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Cerence Inc.

CRNC

$8.03 ▼ -0.74 (-8.44%) at close

9 Visible periods

32 Metrics

Peer-ranked Benchmarks

Price Chart

Health

Poor

Bearish

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Analytical Summary

Cerence Inc. faces fundamental challenges with weakness in Profit Margin (%) and Debt to Equity. The fundamentals warrant careful consideration of downside risks.

Market Cap $346.7M

Dividend Yield —

Revenue Growth -24.0% ↘

Op. Margin -0.9% ↗

ROIC -1.4% ↗

FCF / Share $1.08 ↗

Trailing P/E —

Price / Book 2.3x

FCF Yield 13.5%

Debt / Equity 1.33

info Valuation on last close. End-of-day price, Nov 5, 2026.

9-Year Financial Trajectory

Annual

Metric Value Trend Year over Year Percentile

Revenue Total top-line sales

$251.78M

↓ -24.0% —

Net Income Profit after all expenses

$-18.71M

↑ +96.8% —

Operating Margin Operating profit as % of sales

-0.9%

↑ +99.5% 26th

FCF / Share Free cash flow per share

$1.08

↑ +270.1% —

Long-Term Debt Long-term obligations

$199.69M

↓ -29.2% —

trending_up

Bullish Indicators

No bullish signals detected.

warning

Bearish Risks

Debt to EquityDebt to Equity is concerning (bottom quartile)
Profit Margin (%)Profit Margin (%) is in the bottom quartile

Health Breakdown

Profitability ↑

Returns ↓

Financial Health ↑

Cash Quality

Financial view

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📈 Is growth accelerating? 7 metrics

Metric	FY 2025 Sep 30, 2025 10-K ↗	FY 2024 Sep 30, 2024 10-K ↗	FY 2023 Sep 30, 2023 10-K ↗	FY 2022 Sep 30, 2022 10-K ↗	FY 2021 Sep 30, 2021 10-K ↗	FY 2020 Sep 30, 2020 10-K ↗	FY 2019 Sep 30, 2019 10-K ↗	FY 2018 Sep 30, 2018 10-K ↗	FY 2017 Sep 30, 2017 10-K ↗
Revenue Growth YoY (%)	-24.0% Weak ↓ Weak Declining Year-over-year change in total revenue Optimal: > 10% vs Sector: Below avg (-300%)	12.6% Good ↑ Good Improving Year-over-year change in total revenue Optimal: > 10% vs Sector: At sector avg	-10.2% Weak ↓ Weak Declining Year-over-year change in total revenue Optimal: > 10% vs Sector: Below avg (-185%)	-15.3% Weak ↓ Weak Declining Year-over-year change in total revenue Optimal: > 10% vs Sector: Below avg (-228%)	17.0% Good ↑ Good Improving Year-over-year change in total revenue Optimal: > 10% vs Sector: Above avg (+42%)	9.1% Fair Fair Year-over-year change in total revenue Optimal: > 10% vs Sector: Below avg (-24%)	9.5% Fair Fair Year-over-year change in total revenue Optimal: > 10% vs Sector: Below avg (-21%)	—	—
EPS Growth YoY (%)	97.0% Excellent ↑ Excellent Improving Year-over-year change in earnings per share Optimal: > 10%	-908.6% Weak Weak Year-over-year change in earnings per share Optimal: > 10%	82.3% Excellent Excellent Year-over-year change in earnings per share Optimal: > 10%	N/M	N/M	N/M	1625.0% Excellent Excellent Year-over-year change in earnings per share Optimal: > 10%	—	—
Net Income Growth YoY (%)	96.8% Excellent ↑ Excellent Improving Year-over-year change in net income	-945.4% Weak Weak Year-over-year change in net income	81.9% Excellent Excellent Year-over-year change in net income	N/M	N/M	N/M	1604.9% Excellent Excellent Year-over-year change in net income	—	—
FCF Growth YoY (%)	270.1% Excellent Excellent Year-over-year change in free cash flow	396.3% Excellent Excellent Year-over-year change in free cash flow	N/M	N/M	133.4% Excellent ↑ Excellent Improving Year-over-year change in free cash flow	-69.2% Weak Weak Year-over-year change in free cash flow	-23.2% Weak Weak Year-over-year change in free cash flow	—	—
Revenue CAGR 3Y (%)	-8.4% Weak ↓ Weak Declining Compound annual revenue growth over 3 years	-5.0% Weak ↓ Weak Declining Compound annual revenue growth over 3 years	-3.8% Weak ↓ Weak Declining Compound annual revenue growth over 3 years	2.6% Caution Caution Compound annual revenue growth over 3 years	11.8% Good Good Compound annual revenue growth over 3 years	—	—	—	—
Revenue CAGR 5Y (%)	-5.3% Weak ↓ Weak Declining Compound annual revenue growth over 5 years	1.8% Caution Caution Compound annual revenue growth over 5 years	1.2% Caution Caution Compound annual revenue growth over 5 years	—	—	—	—	—	—
EPS CAGR 3Y (%)	—	—	—	—	96.8% Excellent Excellent Compound annual EPS growth over 3 years	—	—	—	—

