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
Operating cash flow less capital spending.Latest (Q3 FY26): Operating cash flow $20.0M, Capital spending $340K.
Capital allocation, year by year
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
From profit to cash
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.
Quarter
Receivable days
Inventory days
Payable days
Cash conversion cycle
Q3 FY26
72
5
28
49
Q2 FY26
81
6
33
53
Q1 FY26
44
7
17
34
Q4 FY25
92
8
18
82
Q3 FY25
93
9
34
68
Q2 FY25
65
8
36
37
Q1 FY25
100
7
30
77
Q4 FY24
114
5
33
85
Every quarter
Quarter
Operating cash flow
Capital spending
Buybacks
Net borrowing (+) / repaid (−)
Shares issued
Cash 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.
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.