(CRNC) Cerence - Overview

Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 581m USD | Total Return: 51.5% in 12m

Virtual Assistants, Speech Recognition, Automotive Software, Generative AI
Total Rating 43
Safety 39
Buy Signal 0.48
Software - Application
Industry Rotation: +25.8
Market Cap: 581M
Avg Turnover: 12.8M
Risk 3d forecast
Volatility90.5%
VaR 5th Pctl12.6%
VaR vs Median-19.8%
Reward TTM
Sharpe Ratio0.84
Rel. Str. IBD85.2
Rel. Str. Peer Group77.6
Character TTM
Beta3.980
Beta Downside3.267
Hurst Exponent0.515
Drawdowns 3y
Max DD93.25%
CAGR/Max DD-0.25
CAGR/Mean DD-0.36
EPS (Earnings per Share) EPS (Earnings per Share) of CRNC over the last years for every Quarter: "2021-06": 0.62, "2021-09": 0.66, "2021-12": 0.59, "2022-03": 0.33, "2022-06": 0.43, "2022-09": -0.14, "2022-12": 0.36, "2023-03": -0.04, "2023-06": -0.04, "2023-09": 0.09, "2023-12": 1.12, "2024-03": -0.09, "2024-06": 0.19, "2024-09": -0.07, "2024-12": -0.03, "2025-03": 0.63, "2025-06": 0.12, "2025-09": -0.12, "2025-12": -0.12, "2026-03": 0.04,
Last SUE: -0.42
Qual. Beats: 0
Revenue Revenue of CRNC over the last years for every Quarter: 2021-06: 96.801, 2021-09: 98.076, 2021-12: 94.426, 2022-03: 86.28, 2022-06: 89.041, 2022-09: 58.144, 2022-12: 83.658, 2023-03: 68.393, 2023-06: 61.66, 2023-09: 80.764, 2023-12: 138.335, 2024-03: 67.825, 2024-06: 70.539, 2024-09: 54.805, 2024-12: 50.896, 2025-03: 78.01, 2025-06: 62.236, 2025-09: 60.639, 2025-12: 115.076, 2026-03: 64.192,
Rev. CAGR: -4.86%
Rev. Trend: -30.8%
Last SUE: 1.29
Qual. Beats: 1

Warnings

Altman Z'' -5.89 < 1.0 - financial distress zone

Tailwinds

Supp Ema20

Description: CRNC Cerence

Cerence Inc. (CRNC) specializes in AI-powered virtual assistants and conversational software for the global mobility and transportation sectors. The company’s technology stack integrates edge and cloud-connected components to deliver speech recognition, natural language understanding, and generative AI solutions for vehicle interfaces.

Operating within the systems software industry, Cerence utilizes a business model heavily focused on long-term embedded software licenses and professional services. This sector is characterized by high barriers to entry due to the complex integration requirements of automotive hardware and safety-critical software standards.

The firm maintains strategic partnerships with semiconductor and AI hardware providers, such as Arm and SiMa.ai, to optimize its large language model (LLM) performance at the edge. Investors evaluating the long-term viability of these AI partnerships may find additional context through the data available on ValueRay.

Headquartered in Burlington, Massachusetts, Cerence serves a broad international market including North America, Europe, and the Asia-Pacific region. Its core product suite focuses on enhancing the driver experience through acoustic tuning, text-to-speech, and advanced signal enhancement.

Headlines to Watch Out For
  • Auto manufacturer software adoption rates dictate long-term recurring royalty revenue streams
  • Generative AI integration costs pressure operating margins and research development budgets
  • Shift toward software-defined vehicles increases demand for edge-based voice assistant technology
  • Global automotive production volume fluctuations impact per-unit license and royalty income
  • Strategic hardware partnerships influence competitive positioning within the autonomous mobility market
Piotroski VR-10 (Strict) 7.0
Net Income: -19.6m TTM > 0 and > 6% of Revenue
FCF/TA: 0.12 > 0.02 and ΔFCF/TA 6.49 > 1.0
NWC/Revenue: 32.10% < 20% (prev 29.21%; Δ 2.88% < -1%)
CFO/TA 0.14 > 3% & CFO 88.5m > Net Income -19.6m
Net Debt (94.1m) to EBITDA (37.8m): 2.49 < 3
Current Ratio: 1.90 > 1.5 & < 3
Outstanding Shares: last quarter (46.9m) vs 12m ago -8.99% < -2%
Gross Margin: 78.28% > 18% (prev 0.70%; Δ 7.76k% > 0.5%)
Asset Turnover: 47.12% > 50% (prev 38.20%; Δ 8.92% > 0%)
Interest Coverage Ratio: 3.87 > 6 (EBITDA TTM 37.8m / Interest Expense TTM 7.26m)
Altman Z'' -5.89
A: 0.16 (Total Current Assets 204.3m - Total Current Liabilities 107.3m) / Total Assets 617.0m
B: -1.53 (Retained Earnings -944.0m / Total Assets 617.0m)
C: 0.04 (EBIT TTM 28.1m / Avg Total Assets 641.2m)
D: -2.12 (Book Value of Equity -970.2m / Total Liabilities 458.4m)
Altman-Z'' = -5.89 = D
Beneish M -3.30
DSRI: 0.82 (Receivables 63.6m/65.0m, Revenue 302.1m/254.2m)
GMI: 0.89 (GM 78.28% / 69.80%)
AQI: 1.02 (AQ_t 0.59 / AQ_t-1 0.58)
SGI: 1.19 (Revenue 302.1m / 254.2m)
TATA: -0.18 (NI -19.6m - CFO 88.5m) / TA 617.0m)
Beneish M = -3.30 (Cap -4..+1) = AA
What is the price of CRNC shares?

