Cerence(US:CRNC)2025-11-19 21:06Financial Performance - Q4 revenue reached $60.6 million, exceeding the high end of guidance, with FY25 revenue totaling $251.8 million[3] - Adjusted EBITDA for Q4 was $8.3 million, while FY25 adjusted EBITDA was $48.1 million[5] - Free cash flow for Q4 was $9.7 million, contributing to a total of $46.8 million for FY25, nearly three times the previous year[3] - The company projects FY26 revenue guidance of $300 million to $320 million, reflecting a 23% year-over-year increase at the midpoint[3] - The company anticipates first fiscal quarter revenue between $110 million and $120 million, including a $49.5 million patent license payment[8] - GAAP revenue for Q4 2025 was $60.639 million, up from $54.805 million in Q4 2024, representing a growth of 3.1%[51] - The company reported GAAP net cash provided by operating activities of $12.752 million for Q4 2025, compared to $6.115 million in Q4 2024[51] Profitability Metrics - Gross margin for Q4 was 72.6%, compared to 63.7% in Q4 FY24[5] - GAAP gross profit increased to $43.995 million in Q4 2025, compared to $34.895 million in Q4 2024, resulting in a gross margin of 72.6%[51] - Adjusted EBITDA for the twelve months ended September 30, 2025, was $48.064 million, down from $80.616 million in the previous year[51] - The net loss for the twelve months ended September 30, 2025, was $18.714 million, a significant improvement from a net loss of $588.078 million in 2024[49] - The company anticipates GAAP net income for FY2026 to range from a loss of $8.117 million to a profit of $11.883 million[53] Cash Flow and Assets - Net cash provided by operating activities for FY25 was $61.2 million, significantly up from $17.2 million in FY24[5] - Cash and cash equivalents at the end of the period were $84.017 million, down from $121.485 million at the end of September 30, 2024[46] - Total current assets decreased to $190.757 million as of September 30, 2025, from $265.509 million in 2024, reflecting a decline of about 28.2%[46] - Free cash flow for FY2026 is expected to be between $55.5 million and $65.5 million[53] Operational Metrics - The core technology business is expected to grow by 8% in FY26, excluding professional services[2] - The percentage of worldwide auto production utilizing Cerence technology reached 52% over the trailing twelve months[7] - The number of Cerence connected cars shipped increased by 14% year-over-year[7] - The number of Cerence enabled cars shipped on a TTM basis was over 525 million, showcasing the company's strong market presence[37] - Research and development expenses for the three months ended September 30, 2025, were $26.403 million, slightly up from $25.227 million in the same period of 2024[41] Liabilities and Shareholder Equity - The total liabilities decreased to $479.915 million as of September 30, 2025, compared to $561.261 million in 2024, indicating a reduction of approximately 14.5%[46] - The weighted-average common shares outstanding for the three months ended September 30, 2025, were 43.339 million, compared to 41.866 million in the same period of 2024[41] - Capital expenditures for FY2026 are projected to be between $(5.5) million and $(1.5) million[53]