CRNC

Cerence Inc.

Cerence Inc.CRNC

Technology · Software - Application

8.23USD

+0.98%

Sep 23, 2026

CRNC overview ready

Provider of AI-Native Voice Assistants and Hybrid Embedded Cloud Software

Cerence is a focused automotive conversational-AI software vendor supplying OEMs and Tier 1s with branded voice assistants, speech and audio AI, automotive language models, and hybrid embedded/cloud software.

Narrative is still early

Exposed to the Software-Defined Vehicles and In-Car AI narrative through Automotive Conversational AI and Intelligent Cockpit Software — pure play.

Price trend is broken

Longer-term context reads damaged structure, with a near-term setup of base repair.

The tactical setup reads base repair, 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 adoption cycles.

Market Sep 22Price action Sep 22Research Sep 1

Conviction Level

Price

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Price Action

Price trend is broken

Longer-term context reads damaged structure, with a near-term setup of base repair.

The tactical setup reads base repair, 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: $349.3M
Avg Volume (60D): 688.7K
Revenue Growth YoY: +25.8%
Gross Margin: +78.7%
Operating Margin: +11.9%
Free Cash Flow Yield: +20.3%
Distance from 200DMA: -12.8%
Next Earnings: 2026-11-18
EV / EBITDA: 9.3x
EV / Sales: 1.3x

Market metrics as of Sep 22, 2026

Fundamentals & Valuation

All three 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 20.3% free-cash-flow yield and 9.3x EBITDA, which the underlying economics comfortably support.

Company Research

Thesis

Opportunity

Moderate opportunity

Automaker spending on AI-native cockpit software, conversational interfaces, embedded-and-cloud intelligence, and continuously updatable in-vehicle user experiences as vehicles become software-defined products.

Key risk

Dependence on automotive OEM adoption cycles.

Narrative & Theme

Software-Defined Vehicles and In-Car AI

Part of Automotive Conversational AI and Intelligent Cockpit Software, with strong fit.

CRNC has direct revenue exposure to the shift toward AI-native, software-defined vehicle cockpits rather than merely generic AI adjacency.

Narrative HeatNeutral4.8 / 10

Theme HeatHeating up7.0 / 10

This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Technology · Software - Application

What they do

Cerence Inc. develops and provides AI-powered software solutions focused on voice and conversational AI for the mobility and transportation markets globally, delivering both edge and cloud-connected components along with professional services.

How it earns

The company generates revenue primarily through licensing its software components and providing related professional services to original equipment manufacturers (OEMs) and mobility providers.

Products & services

Edge software components

Cloud-connected components

Virtual assistant

Professional services

Speech recognition

Natural language understanding

Text-to-speech

Customers & end markets

Automotive OEMs

Mobility and transportation providers

Market position

Cerence is a specialized provider and recognized player in voice AI solutions for automotive and mobility markets.

Demand drivers

Medium cyclicality

Demand is linked to automotive production cycles and OEM technology adoption trends.