Cerence Inc. financial statements

Income statement, balance sheet and cash flow statement for the last 8 fiscal years, taken from the XBRL data Cerence Inc. files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2018	FY2020	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Revenue	277	303	331	387	328	294	332	252
Cost of revenue	83	99.3	108	101	97.2	95.2	87.2	68.6
Gross profit	194	204	223	286	231	199	244	183
Research and development	81	93.1	88.9	112	107	123	122	97.8
Selling and marketing	30.6	36.3	33.4	38.7	31.1	27.5	21.7	21.8
General and administrative	19.9	25.9	49.4	57	42.7	57.9	52.5	48.8
Operating expenses	157	193	201	226	415	227	824	185
Operating income	36.9	10.9	22.4	60.6	-184	-27.2	-580	-2.29
Interest expense			22.7	14	14.4	14.8	12.6	10.2
Interest income			0.59	0.11	1.01	4.47	5.35	3.85
Other non-operating income	-0.05	0.33	-23.3	1.56	-1.02	1.11	2.53	-0.16
Pre-tax income	36.8	11.2	-23	48.3	-199	-36.4	-585	-8.82
Income tax	30.9	-89.1	-4.72	2.38	112	19.9	3.47	9.89
Net income	5.88	100	-18.3	45.9	-311	-56.3	-588	-18.7
EBITDA	62.6	39.7	52.5	90.3	-160	-11.2	-569	8.26
EPS, basic	0.16	2.76	-0.50	1.22	-7.93	-1.40	-14.12	-0.43
EPS, diluted	0.16	2.76	-0.50	1.17	-7.93	-1.40	-14.12	-0.43
Shares, basic (weighted)	36.4	36.4	36.4	37.8	39.2	40.2	41.6	43.2
Shares, diluted (weighted)	36.4	36.4	36.4	39.3	39.2	40.2	41.6	43.2

Balance sheet

	FY2018	FY2020	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Short-term investments			11.7	30.4	20.3	9.21	5.5	3.43
Receivables		65.8	50.9	45.6	45.1	61.3	62.8	58.9
Inventory						0.5	1	1.1
Other current assets		17.3	44.2	76.5	60.2	47.2	70.5	39.9
Total current assets		92.3	250	287	228	226	266	191
Property, plant and equipment		20.1	29.5	31.5	37.7	34	30.1	35.8
Lease right-of-use assets			20.1	14.9	14.7	12	12.9	16.8
Goodwill	1,120	1,119	1,128	1,129	891	900	297	299
Intangible assets		65.6	45.6	25.3	9.7	3.88	1.71	0
Long-term investments				7.34	11.6	10.6	3.45	0
Other non-current assets		3.44	14.9	20.1	52	44.2	22.4	18.6
Total assets		1,484	1,688	1,706	1,318	1,298	702	631
Accounts payable		16.7	8.45	11.6	10.4	16.9	3.96	0.9
Accrued liabilities		13	38	39.5	19.7	25	18.8	30.7
Deferred revenue		88.2	112	78.4	72.7	77.1	52.8	51.9
Short-term debt			6.25	6.25	10.9		87.1	0
Total current liabilities		129	199	165	147	148	217	101
Long-term debt			267	265	259	276	195	200
Lease liabilities			17.8	12.2	11.4	7.95	8.8	13.1
Other non-current liabilities		21.5	31.6	32.8	21.7	25.2	26.5	25.9
Total liabilities		416	728	674	606	603	561	480
Total debt			273	271	270	276	282	200
Paid-in capital			974	1,002	1,030	1,056	1,088	1,116
Retained earnings			-18.3	27.6	-283	-334	-922	-940
Other comprehensive income		-29	3.71	1.63	-33.7	-28	-25.9	-25.5
Shareholders' equity	993	1,068	960	1,032	713	695	141	151
Total equity	993	1,068	960	1,032	713	695	141	151
Total liabilities and equity		1,484	1,688	1,706	1,318	1,298	702	631
Shares outstanding			36.8	38	39.4	40.4	41.9	43.4

