CRNCNasdaqServices-Prepackaged SoftwareFiscal year ends September 30
Cerence Inc.
Financials through Q3 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 6, 2026
$9.02+0.09 (+1.01%)
Close on Oct 19, 2026
- Market cap
- $430.65M
- P/E (TTM)
- –
- Dividend yield
- –
Margins
Share of revenue, fiscal years 2017 to 2025
Gross margin
72.7%+5.3 pts over 5 years
Operating margin
-0.9%−7.7 pts over 5 years
Net margin
-7.4%−1.9 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -24.0% | -8.4% | -5.3% | – | |
| Gross profit | -25.0% | -7.4% | -3.9% | – | |
| Free cash flow | +283.7% | – | +12.7% | – |
Returns and balance sheet
9 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -1.8% | -12.8% | |
| Return on assets | – | -1.2% | -2.8% | |
| Current ratio | – | 1.26 | 1.89 | |
| Debt to equity | – | 0.28 | 1.33 | |
| Interest coverage | – | 1.0× | -0.2× | |
| Inventory turnover | – | – | 65.4× | |
| Capex to revenue | – | 5.7% | 5.7% | |
| Diluted shares | – | 36M | 43M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Cerence generated $162.39M from operations and spent $165.88M on capital expenditure, dividends and share buybacks. 33% of that went back into the business.
Generated
$162.39M
Used
$165.88M
Capital expenditure$53.97M33%Dividends$00%Share buybacks$111.91M67%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin-7.4%
×Asset turnover0.38×
×Equity multiplier4.57×
=Return on equity, FY2025-12.8%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -7.4% | 0.38× | 4.57× | -12.8% |
| FY2024 | -177.4% | 0.33× | 2.39× | -140.7% |
| FY2023 | -19.1% | 0.23× | 1.86× | -8.0% |
| FY2022 | -94.8% | 0.22× | 1.73× | -35.6% |
| FY2021 | 11.9% | 0.23× | 1.70× | 4.6% |
| FY2020 | -5.5% | 0.21× | 1.56× | -1.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
5of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero-$18.71M
- Cash generatingOperating cash flow above zero$61.17M
- Return on assets improvedROA up on the prior year-45.3% → -2.7%
- Earnings backed by cashOperating cash flow above net income$61.17M vs -$18.71M
- Less leverageLong-term debt to assets fell27.7% → 31.7%
- Better liquidityCurrent ratio rose1.22 → 1.89
- No dilutionShare count did not rise42M → 43M
- Gross margin improvedGross margin up on the prior year73.69% → 72.74%
- More efficientAsset turnover rose0.26 → 0.36