Cerence(US:CRNC) Globenewswire·2025-08-06 20:05Core Insights - Cerence Inc. reported Q3 fiscal year 2025 results, achieving revenue of $62.2 million and Adjusted EBITDA of $9.0 million, exceeding guidance [3][5] - The company generated strong free cash flow of $16.1 million, marking the fifth consecutive quarter of positive free cash flow [3][6] - Full fiscal year revenue guidance has been raised to a range of $244 million to $249 million, along with improved guidance for Adjusted EBITDA and free cash flow [3][10] Financial Performance - Q3 FY2025 GAAP revenue was $62.2 million, down from $70.5 million in Q3 FY2024 [5] - GAAP gross margin improved to 73.7% from 71.5% year-over-year [5] - GAAP net loss for Q3 FY2025 was $(2.7) million compared to a loss of $(313.5) million in Q3 FY2024 [5] - Adjusted EBITDA for the nine months ended June 30, 2025, was $39.8 million, down from $82.6 million in the same period of the previous year [5] Key Performance Indicators - Cerence's technology was utilized in 52% of worldwide auto production over the trailing twelve months [7] - The number of Cerence connected cars shipped increased by 12% year-over-year [7] - Adjusted Total Billings saw a 3% increase year-over-year [7] Future Outlook - For Q4 FY2025, revenue is expected to be between $53 million and $58 million, with gross margins projected at 68% to 69% [9] - Full fiscal year projections include a net loss range of $28 million to $24 million and Adjusted EBITDA expected between $42 million and $46 million [10]