Cerence Inc.(CRNC)Stock Analysis
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Rank #1,597 of 2,879 stocks
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
CRNC Stock Analysis & AI Quality Score
AI stock analysis and institutional research for Cerence Inc. (CRNC), a Technology sector company. 13F Pro's AI-powered ranking engine scores CRNC at 47.5/100 on a 32-signal composite quality model, placing it at rank #1,597 of 2,879 stocks — the bottom half of the AI-ranked universe. CRNC scores in the top quartile across free cash flow (82.0). Areas of concern include revenue growth (23.3) and earnings quality (30.0), which score below median versus the broader universe. Shareholder dilution risk is elevated at 16.1/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Cerence Inc. reports quarterly revenue of $64.2M, net income of $1.7M, free cash flow of $13.6M. Top institutional holders of CRNC by reported 13-F value include Context Capital Management,, LINDEN ADVISORS, BlackRock,, based on the most recent SEC filings. CRNC trades on the Nasdaq exchange and files with the SEC under CIK 1768267. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CRNC daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Cerence Inc. directly from SEC EDGAR. Cerence Inc.'s 13F Pro composite quality score has ranged between 8 and 67 since 2021, currently 47.5 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.
Revenue
Q2 2026
$64.2M
Net Income
Q2 2026
$1.7M
Free Cash Flow
Q2 2026
$13.6M
ROIC
Q2 2026
-0.7%
D/E Ratio
Q2 2026
1.09
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
-14.5% YoYNet Income
+66.7% YoYOperating Income
+91.6% YoYEPS (Diluted)
+69.3% YoYTotal Assets
-51.4% YoYTotal Debt
-27.6% YoYOp. Cash Flow
+715.9% YoY| Metric | FY 2025 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $251.8M -14.5% | $294.5M -10.2% | $327.9M -15.3% | $387.2M +17.0% | $331.0M +9.1% | $303.3M |
| Net Income | $-18.7M +66.7% | $-56.3M +81.9% | $-310.8M -777.3% | $45.9M +350.6% | $-18.3M -118.3% | $100.3M |
| Operating Income | $-2.3M +91.6% | $-27.2M +85.2% | $-184.3M -404.2% | $60.6M +170.1% | $22.4M +106.7% | $10.9M |
| EPS (Diluted) | $-0.43 +69.3% | $-1.40 +82.3% | $-7.93 -777.8% | $1.17 +334.0% | $-0.50 -118.1% | $2.76 |
| Total Assets | $630.6M -51.4% | $1.30B -1.6% | $1.32B -22.7% | $1.71B +1.1% | $1.69B +13.7% | $1.48B |
| Total Debt | $199.7M -27.6% | $276.0M -1.9% | $281.4M +1.4% | $277.6M -0.6% | $279.4M | — |
| Operating Cash Flow | $61.2M +715.9% | $7.5M +450.7% | $-2.1M -102.9% | $74.4M +66.1% | $44.8M -49.1% | $88.1M |
AI Insight: CRNC Financial Trends
Debt cut nearly in half from $367M to $173M over two years, but revenue remains volatile and operating profitability inconsistent.
• Total debt fell sharply from $367M in Q2 2024 to $173M in Q1 2026, a 53% reduction, significantly de-risking the balance sheet.
• Q4 2025 showed a breakout quarter: revenue spiked to $115M and operating income reached $29M, the strongest in the series.
• Operating cash flow improved from $6M in Q3 2024 to $38M in Q4 2025, though Q1 2026 pulled back to $14M.
• Revenue in Q1 2026 dropped to $64M from $115M in Q4 2025, and operating income turned negative again at -$2M.
⚠ Q4 2025's $115M revenue appears to be an outlier; whether that demand level recurs or was one-time is critical to monitor.
⚠ Operating income has been negative in six of eight quarters; sustained profitability remains unproven despite debt reduction.
⚠ Equity has barely recovered to $159M in Q1 2026 after cumulative losses; any further net income shortfalls could erode book value.
AI Insight: CRNC Ratio Trends
Leverage has halved from 2.62x D/E to 1.09x over five quarters, but profitability remains deeply erratic with no sustained positive trend.
• D/E ratio fell sharply from 2.62 in Q3–Q4 2024 to 1.09 in Q1 2026, signaling meaningful balance-sheet deleveraging.
• Operating margin swings wildly: -35.1% in Q3 2024, +25.5% in Q4 2025, then back to -3.8% in Q1 2026 — no durable improvement.
• TTM operating margin of 8.0% and ROIC of 7.3% are positive on a trailing basis, obscuring severe quarter-to-quarter volatility.
• ROE swung from -80.5% in Q4 2024 to +58.0% in Q1 2025, then collapsed to -35.5% by Q3 2025 — driven by one-off items, not operational stability.
⚠ Q4 2025 ROIC spiked to 36.4% while NPM was -4.5% — a divergence suggesting a non-recurring operating item that needs scrutiny.
⚠ Q1 2026 NPM turned slightly positive at 2.6%, but OpMargin was -3.8% — watch whether below-the-line gains are masking operating weakness.
⚠ Continued D/E reduction toward 1.0x would materially reduce interest burden; any reversal would be an early warning sign.
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Available Research
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Top Institutional Holders of CRNC
Context Capital Management, LLC
$59.4M67,082,000 shLINDEN ADVISORS LP
$39.4M44,725,000 shBlackRock, Inc.
$26.3M4,170,129 shArete Wealth Advisors, LLC
$21.6M85,217 shAMERICAN CAPITAL MANAGEMENT INC
$15.9M2,519,289 shPARADIGM CAPITAL MANAGEMENT INC/NY
$15.8M2,507,276 shINTREPID CAPITAL MANAGEMENT INC
$13.3M15,000,000 shK2 PRINCIPAL FUND, L.P.
$12.0M13,750 shVANGUARD CAPITAL MANAGEMENT LLC
$11.4M1,805,809 shNo Street GP LP
$9.6M1,525,000 sh
| Fund | Value | Shares |
|---|---|---|
| Context Capital Management, LLC | $59.4M | 67,082,000 |
| LINDEN ADVISORS LP | $39.4M | 44,725,000 |
| BlackRock, Inc. | $26.3M | 4,170,129 |
| Arete Wealth Advisors, LLC | $21.6M | 85,217 |
| AMERICAN CAPITAL MANAGEMENT INC | $15.9M | 2,519,289 |
| PARADIGM CAPITAL MANAGEMENT INC/NY | $15.8M | 2,507,276 |
| INTREPID CAPITAL MANAGEMENT INC | $13.3M | 15,000,000 |
| K2 PRINCIPAL FUND, L.P. | $12.0M | 13,750 |
| VANGUARD CAPITAL MANAGEMENT LLC | $11.4M | 1,805,809 |
| No Street GP LP | $9.6M | 1,525,000 |
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Popular Research
Is CRNC a good stock to buy?
13F Pro's AI-powered analysis of Cerence Inc. (CRNC) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for CRNC are available on the CRNC stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own CRNC?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling CRNC. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of Cerence Inc.'s investment landscape.