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Cerence Inc.

CRNCTechnologyNASDAQ

Software - Application · Last scanned May 29, 2026

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Financials · Annual
Revenue
$251.8M
-24.0% YoY
Net Income
-$18.7M
+96.8% YoY
EBITDA
$12.0M
+102.1% YoY
Free Cash Flow
$61.5M

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About Cerence Inc.

Cerence Inc. provides AI-powered assistants for the mobility/transportation market in the United States, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the. The company carries a $536.4M market cap, placing it firmly in the small-cap category. The company offers edge software components, cloud-connected components, virtual assistant, and professional services.

Key stats
Market Cap$536.4M
Fwd P/E15.50
EPS$-0.45
Beta2.89
52W Change+39.5%
ROE-12.8%
Analysis

The company holds $108.3M in cash, though total debt stands at $187.5M. This level of leverage is common in the industry but worth monitoring as interest rate conditions evolve. Annual free cash flow of $61.5M supports ongoing capital allocation decisions and provides a cushion against unexpected expenses or downturns. ROE of -12.8% points to negative capital efficiency, indicating how much profit the company produces per dollar of shareholder equity. ROA of 3.3% is on the lower side, which is common in asset-heavy industries. Revenue has pulled back from $327.9M (2022) to $251.8M (2025), a 23% decline worth watching.

With a beta above 1.5, CRNC tends to amplify broader market moves — both up and down. This higher volatility means larger price swings are common. These risk factors are not exhaustive — macroeconomic shifts, regulatory changes, and competitive dynamics can all influence Cerence Inc.'s trajectory.

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