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Cerence Inc Financials

CRNC
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE September

This page shows Cerence Inc (CRNC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 8 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 33 / 100
Financial Profile 33/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
20

Cerence Inc has an operating margin of -0.9%, meaning the company retains $-1 of operating profit per $100 of revenue. This below-average margin results in a low score of 20/100, suggesting thin profitability after operating expenses. This is up from -174.9% the prior year.

Growth
0

Cerence Inc's revenue declined 24% year-over-year, from $331.5M to $251.8M. This contraction results in a growth score of 0/100.

Leverage
75

Cerence Inc carries a low D/E ratio of 1.33, meaning only $1.33 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 75/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
34

Cerence Inc's current ratio of 1.89 indicates adequate short-term liquidity, earning a score of 34/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow
71

Cerence Inc converts 18.6% of revenue into free cash flow ($46.8M). This strong cash generation earns a score of 71/100.

Returns
0

Cerence Inc generates a -12.4% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is up from -416.8% the prior year.

Piotroski F-Score Neutral
4/9

Cerence Inc passes 4 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Mixed
-3.27x

For every $1 of reported earnings, Cerence Inc generates $-3.27 in operating cash flow ($61.2M OCF vs -$18.7M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage At Risk
-0.2x

Cerence Inc earns $-0.2 in operating income for every $1 of interest expense (-$2.3M vs $10.2M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue
$251.8M
YoY-24.0%
5Y CAGR-5.3%

Cerence Inc generated $251.8M in revenue in fiscal year 2025. This represents a decrease of 24.0% from the prior year.

EBITDA
$8.3M
YoY+101.5%
5Y CAGR-30.9%

Cerence Inc's EBITDA was $8.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 101.5% from the prior year.

Net Income
-$18.7M
YoY+96.8%

Cerence Inc reported -$18.7M in net income in fiscal year 2025. This represents an increase of 96.8% from the prior year.

EPS (Diluted)
$-0.43
YoY+97.0%

Cerence Inc earned $-0.43 per diluted share (EPS) in fiscal year 2025. This represents an increase of 97.0% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$46.8M
YoY+283.7%
5Y CAGR+12.7%

Cerence Inc generated $46.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 283.7% from the prior year.

Cash & Debt
N/A
Dividends Per Share
N/A
Shares Outstanding
45M
YoY+4.9%
5Y CAGR+3.7%

Cerence Inc had 45M shares outstanding in fiscal year 2025. This represents an increase of 4.9% from the prior year.

Margins & Returns

Gross Margin
72.7%
YoY-0.9pp
5Y CAGR+5.3pp

Cerence Inc's gross margin was 72.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.9 percentage points from the prior year.

Operating Margin
-0.9%
YoY+174.0pp
5Y CAGR-7.7pp

Cerence Inc's operating margin was -0.9% in fiscal year 2025, reflecting core business profitability. This is up 174.0 percentage points from the prior year.

Net Margin
-7.4%
YoY+170.0pp
5Y CAGR-1.9pp

Cerence Inc's net profit margin was -7.4% in fiscal year 2025, showing the share of revenue converted to profit. This is up 170.0 percentage points from the prior year.

Return on Equity
-12.4%
YoY+404.4pp
5Y CAGR-10.5pp

Cerence Inc's ROE was -12.4% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 404.4 percentage points from the prior year.

Capital Allocation

R&D Spending
$97.8M
YoY-19.6%
5Y CAGR+1.9%

Cerence Inc invested $97.8M in research and development in fiscal year 2025. This represents a decrease of 19.6% from the prior year.

Share Buybacks
$2.4M
YoY-75.9%
5Y CAGR-24.0%

Cerence Inc spent $2.4M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 75.9% from the prior year.

Capital Expenditures
$14.4M
YoY+187.3%
5Y CAGR-5.5%

Cerence Inc invested $14.4M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 187.3% from the prior year.

