Cerence Inc Financials
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).
Cash generation recovered even as revenue contracted, showing an asset-light model whose accounting losses now overstate operating strain.
From FY2023 to FY2025, operating cash flow rose from$7.5M to$61.2M even though revenue ended lower, so the improvement is coming from better cash conversion rather than simple top-line expansion. Because capex was only$14.4M while net income remained negative at-$18.7M , the business is now throwing off cash faster than the income statement suggests.
Short-term liquidity improved materially: the current ratio moved to 1.9x from 1.2x in FY2024, giving the company more room around near-term payables and obligations. But total liabilities still represent about
Goodwill still makes up about
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Cerence Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
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 0/100, suggesting thin profitability after operating expenses. This is up from -174.9% the prior year.
Cerence Inc's revenue declined 24% year-over-year, from $331.5M to $251.8M. This contraction results in a growth score of 21/100.
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.
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.
Cerence Inc has a free cash flow margin of 18.6%, earning a moderate score of 51/100. The company generates positive cash flow after capital investments, but with room for improvement.
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.
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.
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.
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
Earnings & Revenue
Cerence Inc generated $251.8M in revenue in fiscal year 2025. This represents a decrease of 24.0% from the prior year.
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.
Cerence Inc reported -$18.7M in net income in fiscal year 2025. This represents an increase of 96.8% from the prior year.
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
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.
Cerence Inc had 45M shares outstanding in fiscal year 2025. This represents an increase of 4.9% from the prior year.
Margins & Returns
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.
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.
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.
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
Cerence Inc invested $97.8M in research and development in fiscal year 2025. This represents a decrease of 19.6% from the prior year.
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.
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 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $64.2M-44.2% | $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 |
| Cost of Revenue | $16.9M+7.4% | $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 |
| Gross Profit | $47.3M-52.4% | $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 |
| R&D Expenses | $30.3M+22.7% | $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 |
| SG&A Expenses | $12.8M-60.0% | $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 |
| Operating Income | -$2.4M-108.3% | $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 |
| Interest Expense | $1.5M-11.3% | $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 |
| Income Tax | -$4.7M-113.2% | $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 |
| Net Income | $1.7M+131.9% | -$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 |
| EPS (Diluted) | $0.04+133.3% | $-0.12 | N/A | $-0.06-113.0% | $0.46+180.7% | $-0.57 | N/A | $-7.50 |
CRNC Balance Sheet
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $617.0M+2.5% | $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 |
| Current Assets | $204.3M+9.8% | $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 |
| Cash & Equivalents | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Inventory | $1.0M-16.7% | $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 |
| Accounts Receivable | $63.6M+24.2% | $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 |
| Goodwill | $296.9M-0.7% | $299.0M0.0% | $299.0M0.0% | $299.1M+1.9% | $293.4M+1.5% | $288.9M-2.7% | $296.9M+1.6% | $292.3M |
| Total Liabilities | $458.4M+1.5% | $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 |
| Current Liabilities | $107.3M+8.1% | $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 |
| Long-Term Debt | $172.7M+0.4% | $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 |
| Total Equity | $158.5M+5.4% | $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 |
| Retained Earnings | -$944.0M+0.2% | -$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 |
CRNC Cash Flow Statement
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $14.1M-62.8% | $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 |
| Capital Expenditures | $482K-78.6% | $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 |
| Free Cash Flow | $13.6M-61.8% | $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 |
| Investing Cash Flow | $1.7M+193.2% | -$1.8M-15.5% | -$1.5M+80.8% | -$8.1M-379.5% | -$1.7M-322.0% | $759K+1305.6% | $54K-98.7% | $4.1M |
| Financing Cash Flow | $549K+102.0% | -$27.7M-6763.6% | $415K+100.7% | -$60.2M-57259.0% | -$105K+99.6% | -$27.1M-16318.0% | $167K+136.5% | -$457K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $13K-99.8% | $7.5M+4089.4% | $180K+520.7% | $29K-96.4% | $802K-41.4% | $1.4M+17012.5% | $8K-92.9% | $113K |
CRNC Financial Ratios
| Metric | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.7%-12.6pp | 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% |
| Operating Margin | -3.8%-29.3pp | 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% |
| Net Margin | 2.6%+7.2pp | -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% |
| Return on Equity | 1.1%+4.5pp | -3.5%+5.4pp | -8.9%-7.1pp | -1.8%-16.3pp | 14.5%+34.6pp | -20.1%-5.7pp | -14.5%+188.9pp | -203.3% |
| Return on Assets | 0.3%+1.1pp | -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% |
| Current Ratio | 1.90+0.0 | 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 |
| Debt-to-Equity | 1.09-0.1 | 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 |
| FCF Margin | 21.2%-9.8pp | 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% |
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Frequently Asked Questions
What is Cerence Inc's annual revenue?
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.
How fast is Cerence Inc's revenue growing?
Cerence Inc (CRNC) revenue declined by 24% year-over-year, from $331.5M to $251.8M in fiscal year 2025.
Is Cerence Inc profitable?
No, Cerence Inc (CRNC) reported a net income of -$18.7M in fiscal year 2025, with a net profit margin of -7.4%.
What is Cerence Inc's EBITDA?
Cerence Inc (CRNC) had EBITDA of $8.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Cerence Inc's gross margin?
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.
What is Cerence Inc's operating margin?
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.
What is Cerence Inc's net profit margin?
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.
What is Cerence Inc's return on equity (ROE)?
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.
What is Cerence Inc's free cash flow?
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.
What is Cerence Inc's operating cash flow?
Cerence Inc (CRNC) generated $61.2M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Cerence Inc's total assets?
Cerence Inc (CRNC) had $630.6M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Cerence Inc's capital expenditures?
Cerence Inc (CRNC) invested $14.4M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Cerence Inc spend on research and development?
Cerence Inc (CRNC) invested $97.8M in research and development during fiscal year 2025.
What is Cerence Inc's current ratio?
Cerence Inc (CRNC) had a current ratio of 1.89 as of fiscal year 2025, which is generally considered healthy.
What is Cerence Inc's debt-to-equity ratio?
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.
What is Cerence Inc's return on assets (ROA)?
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.
What is Cerence Inc's Piotroski F-Score?
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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Cerence Inc's earnings high quality?
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.
Can Cerence Inc cover its interest payments?
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.
How financially healthy is Cerence Inc?
Cerence Inc (CRNC) scores 30 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.