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Cerence (CRNC)
NASDAQ:CRNC
Earnings Data
Report Date
May 07, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.12Last Year’s EPS
0.56Same Quarter Last Year
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple substantial positives: double-digit (and headline triple-digit) revenue growth, record free cash flow, strong margin expansion, meaningful product and commercial momentum for XUI and AI agents, strategic customer wins, and an IP monetization milestone. However, a sizeable portion of the quarter's outperformance was driven by a one-time $49.5M patent settlement, and the company faces near-term comparability/timing headwinds (Q2 guidance decline, fixed-license timing, legal/ tax impacts and higher operating costs). On balance the operational trends (product wins, connected services growth, rising PPU expectations, production starts, and cash generation) outweigh the transient negatives, though investors should note the lumpy nature of IP revenue and tax/expense timing effects.Company Guidance
Strong Revenue Growth
Total revenue of $115.1M in Q1 FY2026, up $64.2M or +126% year-over-year. Excluding the one-time $49.5M patent license payment, core revenue was ~$65.6M, approximately +29% YoY, indicating underlying business growth.
Record Free Cash Flow and Cash Position
Record quarterly free cash flow of $35.6M; over $100M of free cash flow generated in the last eight quarters. Ended the quarter with $92.1M in cash and marketable securities.
High Profitability and Margin Expansion
Adjusted EBITDA of $44.6M representing a 39% margin (vs 3% prior year). Gross profit of $99.4M and gross margin of 86% (up from 65% prior year), driven by favorable mix toward license revenue.
IP Monetization Milestone
Recorded a one-time patent license revenue of $49.5M from Samsung settlement, which validates IP strategy and contributed materially to Q1 results.
Product & Go-to-Market Momentum (XUI and AI)
Showcased next-gen XUI at CES (including Calm Edge small LLM and Audio AI); first public demo of near-production car running XUI (Geely). Completed development/integration of several AI agents (mobile work agent with Microsoft, dealer assist agent, ownership companion agent). XUI named Gizmodo's best in-vehicle assistant at CES 2026.
Customer Wins and Production Starts
Five significant XUI customer programs secured (incl. JLR, Volkswagen brand, Geely, Chinese EV OEM, and a major global automaker). Additional deals: HKMC (ChatPro/Car Knowledge), Audio AI wins with GM, Mercedes-Benz, Daihatsu, and TTS upgrade for Mercedes. Eight programs started production this quarter (incl. BYD, GWM, HKMC and trucking programs with Scania and Ford).
Strong Core Licensing and Connected Services Trends
Variable license revenue $30.59M, up +34% YoY. Connected services revenue $14.5M, up +6% YoY (would be >+20% YoY excluding a $2M prior-year true-up). Pro forma royalties $39.8M, up ~+8% YoY versus $36.7M.
Balance Sheet Deleveraging
Repurchased $30M principal of 2028 convertible notes (at a discount) using $37.9M of operating cash, demonstrating focus on reducing leverage while maintaining investment flexibility.
CRNC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CRNC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 04, 2026 | $10.78 | $7.65 | -29.04% |
Nov 19, 2025 | $7.92 | $10.10 | +27.53% |
Aug 06, 2025 | $8.58 | $9.12 | +6.29% |
May 07, 2025 | $10.00 | $8.78 | -12.20% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Cerence (CRNC) report earnings?
Cerence (CRNC) is schdueled to report earning on May 07, 2026, Before Open (Confirmed).
What is Cerence (CRNC) earnings time?
Cerence (CRNC) earnings time is at May 07, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CRNC EPS forecast?
CRNC EPS forecast for the fiscal quarter 2026 (Q2) is 0.12.