CRNC Income Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Revenue $115.1M+89.8% $60.6M-2.6% $62.2M-20.2% $78.0M+53.3% $50.9M-7.1% $54.8M-22.3% $70.5M+4.0% $67.8M
Cost of Revenue $15.7M-5.5% $16.6M+1.8% $16.3M-8.3% $17.8M0.0% $17.8M-10.5% $19.9M-1.0% $20.1M-3.7% $20.9M
Gross Profit $99.3M+125.8% $44.0M-4.1% $45.9M-23.8% $60.2M+82.0% $33.1M-5.2% $34.9M-30.8% $50.4M+7.4% $46.9M
R&D Expenses $24.7M-6.4% $26.4M-2.8% $27.2M+16.4% $23.3M+11.8% $20.9M-17.3% $25.2M-19.1% $31.2M-2.1% $31.8M
SG&A Expenses $32.0M+156.4% $12.5M+1.1% $12.3M+10.2% $11.2M-12.2% $12.8M-3.3% $13.2M+34.1% $9.8M-41.0% $16.7M
Operating Income $29.3M+1763.5% -$1.8M-85.9% -$948K-105.5% $17.4M+202.5% -$16.9M+11.9% -$19.2M+94.6% -$354.9M-34.2% -$264.4M
Interest Expense $1.7M-2.3% $1.7M-29.2% $2.4M-11.3% $2.7M-20.0% $3.4M+9.4% $3.1M-0.1% $3.1M-0.2% $3.1M
Income Tax $35.3M+347.2% $7.9M+308.5% $1.9M+134.5% -$5.6M-198.8% $5.7M+17084.8% $33K+100.1% -$42.6M-465.4% $11.6M
Net Income -$5.2M+60.8% -$13.4M-391.0% -$2.7M-112.6% $21.7M+189.2% -$24.3M-19.0% -$20.4M+93.5% -$313.5M-12.8% -$278.0M
EPS (Diluted) $-0.12 N/A $-0.06-113.0% $0.46+180.7% $-0.57 N/A $-7.50-12.6% $-6.66

CRNC Balance Sheet

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Total Assets $602.0M-4.5% $630.6M-1.0% $636.8M-4.3% $665.5M+7.8% $617.5M-12.1% $702.4M+4.2% $674.0M-31.7% $987.1M
Current Assets $186.1M-2.4% $190.8M+0.3% $190.1M-18.1% $232.2M+16.0% $200.1M-24.6% $265.5M+10.8% $239.6M+2.9% $232.7M
Cash & Equivalents N/A N/A N/A N/A N/A N/A N/A N/A
Inventory $1.2M+9.1% $1.1M-42.1% $1.9M+58.3% $1.2M-33.3% $1.8M+80.0% $1.0M0.0% $1.0M-9.1% $1.1M
Accounts Receivable $51.2M-13.1% $58.9M-5.3% $62.2M-4.3% $65.0M+36.4% $47.7M-24.0% $62.8M-13.8% $72.8M+9.0% $66.8M
Goodwill $299.0M0.0% $299.0M0.0% $299.1M+1.9% $293.4M+1.5% $288.9M-2.7% $296.9M+1.6% $292.3M-55.1% $650.6M
Total Liabilities $451.6M-5.9% $479.9M-0.3% $481.1M-6.8% $516.3M+3.9% $496.8M-11.5% $561.3M+8.0% $519.8M-0.7% $523.7M
Current Liabilities $99.2M-1.9% $101.2M-5.9% $107.6M-31.9% $157.9M+3.9% $152.0M-29.9% $216.8M+18.3% $183.2M+71.8% $106.7M
Long-Term Debt $171.9M-13.9% $199.7M+0.4% $198.8M+0.6% $197.6M+0.7% $196.2M+0.7% $194.8M+0.7% $193.4M-30.6% $278.9M
Total Equity $150.4M-0.2% $150.7M-3.2% $155.7M+4.3% $149.3M+23.7% $120.7M-14.5% $141.1M-8.5% $154.2M-66.7% $463.4M
Retained Earnings -$945.7M-0.6% -$940.5M-1.4% -$927.1M-0.3% -$924.4M+2.3% -$946.0M-2.6% -$921.7M-2.3% -$901.3M-53.3% -$587.8M

