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CRNC · Nasdaq · United States · Services-Prepackaged Software
In shortCerence Inc. is loss-making, generates cash and carries moderate debt, with revenue shrinking (−24.0% last year).
Financial health
Weak
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | -0.9% | 14/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | -7.4% | 0/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | -12.8% | 0/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | -0.5% | 0/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.89× | 90/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 1.33× | 37/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | 23.77× | 0/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | -0.22× | 0/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | -3.62 | 0/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 18.6% | 94/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | – | n/a |
| Years with positive free cash flow (last 5) | 4 of 5 | 75/100 |
Weight in the score: 20%
| Profitable years (last 5) | 1 of 5 | 20/100 |
|---|---|---|
| Years of revenue decline (last 5) | 3 of 5 | 0/100 |
| Revenue growth volatility | 17.9% | 45/100 |
| Operating margin volatility | 77.3% | 0/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | -8.4% | 0/100 |
|---|---|---|
| EPS growth, 3-year average | – | n/a |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
3 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 387 | 328 | 294 | 332 | 252 |
| Cost of revenue | 101 | 97 | 95 | 87 | 69 |
| Gross profit | 286 | 231 | 199 | 244 | 183 |
| Research & development | 112 | 107 | 123 | 122 | 98 |
| Operating income | 61 | (184) | (27) | (580) | (2.3) |
| Interest expense | 14 | 14 | 15 | 13 | 10 |
| Pre-tax income | 48 | (199) | (36) | (585) | (8.8) |
| Income tax | 2.4 | 112 | 20 | 3.5 | 9.9 |
| Net income | 46 | (311) | (56) | (588) | (19) |
| Diluted EPS | $1.17 | −$7.93 | −$1.40 | −$14.12 | −$0.43 |
| Diluted shares (millions) | 39 | 39 | 40 | 42 | 43 |
3 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 8 reported quarters (10-Q and 10-K filings), in USD millions. The fourth quarter is derived from the annual report.
The last 8 quarters of Cerence Inc. are included in the Investor plan. Try free for 7 days →
−3.62 Distress zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
4/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 30, 2026 · Data updated Aug 6, 2026