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Gross Margin by Segment
Shows the percentage of revenue that exceeds the cost of goods sold for each segment, revealing efficiency and pricing power across different parts of the business.Cerence's gross margins reveal a strategic shift. Professional Services margins have improved significantly since 2023, despite a projected revenue decline due to increased efficiency in newer technologies. License margins remain robust, supported by a $49.5 million patent payment from Samsung, highlighting successful IP monetization. Connected Services margins, while volatile, show potential for growth as the segment expands, evidenced by a 14% revenue increase. The company's focus on non-automotive growth and IP monetization suggests a pivot towards higher-margin areas, aligning with their optimistic 2026 revenue and EBITDA projections.
Date | Professional Services | License | Connected Services |
|---|---|---|---|
Jun 30, 2026 | 16.91 | 96.73 | 68.28 |
Mar 31, 2026 | 9.36 | 95.73 | 67.06 |
Dec 31, 2025 | 25.76 | 98.49 | 66.21 |
Sep 30, 2025 | 31.98 | 94.88 | 62.41 |
Jun 30, 2025 | 31.21 | 96.86 | 63.58 |
Mar 31, 2025 | 25.06 | 95.27 | 60.63 |
Dec 31, 2024 | 32.72 | 92.00 | 53.96 |
Sep 30, 2024 | 30.00 | 95.00 | 47.00 |
Jun 30, 2024 | 23.89 | 95.83 | 47.73 |
Mar 31, 2024 | 24.50 | 96.05 | 60.59 |