CRNC

MKT CAP:$391M

Cerence Inc.

Market Cap

$391M

Technology·Software - Application·🇺🇸 United States·NASDAQ

Technology·Software App·🇺🇸·NASDAQ

Stock Price

$9.00-$2.56 (-22.15%)

Apr 20, 2026

Company Details

Cerence Inc. provides AI powered virtual assistants for the mobility/transportation market worldwide. The company offers edge software components; cloud-connected components and related toolkits and applications; and virtual assistant coexi...

CEO

Brian Matthew Krzanich

IPO Date

Sep 16, 2019

Website

www.cerence.com

Key Metrics TTM

Revenue

$316M

+29.5% YoY

Net Income

$335.0K

EPS (Diluted)

-$0.03

Free Cash Flow

$75M

Revenue / Share

$7.03

Gross Margin

78.6%

Operating Margin

17.8%

Net Margin

0.1%

FCF Margin

23.6%

P/S

1.2x

P/E

1168.0x

Earnings Reports

Q2 2026

May 6, 2026

PENDING

Q1 2026

Feb 4, 2026

$115M+126.1%EPS -$0.12

FY 2025

Nov 20, 2025

$252M-24.0%EPS -$0.43

Q4 2025

Nov 20, 2025

$61M+10.6%EPS -$0.31

Q3 2025

Aug 6, 2025

$62M-11.8%EPS -$0.06

Revenue & Profitability

Quarter	Revenue	Gross Profit	Operating Income
Q2 22	$86M	$59M	$7M
Q3 22	$89M	$62M	$17M
Q4 22	$58M	$31M	-$13M
Q1 23	$84M	$55M	$2M
Q2 23	$68M	$41M	-$15M
Q3 23	$62M	$40M	-$7M
Q4 23	$81M	$57M	$5M
Q1 24	$138M	$111M	$59M
Q2 24	$68M	$46M	-$8M
Q3 24	$71M	$50M	$4M
Q4 24	$55M	$34M	-$9M
Q1 25	$51M	$33M	-$6M
Q2 25	$78M	$60M	$20M
Q3 25	$62M	$45M	-$98.0K
Q4 25	$61M	$44M	-$1M
Q1 26	$115M	$99M	$37M

Valuation

Quarter	P/S	P/E
Q2 22	1.0x	12.1x
Q3 22	1.1x	—
Q4 22	1.2x	—
Q1 23	1.2x	—
Q2 23	1.3x	—
Q3 23	1.4x	—
Q4 23	1.3x	—
Q1 24	1.1x	—
Q2 24	1.1x	—
Q3 24	1.1x	—
Q4 24	1.2x	—
Q1 25	1.6x	—
Q2 25	1.5x	—
Q3 25	1.6x	—
Q4 25	1.6x	—
Q1 26	1.2x	1168.0x

Operating Cash Flow

Quarter	Operating CF	Free CF
Q2 22	$2M	-$4M
Q3 22	-$4M	-$8M
Q4 22	-$5M	-$8M
Q1 23	-$2M	-$3M
Q2 23	$7M	$5M
Q3 23	-$8M	-$9M
Q4 23	$11M	$10M
Q1 24	-$3M	-$4M
Q2 24	$1M	-$801.0K
Q3 24	$13M	$12M
Q4 24	$6M	$5M
Q1 25	$9M	$8M
Q2 25	$15M	$13M
Q3 25	$24M	$16M
Q4 25	$13M	$10M
Q1 26	$38M	$36M

Capital Expenditures

Quarter	CapEx
Q2 22	$6M
Q3 22	$4M
Q4 22	$3M
Q1 23	$683.0K
Q2 23	$1M
Q3 23	$2M
Q4 23	$2M
Q1 24	$931.0K
Q2 24	$2M
Q3 24	$774.0K
Q4 24	$1M
Q1 25	$1M
Q2 25	$2M
Q3 25	$8M
Q4 25	$3M
Q1 26	$2M

