Cerence Inc
Cerence Inc provides artificial intelligence and cloud-based software solutions for the automotive industry, enabling voice and data experiences in connected vehicles.
Business. Cerence Inc (CRNC.O) is a technology company operating in the Software & IT Services sector, specifically within the Software industry. The firm utilizes a subscription-based revenue model, with key performance indicators including annual recurring revenue and net revenue retention. No specific operating segments or geographic breakdowns are provided in the available data. The company is listed under the ticker CRNC.O.
Analyst recommendations
5 analysts · consensus HoldAt a glance
What drives this business
The watch-list the newsroom runs for this company — derived from its sector path, sharpened layer by layer. Not investment advice.
News & coverage
0Sector rotation
Developing storylines
Analysis
AI analysisOpportunity
Upcoming catalysts
Scheduled public events. Informational only — not investment advice.
- Company
- EarningsQ3 2026 earnings (expected)2026-07-28 · estimated
- Peers
- EarningsQ2 2026 earnings (expected)2026-07-28 · estimated · ServiceNow (NOW)
- EarningsQ2 2026 earnings (expected)2026-08-28 · estimated · Salesforce (CRM)
- Macro
- Rate decisionReserve Bank of Australia rate decision (press conf.)2026-07-08 · AU
- Rate decisionBank of Canada rate decision (press conf.)2026-07-15 · CA
- Rate decisionEuropean Central Bank rate decision (press conf.)2026-07-16 · EU
- Rate decisionBank of Japan rate decision (press conf.)2026-07-16 · JP
- Rate decisionFederal Reserve rate decision (press conf.)2026-07-29 · US
- Rate decisionBank of England rate decision (press conf.)2026-08-06 · GB
- Macro & political
- ElectionSE Swedish Election2026-09-14 · SE
- ElectionUS U.S. Midterms2026-11-03 · US
- ElectionFR French Legislative2027-06-01 · FR
- Congressional trades
- CongressJosh Gottheimer — Cerence Inc.2022-04-19 · Democrat · NJ · Purchase · $1,001 - $15,000
- CongressJosh Gottheimer — Cerence Inc.2021-08-15 · Democrat · NJ · Sale · $1,001 - $15,000
Pre-earnings brief
Signals & dispatch
Composite-score breakdown
Synthesis
Cerence Inc (CRNC.O) is a technology company operating in the Software & IT Services sector, specifically within the Software industry. The firm utilizes a subscription-based revenue model, with key performance indicators including annual recurring revenue and net revenue retention. No specific operating segments or geographic breakdowns are provided in the available data. The company is listed under the ticker CRNC.O.
Cerence operates with a debt-to-equity ratio of 1.33 and a current ratio of 1.89, indicating moderate leverage and sufficient short-term liquidity to cover obligations. The company holds $84.0 million in cash and equivalents but carries $199.7 million in long-term debt, resulting in a net cash position of -$115.7 million. Free cash flow is negative at -$22.5 million, driven by capital expenditures of -$14.4 million and operating cash flow of $61.2 million.
Profitability metrics show significant underperformance relative to industry norms. Return on equity is -12.4%, and return on assets is -2.97%, both well below the Software industry median for these metrics. Gross margin stands at 72.7% (calculated from $183.1 million gross profit on $251.8 million revenue), but operating losses of -$1.99 million and net losses of -$18.7 million highlight structural challenges in cost control and scalability.
Revenue is concentrated in a single business segment focused on automotive software, with no disclosed geographic breakdown. The company’s exposure to the automotive industry creates a high concentration risk, as demand is tied to vehicle production cycles and OEM partnerships.
Outlook data indicates a 1.2% year-over-year revenue decline in the current fiscal year, with a projected 0.8% contraction in the next fiscal year. This aligns with the company’s historical trend of flat to declining revenue, reflecting challenges in penetrating new markets and retaining existing clients.
Risk factors include liquidity constraints from negative free cash flow and net cash position, as well as the potential for dilution if the company issues shares to fund operations or strategic initiatives. No dilution sources are currently disclosed in filings, but the company’s low dilution risk score suggests minimal near-term pressure.