Cash flow statement

	FY2018	FY2020	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025
Net income	5.88	100	-18.3	45.9	-311	-56.3	-588	-18.7
Depreciation and amortization	25.8	28.8	30	29.7	23.9	16	10.6	10.5
Stock-based compensation	22	29.7	47.3	60.6	28.1	40.8	23.7	27.4
Deferred income tax	12.5	-101	-10.6	-4.42	97.3	7.6	-4.66	0.24
Change in receivables	8.47	0.9	15.2	5.75	-6.59	-17	11.8	-1.4
Change in payables	-6.29	10.1	-2.43	3.41	0.16	5.77	-12.6	-3.15
Cash from operations	115	88.1	44.8	74.4	-2.14	7.5	17.2	61.2
Capital expenditures	-6.51	-4.52	-19	-12	-17.4	-5.12	-5	-14.4
Acquisitions	-79.8
Purchases of investments			-11.7	-42.5	-31.8	-18	0	0
Sales and maturities of investments				16.4	37.2	30.3	11.1	5.51
Cash from investing	-86.3	-4.52	-30.7	-41.6	-10.6	5.82	4.38	-10.6
Debt issued			548	0		210	0	0
Debt repaid			-272	-6.25	-6.25	-198	0	0
Stock issued			1.32	11.5	36.1	5.63	10.9	2.88
Share buybacks			-9.37	-45.8	-49	-4.89	-9.87	-2.38
Cash from financing	-28.9	-83.6	122	-41.5	-19.6	-5.33	0.23	-87
Net change in cash			136	-7.64	-33.6	6.31	20.3	-37.5
Free cash flow	109	83.6	25.8	62.3	-19.6	2.37	12.2	46.8
Interest paid			14.7	9.55	9.09	11.6	6.03	5.56
Income taxes paid	18.4	12.1	2.18	6.18	12.3	11.2	10.2	6.71

Key metrics

Worked out from the statements above. Latest values use the trailing twelve months to June 30, 2026; growth uses fiscal years. Valuation uses the share price of $7.95 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	78.7%	Gross profit / revenue.
Operating margin	8.7%	Operating income / revenue.
EBITDA margin	11.9%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	7.5%	Pre-tax income / revenue.
Net margin	-5.0%	Net income / revenue.
FCF margin	25.4%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	27.4%	Cash from operations / revenue.
Effective tax rate	166.5%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	-9.3%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	-2.5%	Net income / average total assets.
Return on invested capital (ROIC)	6.3%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	35.7%	Research and development expense / revenue.
Stock-based pay / revenue	8.7%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	2.0%	Capital expenditures / revenue.
D&A / revenue	3.2%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	-24.0%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	-8.4%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	-5.3%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	-25.0%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	-7.4%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	-3.9%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EBITDA CAGR, 5y	-30.9%	Compound annual growth of ebitda over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	255.7%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 5y	6.4%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	283.7%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 5y	12.7%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	6.8%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	-40.4%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	-31.0%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	-10.2%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	-21.8%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	-17.9%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	3.7%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	3.3%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	3.5%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	2.08x	Current assets / current liabilities.
Debt / equity	1.04x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	27.9%	Total debt / total assets.
Liabilities / assets	73.2%	Total liabilities / total assets.
Interest coverage	4.28x	Operating income / interest expense.
Working capital	$110.3M	Current assets - current liabilities.
Goodwill and intangibles / assets	47.7%	(Goodwill + intangible assets) / total assets.
Tangible book value	-$129.6M	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.50x	Revenue / average total assets.
Fixed asset turnover	9.86x	Revenue / average property, plant and equipment.
Inventory turnover	82.4x	Cost of revenue / average inventory.
Days inventory	4 days	365 x average inventory / cost of revenue.
Receivables turnover	6.74x	Revenue / average receivables.
Days sales outstanding	54 days	365 x average receivables / revenue.
Days payables	15 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	44 days	Days inventory + days sales outstanding - days payables.
Capex / operating cash flow	7.2%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	-$0.32	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
Revenue per share	$6.48	Revenue / diluted weighted shares.
FCF per share	$1.65	Free cash flow / diluted weighted shares.
Operating cash flow per share	$1.77	Cash from operations / diluted weighted shares.
Book value per share	$3.68	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	-$2.87	Tangible book value / shares outstanding.
Buybacks / FCF	9.9%	Share buybacks / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$359.6M	Share price x shares outstanding.
Enterprise value	$533.0M	Market cap + total debt - cash - short-term investments.
P/S	1.16x	Market cap / revenue.
P/B	2.16x	Market cap / shareholders' equity. Only when equity is positive.
P/FCF	4.57x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	4.24x	Market cap / cash from operations, when positive.
EV/Sales	1.72x	Enterprise value / revenue.
EV/EBIT	19.8x	Enterprise value / operating income, when both are positive.
EV/EBITDA	14.5x	Enterprise value / EBITDA, when both are positive.
EV/FCF	6.78x	Enterprise value / free cash flow, when both are positive.
FCF yield	21.9%	Free cash flow / market cap.
Earnings yield	-4.3%	Net income / market cap (the inverse of P/E).
Shareholder yield	2.2%	(Dividends paid + share buybacks) / market cap.

What was Cerence Inc.'s revenue in fiscal 2025?

Cerence Inc. reported revenue of $251.8M for fiscal 2025, 24% lower than the year before.

Was Cerence Inc. profitable in fiscal 2025?

No. It reported a net loss of $18.7M.

How much free cash flow did Cerence Inc. generate in fiscal 2025?

Cash from operations of $61.2M minus capital expenditures of $14.4M left free cash flow of $46.8M.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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