Cerence Inc. is an American multinational software company that develops artificial intelligence (AI) assistant technology primarily for automobiles.3 Its chief executive is Brian Krzanich (since 2024).1 Its shares trade on Nasdaq under the symbol CRNC.1Wikipedia text CC BY-SA 4.0
Revenue10111213146$251.8M in 2025−9% since 2018Gross profit10111213146$183.1M in 2025−6% since 2018Operating income10111213146-$2.3M in 2025Net income10111213146-$18.7M in 2025
Revenue151617$69.6M in Q3 FY2026−40% since Q1 FY2025Gross profit151617$52.9M in Q3 FY2026−47% since Q1 FY2025Operating income151617$1.9M in Q3 FY2026−94% since Q1 FY2025Net income151617$1.5M in Q3 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.6
Period ending
2025-09-30
2024-09-30
2023-09-30
Total revenues
$251.8M
$331.5M
$294.5M
Amortization of intangible assets
$0
$103.0K
$414.0K
Total cost of revenues
$68.6M
$87.2M
$95.2M
Gross profit
$183.1M
$244.3M
$199.3M
Research and development
$97.8M
$121.6M
$123.3M
Sales and marketing
$21.8M
$21.7M
$27.5M
General and administrative
$48.8M
$52.5M
$57.9M
Amortization of intangible assets
$1.7M
$2.2M
$5.9M
Restructuring and other costs, net
$15.4M
$17.1M
$11.9M
Goodwill impairment
$0
$609.2M
$0
Total operating expenses
$185.4M
$824.2M
$226.5M
Loss from operations
-$2.3M
-$579.9M
-$27.2M
Interest income
$3.9M
$5.4M
$4.5M
Interest expense
-$10.2M
-$12.6M
-$14.8M
Other (expense) income, net
-$160.0K
$2.5M
$1.1M
Loss before income taxes
-$8.8M
-$584.6M
-$36.4M
Provision for income taxes
$9.9M
$3.5M
$19.9M
Net loss
-$18.7M
-$588.1M
-$56.3M
Basic (in dollars per share)
-$0.43
-$14.12
-$1.40
Diluted (in dollars per share)
-$0.43
-$14.12
-$1.40
Basic (in shares)
43.2M shares
41.6M shares
40.2M shares
Diluted (in shares)
43.2M shares
41.6M shares
40.2M shares
No quarter-by-quarter statement was filed.
Total assets10111213146$630.6M in 2025−58% since 2019Total liabilities10111213146$479.9M in 2025+15% since 2019Shareholders’ equity111213146$150.7M in 2025−85% since 2018Long-term debt111213146$199.7M in 2025−25% since 2020
Total assets151617$620.9M in Q3 FY2026+3% since Q1 FY2025Total liabilities151617$454.6M in Q3 FY2026+1% since Q1 FY2025Shareholders’ equity151617$166.4M in Q3 FY2026+11% since Q1 FY2025Long-term debt151617$173.5M in Q3 FY2026+1% since Q1 FY2025
Every line of the balance sheet as filed: the last 5 fiscal years (annual) or 5 quarters (quarterly), latest first.6
Period ending
2025-09-30
2024-09-30
2023-09-30
2022-09-30
2019-09-30
Cash and cash equivalents
$84.0M
$121.5M
Marketable securities
$3.4M
$5.5M
Accounts receivable, net of allowances of $68 and $1,614 at September 30, 2025 and September 30, 2024, respectively
$58.9M
$62.8M
$61.3M
Deferred costs
$4.5M
$5.3M
Prepaid expenses and other current assets
$39.9M
$70.5M
Total current assets
$190.8M
$265.5M
Long-term marketable securities
$0
$3.5M
Property and equipment, net
$35.8M
$30.1M
Deferred costs
$15.5M
$18.1M
Operating lease right of use assets
$16.8M
$12.9M
Goodwill
$299.0M
$296.9M
$900.3M
Intangible assets, net
$0
$1.7M
Deferred tax assets
$54.2M
$51.4M
Other assets
$18.6M
$22.4M
Total assets
$630.6M
$702.4M
Accounts payable
$901.0K
$4.0M
Deferred revenue
$51.9M
$52.8M
Short-term operating lease liabilities
