Cerence Inc
NASDAQ:CRNC
Cerence Inc
Cerence, Inc. builds automotive cognitive assistance solutions to power natural and intuitive interactions between automobiles, drivers and passengers, and the broader digital world. The company is headquartered in Burlington, Massachusetts and currently employs 1,700 full-time employees. The company went IPO on 2019-09-16. The firm's platform utilizes speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology to provide a conversational AI-based solution. The firm's platform is a fully customizable and designed to support its customers in creating their own ecosystem in the automobile and transforming the vehicle into a hub for numerous connected devices and services. Virtual assistants built with its software platform can address user requests across a variety of categories, such as navigation, control, media, communication and tools. Its software platform consists of edge computing and cloud-connected software components and a software framework linking these components together under a common programming interface.
Cerence, Inc. builds automotive cognitive assistance solutions to power natural and intuitive interactions between automobiles, drivers and passengers, and the broader digital world. The company is headquartered in Burlington, Massachusetts and currently employs 1,700 full-time employees. The company went IPO on 2019-09-16. The firm's platform utilizes speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology to provide a conversational AI-based solution. The firm's platform is a fully customizable and designed to support its customers in creating their own ecosystem in the automobile and transforming the vehicle into a hub for numerous connected devices and services. Virtual assistants built with its software platform can address user requests across a variety of categories, such as navigation, control, media, communication and tools. Its software platform consists of edge computing and cloud-connected software components and a software framework linking these components together under a common programming interface.
Revenue Surge: Cerence delivered Q1 revenue of $115.1 million, up 126% year-over-year, boosted by a $49.5 million patent license settlement with Samsung.
Profitability: Adjusted EBITDA was $44.6 million, exceeding the high end of guidance, with record free cash flow of $35.6 million for the quarter.
Patent Win: The Samsung settlement marked a strategic IP milestone, demonstrating the value and strength of Cerence’s technology portfolio.
xUI Customer Traction: Cerence signed five significant xUI customer programs, including JLR, Volkswagen Group, Geely, and two major Chinese EV OEMs, all with higher per-unit prices than prior deals.
Full-Year Guidance Reaffirmed: Management reaffirmed full-year 2026 guidance for revenue, EBITDA, free cash flow, and gross margin amid strong Q1 results.
Cost Discipline: The company continued to pay down debt and implemented cost-saving measures, supporting sustainable growth.
Connected Services Growth: Connected cars shipped grew 14% on a trailing 12-month basis, and recurring connected services revenue expanded.
Momentum Beyond Auto: Cerence is making progress bringing its AI technology to non-automotive markets, with revenue impact expected in late 2026 and beyond.
