undamentalytics Newsletter
Sign in

Cerence Inc. (CRNC) stock

Add to watchlist

Add holding +

NASDAQ: CRNC Nasdaq Application Software Next results ~November 18, 2026

B Fundamentals grade

Cerence Inc. is a US-listed company in the application software industry. Its financial year ends in September.

Stock price today

Loading chart…

Third-party market data · may be delayed

Fair value per share

~$9.9

Cash-flow model

Base case. Range ~$6.4–$14 across our lower- and higher-growth cases (5.6%–15.6% a year).

Price vs value

Modestly undervalued

The price is inside our value range, 19% below our base value.

Price used: $8.04, November 2, 2026

Cerence Inc. valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

  • Insiders1 buying, 5 selling1 purchase and 7 sales by directors and officers, last 12 monthsInsider trades
  • Funds101 adding, 82 cuttingOf 35 active managers that changed their stake, 20 added; quarter to June 30, 2026Fund buyers and sellers

Value diary

Our note on each quarter Cerence files

Where Cerence stands after its latest 10-Q

Revenue for the twelve months to June 2026 was $309m, up 25.8% on a year earlier, faster than the 18.8% growth a quarter earlier. That growth ranks 15 of 103 among the application software companies we cover. Free-cash-flow margin rose to 25.4% from 17.0% a year earlier. Operating margin widened to 8.7% from -8.0%. Against its peers on growth, profitability, cash generation and balance sheet, it grades B. It passes 2 of our 6 financial-health checks. Our cash-flow model value is $12.03 a share, against a share price of $8.47. At that price, our model says the market is pricing in about 6.0% a year of cash-flow growth for five years, faster than the -4.4% a year revenue growth it has delivered.

Source: 10-Q filed August 6, 2026 on SEC EDGAR · Financials · Valuation

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~November 18, 2026 (estimated)

Cerence Inc.'s trailing-twelve-month revenue grew 25.8% year on year, with a free-cash-flow margin of 25.4%. Where it stands out: change in growth rate of +7.0pp ranks 27 of 184 application software companies we cover.

Our discounted-cash-flow model values the business at ~$9.9 per share in the base case (~$6.4–$14 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Free cash flow diverging from earnings: TTM free cash flow grew 88.4% while net income grew 40.3%: a 48pp divergence.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • Priced below our value. The share price of $8.04 is 23% below our value per share of $10.
  • Fast growth. Revenue grew 25.8% over the last 12 months, against a median of 12.0% for application software companies we cover.
  • Growth speeding up. The growth rate is 7.0 points higher than a quarter earlier.
  • Margins widening. Operating margin is up 16.8 points on a year ago.
  • Strong cash generation. 25.4% of revenue turned into free cash flow, against a median of 15.2% for application software companies we cover.

Things to watch

  • Volatile shares. Over the past year the shares showed annualised volatility of 75% and a beta of 2.6 against the S&P 500.
  • Heavily shorted. 13.0% of the shares available to trade are sold short (8.1 days of average volume to cover).

Latest results: FY2026 Q3

Filed August 6, 2026
Earnings per share
$0.21 against an average estimate of $0.20: beat by 9.2%
Revenue
$70m, up 11.8% on a year earlier
Share reaction
-0.8% in the first session after the results on August 6, 2026, against +0.5% for the S&P 500
Guidance given
revenue $61m to $65m (fiscal fourth quarter ending September 30, 2026); gross margins 72% to 75% (fiscal fourth quarter ending September 30, 2026)
Next report
November 18, 2026; average EPS estimate $0.22

Cerence's figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day-0.6%
  • 1 week-3.4%
  • 1 month-0.6%
  • This year-24.8%
  • 1 year-25.1%
  • 5 years-92.9%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

Loading chart…

Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$309M
Operating margin
8.7%
Net margin
-5.0%
EPS (TTM, diluted)
$-0.35

Growth

Revenue growth
+25.8%
Change in growth rate
+7.0 pts
Share count change
+1.8%

Cash

Free cash flow (TTM)
$78.6M
FCF margin
25.4%
Stock pay % of revenue
8.7%

Earnings

Last results
August 6, 2026
Next results (est.)
November 18, 2026

News & updates

Updated October 31, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Insider trade
  2. Announcement
  3. Results
  4. Guidance

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Cerence Inc. valuation models and calculator

What the price is pricing in

The share price implies about 4.8% a year of cash-flow growth for five years.That is faster than the -4.4% a year revenue growth Cerence has delivered.

