Filing Flows › Cerence (CRNC) › Q2 FY26 › vs Q1 FY26
Cerence (CRNC) Q2 FY26 vs Q1 FY26 (quarter over quarter)
Cerence's revenue fell $50.9M (-44%) from $115M in Q1 FY26 to $64.2M in Q2 FY26. The biggest changes: License −$50.2M (-57%); Professional services −$1.5M (-12%); Connected services +$778K (+5%).
Cerence, Q2 FY26: revenue $64.2M (-18% year over year), operating margin -3.8%, net earnings $1.7M, operating cash flow $14.1M. The chart draws each line against Q1 FY26, the increases inside each band.
Margins
| Q2 FY26 | Q1 FY26 | Change | |
|---|---|---|---|
| Free cash flow margin | 21.2% | 31.0% | -9.7 pts |
Every line
| Line | Q2 FY26 | Q1 FY26 | Change | % |
|---|---|---|---|---|
| License | $37.6M | $87.8M | −$50.2M | -57% |
| Connected services | $15.3M | $14.5M | $778K | +5% |
| Professional services | $11.3M | $12.8M | −$1.5M | -12% |
| Revenue | $64.2M | $115M | −$50.9M | -44% |
| Income tax benefit | $4.7M | −$35.3M | $40.0M | — |
| Costs & expenses | $68.8M | $121M | −$52.2M | -43% |
| Operating costs | $66.6M | $85.8M | −$19.1M | -22% |
| Interest & other, net | $534K | −$750K | $1.3M | — |
| Net earnings | $1.7M | −$5.2M | $6.9M | — |
| Cost of revenue | $16.9M | $15.7M | $1.2M | +7% |
| Research & development | $30.3M | $24.7M | $5.6M | +23% |
| Sales & marketing | $6.5M | $5.6M | $962K | +17% |
| General & admin | $12.8M | $32.0M | −$19.2M | -60% |
| Operating cash sources | $14.1M | $37.9M | −$23.8M | -63% |
| Depreciation & amortization | $2.8M | $2.2M | $607K | +28% |
| Share-based compensation | $6.8M | $5.3M | $1.4M | +26% |
| Working capital & other | $2.9M | $35.6M | −$32.7M | -92% |
| Operating cash flow | $14.1M | $37.9M | −$23.8M | -63% |
| Free cash flow (OCF − capex) | $13.6M | $35.6M | −$22.0M | -62% |
| Capital expenditures | $482K | $2.2M | −$1.8M | -79% |
Questions
How much did Cerence's revenue grow quarter over quarter in Q2 FY26?
Cerence's revenue fell $50.9M (-44%) from $115M in Q1 FY26 to $64.2M in Q2 FY26.
What drove Cerence's revenue change in Q2 FY26?
License −$50.2M (-57%); Professional services −$1.5M (-12%); Connected services +$778K (+5%).