Cerence(US:CRNC) Globenewswireยท2025-11-19 21:05Core Insights - Cerence Inc. reported strong financial results for Q4 and fiscal year 2025, with Q4 revenue of $60.6 million and FY25 revenue of $251.8 million, both exceeding guidance [3][5] - The company anticipates FY26 revenue guidance of $300 million to $320 million, reflecting a 23% year-over-year increase at the midpoint [3][5] - Cerence's CEO highlighted significant progress in technology milestones and customer interest in the Cerence xUI platform, with the first xUI-powered cars expected to launch in 2026 [3][5] Financial Performance - Q4 GAAP revenue was $60.6 million, up from $54.8 million in Q4 2024, while FY25 GAAP revenue was $251.8 million, down from $331.5 million in FY24 [4][33] - GAAP gross margin improved to 72.6% in Q4 2025 from 63.7% in Q4 2024, and for FY25, it was 72.7% compared to 73.7% in FY24 [4][33] - The company reported a net loss of $13.4 million for Q4 2025, an improvement from a loss of $20.4 million in Q4 2024, and a net loss of $18.7 million for FY25 compared to a loss of $588.1 million in FY24 [4][33] Cash Flow and Guidance - Q4 free cash flow was $9.7 million, nearly double the $4.7 million in Q4 2024, while FY25 free cash flow reached $46.8 million, up from $12.2 million in FY24 [5][33] - For Q1 FY26, revenue is expected to be between $110 million and $120 million, with gross margins projected between 85% and 86% [9][10] - FY26 adjusted EBITDA is expected to range from $50 million to $70 million, with net cash provided by operating activities projected between $61 million and $67 million [10][9] Key Performance Indicators - Cerence's technology was present in 52% of worldwide auto production over the trailing twelve months [7] - The number of Cerence connected cars shipped increased by 14% year-over-year [7] - Adjusted total billings grew by 8% year-over-year [7] Company Overview - Cerence Inc. is a leader in AI-powered user experiences in the automotive sector, with over 525 million cars shipped with its technology [28] - The company focuses on creating safer and more connected journeys for drivers and passengers through innovative AI solutions [28]