💰 Are margins durable? 5 metrics

Metric	FY 2025 Sep 30, 2025 10-K ↗	FY 2024 Sep 30, 2024 10-K ↗	FY 2023 Sep 30, 2023 10-K ↗	FY 2022 Sep 30, 2022 10-K ↗	FY 2021 Sep 30, 2021 10-K ↗	FY 2020 Sep 30, 2020 10-K ↗	FY 2019 Sep 30, 2019 10-K ↗	FY 2018 Sep 30, 2018 10-K ↗	FY 2017 Sep 30, 2017 10-K ↗
Operating Margin (%) (%)	-0.9% Weak ↑ Weak Improving Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-105%)	-174.9% Weak ↓ Weak Declining Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-975%)	-9.2% Weak ↑ Weak Improving Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-146%)	-56.2% Weak ↓ Weak Declining Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-381%)	15.7% Fair ↑ Fair Improving Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-22%)	6.8% Caution ↓ Caution Declining Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-66%)	3.6% Weak Weak Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-82%)	13.3% Fair Fair Operating income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-33%)	—
Effective Tax Rate (%) (%)	-112.2% Excellent ↓ Excellent Declining Actual taxes paid relative to pre-tax income Optimal: 15-25%	-0.6% Excellent ↑ Excellent Improving Actual taxes paid relative to pre-tax income Optimal: 15-25%	-54.6% Excellent ↓ Excellent Declining Actual taxes paid relative to pre-tax income Optimal: 15-25%	-56.4% Excellent ↑ Excellent Improving Actual taxes paid relative to pre-tax income Optimal: 15-25%	4.9% Excellent ↑ Excellent Improving Actual taxes paid relative to pre-tax income Optimal: 15-25%	20.5% Good ↑ Good Improving Actual taxes paid relative to pre-tax income Optimal: 15-25%	-796.5% Excellent Excellent Actual taxes paid relative to pre-tax income Optimal: 15-25%	84.0% Weak Weak Actual taxes paid relative to pre-tax income Optimal: 15-25%	—
Profit Margin (%) (%)	-7.4% Weak ↑ Weak Improving Net income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-150%)	-177.4% Weak ↓ Weak Declining Net income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-1283%)	-19.1% Weak ↑ Weak Improving Net income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-227%)	-94.8% Weak ↓ Weak Declining Net income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-732%)	11.9% Fair ↑ Fair Improving Net income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-21%)	-5.5% Weak ↓ Weak Declining Net income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-137%)	33.1% Excellent Excellent Net income as a percentage of revenue Optimal: > 15% vs Sector: Above avg (+120%)	2.1% Weak Weak Net income as a percentage of revenue Optimal: > 15% vs Sector: Below avg (-86%)	—
FCF Margin (%) (%)	18.6% Good ↑ Good Improving Free cash flow as a percentage of revenue Optimal: > 10%	3.7% Weak → Weak Stable Free cash flow as a percentage of revenue Optimal: > 10%	0.8% Weak ↓ Weak Declining Free cash flow as a percentage of revenue Optimal: > 10%	-6.0% Weak ↓ Weak Declining Free cash flow as a percentage of revenue Optimal: > 10%	16.1% Good ↓ Good Declining Free cash flow as a percentage of revenue Optimal: > 10%	7.8% Caution ↓ Caution Declining Free cash flow as a percentage of revenue Optimal: > 10%	27.5% Excellent Excellent Free cash flow as a percentage of revenue Optimal: > 10%	39.3% Excellent Excellent Free cash flow as a percentage of revenue Optimal: > 10%	—
FCF / Net Income (x)	-2.50x Weak ↓ Weak Declining Free cash flow relative to reported net income Optimal: > 1x	-0.02x Weak ↓ Weak Declining Free cash flow relative to reported net income Optimal: > 1x	-0.04x Weak ↓ Weak Declining Free cash flow relative to reported net income Optimal: > 1x	0.06x Weak ↓ Weak Declining Free cash flow relative to reported net income Optimal: > 1x	1.36x Good ↓ Good Declining Free cash flow relative to reported net income Optimal: > 1x	-1.41x Weak ↓ Weak Declining Free cash flow relative to reported net income Optimal: > 1x	0.83x Caution Caution Free cash flow relative to reported net income Optimal: > 1x	18.49x Excellent Excellent Free cash flow relative to reported net income Optimal: > 1x	—

