened during April, May, June, July. The strategic review went on pause, and it is being restarted, but this is now going to be a board responsibility fully.

Speaker #1: I'm just going to move quickly over to a summary, and then we'll see if there are more questions as well. No, the strategic review went on pause.

Speaker #1: Due to everything that happened during April, May, June, and July, the strategic review was put on pause. It is now being restarted, but going forward, this will be fully a board responsibility.

Speaker #1: And it's going to be restarted, I believe, next Wednesday. It's next week that there is a meeting with JP Morgan to restart the process.

Per Ottosson: And it is going to be restarted, I believe, it is next Wednesday. It is next week that there is a meeting with JP Morgan to restart the process. We did have discussions, but they died off with that profit cash warning, and the process was just too difficult with the lender and the covenants and everything going on. So it died off in April, May timeframe. Everything is blurry now for the last few, but I would say May we published that press release somewhere, right, Fredrik? Probably. Anyway, so I will just move to the summary, and we will see if we get some more questions as well. Obviously, debt eliminated is quite key. It has been controlling our strategy. It is a debt that was accumulated a long time ago, a long time before Fredrik and I started here.

Speaker #1: So I—well, since we had—we did have discussions, but they died off with that profit cash wording, and the process was just too difficult with the lender and the covenants and everything going on.

Speaker #1: So it died off in the April–May time frame. Sort of everything is blurry now for the last few, but I would say it's May we published that press release somewhere, right, Frederick?

Per Ottosson: Everything is blurry now for the last few, but I would say May we published that press release somewhere, right, Fredrik? Probably. Anyway, so I will just move to the summary, and we will see if we get some more questions as well. Obviously, debt eliminated is quite key. It has been controlling our strategy. It is a debt that was accumulated a long time ago, a long time before Fredrik and I started here.

Speaker #1: Probably. Anyway, I'll just move to the summary, and we'll see if we get some more questions as well. Obviously, debt eliminated is quite key.

Speaker #1: It has been controlling our strategy. It's a debt that was accumulated a long, long time ago—long before Frederick and I started here.

Speaker #1: The fact that it is no longer controlling our strategy, but that our strategy can be to grow profitably rather than to grow into a debt repayment, is very positive for the management team.

Per Ottosson: The fact that it is no longer controlling our strategy, but our strategy can grow profitably rather than grow into a debt repayment is very positive for the management team. So I think that is a great thing moving forward. The rights issue is secured. Obviously, it is still time if you are a shareholder to also step in and take your rights if you do wish so. But it is secured, so that is obviously a way to just make sure that it did not come in short, because that wouldn't give us enough runway to run this restructuring process. So the 5 million SEK cost base, I say we are 90% there. We are going to be getting there, so that is a key to having all this work. 70% gross margin, although we had a much lower volumes, that shows that we are delivering now.

Speaker #1: So I think that's a great thing moving forward. The rights issue is secured. Obviously, there's still time, if you are a shareholder, to also step in and take your rights if you wish to do so.

Speaker #1: But it is secured, so that's obviously a way to just make sure that it didn't come in short, because that wouldn't give us enough runway.

Per Ottosson: But it is secured, so that is obviously a way to just make sure that it did not come in short, because that wouldn't give us enough runway to run this restructuring process. So the 5 million SEK cost base, I say we are 90% there. We are going to be getting there, so that is a key to having all this work. 70% gross margin, although we had a much lower volumes, that shows that we are delivering now.

Speaker #1: To run this restructuring process. So the 5 million set cost base I say we're 90% there. We are going to be getting there. So that's something that we're that's a key to having all this having all this work.

Speaker #1: Seventy percent gross margin, although we had a much lower volume. So that shows that we're delivering now. It's going to be even better once we start deploying to Neo 10.

Per Ottosson: It is going to be even better once we start deploying Teneo 10. We are obviously going to be moving also existing customers to Teneo 10. We did lose, I am not sure I commented that here. It is in the report, but we did lose also Swisscom during this period. Swisscom was, of course, one of our last not converted to Software as a Service. Has a lot to do with Switzerland versus EU. And we just were never capable of moving them to Software as a Service. As you probably know and have heard, we have been moving resources away from the on-prem type implementations, the old Teneo implementations, because it is just too costly for us to manage. So that is also something that has impacted the revenue line.