CapEx

OpEx vs Revenue Growth (YoY)

Quarter	Revenue Growth	OpEx Growth
Q2 22	-12.5%	-1.6%
Q3 22	-8.0%	-10.0%
Q4 22	-40.7%	-16.0%
Q1 23	-11.4%	+22.3%
Q2 23	-20.7%	+4.7%
Q3 23	-30.8%	-4.3%
Q4 23	+38.9%	+6.5%
Q1 24	+65.4%	-2.9%
Q2 24	-0.8%	-9.3%
Q3 24	+14.4%	-3.1%
Q4 24	-32.1%	-16.2%
Q1 25	-63.2%	-28.2%
Q2 25	+15.0%	-23.5%
Q3 25	-11.8%	-6.8%
Q4 25	+10.6%	-3.1%
Q1 26	+126.1%	+37.4%

Stock-Based Compensation

Quarter	SBC ($)	% of Revenue
Q2 22	$11M	12.7%
Q3 22	$6M	7.0%
Q4 22	$5M	8.7%
Q1 23	$12M	14.9%
Q2 23	$12M	18.1%
Q3 23	$0	0.0%
Q4 23	$9M	11.1%
Q1 24	$8M	6.1%
Q2 24	$5M	7.0%
Q3 24	$6M	8.7%
Q4 24	$4M	8.0%
Q1 25	$8M	15.3%
Q2 25	$6M	7.6%
Q3 25	$6M	10.2%
Q4 25	$7M	12.0%
Q1 26	$5M	4.6%

OpEx Breakdown

Quarter	R&D	G&A	S&M	SG&A
Q2 22	$30M	—	—	$22M
Q3 22	$26M	—	—	$19M
Q4 22	$25M	—	—	$19M
Q1 23	$29M	—	—	$23M
Q2 23	$28M	—	—	$27M
Q3 23	$30M	—	—	$17M
Q4 23	$35M	—	—	$17M
Q1 24	$33M	—	—	$19M
Q2 24	$32M	—	—	$22M
Q3 24	$31M	—	—	$15M
Q4 24	$25M	—	—	$18M
Q1 25	$21M	—	—	$18M
Q2 25	$23M	—	—	$16M
Q3 25	$27M	—	—	$18M
Q4 25	$26M	$12M	$6M	—
Q1 26	$25M	$32M	$6M	—

Rule of 40

Quarter	Rev Growth %	EBITDA Margin %	Rule of 40
Q2 22	-12.5%	14.7%	2.2
Q3 22	-8.0%	23.4%	15.4
Q4 22	-40.7%	-385.1%	-425.8
Q1 23	-11.4%	9.1%	-2.3
Q2 23	-20.7%	-19.5%	-40.3
Q3 23	-30.8%	-10.1%	-40.8
Q4 23	38.9%	7.9%	46.8
Q1 24	65.4%	46.4%	111.7
Q2 24	-0.8%	-384.1%	-384.9
Q3 24	14.4%	-496.6%	-482.2
Q4 24	-32.1%	-26.8%	-59.0
Q1 25	-63.2%	-25.1%	-88.3
Q2 25	15.0%	28.4%	43.4
Q3 25	-11.8%	7.0%	-4.8
Q4 25	10.6%	-2.8%	7.8
Q1 26	126.1%	29.5%	155.6

Rule of 40

Revenue Segments

Quarter	Connected Services	License	Professional Services
Q2 22	$19M	$46M	$21M
Q3 22	$20M	$46M	$23M
Q4 22	$18M	$19M	$21M
Q1 23	$18M	$45M	$20M
Q2 23	$19M	$31M	$19M
Q3 23	$19M	$26M	$17M
Q4 23	$19M	$43M	$18M
Q1 24	$97M	$21M	$21M
Q2 24	$14M	$36M	$19M
Q3 24	$11M	$43M	$17M
Q1 25	$14M	$23M	$14M
Q2 25	$13M	$51M	$14M
Q3 25	$13M	$34M	$15M
Q4 25	$14M	$32M	$14M
Q1 26	$15M	$88M	$13M