  • Priced in4.8%
  • Last 12 months25.8%
  • 3 years a year4.4%
  • 5 years a year-4.4%

Our cash-flow model with every input fixed except growth over the next five years, solved for the growth at which the model value equals the share price ($8.07, Nov 3, 2026). Cash-flow growth then fades to 2.5% a year; discount rate 8.5%. Delivered figures are revenue growth from SEC filings. This is a model exercise, not investment advice or a forecast of the share price. All companies

Fundamentalytics rating

model v1.6 · 2026-11-03
Hold12-month view
12-month price target
~$9.9
Price used
$8.07close November 3, 2026
Implied change
▲ +22%
Uncertainty
High

How we got here: a discounted-cash-flow model of Cerence Inc.'s free cash flow after stock-based pay with after-tax interest added back ($27.8M, FY2026 Q3 TTM), growing -0.3% and 5.7% in the next two years (forecasts, guidance and its record), then back to 10.6% by year five, and fading to 2.5%, discounted at 8.5%. Lower and higher growth cases span ~$6.4–~$14 ; that spread sets a 35% margin before we rate Buy or Sell.

Produced by Fundamentalytics' automated valuation model on November 3, 2026, using delayed market prices. Rating meanings, methodology and conflicts: recommendations disclosure and research disclaimer. General research, not personal advice — it does not consider your circumstances. Prices can fall as well as rise.

Our value per share comes from a discounted-cash-flow model of Cerence Inc.'s free cash flow after stock-based pay ( $27.8M, FY2026 Q3 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

Valuation models

We value Cerence Inc. as an operating company, with every model that fits that kind of business. Cost of equity 12.1%: the 10-year Treasury yield (4.9%) plus a beta of 1.6 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$9.9 ~$6.4–$14 Primary model, counts double
Growth cash-flow model Revenue for this year and next from analysts' consensus, then growth fading to 2.5%; the operating margin moving to profitable peers'; investment needed per dollar of growth from peers; reduced by a failure probability. For young or fast-growing companies. The starting margin is normalized to between -100% and 60%; net margin is a proxy when operating income is not tagged. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$2.7 ~$0.7–$3.8 Left out: far from the other models (more than 3x away from their median)
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$11 ~$9.0–$18 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. — Does not apply: the model gives no positive value
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. — Does not apply: return on equity is not positive
Combined value Weighted average of the models that apply: the primary model (cash-flow model (dcf)) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$10 ~$9.9–$11 2 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Cerence Inc. with Application Software in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

What moves the value

  • Revenue growth 5 points lower ▼ −25%
  • Revenue growth 5 points higher ▲ +32%
  • Free-cash-flow margin 1 point lower ▼ −4%
  • Last year's free-cash-flow margin change, if it persists ▲ +49%
  • Discount rate 1 point higher ▼ −17%
Value per share under different assumptions
Discount rate ↓ / growth → −5% growth0% growth5% growth10% growth15% growth20% growth
7% $5$8$12$18$25$35
8.5% $3$5$8$12$17$24
10% $2$3$6$9$13$18

Valuation multiples over time Market data may be delayed

At fiscal year end 2019202020212022202320242025Now
Share price$17.25$48.87$96.11$15.75$20.37$3.15$12.46$8.04
Market value$628m$1.8bn$3.8bn$617m$819m$131m$538m$351m
+ Net debt (− = net cash)$0$0$0$0$0$0$0$0
Enterprise value$628m$1.8bn$3.8bn$617m$819m$131m$538m$351m
Multiples
Price / sales 2.1x5.4x9.8x1.9x2.8x0.4x2.1x1.1x
Price / earnings 6.3x—82.3x—————
Price / free cash flow 7.5x69.1x60.6x—n/m10.8x11.5x4.5x
EV / EBITDA 15.8x33.9x41.8x———65.2x9.5x

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

34 /100

Weak moat

How hard Cerence's competitive advantage looks for rivals to wear away, judged from 7 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 16 / 20

    Cash operating profit has been a median 12.6% of total assets over 6 years.

  • Pricing power 17 / 20

    Gross margin has been a median 73.0%, moving by 4.6 percentage points (standard deviation) across 7 years.

  • Durability 0 / 20

    Operating margin has been a median 3.3%; its worst year was -155.8%.

  • Cash conversion 12 / 20

    Free cash flow was positive in 6 of 7 years, at a median 6.3% of revenue.

