Cerence Inc Financials
Cerence Inc (CRNC) reported $251.8M in revenue for fiscal year 2025, down 24.0% from the prior fiscal year. This page shows its 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
Cerence Inc does not currently provide enough eligible data for a peer-relative financial health score, so none is published. The signals and metrics below are current.
Cerence Inc scores -1.07, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($367.3M) relative to total liabilities ($479.9M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
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.
Cerence Inc reported a net loss of $18.7M while generating $61.2M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
Cerence Inc reported an operating loss of $2.3M against $10.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.
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 carried $199.7M in long-term debt as of fiscal year 2025; cash and equivalents are not reported for that period.
Not reported for fiscal year 2025.
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. No change is given against fiscal year 2024: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.
Cerence Inc's net profit margin was -7.4% in fiscal year 2025, showing the share of revenue converted to profit. No change is given against fiscal year 2024: its reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.
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
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | $309.5M | $251.8M-24.0% | $331.5M+12.6% | $294.5M-10.2% | $327.9M-15.3% | $387.2M+17.0% | $331.0M+9.1% | $303.3M+9.5% | $277.0M |
| Cost of Revenue | $65.9M | $68.6M-21.3% | $87.2M-8.3% | $95.2M-2.1% | $97.2M-3.9% | $101.1M-6.3% | $107.9M+8.6% | $99.3M+19.7% | $83.0M |
| Gross Profit | $243.6M | $183.1M-25.0% | $244.3M+22.6% | $199.3M-13.6% | $230.7M-19.4% | $286.1M+28.2% | $223.1M+9.4% | $204.0M+5.1% | $194.0M |
| R&D Expenses | $110.6M | $97.8M-19.6% | $121.6M-1.4% | $123.3M+15.1% | $107.1M-4.4% | $112.1M+26.1% | $88.9M-4.5% | $93.1M+15.0% | $81.0M |
| SG&A Expenses | $72.0M | $48.8M-7.0% | $52.5M-9.4% | $57.9M+35.8% | $42.7M-25.1% | $57.0M+15.4% | $49.4M+90.5% | $25.9M+30.5% | $19.9M |
| Operating Income | $27.0M | -$2.3M+99.6% | -$579.9M-2032.2% | -$27.2M+85.2% | -$184.3M-404.2% | $60.6M+170.1% | $22.4M+106.7% | $10.9M-70.6% | $36.9M |
| Interest Expense | $6.3M | $10.2M-18.6% | $12.6M-15.0% | $14.8M+2.6% | $14.4M+2.8% | $14.0M-38.4% | $22.7M | N/A | N/A |
| Income Tax | $38.6M | $9.9M+185.3% | $3.5M-82.5% | $19.9M-82.3% | $112.1M+4617.0% | $2.4M+150.3% | -$4.7M+94.7% | -$89.1M-388.1% | $30.9M |
| Net Income | -$15.4M | -$18.7M+96.8% | -$588.1M-945.4% | -$56.3M+81.9% | -$310.8M-777.3% | $45.9M+350.6% | -$18.3M-118.3% | $100.3M+1604.9% | $5.9M |
| EPS (Diluted) | — | -$0.43+97.0% | -$14.12-908.6% | -$1.40+82.3% | -$7.93-777.8% | $1.17+334.0% | -$0.50-118.1% | $2.76+1625.0% | $0.16 |
TTM is the trailing twelve months, Q4 FY2025 through Q3 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
CRNC Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $630.6M-10.2% | $702.4M-45.9% | $1.3B-1.6% | $1.3B-22.7% | $1.7B+1.1% | $1.7B+13.7% | $1.5B | N/A |
| Current Assets | $190.8M-28.2% | $265.5M+17.6% | $225.7M-0.8% | $227.5M-20.7% | $287.0M+14.8% | $250.1M+170.9% | $92.3M | N/A |
| Inventory | $1.1M+10.0% | $1.0M+100.0% | $500K | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $58.9M-6.1% | $62.8M+2.4% | $61.3M+35.9% | $45.1M-1.1% | $45.6M-10.4% | $50.9M-22.6% | $65.8M | N/A |
| Goodwill | $299.0M+0.7% | $296.9M-67.0% | $900.3M+1.1% | $890.8M-21.1% | $1.1B0.0% | $1.1B+0.8% | $1.1B-0.1% | $1.1B |
| Total Liabilities | $479.9M-14.5% | $561.3M-6.9% | $602.7M-0.5% | $605.5M-10.1% | $673.8M-7.4% | $727.5M+75.0% | $415.7M | N/A |
| Current Liabilities | $101.2M-53.3% | $216.8M+46.4% | $148.1M+0.7% | $147.0M-11.1% | $165.3M-16.8% | $198.6M+53.8% | $129.1M | N/A |
| Long-Term Debt | $199.7M+2.5% | $194.8M-29.4% | $276.0M+6.4% | $259.4M-2.1% | $265.1M-0.7% | $266.9M | N/A | N/A |
| Total Equity | $150.7M+6.8% | $141.1M-79.7% | $694.9M-2.5% | $713.0M-30.9% | $1.0B+7.5% | $960.1M-10.1% | $1.1B+7.5% | $993.3M |
| Retained Earnings | -$940.5M-2.0% | -$921.7M-176.2% | -$333.7M-17.8% | -$283.2M-1127.1% | $27.6M+250.6% | -$18.3M | N/A | N/A |
Not reported in any period shown, so not listed: Cash & Equivalents.