Revenue by Geography

Quarter	Germany	Japan	Other Americas	Other Asia Pacific	Other Europe Middle East And Africa	United States
Q2 22	$23M	$25M	$35.0K	$13M	$3M	$22M
Q3 22	$19M	$17M	$20.0K	$25M	$5M	$23M
Q4 22	$13M	$6M	$42.0K	$15M	$4M	$20M
Q1 23	$18M	$26M	$26.0K	$15M	$4M	$21M
Q2 23	$25M	$6M	$28.0K	$13M	$4M	$22M
Q3 23	$20M	$4M	$106.0K	$11M	$4M	$23M
Q4 23	$25M	$5M	$84.0K	$25M	$4M	$22M
Q1 24	$19M	$6M	$84.0K	$9M	$5M	$99M
Q2 24	$35M	$5M	$52.0K	$8M	$3M	$16M
Q3 24	$18M	$25M	$314.0K	$10M	$5M	$13M
Q1 25	$19M	$6M	$197.0K	$10M	$6M	$9M
Q2 25	$20M	$19M	$450.0K	$24M	$6M	$9M
Q3 25	$21M	$6M	$245.0K	$17M	$6M	$11M
Q4 25	$19M	$7M	$400.0K	$16M	$10M	$9M
Q1 26	$20M	$13M	$338.0K	$65M	$8M	$9M

War Chest

Quarter	Cash	Short-term Investments	Total
Q2 22	$112M	$30M	$142M
Q3 22	$108M	$19M	$127M
Q4 22	$95M	$20M	$115M
Q1 23	$91M	$17M	$107M
Q2 23	$95M	$12M	$107M
Q3 23	$86M	$17M	$103M
Q4 23	$101M	$9M	$110M
Q1 24	$99M	$10M	$109M
Q2 24	$99M	$9M	$109M
Q3 24	$116M	$5M	$121M
Q4 24	$121M	$6M	$127M
Q1 25	$104M	$4M	$108M
Q2 25	$117M	$5M	$123M
Q3 25	$74M	$5M	$79M
Q4 25	$84M	$3M	$87M
Q1 26	$92M	$3M	$95M

Shares Outstanding

Quarter	Shares (Diluted)	QoQ Change	YoY Change
Q2 22	39M	-11.7%	+0.0%
Q3 22	39M	+0.3%	+0.0%
Q4 22	39M	+0.2%	-0.9%
Q1 23	40M	+1.4%	-9.9%
Q2 23	40M	+0.6%	+2.6%
Q3 23	40M	+0.3%	+2.6%
Q4 23	40M	+0.1%	+2.4%
Q1 24	49M	+22.0%	+23.3%
Q2 24	42M	-15.3%	+3.7%
Q3 24	42M	+0.2%	+3.6%
Q4 24	42M	+0.2%	+3.7%
Q1 25	43M	+2.5%	-12.9%
Q2 25	52M	+20.1%	+23.5%
Q3 25	43M	-16.0%	+3.5%
Q4 25	43M	+0.2%	+3.5%
Q1 26	45M	+3.7%	+4.8%

Shares Outstanding

Revenue Per Employee

Period	Revenue/Employee	Employees
Q2 22	$50.8K	2K
Q3 22	$52.4K	2K
Q4 22	$34.2K	2K
Q1 23	$49.2K	2K
Q2 23	$40.2K	2K
Q3 23	$36.3K	2K
Q4 23	$47.5K	2K
Q1 24	$81.4K	2K
Q2 24	$39.9K	2K
Q3 24	$41.5K	2K
Q4 24	$39.1K	1K
Q1 25	$36.4K	1K
Q2 25	$55.7K	1K
Q3 25	$44.5K	1K
Q4 25	$46.6K	1K
Q1 26	$88.5K	1K

Revenue / Employee