Recent 10-K filings highlight risks related to dependence on a limited number of customers, regulatory compliance in the automotive and data privacy sectors, and the need for continuous innovation in AI and cloud technologies. No material events or earnings call transcripts were disclosed in the latest data.
- Cerence faces structural profitability challenges with negative ROE and ROA, despite strong gross margins.
- Liquidity is constrained by negative free cash flow and a net cash deficit, requiring close monitoring of debt servicing.
- Revenue concentration in a single segment and industry creates high exposure to automotive sector volatility.
- Analysts assign a neutral-to-bearish outlook, with a mean price target of $10.25 and no strong buy recommendations.
Bull / Bear case
Generated · model-assistedIn focus — financials by report
Valuation
Revenue by segment
Business relationships
Supply chain
Peer comparison
Market position
Stress test
Predictor forecast
| Metric | Our forecast | Guidance | Consensus |
|---|---|---|---|
| EPS | —no estimate | —no estimate | 0,69 |
| Revenue | —no estimate | —no estimate | 313,9M USD |
| Operating income | —no estimate | —no estimate | 40,7M USD |
Options
Short squeeze
Earnings-call key lines
Consensus distribution
sell-side coverageEstimate revisions
consensus EPS · 26-week trendSell-side observations
Themes
ESG
Risk factors
- Net cash is negative after subtracting total debt.
Benchmarks vs cohort
Corporate actions / M&A
FX exposure
Comparable transactions
Derivatives & instruments
Actions
Ask Handelsavisen
- Market data
- Market data cache
- Issuer disclosures
- Public news
- Earnings transcripts
- Consensus estimates
- ESG data
- Ev To Operating Cash Flowenterprise_value / operating_cash_flow
- Return On Equitynet_income / total_equity
- Price To Bookmarket_price / (adjusted_book_value / shares_outstanding_diluted)
- Dilution Ratio(shares_outstanding_diluted - shares_outstanding_basic) / shares_outstanding_basic
- Market Priceinput from market-data provider (delayed close or quote-shim mid)
- Market Capmarket_price * shares_outstanding_diluted
- Cerence Inc Market data — financials · 2026-05-27
- Cerence Inc Market data — analyst estimates · 2026-05-27
- Cerence Inc Market data — ESG · 2026-05-27
Ownership & reference
Top holders
- Investment Managers · as of 2026-03-310,00 %$5M
- Investment Managers · as of 2026-03-310,00 %$9M
- Investment Managers · as of 2026-03-310,00 %$7M
- Brokerage Firms · as of 2026-03-310,00 %$4M
- Investment Managers · as of 2025-12-310,00 %$36M
- Institutional Investor · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$7M
- Institutional Investor · as of 2026-03-310,00 %$2M
- Investment Managers · as of 2026-03-310,00 %$9M
- Investment Managers · as of 2026-03-310,00 %$2M
- Funds · as of 2026-03-310,00 %$2M
- Investment Managers · as of 2024-12-310,00 %$1M
- Investment Managers · as of 2024-06-300,00 %$9M
- Investment Managers · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$3M
- Investment Managers · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$1M
- Investment Managers · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$0M
- Brokerage Firms · as of 2026-03-310,00 %$0M
- Institutional Investor · as of 2026-03-310,00 %$0M
- Investment Managers · as of 2026-03-310,00 %$0M
Leadership
- Brian Matthew KrzanichPresident, Chief Executive Officer, Director
- Stefan OrtmannsPresident, Chief Executive Officer, Director
Insider activity
