Filing Flows › Cerence (CRNC) › Q3 FY25
Cerence (CRNC) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Aug 6, 2025
Cerence (CRNC) reported revenue of $62.2M for the third quarter fiscal 2025 (Q3 FY25), -12% from a year earlier and -20% from the quarter before. Operating margin was -1.5%, net loss $2.7M (4.4% of revenue).
Cerence, Q3 FY25: revenue $62.2M (-12% year over year), operating margin -1.5%, net loss $2.7M, operating cash flow $23.7M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $62.2M | -20% | -12% |
| Operating profit | −$948K | -105% | — |
| Net earnings | −$2.7M | -113% | — |
| Operating cash flow | $23.7M | +53% | +84% |
| Free cash flow | $16.1M | +22% | +33% |
What changed
Revenue was $62.2M in Q3 FY25, down 12% year over year and down 20% from the previous quarter. License was the largest line at 55% of revenue. License lost $8.9M year over year (down 21%), 107% of the total change.
Gross margin was 73.7%, up 2.2 points from a year earlier. Operating costs exceeded revenue by $948K, an operating margin of -1.5%. Operating expenses fell 88% while revenue fell 12%. The fastest-growing cost line was General & admin (+26%). The quarter ended with a net loss of $2.7M, after a profit of $21.7M the previous quarter. Non-operating items added $159K, -20% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $23.7M (up 84% year over year). Non-cash charges added back $2.7M of depreciation and amortization and $6.3M of share-based compensation. Working capital and other items added $17.4M. Capital expenditures of $7.7M left free cash flow of $16.1M.
Questions
What was Cerence's revenue in the third quarter fiscal 2025?
Cerence (CRNC) reported revenue of $62.2M for the third quarter fiscal 2025 (Q3 FY25), -12% from a year earlier and -20% from the quarter before.
Was Cerence profitable in the third quarter fiscal 2025?
Operating loss was $948K (-1.5% of revenue) and net loss $2.7M.
Source: Cerence 10-Q on SEC EDGAR.