Strong Financial Performance
Revenue for Q4 was $60.6 million, surpassing the projected range of $53 million to $58 million. Full fiscal year revenue reached $251.8 million. Adjusted EBITDA for the year was $48.1 million, doubling initial expectations.
Significant Debt Reduction
Cerence paid down $87.5 million of debt using cash on hand while maintaining a strong cash position for the future.
Intellectual Property Monetization Success
Cerence resolved a suit with Samsung, resulting in a one-time lump sum payment of $49.5 million as part of a cross-license agreement.
Strong Free Cash Flow
Free cash flow grew almost threefold year over year to $46.8 million for the full fiscal year.
Positive Growth Projections for 2026
Expected fiscal year 2026 revenue is in the range of $300 to $320 million, marking a 23% year-over-year increase at the midpoint.
Expansion of Connected Services
Connected services revenue grew 14% year over year, with a 14% increase in the number of connected cars shipped on a trailing twelve-month basis.