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Cerence (CRNC) earnings and revenue breakdown

Latest: Q3 FY26 · 10-Q filed Aug 6, 2026 · Cerence (CRNC) Q3 FY26 earnings results →

Q3 FY26 Revenue up 12% year over year to $69.6M · 2¢ of every $1 of revenue kept as net profit · operating margin 2.7%

Cerence made $69.6M in Q3 FY26 (+12% Y/Y): License $41.6M, Connected services $15.5M, Professional services $12.5M. Operating margin 2.7%, net earnings $1.5M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Aug 6, 2026.

Revenue$69.6M
Year over year+12%
Operating margin2.7%
Net earnings$1.5M
Operating cash flow$20.0M

Drawing the Sankey…

Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF

What changed this quarter

Revenue was $69.6M in Q3 FY26, up 12% year over year and up 8% from the previous quarter. License was the largest line at 60% of revenue. License added $7.4M year over year (up 22%), 101% of the total change. Professional services declined 18%.

Gross margin was 76.0%, up 2.3 points from Q3 FY25. Operating profit was $1.9M, a 2.7% margin (up 4.2 points year over year). Operating expenses grew 9% against revenue growth of 12%. The fastest-growing cost line was General & admin (+19%). Net earnings were $1.5M. The effective tax rate was 1.0%.

Operating cash flow was $20.0M (down 16% year over year), 1302% of net earnings. Non-cash charges added back $2.8M of depreciation and amortization and $7.5M of share-based compensation. Working capital and other items added $8.1M. Capital expenditures of $340K left free cash flow of $19.6M.

Quarterly history

Cerence revenue by quarterCerence revenue by quarter$54.8MQ4 FY24$78.0MQ2 FY25$62.2MQ3 FY25$60.6MQ4 FY25$115MQ1 FY26$64.2MQ2 FY26$69.6MQ3 FY26
Cerence net earnings by quarterCerence net earnings by quarter−$20.4MQ4 FY24$21.7MQ2 FY25−$2.7MQ3 FY25−$13.4MQ4 FY25−$5.2MQ1 FY26$1.7MQ2 FY26$1.5MQ3 FY26
QuarterFormFiledRevenueY/YOp. marginNet earningsOp. cash flow
Q3 FY2610-QAug 6, 2026$69.6M+12%2.7%$1.5M$20.0M
Q2 FY2610-QMay 7, 2026$64.2M-18%-3.8%$1.7M$14.1M
Q1 FY2610-QFeb 5, 2026$115M+126%25.5%−$5.2M$37.9M
Q4 FY2510-KNov 20, 2025$60.6M+11%-2.9%−$13.4M$12.8M
Q3 FY2510-QAug 6, 2025$62.2M-12%-1.5%−$2.7M$23.7M
Q2 FY2510-QMay 7, 2025$78.0M+15%22.2%$21.7M$15.5M
Q4 FY2410-KNov 25, 2024$54.8M-32%-35.1%−$20.4M$6.1M

Charts

Cerence: revenue growth, year over year and quarter over quarterCerence: revenue growth, year over year and quarter over quarterY/YQ/Q-32%Q4 FY24+15%+42%Q2 FY25-12%-20%Q3 FY25+11%-3%Q4 FY25+126%+90%Q1 FY26-18%-44%Q2 FY26+12%+8%Q3 FY26
Latest (Q3 FY26): Y/Y +12%, Q/Q +8%.
Cerence: where the cash came from (+) and went (−), TTM to Q3 FY26Cerence: where the cash came from (+) and went (−), TTM to Q3 FY26Operating cash flow$84.7MCash drawn (+) / kept (−)−$53.9MNet borrowing (+) / repaid (−)−$27.7MShares issued$8.8MBuybacks−$7.8MCapital spending−$6.1MOther investing$4.0MExchange rates−$2.0M
From the cash-flow statement as filed (SEC XBRL). Cash is fungible: the bars do not say which dollar paid for what.
Cerence: profit against cash, quarter by quarterCerence: profit against cash, quarter by quarterNet incomeOperating cash flow−$20.4M$6.1MQ4 FY24−$24.3M$9.3MQ1 FY25$21.7M$15.5MQ2 FY25−$2.7M$23.7MQ3 FY25−$13.4M$12.8MQ4 FY25−$5.2M$37.9MQ1 FY26$1.7M$14.1MQ2 FY26$1.5M$20.0MQ3 FY26
Latest (Q3 FY26): Net income $1.5M, Operating cash flow $20.0M.
Cerence: diluted shares by fiscal yearCerence: diluted shares by fiscal year36MFY2039MFY2139MFY2240MFY2342MFY2443MFY25
+18.5% since FY20: more shares outstanding (issuance, stock pay).
Cerence in its industry: growth against margin (192 companies, SIC 7372)Cerence in its industry: growth against margin (192 companies, SIC 7372)revenue growth, year over year →↑ operating marginmedian +12%median 0%MSFTORCLCRMADBEXYZINTUNOWSHOPCRWVSNPSPLTRADSKElectronic Arts Inc.TEAMSSNCCDNSRBLXTWLOSNOWTTWOCRWDGENDDOGHUBSVEEVDOCUOKTANETMDBNTNXPTCTYLDBXUDTPAYCMBLYESTCPCTYZETARBRKACIWBSYGWREPATHPCORTDCOCTVFIGKVYOCOURBILLBOXCVLTDUOLSAILGTMMANHLIMEAPPFCCCYOUTTANBLKBSGTLBALRMTENBWKPRGSFRSHAPPNBANDNAVNBRZEQTWONTSKASANCXMVERXRPDSPSCBLFSLYVRNSQLYSFROGMQBBINTANCNOEVCMNABLVIAALKTAVPTSPTPDGDYNXPERAMPLDDDSKILCERTCCSICMRCMKTWHUCKPDFSWEAVSOUNINSEXZODHIIIVLiveperson IncAIMRDNMYPSUPLDKLTRBLZELAWDRTTFBBAIMAPSCCLDEXFYRDVTSSTIEGANNTWKRCATSNALFDCTSVCOMCHXAEYEZDGEADBTWFCFAISPDUOTIDNPDYNQUBTZSPCROCFATNAWRESMSIINLXBLINMSGMGEGSEGGMYSZCXAIGXAIPARAAITXBKYICYABAPCXSPAIDSNYEXYNIDAIATDSIVDAVPRBSKKYUMEWAIFFAUIDGlobal Arena Holding, Inc.ATHRVIDAQXLLIVGUPYYFNGRSVMBTransparentBusiness, Inc.SWMRAMSTTransit Pro Tech Inc.PXLWDNKCDPLSGYGYCRNC (+12%, 3%)
Services-Prepackaged Software; dot size is quarterly revenue; dashed lines are the industry's medians.