CRNC Cash Flow Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Operating Cash Flow $37.9M+197.2% $12.8M-46.2% $23.7M+53.2% $15.5M+67.1% $9.3M+51.3% $6.1M-52.4% $12.9M+1131.0% $1.0M
Capital Expenditures $2.2M-25.1% $3.0M-60.7% $7.7M+226.5% $2.3M+72.3% $1.4M-5.9% $1.4M+86.8% $774K-58.0% $1.8M
Free Cash Flow $35.6M+265.6% $9.7M-39.3% $16.1M+22.3% $13.1M+66.2% $7.9M+69.1% $4.7M-61.3% $12.1M+1607.9% -$801K
Investing Cash Flow -$1.8M-15.5% -$1.5M+80.8% -$8.1M-379.5% -$1.7M-322.0% $759K+1305.6% $54K-98.7% $4.1M+532.2% -$944K
Financing Cash Flow -$27.7M-6763.6% $415K+100.7% -$60.2M-57259.0% -$105K+99.6% -$27.1M-16318.0% $167K+136.5% -$457K-170.9% $645K
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks $7.5M+4089.4% $180K+520.7% $29K-96.4% $802K-41.4% $1.4M+17012.5% $8K-92.9% $113K-96.8% $3.5M

CRNC Financial Ratios

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Gross Margin 86.3%+13.8pp 72.5%-1.2pp 73.7%-3.4pp 77.1%+12.2pp 65.0%+1.3pp 63.7%-7.8pp 71.5%+2.3pp 69.2%
Operating Margin 25.5%+28.4pp -2.9%-1.4pp -1.5%-23.8pp 22.2%+55.5pp -33.3%+1.8pp -35.1%+468.1pp -503.1%-113.3pp -389.8%
Net Margin -4.5%+17.5pp -22.0%-17.7pp -4.4%-32.1pp 27.8%+75.5pp -47.7%-10.5pp -37.3%+407.3pp -444.5%-34.7pp -409.8%
Return on Equity -3.5%+5.4pp -8.9%-7.1pp -1.8%-16.3pp 14.5%+34.6pp -20.1%-5.6pp -14.5%+188.9pp -203.3%-143.3pp -60.0%
Return on Assets -0.9%+1.3pp -2.1%-1.7pp -0.4%-3.7pp 3.3%+7.2pp -3.9%-1.0pp -2.9%+43.6pp -46.5%-18.4pp -28.2%
Current Ratio 1.880.0 1.89+0.1 1.77+0.3 1.47+0.2 1.32+0.1 1.22-0.1 1.31-0.9 2.18
Debt-to-Equity 1.14-0.2 1.33+0.0 1.28-0.0 1.32-0.3 1.63+0.2 1.38+0.1 1.25+0.7 0.60
FCF Margin 31.0%+14.9pp 16.1%-9.7pp 25.8%+9.0pp 16.8%+1.3pp 15.5%+7.0pp 8.5%-8.6pp 17.1%+18.3pp -1.2%

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Frequently Asked Questions

Cerence Inc (CRNC) reported $251.8M in total revenue for fiscal year 2025. This represents a -24.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Cerence Inc (CRNC) revenue declined by 24% year-over-year, from $331.5M to $251.8M in fiscal year 2025.

No, Cerence Inc (CRNC) reported a net income of -$18.7M in fiscal year 2025, with a net profit margin of -7.4%.

Cerence Inc (CRNC) reported diluted earnings per share of $-0.43 for fiscal year 2025. This represents a 97.0% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Cerence Inc (CRNC) had EBITDA of $8.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Cerence Inc (CRNC) had a gross margin of 72.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Cerence Inc (CRNC) had an operating margin of -0.9% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Cerence Inc (CRNC) had a net profit margin of -7.4% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Cerence Inc (CRNC) has a return on equity of -12.4% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Cerence Inc (CRNC) generated $46.8M in free cash flow during fiscal year 2025. This represents a 283.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Cerence Inc (CRNC) generated $61.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Cerence Inc (CRNC) had $630.6M in total assets as of fiscal year 2025, including both current and long-term assets.

Cerence Inc (CRNC) invested $14.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Cerence Inc (CRNC) invested $97.8M in research and development during fiscal year 2025.

Yes, Cerence Inc (CRNC) spent $2.4M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Cerence Inc (CRNC) had 45M shares outstanding as of fiscal year 2025.

Cerence Inc (CRNC) had a current ratio of 1.89 as of fiscal year 2025, which is generally considered healthy.

Cerence Inc (CRNC) had a debt-to-equity ratio of 1.33 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Cerence Inc (CRNC) had a return on assets of -3.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Cerence Inc (CRNC) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Cerence Inc (CRNC) has an earnings quality ratio of -3.27x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Cerence Inc (CRNC) has an interest coverage ratio of -0.2x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Cerence Inc (CRNC) scores 33 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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