Filing Flows › Cerence (CRNC) › Q2 FY25
Cerence (CRNC) Q2 FY25 earnings results (second quarter fiscal 2025)
10-Q filed May 7, 2025
Cerence (CRNC) reported revenue of $78.0M for the second quarter fiscal 2025 (Q2 FY25), +15% from a year earlier and +53% from the quarter before. Operating margin was 22.2%, net earnings $21.7M (27.8% of revenue).
Cerence, Q2 FY25: revenue $78.0M (+15% year over year), operating margin 22.2%, net earnings $21.7M, operating cash flow $15.5M. The chart follows the revenue to costs, profit and cash.
| Q2 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $78.0M | +53% | +15% |
| Gross profit | $60.2M | +82% | +28% |
| Operating profit | $17.4M | — | — |
| Net earnings | $21.7M | — | — |
| Operating cash flow | $15.5M | +67% | 15× |
| Free cash flow | $13.1M | +66% | — |
What changed
Revenue was $78.0M in Q2 FY25, up 15% year over year and up 53% from the previous quarter. License was the largest line at 66% of revenue. License added $15.9M year over year (up 45%), 156% of the total change. Professional Services declined 26%.
Gross margin was 77.1%, up 7.9 points from a year earlier. Operating profit was $17.4M, a 22.2% margin (up 412.0 points year over year). Operating expenses fell 86% while revenue rose 15%. Net earnings were $21.7M. The effective tax rate was -34.9%.
Operating cash flow was $15.5M (up 1381% year over year), 71% of net earnings. Non-cash charges added back $3.3M of depreciation and amortization and $5.9M of share-based compensation. Working capital and other items used $15.5M. Capital expenditures of $2.3M left free cash flow of $13.1M.
Questions
What was Cerence's revenue in the second quarter fiscal 2025?
Cerence (CRNC) reported revenue of $78.0M for the second quarter fiscal 2025 (Q2 FY25), +15% from a year earlier and +53% from the quarter before.
Was Cerence profitable in the second quarter fiscal 2025?
Operating profit was $17.4M (22.2% of revenue) and net earnings $21.7M.
Source: Cerence 10-Q on SEC EDGAR.