Filing Flows › Cerence (CRNC) › Q3 FY26 › vs Q3 FY25
Cerence (CRNC) Q3 FY26 vs Q3 FY25 (year over year)
Cerence's revenue rose $7.4M (+12%) from $62.2M in Q3 FY25 to $69.6M in Q3 FY26. The biggest changes: License +$7.4M (+22%); Professional services −$2.7M (-18%); Connected services +$2.6M (+20%). Gross margin 76.0% against 73.7% (+2.3 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 Q3 FY25, the increases inside each band.
Margins
| Q3 FY26 | Q3 FY25 | Change | |
|---|---|---|---|
| Gross margin | 76.0% | 73.7% | +2.3 pts |
| Operating margin | 2.7% | -1.5% | +4.2 pts |
| Net margin | 2.2% | -4.4% | +6.6 pts |
| Free cash flow margin | 28.2% | 25.8% | +2.4 pts |
Every line
| Line | Q3 FY26 | Q3 FY25 | Change | % |
|---|---|---|---|---|
| License | $41.6M | $34.2M | $7.4M | +22% |
| Connected services | $15.5M | $12.8M | $2.6M | +20% |
| Professional services | $12.5M | $15.2M | −$2.7M | -18% |
| Revenue | $69.6M | $62.2M | $7.4M | +12% |
| Gross profit | $52.9M | $45.9M | $7.0M | +15% |
| Cost of revenue | $16.7M | $16.3M | $325K | +2% |
| Operating profit | $1.9M | −$948K | $2.8M | — |
| Operating expenses | $51.0M | $46.8M | $4.2M | +9% |
| Pre-tax earnings | $1.5M | −$789K | $2.3M | — |
| Other expense, net | $327K | −$159K | $486K | — |
| Research & development | $29.2M | $27.2M | $2.1M | +8% |
| Sales & marketing | $5.8M | $5.9M | −$87K | -1% |
| General & admin | $14.7M | $12.3M | $2.4M | +19% |
| Other operating costs | $1.3M | $1.4M | −$169K | -12% |
| Net earnings | $1.5M | −$2.7M | $4.3M | — |
| Income tax | $15K | $1.9M | −$1.9M | -99% |
| Depreciation & amortization | $2.8M | $2.7M | $128K | +5% |
| Share-based compensation | $7.5M | $6.3M | $1.2M | +18% |
| Working capital & other | $8.1M | $17.4M | −$9.3M | -54% |
| Operating cash flow | $20.0M | $23.7M | −$3.7M | -16% |
| Free cash flow (OCF − capex) | $19.6M | $16.1M | $3.6M | +22% |
| Capital expenditures | $340K | $7.7M | −$7.3M | -96% |
Questions
How much did Cerence's revenue grow year over year in Q3 FY26?
Cerence's revenue rose $7.4M (+12%) from $62.2M in Q3 FY25 to $69.6M in Q3 FY26.
What drove Cerence's revenue change in Q3 FY26?
License +$7.4M (+22%); Professional services −$2.7M (-18%); Connected services +$2.6M (+20%).