Cerence(US:CRNC) Globenewswire·2026-02-04 21:05Core Insights - Cerence Inc. reported strong Q1 fiscal year 2026 results, achieving a GAAP revenue of $115.1 million, significantly up from $50.9 million in Q1 FY25, with a gross margin of 86.3% compared to 65.0% in the previous year [4][6] - The company experienced a record free cash flow of $35.6 million, reflecting disciplined execution and profitability [6][10] - Cerence's customer momentum is accelerating, with five major programs in progress and positive feedback from CES 2026, showcasing next-generation AI experiences [3][6] Financial Performance - GAAP total operating expenses for Q1 FY26 were $70.0 million, up from $50.0 million in Q1 FY25, while non-GAAP total operating expenses were $57.3 million compared to $34.1 million [4][5] - The net loss for Q1 FY26 was $5.2 million, an improvement from a net loss of $24.3 million in Q1 FY25 [4][6] - Adjusted EBITDA for the quarter was $44.6 million, a significant increase from $1.4 million in the same quarter last year [4][6] Key Performance Indicators - Cerence's technology was present in 51% 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 showed a 2% increase year-over-year [7] Guidance and Outlook - For Q2 FY26, Cerence expects revenue between $58 million and $62 million, with gross margins projected between 71% and 72% [9][10] - The full fiscal year 2026 guidance remains reaffirmed, with expected revenue in the range of $300 million to $320 million and adjusted EBITDA projected between $50 million and $70 million [10][11]