Automotive conversational software maker Cerence's Q4 revenue beats estimates

Cerence

19/11/2025 21:15

Overview

Cerence 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 expects Q1 revenue between $110 mln and $120 mln

Cerence 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 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 xUI platform, meeting all technology milestones

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$60.60 mln
$55.26 mln (5 Analysts)
Q4 EPS
-$0.24
Q4 Net Income
-$13.40 mln
Q4 Gross Margin
72.60%


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 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: ID:nGNX7FH0Cq

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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.)