🎯 Is capital allocation efficient? 3 metrics

Metric	FY 2025 Sep 30, 2025 10-K ↗	FY 2024 Sep 30, 2024 10-K ↗	FY 2023 Sep 30, 2023 10-K ↗	FY 2022 Sep 30, 2022 10-K ↗	FY 2021 Sep 30, 2021 10-K ↗	FY 2020 Sep 30, 2020 10-K ↗	FY 2019 Sep 30, 2019 10-K ↗	FY 2018 Sep 30, 2018 10-K ↗	FY 2017 Sep 30, 2017 10-K ↗
Return on Invested Capital (%)	-1.4% Weak ↑ Weak Improving Return earned on debt + equity capital invested Optimal: > 10%	-137.9% Weak ↓ Weak Declining Return earned on debt + equity capital invested Optimal: > 10%	-4.3% Weak ↑ Weak Improving Return earned on debt + equity capital invested Optimal: > 10%	-29.3% Weak ↓ Weak Declining Return earned on debt + equity capital invested Optimal: > 10%	4.4% Caution ↑ Caution Improving Return earned on debt + equity capital invested Optimal: > 10%	1.4% Weak ↓ Weak Declining Return earned on debt + equity capital invested Optimal: > 10%	9.1% Fair Fair Return earned on debt + equity capital invested Optimal: > 10%	0.6% Weak Weak Return earned on debt + equity capital invested Optimal: > 10%	—
Return on Capital (%) (%)	-0.4% Weak ↑ Weak Improving Operating profit relative to total assets Optimal: > 10%	-82.6% Weak ↓ Weak Declining Operating profit relative to total assets Optimal: > 10%	-2.1% Weak ↑ Weak Improving Operating profit relative to total assets Optimal: > 10%	-14.0% Weak ↓ Weak Declining Operating profit relative to total assets Optimal: > 10%	3.6% Weak ↑ Weak Improving Operating profit relative to total assets Optimal: > 10%	1.3% Weak Weak Operating profit relative to total assets Optimal: > 10%	0.7% Weak Weak Operating profit relative to total assets Optimal: > 10%	—	—
Return on Common Equity (%) (%)	-12.4% Weak ↑ Weak Improving Profit generated per dollar of shareholder equity Optimal: > 15% vs Sector: Below avg (-167%)	—	-8.1% Weak ↑ Weak Improving Profit generated per dollar of shareholder equity Optimal: > 15% vs Sector: Below avg (-144%)	-43.6% Weak ↓ Weak Declining Profit generated per dollar of shareholder equity Optimal: > 15% vs Sector: Below avg (-336%)	4.4% Weak ↑ Weak Improving Profit generated per dollar of shareholder equity Optimal: > 15% vs Sector: Below avg (-76%)	-1.9% Weak ↓ Weak Declining Profit generated per dollar of shareholder equity Optimal: > 15% vs Sector: Below avg (-110%)	9.4% Caution Caution Profit generated per dollar of shareholder equity Optimal: > 15% vs Sector: Below avg (-49%)	0.6% Weak Weak Profit generated per dollar of shareholder equity Optimal: > 15% vs Sector: Below avg (-97%)	—