- Director · Common StockOther 12 968 @ $0,01$130 · 2026-02-12
- Director · Common StockOther 12 968 @ $0,01$130 · 2026-02-12
- Director · Common StockOther 12 968 @ $0,01$130 · 2026-02-12
- Director · Common StockOther 12 968 @ $0,01$130 · 2026-02-12
- Director · Common StockOther 12 968 @ $0,01$130 · 2026-02-12
- EVP, Chief Revenue Officer · Common StockOther 131 694 @ $12,35$1,6M · 2026-01-09
- EVP Product & Technology · Common StockOther 87 796 @ $12,35$1,1M · 2026-01-09
- EVP Chief Admin Officer · Common StockOther 131 694 @ $12,35$1,6M · 2026-01-09
- CFO · Common StockOther 131 694 @ $12,35$1,6M · 2026-01-09
- Director, Chief Executive Officer · Common StockOther 263 338 @ $12,35$3,3M · 2026-01-09
- EVP Product & Technology · Common StockOther 49 905 @ $10,35$517K · 2025-11-21
- Director, Chief Executive Officer · Common StockOther 552 766 @ $10,35$5,7M · 2025-11-21
- EVP Chief Admin Officer · Common StockOther 242 044 @ $10,35$2,5M · 2025-11-21
- CFO · Common StockOther 166 821 @ $10,35$1,7M · 2025-11-21
- EVP, Chief Revenue Officer · Common StockOther 49 905 @ $10,35$517K · 2025-11-21
- Director, Chief Executive Officer · Common StockSold 132 075 @ $11,46$1,5M · 2025-10-09
- EVP Chief Admin Officer · Common StockSold 77 994 @ $12,31$960K · 2025-10-07
- CFO · Common StockSold 38 347 @ $12,76$489K · 2025-10-06
- EVP Chief Admin Officer · Common StockSold 64 784 @ $12,76$826K · 2025-10-06
- EVP, Chief Revenue Officer · Common StockSold 26 872 @ $12,76$343K · 2025-10-06
- EVP Product & Technology · Common StockSold 30 560 @ $12,76$390K · 2025-10-06
- EVP Product & Technology · Common StockOther 90 252 @ $0,01$903 · 2025-10-01
- CFO · Common StockOther 1 795 @ $10,06$18K · 2025-08-15
- EVP, Chief Revenue Officer · Common StockSold 4 000 @ $12,74$51K · 2025-08-14
Short positioning
Geographic breakdown
Intel & risk
Evidence & claims
From filings & derived data- Shareholders' equity (YoY) (2025-12-31 vs 2024-12-31): 24.6%Derived (calculated)
- Total liabilities (YoY) (2025-12-31 vs 2024-12-31): -9.1%Derived (calculated)
- Total assets (YoY) (2025-12-31 vs 2024-12-31): -2.5%Derived (calculated)
- Current ratio (FY 2025-12-31): 1.88xDerived (calculated)
- Debt-to-equity (FY 2025-12-31): 3.00xDerived (calculated)
- Long-term debt (YoY) (2025-12-31 vs 2024-12-31): -32.9%Derived (calculated)
- Current liabilities (annual): USD 99.24MSEC XBRL filing
- Total assets (annual): USD 602.04MSEC XBRL filing
- Total liabilities (annual): USD 451.6MSEC XBRL filing
- Current assets (annual): USD 186.14MSEC XBRL filing
- Shareholders' equity (annual): USD 150.44MSEC XBRL filing
- Shares outstanding (annual): 45.02MSEC XBRL filing
- Long-term debt (annual): USD 171.92MSEC XBRL filing
- Gross margin (FY 2025-09-30): 72.7%Derived (calculated)
- Net margin (FY 2025-09-30): -7.4%Derived (calculated)
- Capex (YoY) (2025-09-30 vs 2024-09-30): 187.3%Derived (calculated)
- Cost of revenue (YoY) (2025-09-30 vs 2024-09-30): -21.3%Derived (calculated)
- EPS (basic) (YoY) (2025-09-30 vs 2024-09-30): 97.0%Derived (calculated)
- EPS (diluted) (YoY) (2025-09-30 vs 2024-09-30): 97.0%Derived (calculated)
- Gross profit (YoY) (2025-09-30 vs 2024-09-30): -25.0%Derived (calculated)
- Net income (YoY) (2025-09-30 vs 2024-09-30): 96.8%Derived (calculated)
- Operating cash flow (YoY) (2025-09-30 vs 2024-09-30): 255.7%Derived (calculated)
- Operating income (YoY) (2025-09-30 vs 2024-09-30): 99.6%Derived (calculated)
- R&D expense (YoY) (2025-09-30 vs 2024-09-30): -19.6%Derived (calculated)