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Cerence cash flow, quarter by quarter

Latest: Q3 FY26 · from the cash-flow statements filed with the SEC

Free cash flow$19.6M in Q3 FY26 · $78.6M over twelve months

Operating cash flow$20.0M
Capital spending−$340K
Free cash flow+$19.6M
Cash / net income13.0×
Cash conversion cycle49 days

Analysis

In Q3 FY26, Cerence generated $20.0M of operating cash flow and spent $340K on capital projects, leaving free cash flow of $19.6M. That is $3.6M more than in Q3 FY25 ($16.1M).

Over the twelve months to Jun 30, 2026, operating cash flow was $84.7M; the largest uses were net borrowing (+) / repaid (−) ($27.7M), buybacks ($7.8M), capital spending ($6.1M); besides operations, cash came from shares issued ($8.8M), other investing ($4.0M); the cash balance rose by $53.9M.

Operating cash flow was $20.0M against net income of $1.5M — 13.0× profit, cash ran ahead of reported earnings. The largest differences: receivables +$16.7M, stock-based pay +$7.5M, prepaid and other assets −$4.9M.

Its cash conversion cycle was 49 days (receivables 72 + inventory 5 − payables 28).

Free cash flow

Cerence: free cash flow by quarterCerence: free cash flow by quarter$4.7MQ4 FY24$7.9MQ1 FY25$13.1MQ2 FY25$16.1MQ3 FY25$9.7MQ4 FY25$35.6MQ1 FY26$13.6MQ2 FY26$19.6MQ3 FY26
Operating cash flow less capital spending.
Cerence: operating cash flow against capital spendingCerence: operating cash flow against capital spendingOperating cash flowCapital spending$6.1M$1.4MQ4 FY24$9.3M$1.4MQ1 FY25$15.5M$2.3MQ2 FY25$23.7M$7.7MQ3 FY25$12.8M$3.0MQ4 FY25$37.9M$2.2MQ1 FY26$14.1M$482KQ2 FY26$20.0M$340KQ3 FY26
Latest (Q3 FY26): Operating cash flow $20.0M, Capital spending $340K.

Capital allocation, year by year

Cerence: where the cash came from (up) and went (down), by fiscal yearCerence: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedCapital spendingBuybacksFY21: Operating cash flow $74.4MFY21: Net borrowing −$6.7MFY21: Shares issued $11.5MFY21: Capital spending −$12.0MFY21: Buybacks −$45.8M$85.9MFY21FY22: Operating cash flow −$2.1MFY22: Net borrowing −$6.7MFY22: Shares issued $36.1MFY22: Capital spending −$17.4MFY22: Buybacks −$49.0M$36.1MFY22FY23: Operating cash flow $7.5MFY23: Net borrowing $11.1MFY23: Shares issued $5.6MFY23: Capital spending −$5.1MFY23: Buybacks −$4.9M$24.2MFY23FY24: Operating cash flow $17.2MFY24: Net borrowing −$392KFY24: Shares issued $10.9MFY24: Capital spending −$5.0MFY24: Buybacks −$9.9M$28.1MFY24FY25: Operating cash flow $61.2MFY25: Net borrowing −$87.5MFY25: Shares issued $2.9MFY25: Capital spending −$14.4MFY25: Buybacks −$2.4M$64.1MFY25
Over these 5 years operating cash flow totalled $158M; the largest uses were buybacks ($112M) and net borrowing ($101M). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$0
Debt$173M
Net debt$173M

Cerence funds itself: free cash flow was $78.6M over the last twelve months, and $0 of cash and investments stands against $173M of debt.

Where the cash came from and went

Cerence: sources (+) and uses (−) of cash, Q3 FY26Cerence: sources (+) and uses (−) of cash, Q3 FY26Operating cash flow$20.0MCash drawn (+) / kept (−)−$19.3MCapital spending−$340KExchange rates−$215KOther investing−$57KBuybacks−$52KShares issued$51K
Cerence: sources (+) and uses (−) of cash, TTM to Q3 FY26Cerence: sources (+) and uses (−) of cash, 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 profit to cash

Cerence: net income to operating cash flow, Q3 FY26Cerence: net income to operating cash flow, Q3 FY26Net income$1.5MDepreciation & amortization$2.8MStock-based pay$7.5MDeferred taxes−$1.6MReceivables$16.7MPayables−$4.8MAccrued liabilities$117KDeferred revenue$850KPrepaid and other assets−$4.9MOperating cash flow$20.0M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
QuarterReceivable daysInventory daysPayable daysCash conversion cycle
Q3 FY267252849
Q2 FY268163353
Q1 FY264471734
Q4 FY259281882
Q3 FY259393468
Q2 FY256583637
Q1 FY2510073077
Q4 FY2411453385

Every quarter

QuarterOperating cash flowCapital spendingBuybacksNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 FY26$20.0M−$340K−$52K—$51K−$19.3M$19.6M
Q2 FY26$14.1M−$482K−$13K—$562K−$16.1M$13.6M
Q1 FY26$37.9M−$2.2M−$7.5M−$27.6M$7.5M−$8.1M$35.6M
Q4 FY25$12.8M−$3.0M−$180K−$80K$675K−$10.3M$9.7M
Q3 FY25$23.7M−$7.7M−$29K−$60.2M$29K$43.7M$16.1M
Q2 FY25$15.5M−$2.3M−$802K−$104K$811K−$13.3M$13.1M
Q1 FY25$9.3M−$1.4M−$1.4M−$27.1M$1.4M$17.4M$7.9M
Q4 FY24$6.1M−$1.4M−$8K−$89K$264K−$6.0M$4.7M

Cerence: income statement and cash flow

Cerence, Q3 FY26: revenue $69.6M (+12% year over year), operating margin 2.7%. The chart follows the revenue to costs, profit and cash.

Cerence: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.