Filing Flows › Cerence (CRNC) › Q2 FY26
Cerence (CRNC) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed May 7, 2026
Cerence (CRNC) reported revenue of $64.2M for the second quarter fiscal 2026 (Q2 FY26), -18% from a year earlier and -44% from the quarter before. Operating margin was -3.8%, net earnings $1.7M (2.6% of revenue).
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 follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $64.2M | -44% | -18% |
| Operating profit | −$2.4M | -108% | -114% |
| Net earnings | $1.7M | — | -92% |
| Operating cash flow | $14.1M | -63% | -9% |
| Free cash flow | $13.6M | -62% | +4% |
What changed
Revenue was $64.2M in Q2 FY26, down 18% year over year and down 44% from the previous quarter. License was the largest line at 59% of revenue. License lost $13.9M year over year (down 27%), 100% of the total change.
Gross margin was 73.7%, down 3.5 points from Q2 FY25. Operating costs exceeded revenue by $2.4M, an operating margin of -3.8%. Operating expenses grew 16% against a revenue fall of 18%. The fastest-growing cost line was Sales & marketing (+32%). Net earnings were $1.7M, down 92% year over year.
Operating cash flow was $14.1M (down 9% year over year), 843% of net earnings. Non-cash charges added back $2.8M of depreciation and amortization and $6.8M of share-based compensation. Working capital and other items added $2.9M. Capital expenditures of $482K left free cash flow of $13.6M.
Questions
What was Cerence's revenue in the second quarter fiscal 2026?
Cerence (CRNC) reported revenue of $64.2M for the second quarter fiscal 2026 (Q2 FY26), -18% from a year earlier and -44% from the quarter before.
Was Cerence profitable in the second quarter fiscal 2026?
Operating loss was $2.4M (-3.8% of revenue) and net earnings $1.7M.
Source: Cerence 10-Q on SEC EDGAR.