CRNC earnings analysis
What we found in CRNC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Cerence Inc. released its Q2 FY26 results, reporting a revenue decline to $64.2 million, down 17.7% year-over-year, significantly affected by lower fixed license contracts. Notably, the company saw a net income of $1.7 million, contrasting with a loss in the prior period, while cash flows from operating activities rose sharply by 110.4% to $52 million, supported by effective cost management and improved working capital.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline Y-o-Y
- Total revenue decreased to $64.2 million, down 17.7% from $78.0 million in Q2 FY25.
- Positive Net Income
- Net income for the quarter was $1.7 million, a recovery from previous losses.
- Significant Cash Flow Increase
- Operating cash flow reached $52.0 million for the six months ended March 31, 2026, a 110.4% increase from $24.7 million in the same period last year.
- Continued Growth in Connected Services
- Connected services revenue increased by 21.0% to $15.3 million compared to Q2 FY25.
- Decline in Professional Services Revenue
- Professional services revenue dropped 18.7% to $11.3 million compared to $13.9 million last year.
- R&D Investment Growth
- R&D expenses rose by 29.9% to $30.3 million, indicating ongoing commitment to innovation.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decreased Revenue from Licensing
- License revenue fell 27.0% to $37.6 million due to a $15.7 million decline in fixed contracts.
- Higher Operating Expenses
- Total operating expenses rose to $49.7 million, up 16.1% from Q2 FY25, driven largely by increasing R&D and general administrative costs.
- Significant Legal Risks
- Ongoing lawsuits related to biometric privacy could expose the company to substantial financial penalties.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.04
- Gross margin
- 73.7%
- Operating margin
- -3.8%
- Segment
- Licensing
- Segment
- Connected Services
- Segment
- Professional Services
What they said about what is next.
Management raised full-year revenue guidance to a range of $305 million to $320 million.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 7, 2025
- Cerence reported a strong quarter ending March 31, 2025 with total revenue of $78.01M, up $10.19M (15.0%) versus $67.83M a year ago, driven by a large increase in license revenue. Gross margin expanded to 77.2% (gross…
- 10-Q · February 6, 2025
- Cerence reported Q1 (three months ended Dec 31, 2024) revenue of $50,896,000, down materially from $138,335,000 a year earlier, and delivered a GAAP net loss of $24,288,000 (diluted EPS $(0.57)). Gross margin compressed…
- 10-Q · August 9, 2023
- Cerence reported Q3 revenue of $61,660,000 and a GAAP net loss of $16,455,000 (diluted EPS -$0.41). Revenue and all three business lines declined year-over-year (total revenue down 30.8% y/y) while gross margin…
- 10-Q · May 9, 2023
- Cerence reported quarterly revenue of $68,393,000 for the three months ended March 31, 2023, a 20.7% decline versus $86,280,000 in the year‑ago quarter. Gross profit fell to $43,379,000 (63.45% gross margin) and the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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