Filing Flows › Cerence (CRNC) › Q3 FY26 › vs Q2 FY26
Cerence (CRNC) Q3 FY26 vs Q2 FY26 (quarter over quarter)
Cerence's revenue rose $5.4M (+8%) from $64.2M in Q2 FY26 to $69.6M in Q3 FY26. The biggest changes: License +$4.0M (+11%); Professional services +$1.2M (+11%); Connected services +$155K (+1%). Gross margin 76.0% against 73.7% (+2.4 pts).
Cerence, Q3 FY26: revenue $69.6M (+12% year over year), operating margin 2.7%, net earnings $1.5M, operating cash flow $20.0M. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q3 FY26 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 76.0% | 73.7% | +2.4 pts |
| Operating margin | 2.7% | -3.8% | +6.5 pts |
| Net margin | 2.2% | 2.6% | -0.4 pts |
| Free cash flow margin | 28.2% | 21.2% | +7.0 pts |
Every line
| Line | Q3 FY26 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| License | $41.6M | $37.6M | $4.0M | +11% |
| Connected services | $15.5M | $15.3M | $155K | +1% |
| Professional services | $12.5M | $11.3M | $1.2M | +11% |
| Revenue | $69.6M | $64.2M | $5.4M | +8% |
| Gross profit | $52.9M | $47.3M | $5.6M | +12% |
| Cost of revenue | $16.7M | $16.9M | −$223K | -1% |
| Operating profit | $1.9M | −$2.4M | $4.3M | — |
| Operating expenses | $51.0M | $49.7M | $1.3M | +3% |
| Pre-tax earnings | $1.5M | −$3.0M | $4.5M | — |
| Other expense, net | $327K | $534K | −$207K | -39% |
| Research & development | $29.2M | $30.3M | −$1.1M | -4% |
| Sales & marketing | $5.8M | $6.5M | −$690K | -11% |
| General & admin | $14.7M | $12.8M | $1.9M | +15% |
| Net earnings | $1.5M | $1.7M | −$140K | -8% |
| Income tax | $15K | −$4.7M | $4.7M | — |
| Depreciation & amortization | $2.8M | $2.8M | $56K | +2% |
| Share-based compensation | $7.5M | $6.8M | $761K | +11% |
| Working capital & other | $8.1M | $2.9M | $5.2M | +179% |
| Operating cash flow | $20.0M | $14.1M | $5.9M | +41% |
| Free cash flow (OCF − capex) | $19.6M | $13.6M | $6.0M | +44% |
| Capital expenditures | $340K | $482K | −$142K | -29% |
Questions
How much did Cerence's revenue grow quarter over quarter in Q3 FY26?
Cerence's revenue rose $5.4M (+8%) from $64.2M in Q2 FY26 to $69.6M in Q3 FY26.
What drove Cerence's revenue change in Q3 FY26?
License +$4.0M (+11%); Professional services +$1.2M (+11%); Connected services +$155K (+1%).