The earnings call reflected strong financial performance with revenue exceeding guidance, positive cash flow, and increased revenue guidance. Notable achievements in AI advancements and strategic customer partnerships were highlighted. However, there were challenges related to a decline in total license revenue, professional services revenue, and potential impacts from tariffs and program delays.

Company Guidance

During Cerence's Q3 2025 earnings call, the company reported strong financial results, exceeding their guidance with revenue of $62.2 million and adjusted EBITDA of $9 million. They also generated a significant free cash flow of $16.1 million, continuing their streak of five consecutive quarters with positive free cash flow. For the full fiscal year, Cerence raised and narrowed their revenue guidance to a range of $244 million to $249 million, surpassing the previous midpoint of their guidance. The company highlighted the advancement of their AI roadmap, notably their next-generation hybrid Agentic AI assistant platform, Cerence xUI, and expanded partnerships with OEMs such as Volkswagen Group and JLR. They also reported a PPU increase to $4.91 from $4.47, reflecting improved pricing and connected solution adoption. Cerence plans to continue transformation efforts and cost management while expanding into non-automotive markets, as demonstrated by a partnership with LG for voice interaction technology in televisions.

Exceeding Revenue Guidance

Cerence reported total revenue of $62.2 million for Q3 FY '25, surpassing the high end of their guidance range of $52 million to $56 million.

Strong Free Cash Flow

Generated strong free cash flow of $16.1 million, marking the fifth consecutive quarter of positive free cash flow.

Increased Revenue Guidance

For the full fiscal year, revenue guidance was raised and narrowed to $244 million to $249 million, with the low end of the range above the previous midpoint.

AI Innovation Progress

Advanced AI roadmap with milestones like increased language availability and enhanced contextual reasoning for xUI platform.

New and Expanded Customer Deals

Signed a deal within Volkswagen Group and expanded work with JLR, with increased PPU in these deals. New design wins with Daihatsu and Hyundai, and renewals with Great Wall Motors and GM.

Successful Debt Reduction

Reduced total debt by $87.5 million using cash on hand, contributing to a comfortable cash position with $79.1 million in cash and marketable securities.

Partnership with LG

Formally announced a partnership with LG to leverage Cerence's technology in LG's global television lineup, spanning 65 voices and languages.

Cerence (CRNC) Earnings, Revenues Date & History

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CRNC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 24, 2025	2025 (Q4)	-0.21 / -	-0.07	―	―	―
Aug 06, 2025	2025 (Q3)	-0.15 / 0.16	0.19	-15.26% (-0.03)
May 07, 2025	2025 (Q2)	0.30 / 0.56	-0.09	718.89% (+0.65)
Feb 06, 2025	2025 (Q1)	-0.26 / -0.03	1.12	-102.68% (-1.15)
Nov 21, 2024	2024 (Q4)	-0.36 / -0.07	0.09	-177.78% (-0.16)
Aug 08, 2024	2024 (Q3)	0.03 / 0.19	-0.04	575.00% (+0.23)
May 09, 2024	2024 (Q2)	-0.22 / -0.09	-0.04	-125.00% (-0.05)
Feb 06, 2024	2024 (Q1)	0.92 / 1.12	0.36	211.11% (+0.76)
Nov 27, 2023	2023 (Q4)	0.15 / 0.09	-0.14	164.29% (+0.23)
Aug 08, 2023	2023 (Q3)	-0.15 / -0.04	0.43	-109.30% (-0.47)

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
Aug 06, 2025	$8.58	$9.12	+6.29%
May 07, 2025	$10.00	$8.78	-12.20%
Feb 06, 2025	$12.74	$14.48	+13.66%
Nov 21, 2024	$2.82	$5.83	+106.74%

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.