  • Discipline 4 / 20

    The diluted share count rose 8.5% over five years; stock-based pay has been a median 11.3% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (49 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Next results: November 18, 2026, after the close. Analysts expect revenue of $64m and EPS of $0.22 (range $0.17 to $0.25) for the quarter.

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $0.73 +39% $313m +24%
Next $0.79 +7% $289m −8%

Next year's EPS estimate has moved +2.5% in 90 days, across 4 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is +3.2% on 90 days ago. In the last 30 days, 2 analysts raised Cerence Inc.'s forecast and 0 cut it.

Consensus EPS forecast Cerence Inc., last 90 days
$0.70 $0.72 $0.74 $0.76 $0.78 $0.80 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $0.71 Current fiscal year, 60 days ago: $0.71 Current fiscal year, 30 days ago: $0.71 Current fiscal year, 7 days ago: $0.71 Current fiscal year, Now: $0.73 $0.73 Next fiscal year, 90 days ago: $0.77 Next fiscal year, 60 days ago: $0.77 Next fiscal year, 30 days ago: $0.77 Next fiscal year, 7 days ago: $0.77 Next fiscal year, Now: $0.79 $0.79

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $0.71$0.77
60 days ago $0.71$0.77
30 days ago $0.71$0.77
7 days ago $0.71$0.77
Now $0.73$0.79

Earnings against estimates

Quarter toEstimateActualSurprise
Jun 2026 $0.20 $0.21 +9.2%
Mar 2026 $0.14 $0.18 +34.1%
Dec 2025 $0.31 $0.18 −43.3%
Sept 2025 −$0.26 −$0.12 +52.7%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, August 6, 2026
  • Revenue full fiscal year ending September 30, 2026 $310m to $314m
    “Revenue is expected to be in the range of $310 million to $314 million.” source
  • Revenue fiscal fourth quarter ending September 30, 2026 $61m to $65m
    “Revenue is expected to be in the range of $61 million to $65 million, with no fixed license revenue contracts expected to be signed during the quarter.” source
  • GAAP EPS (diluted) full fiscal year ending September 30, 2026 $-0.02 to $0.06 GAAP
    “GAAP EPS (diluted) is expected to be between $(0.02) and $0.06.” source
  • GAAP EPS (diluted) fiscal fourth quarter ending September 30, 2026 $0.02 to $0.10 GAAP
    “GAAP EPS (diluted) is expected to be between $0.02 and $0.10.” source
  • Gross margin full fiscal year ending September 30, 2026 78% to 79%
    “Gross margin is expected to be in the range of 78% to 79%.” source
  • Gross margins fiscal fourth quarter ending September 30, 2026 72% to 75%
    “Gross margins are projected between 72% and 75%.” source
Show 6 more items
  • GAAP net (loss) income full fiscal year ending September 30, 2026 $-1m to $3m GAAP
    “GAAP net (loss) income is projected to be in the range of $(1) million to $3 million.” source
  • Adjusted EBITDA full fiscal year ending September 30, 2026 $66m to $70m Non-GAAP
    “Adjusted EBITDA is expected to be in the range of $66 million to $70 million.” source
  • Net cash provided by operating activities full fiscal year ending September 30, 2026 $81m to $85m
    “Net cash provided by operating activities is projected to be in the range of $81 million to $85 million.” source
  • Free cash flow full fiscal year ending September 30, 2026 $76m to $82m Non-GAAP
    “Free cash flow in the range of $76 million to $82 million.” source
  • GAAP net income fiscal fourth quarter ending September 30, 2026 $1m to $5m GAAP
    “GAAP net income is projected to be between $1 million and $5 million.” source
  • Adjusted EBITDA fiscal fourth quarter ending September 30, 2026 $1m to $5m Non-GAAP
    “Adjusted EBITDA is expected to be in the range of $1 million to $5 million.” source

Figures and quotations are management's, copied from the company's own press release (SEC 8-K exhibit) and checked word for word against it. Forward-looking statements are the company's expectations, not ours and not advice; guidance can change or be missed.

How our valuation uses these forecasts

Our cash-flow model grows Cerence Inc.'s revenue by -0.3% next year and +5.7% the year after, then fades back toward its own record by year five. Next year's rate weighs analysts' consensus (-4.7%, weight 49%) , management guidance (-5.0%, weight 22%) and the company's own record (+10.6%, weight 29%) . How the weights are set.

