CRNC
Cerence Inc.

Cerence Inc.CRNC

Technology · Software - Application
8.15USD
+1.49%
Nov 08, 2026
CRNC overview ready
Automotive AI Voice Software Supplier for OEM Connected Cockpits
Cerence is a specialized automotive-AI software supplier whose embedded and connected products provide speech recognition, natural-language understanding, text-to-speech, audio intelligence, generative-AI interaction and vehicle-oriented agents to OEM programs.
Theme not measured
Voice AI has no leadership state this session.
Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on automotive OEM contract wins and vehicle production volumes.
Market Nov 6Filing Jun 30Price action Nov 7Research Oct 9

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction3.4BusinessPerformance7.0BusinessQuality4.1Valuation7.0ThemeMomentum—Improving — Revenue is growing at a steady pace (+12% year over year). Earnings turned positive: diluted EPS of $0.03 against a loss of -$0.06 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Voice AI — Voice AI has only one or two priced members — no leadership state
Its economic family, Software, reads Weakening (+6.0pp vs SPY) — the family’s reading, not this theme’s.
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads early recovery, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$368.6M
Avg Volume (60D)
668.4K
60 sessions
Revenue Growth YoY
-24.0%
FY2025 vs FY2024
Gross Margin
+78.7%
Trailing twelve months
Operating Margin
+8.7%
Trailing twelve months
Free Cash Flow Yield
+21.3%
Distance from 200DMA
-8.3%
Next Earnings
2026-11-18
P/E
N/M
Market metrics as of Nov 6, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Business Performance

Improving

Revenue is growing at a steady pace (+12% year over year). Earnings turned positive: diluted EPS of $0.03 against a loss of -$0.06 a year earlier.

Latest reported: Q3 FY2026, ended Jun 30
Revenue growthGrowing
+12%
$69.6M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +11%
  2. +126%
  3. -18%
  4. +12%
Earnings growthTurned profitable
$0.03
Diluted EPS $0.03 vs -$0.06 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
2.7%
+4.2 pp YoY · gross margin 76.0% (+2.3 pp)
The share count is rising

Business Quality

4.1 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is cheap.
Cerence Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 21.3% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis
Cerence is a specialized automotive-AI software supplier whose embedded and connected products provide speech recognition, natural-language understanding, text-to-speech, audio intelligence, generative-AI interaction and vehicle-oriented agents to OEM programs.
Opportunity
Moderate opportunity
Automaker and Tier-1 spending on embedded and cloud-connected multimodal AI assistants that let drivers and passengers interact with vehicle functions, vehicle knowledge, navigation, services and third-party actions through natural language.
Key risk
Dependence on automotive OEM contract wins and vehicle production volumes.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Application
What they do

Cerence Inc. develops and supplies AI-powered software solutions that enable natural language interaction and voice assistance primarily for the automotive and mobility markets worldwide.

How it earns

The company generates revenue mainly through licensing its embedded and cloud-connected AI software products and providing related professional services to automotive OEMs and suppliers.

Products & services
Speech recognition
Natural language understanding
Text-to-speech
Speech signal enhancement
Acoustic tuning
Generative AI-based virtual assistants
Customers & end markets
Automotive original equipment manufacturers (OEMs)
Tier-1 automotive suppliers
Market position

Niche specialized supplier focused on automotive AI software for voice and conversational interfaces.

Demand drivers
Medium cyclicality

Revenue depends on automotive production cycles and OEM contract wins, which are subject to industry demand fluctuations.