Filing Flows › Cerence (CRNC) › Q1 FY26
Cerence (CRNC) Q1 FY26 earnings results (first quarter fiscal 2026)
10-Q filed Feb 5, 2026
Cerence (CRNC) reported revenue of $115M for the first quarter fiscal 2026 (Q1 FY26), +126% from a year earlier and +90% from the quarter before. Operating margin was 25.5%, net loss $5.2M (4.6% of revenue).
Cerence, Q1 FY26: revenue $115M (+126% year over year), operating margin 25.5%, net loss $5.2M, operating cash flow $37.9M. The chart follows the revenue to costs, profit and cash.
| Q1 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $115M | +90% | +126% |
| Operating profit | $29.3M | — | — |
| Net earnings | −$5.2M | — | — |
| Operating cash flow | $37.9M | +197% | +309% |
| Free cash flow | $35.6M | +266% | +352% |
What changed
Revenue was $115.1M in Q1 FY26, up 126% year over year and up 90% from the previous quarter. License was the largest line at 76% of revenue. License added $65.0M year over year (up 286%), 101% of the total change. Professional services declined 12%.
Gross margin was 86.3%, up 21.4 points from a year earlier. Operating profit was $29.3M, a 25.5% margin (up 58.7 points year over year). Operating expenses grew 40% against revenue growth of 126%. The fastest-growing cost line was General & admin (+151%). The quarter ended with a net loss of $5.2M, narrower than the previous quarter's $13.4M loss.
Operating cash flow was $37.9M (up 309% year over year). Non-cash charges added back $2.2M of depreciation and amortization and $5.3M of share-based compensation. Working capital and other items added $35.6M. Capital expenditures of $2.2M left free cash flow of $35.6M.
Questions
What was Cerence's revenue in the first quarter fiscal 2026?
Cerence (CRNC) reported revenue of $115M for the first quarter fiscal 2026 (Q1 FY26), +126% from a year earlier and +90% from the quarter before.
Was Cerence profitable in the first quarter fiscal 2026?
Operating profit was $29.3M (25.5% of revenue) and net loss $5.2M.
Source: Cerence 10-Q on SEC EDGAR.