CRNC Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $84.7M | $61.2M+255.7% | $17.2M+129.3% | $7.5M+450.7% | -$2.1M-102.9% | $74.4M+66.1% | $44.8M-49.1% | $88.1M-23.6% | $115.3M |
| Capital Expenditures | $6.1M | $14.4M+187.3% | $5.0M-2.5% | $5.1M-70.6% | $17.4M+44.8% | $12.0M-36.6% | $19.0M+320.9% | $4.5M-30.6% | $6.5M |
| Free Cash Flow | $78.6M | $46.8M+283.7% | $12.2M+413.9% | $2.4M+112.1% | -$19.6M-131.4% | $62.3M+141.9% | $25.8M-69.1% | $83.6M-23.2% | $108.7M |
| Investing Cash Flow | -$2.1M | -$10.6M-341.0% | $4.4M-24.8% | $5.8M+155.1% | -$10.6M+74.6% | -$41.6M-35.7% | -$30.7M-579.1% | -$4.5M+94.8% | -$86.3M |
| Financing Cash Flow | -$26.7M | -$87.0M-38767.1% | $225K+104.2% | -$5.3M+72.8% | -$19.6M+52.8% | -$41.5M-134.1% | $121.6M+245.5% | -$83.6M-188.6% | -$28.9M |
| Share Buybacks | $7.8M | $2.4M-75.9% | $9.9M+101.6% | $4.9M-90.0% | $49.0M+7.1% | $45.8M+388.5% | $9.4M | N/A | N/A |
Not reported in any period shown, so not listed: Dividends Paid.
TTM is the trailing twelve months, Q4 FY2025 through Q3 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
CRNC Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.7%-0.9pp | 73.7%+6.0pp | 67.7%-2.7pp | 70.4%-3.5pp | 73.9%+6.5pp | 67.4%+0.2pp | 67.3%-2.8pp | 70.0% |
| Operating Margin | -0.9% | -174.9% | -9.2%+47.0pp | -56.2%-71.9pp | 15.7%+8.9pp | 6.8%+3.2pp | 3.6%-9.7pp | 13.3% |
| Net Margin | -7.4% | -177.4% | -19.1%+75.7pp | -94.8%-106.7pp | 11.8%+17.4pp | -5.5%-38.6pp | 33.1%+30.9pp | 2.1% |
| Return on Equity | -12.4%+404.4pp | -416.8%-408.7pp | -8.1%+35.5pp | -43.6%-48.0pp | 4.5%+6.4pp | -1.9%-11.3pp | 9.4%+8.8pp | 0.6% |
| Return on Assets | -3.0%+80.8pp | -83.7%-79.4pp | -4.3%+19.2pp | -23.6%-26.3pp | 2.7%+3.8pp | -1.1%-7.8pp | 6.8% | N/A |
| Current Ratio | 1.89+0.7x | 1.22-0.3x | 1.520.0x | 1.55-0.2x | 1.74+0.5x | 1.26+0.5x | 0.72 | N/A |
| Debt-to-Equity | 1.33-0.1x | 1.38+1.0x | 0.400.0x | 0.36+0.1x | 0.260.0x | 0.28-0.1x | 0.39 | N/A |
| FCF Margin | 18.6%+14.9pp | 3.7%+2.9pp | 0.8%+6.8pp | -6.0%-22.1pp | 16.1%+8.3pp | 7.8%-19.8pp | 27.6%-11.7pp | 39.3% |
Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin.
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Where Cerence Inc Ranks
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 24.0% 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 Altman Z-Score?
Cerence Inc (CRNC) has an Altman Z-Score of -1.07, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
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) reported a net loss of $18.7M while generating $61.2M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. 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) reported an operating loss of $2.3M against $10.2M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. 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.