As of June 02, 2026, the stock is trading at USD 12.74 with a total of 1,541,323 shares traded.
Over the past week, the price has changed by +16.03%, over one month by +31.75%, over three months by +64.39% and over the past year by +51.49%.

Is CRNC a buy, sell or hold?

Cerence has received a consensus analysts rating of 3.14. Therefore, it is recommended to hold CRNC.

  • StrongBuy: 0
  • Buy: 1
  • Hold: 6
  • Sell: 0
  • StrongSell: 0

What are the forecasts/targets for the CRNC price?
Analysts Target Price 10.8 -15.6%
Cerence (CRNC) - Fundamental Data Overview as of 01 June 2026
Market Cap USD = 581.1m (581.1m USD * 1.0 USD.USD)
P/E Forward = 43.1034
P/S = 1.9233
P/B = 3.6568
Revenue TTM = 302.1m USD
EBIT TTM = 28.1m USD
EBITDA TTM = 37.8m USD
Long Term Debt = 172.7m USD (from longTermDebt, last quarter)
Short Term Debt = 4.10m USD (from shortTermDebt, last quarter)
Debt = 202.4m USD (from shortLongTermDebtTotal, last quarter) + Leases 14.8m
Net Debt = 94.1m USD (calculated: Debt 202.4m - CCE 108.3m)
Enterprise Value = 675.2m USD (581.1m + Debt 202.4m - CCE 108.3m)
Interest Coverage Ratio = 3.87 (Ebit TTM 28.1m / Interest Expense TTM 7.26m)
EV/FCF = 8.99x (Enterprise Value 675.2m / FCF TTM 75.1m)
FCF Yield = 11.12% (FCF TTM 75.1m / Enterprise Value 675.2m)
FCF Margin = 24.85% (FCF TTM 75.1m / Revenue TTM 302.1m)
Net Margin = -6.50% (Net Income TTM -19.6m / Revenue TTM 302.1m)
Gross Margin = 78.28% ((Revenue TTM 302.1m - Cost of Revenue TTM 65.6m) / Revenue TTM)
Gross Margin QoQ = 73.68% (prev 86.33%)
Tobins Q-Ratio = 1.09 (Enterprise Value 675.2m / Total Assets 617.0m)
Interest Expense / Debt = 3.59% (Interest Expense 7.26m / Debt 202.4m)
Taxrate = 21.0% (US default 21%)
NOPAT = 22.2m (EBIT 28.1m * (1 - 21.00%))
Current Ratio = 1.90 (Total Current Assets 204.3m / Total Current Liabilities 107.3m)
Debt / Equity = 1.28 (Debt 202.4m / totalStockholderEquity, last quarter 158.5m)
Debt / EBITDA = 2.49 (Net Debt 94.1m / EBITDA 37.8m)
Debt / FCF = 1.25 (Net Debt 94.1m / FCF TTM 75.1m)
Total Stockholder Equity = 153.8m (last 4 quarters mean from totalStockholderEquity)
RoA = -3.06% (Net Income -19.6m / Total Assets 617.0m)
RoE = -1.79% (Net Income TTM -19.6m / Total Stockholder Equity 1.10b)
RoCE = 2.21% (EBIT 28.1m / Capital Employed (Equity 1.10b + L.T.Debt 172.7m))
RoIC = 4.32% (NOPAT 22.2m / Invested Capital 513.7m)
WACC = 15.55% (E(581.1m)/V(783.5m) * Re(19.98%) + D(202.4m)/V(783.5m) * Rd(3.59%) * (1-Tc(0.21)))
Discount Rate = 19.98% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 46.67 | Cagr: -2.15%
[DCF] Terminal Value 58.20% ; FCFF base≈60.1m ; Y1≈68.9m ; Y5≈101.5m
[DCF] Fair Price = 12.63 (EV 664.7m - Net Debt 94.1m = Equity 570.6m / Shares 45.2m; r=15.55% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.42 | # QB: 0
Revenue Correlation: -30.76 | Revenue CAGR: -4.86% | SUE: 1.29 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.20 | Chg30d=-1.01% | Revisions=+14% | Analysts=5
EPS current Year (2026-09-30): EPS=0.71 | Chg30d=+3.20% | Revisions=-11% | GrowthEPS=+34.7% | GrowthRev=+25.3%
EPS next Year (2027-09-30): EPS=0.77 | Chg30d=+1.79% | Revisions=+0% | GrowthEPS=+7.9% | GrowthRev=-7.4%
[Analyst] Revisions Ratio: +14%