Cerence Inc. (CRNC) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 5, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q3 FY2026, filed Aug 6, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the CRNC SEC filings page.
Cerence Inc. (CRNC) reported $309.5M in revenue over the twelve months to Jun 30, 2026, up 25.8% from the prior twelve months. 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).
Cerence’s 2025 results show a smaller business nearing operating break-even, with cash generation improving despite persistent losses and leverage.
The key earnings-quality signal is the gap between operating cash flow of$61.2M and a net loss of$18.7M , indicating accounting results were more impaired than cash operations. The same mismatch appeared in FY2024, when operating cash flow was$17.2M alongside a net loss of$588.1M , pointing to charges that affected reported profit more than operating cash.
Revenue fell
The liquidity profile improved: current ratio rose from 1.2x to 1.9x, giving current assets more coverage relative to short-term obligations. Debt-to-equity remained 1.3x while goodwill stood at
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 -1.08, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($361.8M) 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 $69.6M in revenue in Q3 2026. This represents an increase of 11.8% from the same quarter a year earlier. Against the prior quarter it is up 8.4%.
Cerence Inc.'s EBITDA was $4.7M in Q3 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 166.6% from the same quarter a year earlier. Against the prior quarter it is up 1260.8%.
Cerence Inc. reported $1.5M in net income in Q3 2026. This represents an increase of 156.3% from the same quarter a year earlier. Against the prior quarter it is down 8.4%.
Cerence Inc. earned $0.03 per diluted share (EPS) in Q3 2026. This represents an increase of 150.0% from the same quarter a year earlier. Against the prior quarter it is down 25.0%.
Cash & Balance Sheet
Cerence Inc. generated $19.6M in free cash flow in Q3 2026, representing cash available after capex. This represents an increase of 22.2% from the same quarter a year earlier. Against the prior quarter it is up 44.0%.
Cerence Inc. carried $173.5M in long-term debt as of Q3 2026; cash and equivalents are not reported for that period.
Not reported for Q3 2026.
Margins & Returns
Cerence Inc.'s gross margin was 76.0% in Q3 2026, indicating the percentage of revenue retained after direct costs. This is up 2.3 percentage points from the same quarter a year earlier. Against the prior quarter it is up 2.4 percentage points.
Cerence Inc.'s operating margin was 2.7% in Q3 2026, reflecting core business profitability. This is up 4.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 6.5 percentage points.
Cerence Inc.'s net profit margin was 2.2% in Q3 2026, showing the share of revenue converted to profit. This is up 6.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.4 percentage points.
Cerence Inc.'s ROE was 0.9% in Q3 2026, measuring profit generated per dollar of shareholder equity. This is up 2.7 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.1 percentage points.
Capital Allocation
Cerence Inc. invested $29.2M in research and development in Q3 2026. This represents an increase of 7.7% from the same quarter a year earlier. Against the prior quarter it is down 3.5%.
Cerence Inc. spent $52K on share buybacks in Q3 2026, returning capital to shareholders by reducing shares outstanding. This represents an increase of 79.3% from the same quarter a year earlier. Against the prior quarter it is up 300.0%.
Cerence Inc. invested $340K in capex in Q3 2026, funding long-term assets and infrastructure. This represents a decrease of 95.6% from the same quarter a year earlier. Against the prior quarter it is down 29.5%.
CRNC Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Revenue | $69.6M+11.8% | $64.2M-17.7% | $115.1M+126.1% | $60.6M+10.6% | $62.2M-11.8% | $78.0M+15.0% | $50.9M-63.2% | $54.8M-32.1% |
| Cost of Revenue | $16.7M+2.0% | $16.9M-5.2% | $15.7M-11.8% | $16.6M-16.4% | $16.3M-18.7% | $17.8M-14.6% | $17.8M-32.3% | $19.9M-13.5% |
| Gross Profit | $52.9M+15.3% | $47.3M-21.4% | $99.3M+200.4% | $44.0M+26.1% | $45.9M-9.0% | $60.2M+28.2% | $33.1M-70.5% | $34.9M-39.6% |
| R&D Expenses | $29.2M+7.7% | $30.3M+29.9% | $24.7M+18.4% | $26.4M+4.7% | $27.2M-12.9% | $23.3M-26.7% | $20.9M-37.3% | $25.2M-28.2% |
| SG&A Expenses | $14.7M+19.2% | $12.8M+14.3% | $32.0M+150.8% | $12.5M-5.4% | $12.3M+25.5% | $11.2M-32.8% | $12.8M-0.3% | $13.2M+15.2% |
| Operating Income | $1.9M+297.8% | -$2.4M-114.1% | $29.3M+273.1% | -$1.8M+90.8% | -$948K+99.7% | $17.4M+106.6% | -$16.9M-128.9% | -$19.2M-593.5% |
| EBITDA | $4.7M+166.6% | $347K-98.3% | $31.5M+317.4% | $275K+101.7% | $1.8M+100.5% | $20.7M+107.9% | -$14.5M-123.6% | -$16.6M-345.4% |
| Interest Expense | $1.4M-39.8% | $1.5M-45.6% | $1.7M-50.9% | $1.7M-45.0% | $2.4M-22.4% | $2.7M-12.7% | $3.4M+4.9% | $3.1M-1.0% |
| Income Tax | $15K-99.2% | -$4.7M+17.0% | $35.3M+522.5% | $7.9M+23818.2% | $1.9M+104.5% | -$5.6M-148.1% | $5.7M-83.5% | $33K-99.7% |
| Net Income | $1.5M+156.3% | $1.7M-92.3% | -$5.2M+78.4% | -$13.4M+34.6% | -$2.7M+99.1% | $21.7M+107.8% | -$24.3M-201.8% | -$20.4M-76.7% |
| EPS (Basic) | $0.03+150.0% | $0.04-92.0% | -$0.12+78.9% | -$0.31+32.6% | -$0.06+99.2% | $0.50+107.5% | -$0.57-198.3% | -$0.46-58.6% |
| EPS (Diluted) | $0.03+150.0% | $0.04-91.3% | -$0.12+78.9% | -$0.31+32.6% | -$0.06+99.2% | $0.46+106.9% | -$0.57-207.5% | -$0.46-58.6% |
| Diluted Shares (Avg) | 48M+10.4% | 47M-9.0% | 45M+4.8% | N/A | 43M+3.5% | 52M+23.5% | 43M-12.9% | N/A |
CRNC Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $620.9M-2.5% | $617.0M-7.3% | $602.0M-2.5% | $630.6M-10.2% | $636.8M-5.5% | $665.5M-32.6% | $617.5M-51.2% | $702.4M-45.9% |
| Current Assets | $212.3M+11.7% | $204.3M-12.0% | $186.1M-7.0% | $190.8M-28.2% | $190.1M-20.6% | $232.2M-0.2% | $200.1M-12.4% | $265.5M+17.6% |
| Short-Term Investments | $0-100.0% | $0-100.0% | $2.5M-34.6% | $3.4M-37.6% | $5.5M+0.2% | $5.4M-42.1% | $3.9M-60.3% | $5.5M-40.3% |
| Inventory | $800K-57.9% | $1.0M-16.7% | $1.2M-33.3% | $1.1M+10.0% | $1.9M+90.0% | $1.2M+9.1% | $1.8M+100.0% | $1.0M+100.0% |
| Accounts Receivable | $45.9M-26.2% | $63.6M-2.2% | $51.2M+7.5% | $58.9M-6.1% | $62.2M-14.5% | $65.0M-2.6% | $47.7M-18.8% | $62.8M+2.4% |
| Long-Term Investments | N/A | N/A | N/A | $0-100.0% | $0-100.0% | $0-100.0% | $2.6M-67.1% | $3.5M-67.4% |
| Goodwill | $296.0M-1.0% | $296.9M+1.2% | $299.0M+3.5% | $299.0M+0.7% | $299.1M+2.3% | $293.4M-54.9% | $288.9M-68.1% | $296.9M-67.0% |
| Total Liabilities | $454.6M-5.5% | $458.4M-11.2% | $451.6M-9.1% | $479.9M-14.5% | $481.1M-7.4% | $516.3M-1.4% | $496.8M-6.9% | $561.3M-6.9% |
| Current Liabilities | $101.9M-5.2% | $107.3M-32.0% | $99.2M-34.7% | $101.2M-53.3% | $107.6M-41.3% | $157.9M+48.0% | $152.0M+26.7% | $216.8M+46.4% |
| Non-Current Liabilities | $352.6M-5.6% | $351.1M-2.0% | $352.4M+2.2% | $378.7M+9.9% | $373.6M+11.0% | $358.4M-14.1% | $344.8M-16.7% | $344.5M-24.2% |
| Long-Term Debt | $173.5M-12.8% | $172.7M-12.6% | $171.9M-12.4% | $199.7M+2.5% | $198.8M+2.8% | $197.6M-29.2% | $196.2M-29.3% | $194.8M-29.4% |
| Total Equity | $166.4M+6.9% | $158.5M+25.1% | $150.4M+24.6% | $150.7M+6.8% | $155.7M+1.0% | $126.7M-72.7% | $120.7M-83.5% | $141.1M-79.7% |
| Retained Earnings | -$942.5M-1.7% | -$944.0M-2.1% | -$945.7M0.0% | -$940.5M-2.0% | -$927.1M-2.9% | -$924.4M-57.3% | -$946.0M-205.4% | -$921.7M-176.2% |
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. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $20.0M-15.8% | $14.1M-8.8% | $37.9M+309.5% | $12.8M+108.5% | $23.7M+84.4% | $15.5M+1381.4% | $9.3M+428.7% | $6.1M-45.7% |
| Depreciation & Amortization | $2.8M+4.7% | $2.8M-16.6% | $2.2M-10.7% | $2.0M-21.1% | $2.7M+2.0% | $3.3M+24.1% | $2.4M-9.0% | $2.6M-10.6% |
| Stock-Based Compensation | $7.5M+18.5% | $6.8M+13.9% | $5.3M-31.2% | N/A | $6.3M+2.9% | $5.9M+25.0% | $7.8M-7.3% | N/A |
| Capital Expenditures | $340K-95.6% | $482K-79.4% | $2.2M+65.4% | $3.0M+107.7% | $7.7M+888.4% | $2.3M+27.0% | $1.4M+46.1% | $1.4M-5.3% |
| Free Cash Flow | $19.6M+22.2% | $13.6M+3.8% | $35.6M+351.5% | $9.7M+108.8% | $16.1M+32.9% | $13.1M+1738.3% | $7.9M+310.7% | $4.7M-52.0% |
| Investing Cash Flow | -$397K+95.1% | $1.7M+198.9% | -$1.8M-335.7% | -$1.5M-2968.5% | -$8.1M-298.0% | -$1.7M-78.5% | $759K-36.2% | $54K-99.3% |
| Financing Cash Flow | -$1K+100.0% | $549K+622.9% | -$27.7M-2.1% | $415K+148.5% | -$60.2M-13078.8% | -$105K-116.3% | -$27.1M-20733.8% | $167K+103.9% |
| Share Buybacks | $52K+79.3% | $13K-98.4% | $7.5M+450.8% | $180K+2150.0% | $29K-74.3% | $802K-77.3% | $1.4M-78.0% | $8K-86.7% |
Not reported in any period shown, so not listed: Dividends Paid.
CRNC Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q3'2610-Q | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 76.0%+2.3pp | 73.7%-3.5pp | 86.3%+21.3pp | 72.5%+8.9pp | 73.7%+2.2pp | 77.1%+7.9pp | 65.0%-16.0pp | 63.7%-7.8pp |
| Operating Margin | 2.7%+4.2pp | -3.8%-26.1pp | 25.5%+58.7pp | -2.9%+32.2pp | -1.5% | 22.2% | -33.3%-75.6pp | -35.1%-39.9pp |
| Net Margin | 2.2%+6.6pp | 2.6%-25.1pp | -4.5%+43.2pp | -22.0%+15.2pp | -4.4% | 27.8% | -47.7%-65.0pp | -37.3%-22.9pp |
| Return on Equity | 0.9%+2.7pp | 1.1%-16.0pp | -3.5%+16.6pp | -8.9%+5.6pp | -1.8%+201.6pp | 17.1%+77.1pp | -20.1%-23.4pp | -14.5%-12.8pp |
| Return on Assets | 0.3%+0.7pp | 0.3%-3.0pp | -0.9%+3.1pp | -2.1%+0.8pp | -0.4%+46.1pp | 3.3%+31.4pp | -3.9%-5.8pp | -2.9%-2.0pp |
| Current Ratio | 2.08+0.3x | 1.90+0.4x | 1.88+0.6x | 1.89+0.7x | 1.77+0.5x | 1.47-0.7x | 1.32-0.6x | 1.22-0.3x |
| Debt-to-Equity | 1.04-0.2x | 1.09-0.5x | 1.14-0.5x | 1.33-0.1x | 1.280.0x | 1.56+1.0x | 1.63+1.2x | 1.38+1.0x |
| Asset Turnover | 0.110.0x | 0.100.0x | 0.19+0.1x | 0.100.0x | 0.100.0x | 0.120.0x | 0.080.0x | 0.080.0x |
| FCF Margin | 28.2%+2.4pp | 21.2%+4.4pp | 31.0%+15.5pp | 16.1%+7.6pp | 25.8%+8.7pp | 16.8%+18.0pp | 15.5%+18.2pp | 8.5%-3.5pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Cerence Inc. CRNC | FY2025 | $251.8M | -$18.7M | -7.4% | $361.8M | — |
| PubMatic, Inc. PUBM | FY2025 | $282.9M | -$14.0M | -5.0% | $839.0M | 43/100 |
| Rimini Street, Inc. (DE) RMNI | FY2025 | $421.5M | $37.1M | 8.8% | $395.8M | 50/100 |
| ALT5 Sigma Corporation ALTS | FY2025 | $24.8M | -$344.5M | N/A | $119.6M | 23/100 |
| Digital Turbine, Inc. APPS | FY2026 | $565.3M | -$37.7M | -6.7% | $1.4B | 24/100 |
| Mitek Systems, Inc. MITK | FY2025 | $179.7M | $8.8M | 4.9% | $800.9M | 60/100 |
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 P/E ratio?
Cerence Inc. (CRNC) has no price-to-earnings ratio at the moment: net loss, so no earnings multiple (trailing 12 months to June 30, 2026). The market capitalization is $361.8M as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Cerence Inc.'s price-to-sales ratio?
Cerence Inc. (CRNC) trades at 1.2x sales, its market capitalization divided by revenue of $309.5M revenue, trailing 12 months to June 30, 2026. The market capitalization is $361.8M as of Oct 5, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Cerence Inc.'s Altman Z-Score?
Cerence Inc. (CRNC) has an Altman Z-Score of -1.08, 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.