Cerence Inc. (CRNC) Stock

Cerence Inc. (CRNC) is a Technology stock trading at $8.03 (as of 2026-08-21), with a market capitalization of $363.20M. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Cerence Inc. provides AI powered virtual assistants for the mobility/transportation market worldwide. The company offers edge software components; cloud-connected components and related toolkits and applications; and virtual assistant coexistence and professional services. It also provides conversational artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology. Cerence Inc. is headquartered in Burlington, Massachusetts.

Understand Cerence Inc.: how it makes money

Cerence builds AI powered virtual assistants and conversational AI for the mobility and transportation market, selling edge software components, cloud-connected components, and related toolkits, applications, and professional services, which generate revenue primarily through license and connected services.

Cerence’s profit model is driven mainly by monetizing deployed mobility voice and conversational AI through license and royalty-style revenue, with smaller contributions from connected services and professional services.

Revenue by segment (latest quarter)
License	$0.1B
Connected Svcs	$0.0B

Business quality (Weak): Good transparency on the latest quarter’s total revenue, gross margin, and operating margin, but the provided segment and KPI data appear to be revenue line items rather than confirmed official reportable segments, so segment interpretation should be treated as approximate based on the facts provided.

Bull case

High gross margin: Gross margin was 73.7% in the latest reported period (2026-03-31), suggesting strong economics at the product or software gross profit level.
License revenue is the core of the model: In the provided breakdown, License Revenue is 0.09B, indicating most revenue comes from licensing the company’s mobility virtual assistant and conversational AI capabilities.

Bear case

Operating losses despite high gross margin: Operating margin was -3.8% in the latest reported period, meaning operating costs outweighed gross profit.
Connected services are a smaller portion of revenue: Connected Services Revenue is 0.01B in the provided breakdown, so near term results may rely heavily on license revenue rather than recurring services.

Valuation — source: SEC EDGAR (first-party)
Price	$8.03
Market Cap	$363.20M
EV / EBITDA	14.6
Price / Book	2.18
Price / Sales	1.17
FCF Yield	21.7%
DCF Value (model)	$16.12
DCF Upside vs Price	100.7%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$251.78M
Net Margin	-7.4%
Revenue Growth (YoY)	11.8%
EPS Growth (YoY)	-150.0%
FCF Growth (YoY)	22.2%

Financial Health — source: SEC EDGAR
Altman Z-Score	-1.08 (distress)
Piotroski F-Score	5/9 (moderate)

Valuation vs Sector & Industry
Sector P/E (Technology)	34.0
Industry P/E (Business Services)	30.2

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($35.82M)
Institutional Holders Tracked	10
Congressional Trades (recent)	3

Company
Sector	Technology
Industry	Business Services
CEO	Brian Matthew Krzanich
Employees	1,400
Country	US
IPO Date	2019-09-16

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Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.