$4.3M
$4.5M
Short-term debt
$0
$87.1M
Accrued expenses and other current liabilities
$44.1M
$68.4M
Total current liabilities
$101.2M
$216.8M
Long-term debt, net of discounts and issuance costs
$199.7M
$194.8M
Deferred revenue, net of current portion
$140.0M
$114.4M
Long-term operating lease liabilities
$13.1M
$8.8M
Other liabilities
$25.9M
$26.5M
Total liabilities
$479.9M
$561.3M
Common stock, $0.01 par value, 560,000 shares authorized as of September 30, 2025; 43,374 and 41,924 shares issued and outstanding as of September 30, 2025 and September 30, 2024, respectively
$434.0K
$419.0K
Accumulated other comprehensive loss
-$25.5M
-$25.9M
Additional paid-in capital
$1.1B
$1.1B
Accumulated deficit
-$940.5M
-$921.7M
Total stockholders' equity
$150.7M
$141.1M
$694.9M
$713.0M
Total liabilities and stockholders' equity
$630.6M
$702.4M
Accounts receivable allowances
$68.0K
$1.6M
Common stock, par value (in dollars per share)
$0.01
$0.01
$0.01
Common stock, authorized (in shares)
560.0M shares
560.0M shares
560.0M shares
Common stock, issued (in shares)
43.4M shares
41.9M shares
Common stock, outstanding (in shares)
43.4M shares
41.9M shares
Period ending
2025-09-30
2024-09-30
2023-09-30
2022-09-30
2019-09-30
Cash and cash equivalents
$84.0M
$121.5M
Marketable securities
$3.4M
$5.5M
Accounts receivable, net of allowances of $68 and $1,614 at September 30, 2025 and September 30, 2024, respectively
$58.9M
$62.8M
$61.3M
Deferred costs
$4.5M
$5.3M
Prepaid expenses and other current assets
$39.9M
$70.5M
Total current assets
$190.8M
$265.5M
Long-term marketable securities
$0
$3.5M
Property and equipment, net
$35.8M
$30.1M
Deferred costs
$15.5M
$18.1M
Operating lease right of use assets
$16.8M
$12.9M
Goodwill
$299.0M
$296.9M
$900.3M
Intangible assets, net
$0
$1.7M
Deferred tax assets
$54.2M
$51.4M
Other assets
$18.6M
$22.4M
Total assets
$630.6M
$702.4M
Accounts payable
$901.0K
$4.0M
Deferred revenue
$51.9M
$52.8M
Short-term operating lease liabilities
$4.3M
$4.5M
Short-term debt
$0
$87.1M
Accrued expenses and other current liabilities
$44.1M
$68.4M
Total current liabilities
$101.2M
$216.8M
Long-term debt, net of discounts and issuance costs
$199.7M
$194.8M
Deferred revenue, net of current portion
$140.0M
$114.4M
Long-term operating lease liabilities
$13.1M
$8.8M
Other liabilities
$25.9M
$26.5M
Total liabilities
$479.9M
$561.3M
Common stock, $0.01 par value, 560,000 shares authorized as of September 30, 2025; 43,374 and 41,924 shares issued and outstanding as of September 30, 2025 and September 30, 2024, respectively
$434.0K
$419.0K
Accumulated other comprehensive loss
-$25.5M
-$25.9M
Additional paid-in capital
$1.1B
$1.1B
Accumulated deficit
-$940.5M
-$921.7M
Total stockholders' equity
$150.7M
$141.1M
$694.9M
$713.0M
Total liabilities and stockholders' equity
$630.6M
$702.4M
Accounts receivable allowances
$68.0K
$1.6M
Common stock, par value (in dollars per share)
$0.01
$0.01
$0.01
Common stock, authorized (in shares)
560.0M shares
560.0M shares
560.0M shares
Common stock, issued (in shares)
43.4M shares
41.9M shares
Common stock, outstanding (in shares)
43.4M shares
41.9M shares
