Core Insights - Cerence's shares increased by over 27% following the release of stronger-than-expected fiscal fourth-quarter results [1] Financial Performance - Cerence's revenue for the quarter ending September 30 rose nearly 11% year over year to $60.6 million, driven by a 27% increase in license revenue and a 17% rise in connected services revenue [3] - Over the trailing 12 months, 52% of global auto production utilized Cerence technology, with a 14% increase in the number of Cerence-connected cars shipped compared to the previous year [4] - Operating cash flow and free cash flow surged approximately threefold to $61.2 million and $46.8 million, respectively, in fiscal 2025 [4] Future Guidance - Management provided revenue guidance of $300 million to $320 million and free cash flow guidance of $55.5 million to $65.5 million for fiscal 2026 [5] - The first-quarter revenue will include a $49.5 million payment from a legal settlement with Samsung, marking a successful outcome in protecting and monetizing intellectual property [5] - Cerence anticipates an 8% growth in its core technology business in the upcoming year [5]
Why Cerence Stock Soared Today