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Cerence Inc.

CRNC

Cerence Inc. • NASDAQ
$11.08 ▲ 6.13% (+0.64)
Market Cap $478.43 M
52w High $27.50
52w Low $5.94
Dividend Yield 0%
P/E -25.77
Volume 626.20K
Outstanding Shares 43.18M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q4-2025 $60.639M ▼ $45.083M ▼ $-13.361M ▼ -22.034% ▼ $-0.31 ▼ $-1.727M ▼
Q3-2025 $62.236M ▼ $45.408M ▲ $-2.721M ▼ -4.372% ▼ $-0.063 ▼ $4.339M ▼
Q2-2025 $78.01M ▲ $39.461M ▲ $21.656M ▲ 27.761% ▲ $0.5 ▲ $22.117M ▲
Q1-2025 $50.896M ▼ $38.389M ▼ $-24.288M ▼ -47.721% ▼ $-0.57 ▼ $-12.779M ▲
Q4-2024 $54.805M $43.239M $-20.416M -37.252% $13.56 $-14.7M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q4-2025 $87.45M ▲ $630.591M ▼ $479.915M ▼ $150.676M ▼
Q3-2025 $79.126M ▼ $636.803M ▼ $481.13M ▼ $155.673M ▲
Q2-2025 $122.781M ▲ $665.546M ▲ $516.277M ▲ $149.269M ▲
Q1-2025 $107.992M ▼ $617.528M ▼ $496.826M ▼ $120.702M ▼
Q4-2024 $126.987M $702.358M $561.261M $141.097M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q4-2025 $-13.361M ▼ $12.752M ▼ $-1.549M ▲ $415K ▲ $10.345M ▲ $9.749M ▼
Q3-2025 $-2.721M ▼ $23.701M ▲ $-8.079M ▼ $-60.227M ▼ $-43.696M ▼ $16.051M ▲
Q2-2025 $21.656M ▲ $15.466M ▲ $-1.685M ▼ $-105K ▲ $13.265M ▲ $13.123M ▲
Q1-2025 $-24.288M ▼ $9.254M ▲ $759K ▲ $-27.084M ▼ $-17.382M ▼ $7.894M ▲
Q4-2024 $-20.416M $6.115M $54K $167K $5.963M $4.669M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Connected Services
Connected Services
 $20.00M ▲$10.00M ▼$10.00M ▲$10.00M ▲
License
License
 $70.00M ▲$20.00M ▼$50.00M ▲$30.00M ▼
Professional Services
Professional Services
 $30.00M ▲$10.00M ▼$10.00M ▲$20.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been relatively flat over the last few years, which is challenging for a company that needs to keep investing heavily in advanced software and AI. Gross profit remains healthy, meaning the core technology still carries attractive economics, but the company has swung from modest profitability to sizable operating losses. That suggests that expenses for R&D, sales, and restructuring or one‑time charges have grown faster than revenue. Net income and earnings per share have been deeply negative most recently, indicating that the business is still in a turnaround phase rather than in a steady state. The main story in the income statement is: solid underlying product margins, but not yet matched by a cost structure and scale that support consistent profitability.

Balance Sheet

Balance Sheet The balance sheet has shrunk meaningfully over time, with total assets and equity both moving down. Equity has fallen sharply, largely reflecting accumulated losses and possible impairments, leaving a thinner cushion to absorb future setbacks. Debt, by contrast, has stayed broadly similar, which means leverage has effectively increased as the company has gotten smaller. Cash on hand is modest but has not collapsed, suggesting some ongoing ability to manage operations but limited room for large, self‑funded bets without improvement in performance or outside capital. Overall, the balance sheet is serviceable but clearly weaker and more fragile than a few years ago, making execution and risk management more important.

Cash Flow

Cash Flow Despite accounting losses, the company has been able to generate slightly positive operating cash flow in recent years, which is an encouraging sign. Free cash flow has hovered around breakeven to modestly positive, helped by low capital spending requirements typical of software businesses. This means the company is not burning large amounts of cash at the moment, but it is also not producing strong, surplus cash that could quickly rebuild the balance sheet or fund major new initiatives on its own. The cash flow profile is that of a business in repair mode: not in crisis, but with limited financial flexibility until profitability and scale improve.

Competitive Edge

Competitive Edge Cerence holds a distinctive position in automotive AI, with deep, long‑standing relationships with major global carmakers and its software embedded in a large share of vehicles on the road. Its specialization in in‑car voice and conversational systems, combined with automotive‑grade reliability and safety requirements, creates meaningful switching costs for automakers and a real barrier for new entrants. Proprietary data sets, a sizable patent portfolio, and its role as a white‑label provider all strengthen this moat. However, it operates in a high‑stakes arena where powerful tech giants are pushing their own assistants into vehicles, and where automakers are rethinking software strategies. The company’s competitive edge is real, but it must be defended continuously through innovation, performance, and thoughtful partnering.

Innovation and R&D

Innovation and R&D Innovation is clearly at the center of Cerence’s strategy. The company is moving beyond basic voice commands into more human‑like, proactive assistants that blend on‑device models with cloud AI, including its own embedded language models and the Cerence xUI platform. Features like multi‑assistant “arbitration,” in‑car payments, tight integration with productivity tools, and partnerships with leading chip and AI providers show a push to stay at the cutting edge of the software‑defined vehicle. Cerence is also exploring adjacent markets such as two‑wheelers, commercial equipment, and other transportation modes. The key tension is that this level of R&D intensity is expensive, and the firm’s current financial profile leaves less room for missteps, making disciplined prioritization and timely commercialization of its innovations critical.

Summary

Cerence combines a strong strategic niche with a currently stressed financial profile. On the one hand, it is deeply embedded in the automotive value chain, owns specialized technology that is hard to replicate, and has a clear roadmap into more advanced, cloud‑connected, and generative AI‑driven experiences in vehicles and beyond. On the other hand, revenue has not grown meaningfully in recent years, profitability has deteriorated into sizable losses, equity has eroded, and the company has only modest cash and limited balance sheet flexibility. Cash flows are just about holding up, but not yet at levels that comfortably support both debt and ambitious R&D. The central question going forward is whether Cerence can translate its strong product position and innovation pipeline into steadier growth, higher recurring revenue, and a return to sustainable profitability before financial constraints start to bite harder.

NEWS

November 19, 2025 · 4:05 PM UTC

Cerence Beats Upper End of Guidance, Delivering Strong Fourth Quarter and Fiscal Year 2025 Results; Projects 8% Growth in Core Technology Business in FY26

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November 5, 2025 · 8:00 AM UTC

Cerence to Announce Fiscal Fourth Quarter Results on November 19, 2025

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October 16, 2025 · 8:00 AM UTC

Cerence xUI Selected as AutoTech AI Solution of the Year by AutoTech Breakthrough

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October 10, 2025 · 4:30 PM UTC

Cerence Announces Equity Grant to Employee Under Inducement Plan Pursuant to Nasdaq Listing Rule 5635(c)(4)

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September 4, 2025 · 5:15 PM UTC

Cerence AI Files Patent Infringement Suit Against Apple

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