Filing Flows › Cerence (CRNC) › Q2 FY26 › vs Q2 FY25
Cerence (CRNC) Q2 FY26 vs Q2 FY25 (year over year)
Cerence's revenue fell $13.8M (-18%) from $78.0M in Q2 FY25 to $64.2M in Q2 FY26. The biggest changes: License −$13.9M (-27%); Connected services +$2.7M (+21%); Professional services −$2.6M (-19%).
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 Q2 FY25, the increases inside each band.
Margins
| Q2 FY26 | Q2 FY25 | Change | |
|---|---|---|---|
| Free cash flow margin | 21.2% | 16.8% | +4.4 pts |
Every line
| Line | Q2 FY26 | Q2 FY25 | Change | % |
|---|---|---|---|---|
| License | $37.6M | $51.5M | −$13.9M | -27% |
| Connected services | $15.3M | $12.6M | $2.7M | +21% |
| Professional services | $11.3M | $13.9M | −$2.6M | -19% |
| Revenue | $64.2M | $78.0M | −$13.8M | -18% |
| Income tax benefit | $4.7M | $5.6M | −$952K | -17% |
| Costs & expenses | $68.8M | $83.6M | −$14.8M | -18% |
| Operating costs | $66.6M | $60.7M | $6.0M | +10% |
| Interest & other, net | $534K | $1.3M | −$765K | -59% |
| Net earnings | $1.7M | $21.7M | −$20.0M | -92% |
| Cost of revenue | $16.9M | $17.8M | −$933K | -5% |
| Research & development | $30.3M | $23.3M | $7.0M | +30% |
| Sales & marketing | $6.5M | $4.9M | $1.6M | +32% |
| General & admin | $12.8M | $11.2M | $1.6M | +14% |
| Operating cash sources | $14.1M | $15.5M | −$1.4M | -9% |
| Depreciation & amortization | $2.8M | $3.3M | −$557K | -17% |
| Share-based compensation | $6.8M | $5.9M | $824K | +14% |
| Working capital & other | $2.9M | −$15.5M | $18.4M | — |
| Operating cash flow | $14.1M | $15.5M | −$1.4M | -9% |
| Free cash flow (OCF − capex) | $13.6M | $13.1M | $502K | +4% |
| Capital expenditures | $482K | $2.3M | −$1.9M | -79% |
Questions
How much did Cerence's revenue grow year over year in Q2 FY26?
Cerence's revenue fell $13.8M (-18%) from $78.0M in Q2 FY25 to $64.2M in Q2 FY26.
What drove Cerence's revenue change in Q2 FY26?
License −$13.9M (-27%); Connected services +$2.7M (+21%); Professional services −$2.6M (-19%).