⚖️ Is the balance sheet risky? 4 metrics

Metric	FY 2025 Sep 30, 2025 10-K ↗	FY 2024 Sep 30, 2024 10-K ↗	FY 2023 Sep 30, 2023 10-K ↗	FY 2022 Sep 30, 2022 10-K ↗	FY 2021 Sep 30, 2021 10-K ↗	FY 2020 Sep 30, 2020 10-K ↗	FY 2019 Sep 30, 2019 10-K ↗	FY 2018 Sep 30, 2018 10-K ↗	FY 2017 Sep 30, 2017 10-K ↗
Debt to Equity (x)	1.33x Caution ↑ Caution Improving Total debt relative to shareholder equity Optimal: < 0.6x vs Sector: Above avg (+195%)	2.00x Weak ↑ Weak Improving Total debt relative to shareholder equity Optimal: < 0.6x vs Sector: Above avg (+344%)	0.40x Good ↑ Good Improving Total debt relative to shareholder equity Optimal: < 0.6x vs Sector: Below avg (-12%)	0.38x Good ↑ Good Improving Total debt relative to shareholder equity Optimal: < 0.6x vs Sector: Below avg (-16%)	0.26x Excellent Excellent Total debt relative to shareholder equity Optimal: < 0.6x vs Sector: Below avg (-42%)	0.28x Excellent Excellent Total debt relative to shareholder equity Optimal: < 0.6x vs Sector: Below avg (-37%)	—	—	—
Interest Coverage (x)	-0.41x Weak ↑ Weak Improving Operating income divided by interest expense Optimal: > 5x	-46.20x Weak ↓ Weak Declining Operating income divided by interest expense Optimal: > 5x	-1.84x Weak ↑ Weak Improving Operating income divided by interest expense Optimal: > 5x	-12.81x Weak ↓ Weak Declining Operating income divided by interest expense Optimal: > 5x	4.33x Fair Fair Operating income divided by interest expense Optimal: > 5x	0.99x Weak Weak Operating income divided by interest expense Optimal: > 5x	—	—	—
Net Debt (USD)	$199.69M	$281.91M	$275.95M	$270.37M	$271.34M	$273.12M	—	—	—
Debt / EBITDA (x)	30.22x Weak ↑ Weak Improving Debt relative to earnings before interest, taxes, depreciation Optimal: < 2x	-0.49x Excellent ↑ Excellent Improving Debt relative to earnings before interest, taxes, depreciation Optimal: < 2x	-15.86x Excellent ↓ Excellent Declining Debt relative to earnings before interest, taxes, depreciation Optimal: < 2x	-1.55x Excellent ↓ Excellent Declining Debt relative to earnings before interest, taxes, depreciation Optimal: < 2x	3.87x Caution Caution Debt relative to earnings before interest, taxes, depreciation Optimal: < 2x	8.63x Weak Weak Debt relative to earnings before interest, taxes, depreciation Optimal: < 2x	—	—	—

