EarningsQ3 2026 Earnings Report
MX:CRNC Q3 2026 EPS Results
Actual EPS$3.87
Consensus EPS$3.52
Beat/MissBeat by +$0.34
One Year Ago EPS$2.10
MX:CRNC Q3 2026 Revenue Results
Actual Revenue$1.26B
Expected Revenue$1.27B
Beat/MissMissed by -$8.46M
YoY Revenue Growth+11.81%
Earnings Announcement Details
QuarterQ3 2026
Date08/06/2026
TimeAfter Close
Conference CallThursday, August 6, 2026
MX:CRNC Upcoming Earnings
Cerence's next earnings date is estimated for November 23, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:CRNC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicated clear execution progress: double-digit revenue growth, strong margin and EBITDA expansion, robust free cash flow with upward guidance, recurring connected services growth (+20% YoY), xUI commercialization (100k cars) and new strategic wins (Stellantis, mobile work agent). Offsetting these positives are softer variable license and unit production (variable license -15% YoY; production -8% YoY), a decline in pro forma royalties (~-11.6%), and near-term seasonality that leads to lower Q4 revenue and compressed EBITDA guidance. Management emphasized that weak Q4 guidance is driven by timing and seasonality (no fixed license in Q4) rather than a change in underlying health, and positioned FY27 as a growth year powered by xUI, connected services and non-automotive expansion.Company Guidance
Revenue Growth and Top-Line Performance
Q3 revenue of approximately $70M, up 12% year-over-year (vs $62M prior year) and within guidance ($68M–$72M). Full fiscal 2026 revenue guidance of $310M–$314M maintained.
Strong Profitability and Margin Expansion
Adjusted EBITDA of $13.5M in Q3, up 51% year-over-year and above the high end of guidance. Q3 gross margin improved to 76% from 74% a year ago (~200 bps improvement).
Robust Cash Generation and Upgraded Free Cash Flow Guidance
Generated $20M of operating cash and $20M of free cash flow in Q3. Raised full-year free cash flow guidance to $76M–$82M (previously $66M–$76M). Ended the quarter with $128M in cash and equivalents.
Recurring Connected Services Momentum
Connected services revenue of $15.5M in Q3, up 20% year-over-year, and connected cars shipped increased 4% on a trailing 12-month basis — increasing the recurring portion of revenue and visibility into future performance.
License Revenue Strength (Fixed and Total)
Total license revenue of $41.6M, up 22% year-over-year. Fixed license revenue of $12.5M in Q3 (no fixed license revenue in the prior-year period), helping drive margin mix.
xUI Commercialization and Design-Win Momentum
xUI moved from concept to production: ~100,000 xUI-powered cars on the road, xUI available in nearly 20 languages, and new xUI deal signed with Stellantis (deployment across multiple brands/regions). Several additional xUI programs are in or entering production with ramp expected into FY27.
Agentic AI and Non-Automotive Progress
Signed first customer for mobile work agent (with Microsoft collaboration) — rollout expected in FYQ4 — and launched dealer assistant pilot which captured 100% of after-hours calls, drove a 20% increase in sales opportunities and ~30% increase in service appointments. Non-automotive revenue expected ~$7M–$9M for FY26 with larger opportunity in FY27.
Capital Allocation Actions
Board authorized first-ever share repurchase program up to $30M; company also repurchased a portion of 2028 convertible notes earlier in the year (reducing interest expense and leverage).
MX:CRNC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed