$CRNC

Cerence Inc.

CIK:0001768267|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Total revenues	$ 69,587	$ 62,236	$ 248,855	$ 191,142
Cost of revenues:
Total cost of revenues	16,673	16,348	49,295	52,001
Gross profit	52,914	45,888	199,560	139,141
Operating expenses:
Research and development	29,237	27,152	84,235	71,353
Sales and marketing	5,829	5,916	17,905	15,612
General and administrative	14,714	12,340	59,497	36,293
Amortization of intangible assets	0	578	0	1,668
Restructuring and other costs, net	1,259	850	9,180	14,744
Total operating expenses	51,039	46,836	170,817	139,670
Income (loss) from operations	1,875	(948)	28,743	(529)
Interest income	710	895	2,230	3,250
Interest expense	(1,450)	(2,409)	(4,592)	(8,518)
Other income, net	413	1,673	2,250	2,444
Income (loss) before income taxes	1,548	(789)	28,631	(3,353)
Provision for income taxes	15	1,932	30,664	2,000
Net income (loss)	$ 1,533	$ (2,721)	$ (2,033)	$ (5,353)
Net income (loss) per share:
Basic (in dollars per share)	$ 0.03	$ (0.06)	$ (0.05)	$ (0.12)
Diluted (in dollars per share)	$ 0.03	$ (0.06)	$ (0.05)	$ (0.12)
Weighted-average common shares outstanding:
Basic (in shares)	45,184	43,262	45,077	43,127
Diluted (in shares)	47,744	43,262	45,077	43,127
License
Revenues:
Total revenues	$ 41,600	$ 34,176	$ 166,935	$ 108,361
Cost of revenues:
Total cost of revenues	1,362	1,074	4,291	5,288
Connected services
Revenues:
Total revenues	15,465	12,842	45,307	39,197
Cost of revenues:
Total cost of revenues	4,906	4,805	14,860	16,095
Professional services
Revenues:
Total revenues	12,522	15,218	36,613	43,584
Cost of revenues:
Total cost of revenues	$ 10,405	$ 10,469	$ 30,144	$ 30,618

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (2,033)	$ (5,353)
Adjustments to reconcile net loss to net cash provided by operations:
Depreciation and amortization	7,822	8,512
Provision for credit loss reserve	6	208
Stock-based compensation	19,616	20,047
Non-cash interest expense	2,416	4,647
Gain on debt extinguishment	(1,051)	(327)
Deferred tax provision (benefit)	15,561	(5,303)
Unrealized foreign currency transaction loss (gain)	425	(2,708)
Other, net	776	(33)
Changes in operating assets and liabilities:
Accounts receivable	7,540	(2,949)
Prepaid expenses and other assets	11,986	27,132
Deferred costs	2,166	3,068
Accounts payable	1,686	1,484
Accrued expenses and other liabilities	(5,339)	(17,134)
Deferred revenue	10,384	17,130
Net cash provided by operating activities	71,961	48,421
Cash flows from investing activities:
Capital expenditures	(3,071)	(11,353)
Sale and maturities of marketable securities	3,425	3,493
Other investing activities	(873)	(1,145)
Net cash used in investing activities	(519)	(9,005)
Cash flows from financing activities:
Principal payments of long-term debt	(27,600)	0
Principal payments of short-term debt	0	(87,089)
Common stock repurchases for tax withholdings for net settlement of equity awards	(7,606)	(2,200)
Principal payment of lease liabilities arising from a finance lease	(12)	(331)
Proceeds from the issuance of common stock	8,112	2,204
Net cash used in financing activities	(27,106)	(87,416)
Effects of exchange rate changes on cash and cash equivalents	(746)	187
Net change in cash and cash equivalents	43,590	(47,813)
Cash and cash equivalents at beginning of period	84,017	121,485
Cash and cash equivalents at end of period	127,607	73,672
Supplemental disclosure of cash flow information:
Cash paid for income taxes	11,034	4,739
Cash paid for interest	$ 2,925	$ 3,980

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Sep. 30, 2025
Current assets:
Cash and cash equivalents	$ 127,607	$ 84,017
Marketable securities	0	3,433
Accounts receivable, net of allowances of $72 and $68 as of June 30, 2026 and September 30, 2025, respectively	45,903	58,937
Deferred costs	4,331	4,481
Prepaid expenses and other current assets	34,415	39,889
Total current assets	212,256	190,757
Property and equipment, net	31,381	35,761
Deferred costs	13,020	15,501
Operating lease right of use assets	12,448	16,762
Goodwill	295,976	299,003
Deferred tax assets	38,709	54,207
Other assets	17,146	18,600
Total assets	620,936	630,591
Current liabilities:
Accounts payable	2,693	901
Deferred revenue	55,799	51,865
Short-term operating lease liabilities	4,056	4,344
Accrued expenses and other current liabilities	39,388	44,080
Total current liabilities	101,936	101,190
Long-term debt	173,458	199,693
Deferred revenue, net of current portion	142,408	140,021
Long-term operating lease liabilities	9,538	13,083
Other liabilities	27,242	25,928
Total liabilities	454,582	479,915
Commitments and contingencies (Note 12)
Stockholders' Equity:
Common stock, $0.01 par value, 560,000 shares authorized; 45,188 and 43,374 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively	451	434
Accumulated other comprehensive loss	(27,880)	(25,469)
Additional paid-in capital	1,136,270	1,116,165
Accumulated deficit	(942,487)	(940,454)
Total stockholders' equity	166,354	150,676
Total liabilities and stockholders' equity	$ 620,936	$ 630,591