Cash from operations10111213146$61.2M in 2025−47% since 2018Capital spending10111213146$14.4M in 2025+121% since 2018Free cash flow10111213146$46.8M in 2025−57% since 2018Share buybacks1213146$2.4M in 2025−75% since 2020
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.6
Period ending
2025-09-30
2024-09-30
2023-09-30
Net loss
-$18.7M
-$588.1M
-$56.3M
Depreciation and amortization
$10.5M
$10.6M
$16.0M
Provision for credit loss reserve
$220.0K
$3.5M
$3.6M
Stock-based compensation
$27.4M
$23.7M
$40.8M
Non-cash interest expense
$5.5M
$6.1M
$2.9M
(Gain) loss on debt extinguishment
-$327.0K
$0
$1.3M
Deferred tax provision (benefit)
$241.0K
-$4.7M
$7.6M
Goodwill impairment
$0
$609.2M
$0
Unrealized foreign currency transaction gain
-$2.6M
-$1.5M
-$3.4M
Other, net
$2.4M
-$68.0K
-$3.4M
Accounts receivable
-$1.4M
$11.8M
-$17.0M
Prepaid expenses and other assets
$32.1M
-$12.5M
$28.2M
Deferred costs
$3.9M
$4.8M
$3.2M
Accounts payable
-$3.1M
-$12.6M
$5.8M
Accrued expenses and other liabilities
-$18.2M
$27.9M
-$408.0K
Deferred revenue
$23.3M
-$61.0M
-$21.5M
Net cash provided by operating activities
$61.2M
$17.2M
$7.5M
Capital expenditures
-$14.4M
-$5.0M
-$5.1M
Purchases of marketable securities
$0
$0
-$18.0M
Sale and maturities of marketable securities
$5.5M
$11.1M
$30.3M
Other investing activities
-$1.7M
-$1.7M
-$1.4M
Net cash (used in) provided by investing activities
-$10.6M
$4.4M
$5.8M
Principal payments of short-term debt
-$87.1M
$0
$0
Proceeds from revolving credit facility
$0
$0
$24.7M
Payments of revolver credit facility
$0
$0
-$24.7M
Proceeds from long-term debt, net of discount
$0
$0
$210.0M
Payments for long-term debt issuance costs
$0
-$419.0K
-$17.2M
Principal payments of long-term debt
$0
$0
-$198.4M
Common stock repurchases for tax withholdings for net settlement of equity awards
-$2.4M
-$9.9M
-$4.9M
Principal payment of lease liabilities arising from a finance lease
-$411.0K
-$392.0K
-$451.0K
Proceeds from the issuance of common stock
$2.9M
$10.9M
$5.6M
Net cash (used in) provided by financing activities
-$87.0M
$225.0K
-$5.3M
Effect of foreign currency exchange rates on cash and cash equivalents
Cerence Inc. sits at the top of its group. 33 entities, 15 countries on record. Switch between the flow chart and the network, and select any entity to see its details.
Cerence Software Technology (Beijing) Co. Ltd. Subsidiary · China
Cerence Switzerland AG Subsidiary · Switzerland
Cerence Taiwan Ltd. Subsidiary · Taiwan
Cerence Technologies Inc. Subsidiary · Canada
Consolidated Mobile Corporation Subsidiary · Delaware, United States
Huayu Zi Software Technology Ltd. Subsidiary · Hong Kong
Multi-Corp International Ltd. Subsidiary · Barbados
Telecom Technology Corporation Limited Subsidiary · Hong Kong
and 6 more
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What Cerence Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Our corporate headquarters is located in Burlington, Massachusetts. Other large, leased sites include properties located in: Aachen and Ulm, Germany; Heerlen, Netherlands; Montreal, Canada; Shanghai and Chengdu, China; Merelbeke, Belgium; Turin, Italy; and Pune, India.
We believe our planned facilities and equipment are in good operating condition and are suitable for the conduct of our business.
