Overview

* Cerence ( CRNC ) Q4 revenue of $60.6 mln beats analyst expectations

* Company FY26 revenue guidance of $300 mln to $320 mln, marking 23% yr/yr increase

* Company reports successful outcome in IP monetization efforts

Outlook

* Cerence ( CRNC ) expects Q1 revenue between $110 mln and $120 mln

* Cerence ( CRNC ) projects FY26 revenue of $300 mln to $320 mln

* Company anticipates FY26 adjusted EBITDA between $50 mln and $70 mln

Result Drivers

* CORE TECHNOLOGY GROWTH - Cerence ( CRNC ) reports 8% growth in core technology business excluding professional services

* IP MONETIZATION - Successful outcome in efforts to protect and monetize intellectual property

* xUI PLATFORM - Strong customer interest and adoption for Cerence ( CRNC ) xUI platform, meeting all technology milestones

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Beat $60.60 $55.26

Revenue mln mln (5

Analysts

)

Q4 EPS -$0.24

Q4 Net -$13.40

Income mln

Q4 Gross 72.60%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Cerence Inc ( CRNC ) is $10.00, about 21.8% above its November 18 closing price of $7.82

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)