Exceeded Revenue and EBITDA Guidance
Cerence reported Q2 2025 revenue of $78 million, surpassing the guidance range of $74 million to $77 million. Adjusted EBITDA also exceeded expectations at $29.5 million.
Fourth Consecutive Quarter of Positive Free Cash Flow
The company generated a strong free cash flow of $13.1 million, marking the fourth consecutive quarter of positive free cash flow.
Increase in Connected Services Revenue
Connected Services revenue in Q2 was $12.6 million, reflecting a positive sign of increased demand for connected vehicles.
Successful Launch of Cerence XUI
Cerence launched its hybrid Agentic AI assistant platform, Cerence XUI, reaching significant milestones and showcasing it in multiple languages.
Strong Customer Interest and New Partnerships
The company reported continued customer interest in their offerings, with new partnerships and deals with top automakers like JLR and Renault.
Significant Cost Management Achievements
Non-GAAP operating expenses were reduced by 32% compared to the same quarter last year, highlighting successful cost management and restructuring efforts.