Speaker #1: We're obviously going to be moving existing customers to Neo 10 as well. We did lose—I’m not sure I commented on that here; it's in the report—but we did also lose Swisscom during this period.

Speaker #1: Swisscom was, of course, one of our last not converted to software as a service. It has a lot to do with Switzerland versus the EU, and we just were never capable of moving them to a software as a service.

Per Ottosson: And we just were never capable of moving them to Software as a Service. As you probably know and have heard, we have been moving resources away from the on-prem type implementations, the old Teneo implementations, because it is just too costly for us to manage. So that is also something that has impacted the revenue line.

Speaker #1: As you probably know and have heard, we have been moving resources away from the on-prem type implementations—the old Teneo implementations—because it's just too costly for us to manage.

Speaker #1: So that is also something that has impacted the revenue line. But going forward, it's going to be Teneo 10, which provides better gross margin in customer implementations since it's a low cost of sales.

Per Ottosson: But that going forward, it is going to be Teneo 10, which provides better gross margin in customer implementations such as low cost of sales. The Teneo 10 is really shipped in preview, so it is with customers, but in preview form. What does that mean? It is not fully tested, certified, and compliant yet. It will be tested, certified, and compliant within the next 4 or 5 weeks, and then we are going to be putting it into production and working with that first 1 million pipeline. Then, oops, sorry. Someone got a phone call through my Do Not Disturb here. Then profit insight, obviously, this is what we are building towards now. So instead of trying to grow into a loan repayment with very large customers, we are now going to be building on profitability and happy customers. So that is sort of the end of the presentation.

Speaker #1: The Teneo 10 is really shifting to preview. So it is with customers, but in preview form. What does that mean? It's not fully tested, certified, and compliant.

Speaker #1: Yet it will be tested, certified, and compliant within the next four or five weeks. And then we're going to be putting it into production and working with that first, that $1 million pipeline.

Speaker #1: But then—oops, sorry. Someone got a phone call through my Do Not Disturb here. And then, profit insight—obviously, this is what we're building towards now.

Per Ottosson: Then, oops, sorry. Someone got a phone call through my Do Not Disturb here. Then profit insight, obviously, this is what we are building towards now. So instead of trying to grow into a loan repayment with very large customers, we are now going to be building on profitability and happy customers. So that is sort of the end of the presentation.

Speaker #1: So, instead of trying to grow into a loan repayment with very large customers, we're now going to be building on profitability and happy customers.

Speaker #1: So that's the end of the presentation. Again, I'm very happy to take questions now. I'm going to stop the presentation so I can see if somebody raises their hand.

Per Ottosson: Again, very happy to take questions now. I am going to stop the presentation so I see if somebody raises their hand, I will unmute, and then you can unmute yourself. Okay, there seems to be no further questions. So, I would just like to say we have a great product. It is still very interesting in a global level, but we are now going to grow it from a profitability standpoint, and I think that is the right strategy for the company going forward. So very committed to building that, and again, the whole team is committed on doing that and bonused on doing that as we go forward. Thank you all, and thank you all for being with us during this very difficult transition period. Now it is time for us to deliver real shareholder value going forward. Thank you.

Speaker #1: I will unmute, and then you can unmute yourself. Okay, it seems there are no further questions. So, I'd just like to say we have a great product.

Speaker #1: It is still very interesting on a global level, but we're now going to grow it from a profitability standpoint. And I think that is the right strategy for the company going forward.

Speaker #1: So, we're very committed to building that, and again, the whole team is committed to doing that and bonused on doing that as we go forward.

Per Ottosson: So very committed to building that, and again, the whole team is committed on doing that and bonused on doing that as we go forward. Thank you all, and thank you all for being with us during this very difficult transition period. Now it is time for us to deliver real shareholder value going forward. Thank you.

Speaker #1: Thank you all. And thank you for being with us during this very difficult transition period. Now, it's time for us to deliver real shareholder value going forward.

Speaker #1: Thank you.

[Analyst]: Thank you.

Fredrik Törgren: Thank you.

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