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Employees: 1,300
Size Cerence (CRNC) is a United States Information Technology company (Packaged Software) with a market value of $369M, the 2923rd largest of 3,117 United States companies the cockpit tracks. Shares closed at $8.15 on 6 Nov 2026.
Performance Over six months the shares fell 17.4%, against -14.6% for the median peer and -1.1% for the United States market (cap-weighted) — 11th highest of 21 in its peer set.
Growth Revenue grew 25.8% over the last twelve months (peer median +7.6%); the operating margin is 11.9% (peer median 1.6%).
Valuation It trades at 10.8× forward earnings against a peer median of 26.0× (2nd cheapest of 12).
Price implies For today's price to make sense, revenue must grow about 6% a year for seven years (Req g). Recent delivered growth is -5%, so the hurdle is +12 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 2.1 points below its cost of capital (15.0% WACC).
Backlog Backlog (remaining performance obligations) was $234M at 30 Jun 2026, up 4% on a year earlier — 0.8 years of trailing revenue. Backlog detail →
Credit Cerence has 1 bond outstanding ($170M).
Short interest Short interest is 12.8% of the free float (15 Oct 2026).
Next results Next results expected around 23 Nov 2026 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $309M | $252M | $332M | $294M | $328M |
| Revenue growth | — | -24% | +13% | -10% | — |
| Gross profit | $244M | $181M | $242M | $193M | $219M |
| EBITDA | $46.7M | $23.7M | $56.9M | $756,000 | $62.3M |
| Net income | -$15.4M | -$18.7M | -$588M | -$56.3M | -$311M |
| Free cash flow | $78.6M | $46.8M | $11.8M | $2.37M | -$19.6M |
| Capital expenditure | $6.07M | $14.4M | $5.00M | $5.12M | $17.4M |
| Total debt | $187M | $217M | $296M | $290M | $288M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | CRNC | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -2.3% | -6.4% | 8th highest of 21 |
| 6-month return | -17.4% | -14.6% | 11th highest of 21 |
| Distance from 52-week high | -38.6% | -39.5% | 11th highest of 21 |
| Revenue growth (TTM) | +25.8% | +7.6% | 6th highest of 21 |
| Operating margin | 11.9% | 1.6% | 8th highest of 21 |
| Forward P/E | 10.8× | 26.0× | 2nd cheapest of 12 |
| Growth the price implies (Req g, 7 yrs) | 6.4% | 12.1% | 6th least demanding of 13 |
| Growth delivered (Del g) | -5.3% | +14.4% | 3rd lowest of 13 |
| Hurdle (Req g minus delivered) | +11.8 pp | -13.9 pp | 3rd most demanding of 13 |
| ROIC minus cost of capital | -2.1 pp | -9.9 pp | 8th highest of 21 |
| EV / EBITDA | 9.2× | 13.0× | 4th cheapest of 9 |
| Net debt / EBITDA | 1.3× | -2.3× | 2nd most indebted of 10 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Cerence CRNC | United States | $369M | -17% | +26% | 12% | 10.8× | 6.4% | -5.3% |
| CS Disco LAW | United States | $367M | +37% | +12% | -20% | n/a | n/a | n/a |
| Pro-Ship 3763.T | Japan | $370M | +33% | +15% | 36% | 19.3× | -4.4% | +9.4% |
| Nanjing Bestway Intelligent Control Technology 301195.SZ | China | $370M | -18% | -4% | 6% | 29.8× | 10.7% | +17.0% |
| PowerFleet AIOT | United States | $361M | -4% | +15% | 7% | 87.7× | 15.3% | +31.3% |
| Lime Technologies LIME.ST | Sweden | $361M | +24% | +9% | 21% | 26.0× | -1.6% | +16.9% |
| Qtone Education Group (Guangdong) 300359.SZ | China | $361M | -24% | -29% | -34% | n/a | n/a | n/a |
| Beijing Interact Technology 300419.SZ | China | $360M | -8% | -52% | -54% | n/a | 36.2% | -17.8% |
| Shenzhen Fangzhi Science and Technology 300235.SZ | China | $359M | -33% | +27% | 7% | n/a | n/a | n/a |
| AsiaInfo Technologies 1675.HK | Hong Kong | $379M | -49% | -3% | -3% | 6.2× | -13.9% | +0.2% |
| Energy One EOL.AX | Australia | $379M | +3% | +14% | 17% | 29.5× | 18.7% | +20.3% |
| Zhengzhou Tiamaes Technology 300807.SZ | China | $379M | -45% | -28% | -19% | n/a | 44.1% | -5.8% |
| Weimob 2013.HK | Hong Kong | $358M | -55% | +40% | -14% | n/a | n/a | n/a |
| Beijing Forever Technology 300365.SZ | China | $357M | -32% | -47% | -52% | n/a | n/a | n/a |
| Base 4481.T | Japan | $356M | -7% | +1% | 26% | 13.1× | -13.4% | +11.9% |
| Miroku Jyoho Service 9928.T | Japan | $382M | +27% | +6% | 15% | 13.4× | -11.7% | +7.5% |
| Deepexi Technology 1384.HK | Hong Kong | $356M | -88% | +86% | -9% | 101.4× | n/a | n/a |
| Bonree Data Technology 688229.SS | China | $382M | -33% | -21% | -93% | n/a | n/a | n/a |
| Shanghai WonderTek Software 603189.SS | China | $355M | -28% | +7% | -8% | n/a | n/a | n/a |
| ExaWizards 4259.T | Japan | $384M | -11% | +28% | 13% | 30.9× | 40.9% | +35.6% |
| Vitalhub VHI.TO | Canada | $354M | -2% | +54% | 12% | 22.2× | 13.6% | +51.2% |
Cerence has 1 bond outstanding with $170M face value.
Cerence reported $234M of remaining performance obligations at 30 Jun 2026, up 4% from a year earlier and down 1% from the previous quarter. That is 0.8 years of trailing revenue already under contract. Book-to-bill last quarter: 0.98.