Cerence (CRNC) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Cerence

NasdaqGS•Technology•Software - Application

$8.51+0.37(0.05%)Market closed

Market Cap

$368.25M

P/S

1.2x

P/B

2.2x

Cerence Inc. provides AI-powered assistants for the mobility/transportation market in the United States, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the Asia-Pacific. The company offers edge software components, cloud-connected components, virtual assistant, and professional services. It also provides conversational and generative artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic tuning. The company has a strategic partnership with Arm Kleidi; and SiMa.ai to advance the capabilities and performance of CaLLM Edge. Cerence Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

How this company scores

GoodMetricSide Score: 63/100

Strongest: Profitability (17/25); weakest: Balance Sheet & Red Flags (12/25).

Profitability17/25

Growth17/25

Balance Sheet & Red Flags12/25

Cash & Earnings Quality17/25

Strengths

Growing revenueRising free cash flowLong cash runwayConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 1447.9x5y range 2.1x – 1447.9x

Currently above its 4-quarter median.

P/S · 1.2x5y range 0.2x – 2.1x

Currently above its 20-quarter median.

P/B · 2.2x5y range 0.1x – 3.5x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg 0.9x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume

Market Cap $368.25M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $309.49M
Q. Revenue: $69.59M
TTM EBITDA: $36.84M
TTM Op. Income: $26.98M
Q. Op. Income: $1.88M
TTM Net Income: $-15.39M
Q. Net Income: $1.53M
EPS: $0.03
Shares Out.: $45.18M

$309.49M in TTM revenue grew 25.8% YoY, reaching $69.59M last quarter. TTM EBITDA of $36.84M and TTM operating income of $26.98M show growth is flowing through to the bottom line. However, net income is negative at $15.39M — growth is not yet reaching the bottom line. Over the past year, TTM revenue is up 26% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 76.0%
EBITDA Margin: 6.8%
Op. Margin: 2.7%
Net Margin: 2.2%

Op. margin of 2.7% is up 4.2% YoY — cost efficiency is improving. Net margin at 2.2% and gross margin of 76.0% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 277% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 1.2x
P/B Ratio: 2.2x

P/S of 1.2x and P/B of 2.2x. P/S is low relative to typical market levels.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $620.94M
Cash: $127.61M
Long-Term Debt: $173.46M
Book Value: $166.35M
D/E Ratio: 1.0
Debt/EBITDA: 36.7

With $620.94M in assets and $173.46M in long-term debt, D/E is 1.0and book value is $166.35M — moderate leverage. Across the last 8 quarters, debt/equity has fallen for 3 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $19.96M
TTM Free Cash Flow: $78.64M
FCF Margin: 25.4%
FCF / Net Income: -5.1

TTM FCF of $78.64M on $19.96M in operating cash flow. The FCF / Net Income ratio of -5.1x means the business consumes cash — it is not yet self-funding. Across the last 8 quarters, free cash flow has risen for 7 consecutive quarters — an improving trend.