Interactive views

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💵Where each $1 goesinteractive

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🌏Named in Asian annual reportsinteractive

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🔄Rotation against the market and its industry (RRG)interactive

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🔍Earnings qualityinteractive

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⚖️Fair value by methodinteractive

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🔭Outlook & guidanceinteractive

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📈Investments: gains and what it boughtinteractive

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🏭Its industry’s money flow (input-output)interactive

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Customers and suppliers named in filings

Sells to

About Cerence

Cerence builds conversational and agentic AI solutions that make interaction with technology feel effortless. With decades of expertise in voice, AI, and edge-to-cloud engineering, we’re trusted by many of the world’s leading automakers, transportation OEMs, consumer brands, and technology companies to build voice powered-interfaces that shape the user experiences of today and tomorrow. While the majority of our business is in the automotive market, our solutions can be leveraged across other areas of transportation - two-wheeled vehicles, trucks, and more - as well as outside of automotive - televisions, smart watches, voice-powered kiosks, and more.

In its own words, from its 10-K, filed Nov 20, 2025.

Cerence against its Services-Prepackaged Software peers

The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +12% against the peers' median +14%. Operating margin: 2.7% against the peers' median 15.2%.

CompanyQuarterRevenueY/YOp. margin
CRNC CerenceQ3 FY26$69.6M+12%2.7%
MSFT MicrosoftQ1 FY27$92.3B+19%49.8%
ORCL OracleQ1 FY27$19.3B+30%34.8%
CRM SalesforceQ2 FY27$11.3B+11%20.5%
ADBE AdobeQ3 FY26$6.8B+13%34.8%
XYZ BlockQ3 2026$6.7B+10%6.4%
INTU IntuitQ4 FY26$4.4B+14%10.9%
NOW ServiceNowQ3 2026$4.1B+20%9.4%
SHOP ShopifyQ3 2026$3.7B+32%15.2%

Source: Cerence 10-Q on SEC EDGAR · CIK 1768267 · Services-Prepackaged Software

13F: who owns CRNC and who is buying

Largest holders of CRNC (13F)Largest holders of CRNC (13F)BlackRock$51.4MVanguard Group$35.8MAmerican Capital Management$27.3MVanguard Capital Management LLC$20.8MVanguard Portfolio Management LLC$18.7MNo Street GP LP$17.3MOne Fin Capital Management LP$16.2MDimensional Fund Advisors LP$15.9MGoldman Sachs Group$15.2MFederated Hermes$14.5M
Funds' net buying of CRNC by quarter (13F)Funds' net buying of CRNC by quarter (13F)−$652K2024-09−$5.2M2024-12$17.0M2025-03−$25.4M2025-06−$178K2025-09$57.0M2025-12−$1.3M2026-03$15.0M2026-06
Value of shares 13F filers added minus the value they sold, each quarter (quarters with most filings in).

More on CRNC

History

Every quarter: Q3 FY26 results · Q2 FY26 results · Q1 FY26 results · Q4 FY25 results · Q3 FY25 results · Q2 FY25 results · Q4 FY24 results

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