Analyst recommendations

5 analysts, Oct 2026
Buy120%
Hold480%
Sell00%

Monthly trend

  1. Oct 2026145

Counts of recommendations published by analysts covering Cerence Inc., by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
13.0%
of tradable shares
Days to cover
8.08
at average volume
Short interest, 1 month
−4%
to October 15, 2026
Held by institutions
84%
of shares
Held by insiders
2.4%
of shares
Employees
1,300
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

What moved the share price

Last 12 months −25.1%

$10.73 on October 31, 2025 to $8.04

ThenNowEffect
Revenue (last 12 months) $246m $309m +25.8%
P/S multiple 1.9x 1.1x −39.4%
Share count 43m 44m −1.8%

Biggest factor: p/s multiple. Loss-making at one end, so the split uses price/sales.

Last 3 years −51.5%

$16.59 on November 3, 2023 to $8.04

ThenNowEffect
Revenue (last 12 months) $272m $309m +13.8%
P/S multiple 2.4x 1.1x −51.8%
Share count 39m 44m −11.6%

Biggest factor: p/s multiple. Loss-making at one end, so the split uses price/sales.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
CRNC−24%−76%+6%−60%+36%−25%
Industry peers (median)−7%−50%+19%+2%−21%−14%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
CRNC58%33%58%50%50%36%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
CRNC−48%−83%−58%−89%−66%−53%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since September 16, 2019: 98% from February 12, 2021 to August 6, 2024. Getting back needed a 5530% gain, and the shares have not yet recovered.

Price behaviour

52-week range
$5.96 – $13.10
From 52-week high
−38.6%
vs 50-day average
−3.1%
vs 200-day average
−10.2%
Volatility (1 year)
75%
Beta vs S&P 500
2.62

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
6 up, 6 down
typical move ±29.4%
After a week
7 up, 5 down
typical move ±29.2%
After a month
7 up, 5 down
typical move ±36.1%
Results releasedNext dayS&P 500 next day5 days21 days
August 6, 2026 −0.8% +0.5% −6.6% −7.5%
May 7, 2026 −3.1% +0.5% +2.3% +8.3%
February 4, 2026 −26.2% −1.7% −21.8% −29.2%
November 19, 2025 +29.2% −1.1% +33.5% +43.5%
May 7, 2025 −11.7% +1.1% −3.7% +2.4%
February 6, 2025 +10.5% −0.6% +10.8% −28.9%
November 21, 2024 +155.3% +0.8% +161.2% +177.1%
October 7, 2024 +39.9% 0.0% +22.0% +16.4%
August 8, 2024 +6.3% +2.8% +13.1% +24.1%
July 2, 2024 +5.3% +1.1% +3.5% +1.4%
May 9, 2024 −44.0% +0.7% −48.8% −65.5%
February 6, 2024 −20.2% +1.1% −22.9% −29.5%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Options strategies

All options ideas

How Cerence Inc.’s listed options are priced, and three ways to use them that follow from our valuation. Quotes are delayed, read November 2, 2026. Check the live chain at your broker before trading.

Cash-secured put

Not offered: fundamentals grade B (needs B+ or better).

We suggest selling a put only on well-rated companies, at a strike where the price you would pay if assigned (strike less premium) is at or below our fair value.

Covered call

Not offered: no liquid call at or above our price target — the model says the upside is worth more than any listed strike.

For holders: sell a call at a strike at or above our fair value, so the shares are only sold at a price the model calls full value.

Collar

Not offered: the shares trade below our fair value: a collar caps upside the model expects.

For holders of a stock trading at or above our fair value: buy a put for a floor and sell a call to pay for it.

General research, not personal advice. Options can lose you more than you expect and are not suitable for everyone: put sellers can be made to buy shares that keep falling, call sellers give up gains above the strike, and results or news can move prices sharply. Chances shown are approximations from each option’s delta. Spreads, fees and early assignment are not modelled.

Cerence Inc. in five measures

Fundamentals grade B
Growth Profitability Cash Balance sheet Value

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Cerence Inc.
$200M $250M $300M $350M $400M FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue (TTM), FY23 Q4: $294.5M Revenue (TTM), FY24 Q1: $349.2M Revenue (TTM), FY24 Q2: $348.6M Revenue (TTM), FY24 Q3: $357.5M Revenue (TTM), FY24 Q4: $331.5M Revenue (TTM), FY25 Q1: $244.1M Revenue (TTM), FY25 Q2: $254.3M Revenue (TTM), FY25 Q3: $245.9M Revenue (TTM), FY25 Q4: $251.8M Revenue (TTM), FY26 Q1: $316M Revenue (TTM), FY26 Q2: $302.1M Revenue (TTM), FY26 Q3: $309.5M $309.5M

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period Revenue (TTM)
FY23 Q4 $294.5M
FY24 Q1 $349.2M
FY24 Q2 $348.6M
FY24 Q3 $357.5M
FY24 Q4 $331.5M
FY25 Q1 $244.1M
FY25 Q2 $254.3M
FY25 Q3 $245.9M
FY25 Q4 $251.8M
FY26 Q1 $316M
FY26 Q2 $302.1M
FY26 Q3 $309.5M
Revenue growth, TTM YoY Cerence Inc.
-40% -20% 0% 20% 40% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue growth, TTM YoY, FY23 Q4: -10.2% Revenue growth, TTM YoY, FY24 Q1: 10.1% Revenue growth, TTM YoY, FY24 Q2: 16.5% Revenue growth, TTM YoY, FY24 Q3: 31.5% Revenue growth, TTM YoY, FY24 Q4: 12.6% Revenue growth, TTM YoY, FY25 Q1: -30.1% Revenue growth, TTM YoY, FY25 Q2: -27.1% Revenue growth, TTM YoY, FY25 Q3: -31.2% Revenue growth, TTM YoY, FY25 Q4: -24.0% Revenue growth, TTM YoY, FY26 Q1: 29.5% Revenue growth, TTM YoY, FY26 Q2: 18.8% Revenue growth, TTM YoY, FY26 Q3: 25.8% 25.8%

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period Revenue growth, TTM YoY
FY23 Q4 -10.2%
FY24 Q1 10.1%
FY24 Q2 16.5%
FY24 Q3 31.5%
FY24 Q4 12.6%
FY25 Q1 -30.1%
FY25 Q2 -27.1%
FY25 Q3 -31.2%
FY25 Q4 -24.0%
FY26 Q1 29.5%
FY26 Q2 18.8%
FY26 Q3 25.8%
Operating margin (TTM) Cerence Inc.
-300% -200% -100% 0% 100% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Operating margin (TTM), FY23 Q4: -9.2% Operating margin (TTM), FY24 Q1: 9.6% Operating margin (TTM), FY24 Q2: -60.4% Operating margin (TTM), FY24 Q3: -155.8% Operating margin (TTM), FY24 Q4: -174.9% Operating margin (TTM), FY25 Q1: -268.6% Operating margin (TTM), FY25 Q2: -147.0% Operating margin (TTM), FY25 Q3: -8.0% Operating margin (TTM), FY25 Q4: -0.9% Operating margin (TTM), FY26 Q1: 13.9% Operating margin (TTM), FY26 Q2: 8.0% Operating margin (TTM), FY26 Q3: 8.7% 8.7%

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period Operating margin (TTM)
FY23 Q4 -9.2%
FY24 Q1 9.6%
FY24 Q2 -60.4%
FY24 Q3 -155.8%
FY24 Q4 -174.9%
FY25 Q1 -268.6%
FY25 Q2 -147.0%
FY25 Q3 -8.0%
FY25 Q4 -0.9%
FY26 Q1 13.9%
FY26 Q2 8.0%
FY26 Q3 8.7%
FCF margin (TTM) Cerence Inc.
-10% 0% 10% 20% 30% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 FCF margin (TTM), FY23 Q4: 0.8% FCF margin (TTM), FY24 Q1: 0.4% FCF margin (TTM), FY24 Q2: -1.3% FCF margin (TTM), FY24 Q3: 4.8% FCF margin (TTM), FY24 Q4: 3.7% FCF margin (TTM), FY25 Q1: 9.8% FCF margin (TTM), FY25 Q2: 14.9% FCF margin (TTM), FY25 Q3: 17.0% FCF margin (TTM), FY25 Q4: 18.6% FCF margin (TTM), FY26 Q1: 23.6% FCF margin (TTM), FY26 Q2: 24.8% FCF margin (TTM), FY26 Q3: 25.4% 25.4%

Source: SEC EDGAR filings. Retrieved October 29, 2026.

View chart data
Period FCF margin (TTM)
FY23 Q4 0.8%
FY24 Q1 0.4%
FY24 Q2 -1.3%
FY24 Q3 4.8%
FY24 Q4 3.7%
FY25 Q1 9.8%
FY25 Q2 14.9%
FY25 Q3 17.0%
FY25 Q4 18.6%
FY26 Q1 23.6%
FY26 Q2 24.8%
FY26 Q3 25.4%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-Q. Generated November 3, 2026. Definitions in our methodology.

Financial statements

US$ millions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2018 Sept 2018 2019 Sept 2019 2020 Sept 2020 2021 Sept 2021 2022 Sept 2022 2023 Sept 2023 2024 Sept 2024 2025 Sept 2025 LTM Jun 2026
Income
Revenue 277 303 331 387 328 294 332 252 309
Gross profit 194 204 223 286 231 199 244 183 244
EBITDA 63 40 52 90 −160 −11 −569 8 37
Operating income 37 11 22 61 −184 −27 −580 −2 27
Net income 6 100 −18 46 −311 −56 −588 −19 −15
Diluted EPS $0.16 $2.76 −$0.50 $1.17 −$7.93 −$1.40 −$14.12 −$0.43 −$0.35
Growth (year on year)
Revenue — +9.5% +9.1% +17.0% −15.3% −10.2% +12.6% −24.0% +25.8%
EBITDA — −36.6% +32.2% +72.0% −277.7% — — — —
Operating income — −70.6% +106.7% +170.1% −404.2% — — — —
Net income — +>999% −118.3% — −777.3% — — — —
Diluted EPS — +>999% −118.1% — −777.8% — — — —
Margins
Gross margin 70.0% 67.2% 67.4% 73.9% 70.4% 67.7% 73.7% 72.7% 78.7%
EBITDA margin 22.6% 13.1% 15.9% 23.3% −48.9% −3.8% −171.7% 3.3% 11.9%
Operating margin 13.3% 3.6% 6.8% 15.7% −56.2% −9.2% −174.9% −0.9% 8.7%
Net margin 2.1% 33.1% −5.5% 11.9% −94.8% −19.1% −177.4% −7.4% −5.0%
Free-cash-flow margin 39.3% 27.5% 7.8% 16.1% −6.0% 0.8% 3.7% 18.6% 25.4%
Cash flow
Cash from operations 115 88 45 74 −2 7 17 61 85
Capital spending 7 5 19 12 17 5 5 14 6
Free cash flow 109 84 26 62 −20 2 12 47 79
Stock-based pay 22 30 47 61 28 41 24 27 27
Free cash flow after stock pay 87 54 −22 2 −48 −38 −11 19 52
Balance sheet
Total debt — 0 298 292 286 298 298 210 180
Diluted shares 36m 36m 36m 39m 39m 40m 42m 43m 44m
Returned to shareholders
Buybacks — — 9 46 49 5 10 2 8
Total returned — — 9 46 49 5 10 2 8

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

2 of 6 checks passed · June 30, 2026
What it owns · $621m
Short-term assets $212mLonger-term assets $409m
What it owes, and who funded it · $621m
Short-term liabilities $102mLonger-term liabilities $353mShareholders' equity $166m
  • Short-term assets cover short-term liabilities $212m of assets due within a year against $102m of liabilities due within a year.
  • Short-term assets cover long-term liabilities $212m short-term assets against $353m of longer-dated liabilities.
  • More cash than debt Cash or debt not separately reported. Not assessable.
  • Debt below 40% of shareholders' equity Debt is 104% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 25% to 104% over five years.
  • A year's operating cash flow covers at least 20% of debt $85m of operating cash flow against $173m of debt.
  • Operating profit covers interest at least five times over Operating income of $27m against $6m of interest.

From Cerence Inc.'s latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

FY2026 Q3 TTM
Buybacks (TTM)
$7.8M
Returned to shareholders
10%
of free cash flow
Buybacks, last 3 fiscal years
$17.1M
Diluted share count
+1.8%
year over year
Total shareholder yield
2.1%
dividends 0.0% + buybacks 2.1% of market value
R&D spending
35.7%
of revenue
Days sales outstanding
54 days
receivables vs revenue

Competitors: side by side with peers

Closest by revenue in application software
Last 12 months unless stated CRNC OOMA KARO HUCK MTLS TUYA Median
Revenue, last 12 months $309m $307m $314m $315m $303m $322m $482m
Revenue growth, last 12 months 25.8% 17.2% 25.6% −1.0% 4.8% 7.8% 12.0%
Revenue growth, 3-year average 4.4% 10.3% — −0.3% — — 11.1%
Revenue growth, latest quarter 11.8% 25.4% — −3.7% — — 11.9%
Gross margin 78.7% 61.5% 68.0% 75.4% 57.1% 48.2% 69.2%
Operating margin 8.7% 3.6% 25.8% −9.8% 3.3% 3.6% 1.1%
Operating margin, 3-year average −51.7% −0.1% — −14.3% 3.2% — −0.8%
Net margin −5.0% 3.6% 18.1% −13.4% 2.9% 18.0% 2.1%
Cash from operations / revenue 27.4% 12.1% 35.9% −0.2% 9.5% 25.2% 18.2%
Free-cash-flow margin 25.4% 9.9% 14.8% −2.8% 4.2% 23.0% 15.0%
Free-cash-flow margin, 3-year average 15.7% 7.5% — −3.1% — — 16.2%
Stock pay / revenue 8.7% 4.7% — 15.6% 0.1% 6.9% 9.3%
Change in share count 1.8% 4.0% −0.0% 9.1% −0.1% 3.9% 2.2%

Median of all 185 companies we cover in application software. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

185 application software companies
Measure Company Peer median Rank
Revenue growth Growth 25.8% 12.0% 35 of 184
Change in growth rate Growth +7.0pp +0.2pp 27 of 184
Gross margin Profitability 78.7% 69.8% 41 of 160
Operating margin Profitability 8.7% 1.1% 64 of 181
Net margin Profitability -5.0% 2.1% 109 of 185
Free-cash-flow margin Cash generation 25.4% 15.2% 53 of 180
Stock pay as % of revenue Cash generation 8.7% 9.3% 85 of 177
Long-term debt as % of assets Balance sheet 27.9% 16.9% 68 of 98
Change in share count Balance sheet 1.8% 1.7% 83 of 163
Days sales outstanding Balance sheet 54 days 57 days 74 of 162

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Where the revenue comes from

Fiscal year to September 30, 2025
Products and services
Line of business Revenue Share YoY
Licenses $141M 55.9% ▲ 12.7%
Professional Services $57.8M 23.0% ▼ 21.2%
Connected Services $53.4M 21.2% ▼ 60.0%
Geography
Region Revenue Share YoY
Germany $79.2M 31.5% ▼ 15.8%
Other Asia Pacific $68M 27.0% ▲ 84.3%
United States $38.7M 15.4% ▼ 72.2%
Japan $37.4M 14.9% ▼ 11.9%
Other Europe Middle East and Africa $27.1M 10.8% ▲ 50.4%
Other Americas $1.3M 0.5% ▲ 107.4%

From Cerence Inc.'s 10-K filed November 20, 2025, as tagged in the filing. View filing. Indented rows are part of the line above; their share is of that line. In the bars, the faint bar behind is the year before.

Who owns it

Funds buying and selling
Reported value
$424M
Institutions reporting
193
Shares held vs prior quarter
▲ 3.9%
Positions opened / closed
27 / 25

Top buyers and sellers, Q2 2026: 101 institutions bought and 82 sold ; the biggest buyer was Blackrock, Inc (+373K shares) and the biggest seller Marshall Wace, LLP (−500K). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Blackrock, Inc. $51.4M 4.5M 12.1% ▲ 8.9%
Paradigm Capital Management Inc $28.4M 2.5M 6.7% ▲ 0.2%
American Capital Management Inc $27.3M 2.4M 6.4% ▼ 4.4%
Vanguard Capital Management LLC $20.8M 1.8M 4.9% ▲ 1.8%
Vanguard Portfolio Management LLC $18.7M 1.6M 4.4% ▲ 15.0%
No Street Gp LP $17.3M 1.5M 4.1% 0.0%
One Fin Capital Management LP $16.2M 1.4M 3.8% ▲ 10.0%
Dimensional Fund Advisors LP $15.9M 1.4M 3.8% ▲ 3.8%
Goldman Sachs Group Inc $15.2M 1.3M 3.6% ▲ 23.1%
Federated Hermes, Inc. $14.5M 1.3M 3.4% ▲ 3.5%
State Street Corp $14.1M 1.2M 3.3% ▼ 7.9%
Geode Capital Management, LLC $13.3M 1.2M 3.1% ▲ 7.9%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Cerence Inc.'s complete shareholder register. Values are as reported by the filers ; 1 inconsistently scaled filing rows were excluded.

Insider trading activity

Full insider history and chart
Insider purchases History → $14,040 1 trade by 1 insider, last 12 months Insider sales History → $3.4M 7 trades by 5 insiders · 0% under pre-set plans
Net ▼ $3.4M net selling
Insider Date Trade Shares Price Value
Krzanich Brian M Chief Executive Officer October 9, 2026 Sell 131,715 $8.26 $1.1M
Schanz Nils EVP Product & Technology October 7, 2026 Sell 52,439 $8.00 $419,512
Salinas Jennifer EVP Chief Admin Officer October 7, 2026 Sell 66,153 $8.00 $529,224
Mentz Christian EVP, Chief Revenue Officer October 7, 2026 Sell 48,923 $8.00 $391,384
Krzanich Brian M Chief Executive Officer October 7, 2026 Sell 21,703 $8.00 $173,624
Rodriquez Antonio CFO October 7, 2026 Sell 76,614 $8.00 $612,912
Salinas Jennifer EVP Chief Admin Officer August 10, 2026 Sell 25,998 $8.83 $229,562
Rodriquez Antonio CFO February 15, 2026 Buy 2,000 $7.02 $14,040

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 6 trades and filings

No trades in Cerence Inc. disclosed in the last 12 months; 6 earlier trades on record.

  • Josh Gottheimer(D-NJ 5):Sale (full), $1,001 - $15,000, traded August 15, 2022, filed September 19, 2022
  • Josh Gottheimer(D-NJ 5):Purchase, $1,001 - $15,000, traded April 19, 2022, filed May 16, 2022
  • Josh Gottheimer(D-NJ 5):Sale (full), $1,001 - $15,000, traded August 15, 2021, filed September 16, 2022

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around November 18, 2026 estimated from the company's past filing pattern, not announced

  • August 6, 2026
  • May 7, 2026
  • February 4, 2026
  • November 19, 2025
  • May 7, 2025
  • February 6, 2025

Recent SEC filings

Data status

When each part of this page on Cerence Inc. was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Cerence Inc. in brief

What does Cerence Inc. do?
Cerence Inc. is a US-listed company in the application software industry. Its financial year ends in September.
What is Cerence Inc.'s stock ticker?
Cerence Inc. trades under the ticker CRNC on Nasdaq. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Cerence Inc.'s revenue, and how fast is it growing?
Over its most recent trailing twelve months, Cerence Inc. reported revenue of $309M, 25.8% higher than a year earlier, according to its SEC filings.
What is Cerence Inc.'s free cash flow?
Cerence Inc.'s free-cash-flow margin is 25.4% of revenue over the trailing twelve months, ranking 53 of the 180 application software companies we cover.
What is Cerence Inc.'s fair value (intrinsic value) per share?
Our discounted-cash-flow model of Cerence Inc.'s free cash flow after stock-based pay gives ~$9.9 per share in the base case, and ~$6.4–$14 across growth scenarios. These are model values under stated assumptions — not a price target or a recommendation.
Who are Cerence Inc.'s largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Blackrock, Inc., Paradigm Capital Management Inc and American Capital Management Inc. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
Is Cerence Inc. buying back stock, and does it pay a dividend?
Cerence Inc. spent $7.8M on share repurchases over the trailing twelve months, and its diluted share count still rose 1.8% over the year.
What is Cerence Inc.'s market cap?
On November 2, 2026, Cerence Inc.'s market capitalisation was about $351M and net debt of $0. Market figures come from third-party market data and may be delayed.
How much debt does Cerence Inc. have?
Cerence Inc.'s debt-to-equity ratio is 104.3%, from its latest balance sheet (25.2% five years earlier). The financial health section below sets out its other solvency checks.
Who are Cerence Inc.'s competitors?
In our Application Software peer group, the companies closest to Cerence Inc. are Ooma Inc, Karooooo Ltd., Huckleberry.ai, Inc., Materialise NV and Tuya Inc. The side-by-side comparison below sets their revenue, margins and growth against Cerence Inc.'s.
Are insiders buying or selling Cerence Inc. stock?
Over the last 12 months, Cerence Inc.'s directors and officers reported 1 open-market purchases and 7 sales on Form 4. The insider trading page charts every trade.
When is Cerence Inc.'s next earnings date?
Around November 18, 2026, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Cerence Inc. announces its own schedule.