📊 What does each share earn? 6 metrics

Metric	FY 2025 Sep 30, 2025 10-K ↗	FY 2024 Sep 30, 2024 10-K ↗	FY 2023 Sep 30, 2023 10-K ↗	FY 2022 Sep 30, 2022 10-K ↗	FY 2021 Sep 30, 2021 10-K ↗	FY 2020 Sep 30, 2020 10-K ↗	FY 2019 Sep 30, 2019 10-K ↗	FY 2018 Sep 30, 2018 10-K ↗	FY 2017 Sep 30, 2017 10-K ↗
Revenue per Share (USD)	$5.83	$7.96	$7.32	$8.37	$10.26	$9.09	$8.33	$7.61	—
Basic EPS, GAAP (USD)	$-0.43	$-14.12	$-1.40	$-7.93	$1.22	$-0.50	$2.76	$0.16	—
Free Cash Flow per Share (USD)	$1.08	$0.29	$0.06	$-0.50	$1.65	$0.71	$2.30	$2.99	—
Book Value per Share (USD)	$3.47	$3.37	$17.19	$18.08	$27.14	$26.06	$29.35	$27.30	—
Tangible Book Value per Share (USD)	$-3.42	$-3.72	$-5.08	$-4.51	$-2.54	$-4.56	$-1.41	$-3.48	—
Basic Weighted Avg Shares (shares)	43.18M	41.64M	40.22M	39.19M	37.75M	36.43M	36.39M	36.39M	—

🏦 How resilient is the balance sheet? 3 metrics

Metric	FY 2025 Sep 30, 2025 10-K ↗	FY 2024 Sep 30, 2024 10-K ↗	FY 2023 Sep 30, 2023 10-K ↗	FY 2022 Sep 30, 2022 10-K ↗	FY 2021 Sep 30, 2021 10-K ↗	FY 2020 Sep 30, 2020 10-K ↗	FY 2019 Sep 30, 2019 10-K ↗	FY 2018 Sep 30, 2018 10-K ↗	FY 2017 Sep 30, 2017 10-K ↗
Working Capital (USD)	$89.57M	$48.70M	$77.63M	$80.49M	$121.74M	$51.47M	$-36.79M	—	—
LT Debt (USD)	$199.69M	$281.91M	$275.95M	$270.37M	$271.34M	$273.12M	—	—	—
Total Equity (USD)	$150.68M	$141.10M	$694.88M	$712.95M	$1.03B	$960.07M	$1.07B	$993.32M	$997.18M

📋 What is driving earnings? 4 metrics

Metric	FY 2025 Sep 30, 2025 10-K ↗	FY 2024 Sep 30, 2024 10-K ↗	FY 2023 Sep 30, 2023 10-K ↗	FY 2022 Sep 30, 2022 10-K ↗	FY 2021 Sep 30, 2021 10-K ↗	FY 2020 Sep 30, 2020 10-K ↗	FY 2019 Sep 30, 2019 10-K ↗	FY 2018 Sep 30, 2018 10-K ↗	FY 2017 Sep 30, 2017 10-K ↗
Sales/Revenue/Turnover (USD)	$251.78M	$331.50M	$294.48M	$327.89M	$387.18M	$330.97M	$303.31M	$276.98M	—
Depreciation Expense (USD)	$8.90M	$8.30M	$9.80M	$9.40M	$9.50M	$9.20M	$6.20M	$7.70M	—
Net Income, GAAP (USD)	$-18.71M	$-588.08M	$-56.25M	$-310.83M	$45.89M	$-18.32M	$100.27M	$5.88M	—
Operating Cash Flow (USD)	$61.17M	$17.20M	$7.50M	$-2.14M	$74.39M	$44.79M	$88.07M	$115.26M	—

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bar_chart Data from SEC EDGAR XBRL filings

Synced 4 days ago 9 years · 33 quarters

Cerence Inc.

Analytical Summary

9-Year Financial Trajectory

Bullish Indicators

Bearish Risks

Health Breakdown

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