Cerence Inc. reported Q4 revenue of $60.6 million and FY25 revenue of $251.8 million, surpassing their guidance. Net cash provided by operating activities for Q4 was $12.8 million, and free cash flow was $9.7 million. FY26 revenue guidance is $300-320 million, representing a 23% increase from the previous year.

CEO Brian Krzanich praised Cerence’s progress, highlighting successful outcomes in protecting and monetizing intellectual property. Q4 results exceeded expectations, with revenue of $60.6 million and Adjusted EBITDA of $8.3 million. Progress on the Cerence xUI platform has attracted strong customer interest, with xUI-powered cars expected in 2026.

Key performance indicators for Cerence show 52% of worldwide auto production using Cerence technology, a 14% increase in connected cars shipped, and an 8% increase in Adjusted Total Billings year-over-year. These indicators reflect the company’s growth and adoption in the automotive industry.

For Q1 and FY26, Cerence projects revenue of $110-120 million and $300-320 million, respectively. Gross margins are expected to be 85-86%, with net (loss) income projected at $(2.4) million to $7.6 million for Q1 and $(8.1) million to $11.9 million for FY26.

Cerence’s non-GAAP financial measures show adjusted EBITDA of $8.3 million for Q4 and $48.1 million for FY25. Free cash flow was $9.7 million for Q4 and $46.8 million for FY25. The company continues to focus on operational performance and financial transparency.

Investors can learn more about Cerence AI and its innovative AI-powered experiences in automotive and transportation by visiting their website. The company is a global leader in creating intuitive, seamless user experiences for drivers and passengers, with a focus on safety and connectivity.

Read more at GlobeNewswire: Cerence Beats Upper End of Guidance, Delivering Strong