Cerence was founded in October 2019, after Nuance Communications decided to turn its automotive division into an independent company. Nuance had provided voice recognition technology to car manufacturers for twenty years prior to the spin-off, and its technology was built into half of the new cars shipped globally in the first six months of 2019. Cerence's first official trading day on the Nasdaq exchange was October 2, 2019. The company assumed control of previously Nuance-held contracts with approximately 60 automakers including BMW, Ford, and Toyota. Since becoming its own entity, Cerence signed new deals to install voice recognition and assistance technology in Fiat Chrysler and Mercedes-Benz vehicles. In January 2020, LG announced that it would start integrating Cerence's voice assistant into its in-car infotainment systems. On 30 September 2021, VinFast reported that Cerence software will be used for its electric vehicles as an intelligence voice assistant.
As of August 2021, Cerence's AI assistant technology had been installed on over 400 million cars worldwide.
Cerence received an Automotive News PACE Award in September 2021 for Cerence Pay, a technology that allows drivers to pay for fuel via voice commands.
Cerence develops automotive AI products, primarily focusing on voice assistant technology. Its voice assistant technology is not device-specific, and is white-labeled for auto manufacturers. The company's products integrate into a car's operating system and allow drivers to use speech for a variety of actions, for example to control their GPS, entertainment system, and climate settings rather than using manual controls. Cerence's technology also incorporates facial recognition and customized responses to individual drivers. As of 2021, Cerence's speech recognition software recognizes 70 different languages and dialects. The technology can work with other voice assistant and AI devices such as those developed by Apple Inc. and Google. Drivers using the voice technology in their car can make a request and the Cerence software would help route it appropriately to the right system or virtual assistant that can best respond, essentially acting as a "switchboard" to access information from other AI and voice assistants.
The company is also developing technology that provides drivers with the ability to control some in-car systems with brief glances or gestures.
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
316 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 53 major events, 162 insider forms, 35 large holders, 46 other. The latest 20:
63 open-market trades by officers, directors and large owners since October 2021: 1 buys and 62 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed Nov 20, 2025 (Section 12(b) of the Exchange Act).18
Risk factors and legal proceedings
The risks Cerence Inc. names in Item 1A of its 10-K filed Nov 20, 2025: 38 risks under these headings, as written.18
Risks Relating to Our Business
The market in which we operate is highly competitive and rapidly changing and we may be unable to compete successfully.
Adverse conditions in the automotive industry or the global economy more generally could have adverse effects on our results of operations.
Our process optimization and cost-reduction efforts may not be successful.
Our strategy to increase cloud connected services may adversely affect our near-term revenue growth and results of operations.
Pricing pressures from our customers may adversely affect our business.
We invest effort and money seeking OEMs’ validation of our technology, and there can be no assurance that we will win or be able to renew service contracts, which could adversely affect our future business, results of operations and financial condition.
Our business could be materially and adversely affected if we lost any of our largest customers.
Our operating results may fluctuate significantly from period to period, and this may cause our stock price to decline.
We may not be successful with the adoption of new products.
If we are unable to attract and retain management and other key personnel, our business could be harmed.
We depend on skilled employees and could be impacted by a shortage of critical skills.
The other 27 risks
Some of our employees are represented by workers councils or unions or are subject to local laws that are less favorable to employers than the laws of the U.S.
Cybersecurity and data privacy incidents or breaches may damage client relations and inhibit our growth.
Compliance with global privacy and data security requirements could result in additional costs and liabilities to us or inhibit our ability to collect and process data globally, and the failure to comply with such requirements could have a material adverse effect on our business, financial condition or results of operations.
The development and use of artificial intelligence (“AI”) presents risks and challenges that can impact our business including by posing security risks to our confidential information, proprietary information, and personal data and could give rise to legal and/or regulatory actions, damage our reputation or otherwise materially harm our business.
A significant portion of our revenues are derived, and a significant portion of our research and development activities are based, outside the United States. Our results could be harmed by economic, political, and regulatory risks associated with these international regions and foreign currency fluctuations.
Our business in China is subject to aggressive competition and is sensitive to economic, market and political conditions.
Interruptions or delays in our services or services from data center hosting facilities or public clouds could impair the delivery of our services and harm our business.
If our goodwill or other intangible assets become impaired, our operating results could be negatively impacted.
Health Events, such as pandemics and disease outbreaks, have disrupted, and may continue to disrupt, our business and that of our customers, which could adversely affect our financial performance.
Risks Relating to our Intellectual Property and Technology
Third parties have claimed and may claim in the future that we are infringing their intellectual property, and we could be exposed to significant litigation or licensing expenses or be prevented from selling our products if such claims are successful.
Unauthorized use of our proprietary technology and intellectual property could adversely affect our business and results of operations.
Our software products may have bugs, which could result in delayed or lost revenue, expensive correction, liability to our customers and claims against us.
We may be unable to respond quickly enough to changes in technology and technological risks and to develop our intellectual property into commercially viable products.
We utilize certain key technologies, content and services from, and integrate certain of our solutions with, third parties and may be unable to replace those technologies, content and services if they become obsolete, unavailable or incompatible with our solutions.
Risks Relating to the Spin-Off
The allocation of intellectual property rights and data between Nuance and Cerence as part of the Spin-Off, the shared use of certain intellectual property rights and data following the Spin-Off and restrictions on the use of intellectual property rights, could adversely impact our reputation, our ability to enforce certain intellectual property rights that are important to us and our competitive position.
Risks Relating to Our Securities and Indebtedness
We may evaluate whether to pay cash dividends on our common stock in the future.
Servicing our debt may require a significant amount of cash. We may not have sufficient cash flow from our business to pay our indebtedness, and we may not have the ability to raise the funds necessary to settle for cash conversions of our outstanding 1.50% convertible senior notes due July 1, 2028 ($210 million of which were outstanding as of September 30, 2025, the "2028 Notes") or to repurchase the 2028 Notes for cash upon a fundamental change, which could adversely affect our business and results of operations.
The conditional conversion feature of the 2028 Notes, if triggered, may adversely affect our financial condition and results of operations and the value of our common stock.
The accounting method for convertible debt securities that may be settled in cash, such as the 2028 Notes, could have a material effect on our reported financial results.
Certain provisions in our Amended and Restated Certificate of Incorporation and Amended and Restated By-Laws and Delaware law may discourage takeovers.
Our organizational documents designate the courts within the State of Delaware or the U.S. district courts as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could
limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or other employees.
General Risk Factors
Tax matters may cause significant variability in our financial results and may impact our overall financial condition.
The commercial and credit environment may adversely affect our access to, and the cost of, capital.
Our stock price may fluctuate significantly.
Your percentage ownership in Cerence may be diluted in the future.
If we fail to maintain proper and effective internal controls, our ability to produce accurate and timely financial statements could be impaired and investors’ views of us could be harmed.
Legal proceedings
Derivative Actions
On May 10 and 12, 2022, respectively, plaintiffs William Shafer and Peter Morse filed shareholder derivative complaints in the United States District Court for the District of Massachusetts on behalf of Cerence Inc. against defendants (and former officers) Sanjay Dhawan and Mark J. Gallenberger as well as board members Arun Sarin, Thomas Beaudoin, Marianne Budnik, Sanjay Jha, Kristi Ann Matus, Alfred Nietzel and then-current CEO and board member Stefan Ortmanns. These actions are premised on factual contentions substantially similar to those made in the Securities Action (as defined below) and contain substantially similar legal contentions. As such, on June 13, 2022, at the parties’ request, the court consolidated these derivative actions into a single action and appointed co-lead counsel for plaintiffs in that consolidated action. On February 3, 2025, defendants filed a motion to dismiss on the grounds of demand futility and failure to state a claim. On June 18, 2025, the Court granted the motion without leave to amend.
Three shareholder derivative complaints making factual and legal contentions substantially similar to those raised in the consolidated federal derivative action were also filed in the Delaware Court of Chancery: the first filed on October 19, 2022 by plaintiff Melinda Hipp against the defendants named in the consolidated federal derivative action and board member Douglas Davis, the second filed on August 17, 2023 by plaintiff Catherine Fleming against the defendants named in the consolidated federal derivative action, and the third filed on July 10, 2024 by plaintiff Alberto Goncalves against the defendants named in the consolidated federal derivative action. On October 20, 2023, Ms. Hipp voluntarily dismissed her action with prejudice. On July 22, 2025, Mr. Goncalves's action was dismissed without prejudice at his request. On July 31, 2025, Ms. Fleming's action was dismissed without prejudice by stipulation of the parties.
