Cerence Inc. Common Stock (CRNC)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits and can be bought at a sensible price. Cerence fails the first test on history: in FY2023 ended 2023-09-30 it lost $56.3M; in FY2024 ended 2024-09-30 it lost $588.1M; and in FY2025 ended 2025-09-30 it lost $18.7M. The Lynch screen places it in no category because of losses in each of the last four years. Yet the latest filings show improvement: in fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $69.6M, net income $1.5M, and diluted EPS $0.03. Fiscal Q2 2026, ended 2026-03-31, had $1.7M net income on $64.2M revenue, while fiscal Q1 2026, ended 2025-12-31, still lost $5.2M on $115.1M revenue. So the trend is uneven.

In plain English: Cerence makes AI-powered voice assistants for cars and transportation. The business has lost money in each of the last four years, but it has recently shown small profits and generated $78.6 million in cash over the past year. At the 2026-10-13 close of $8.89, its market value is $402.1 million; the price looks cheap compared with that cash generation, but the repeated losses and debt make the cheapness uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-06-30) · fiscal Q2 2026 10-Q (period ended 2026-03-31) · fiscal Q1 2026 10-Q (period ended 2025-12-31) · fiscal Q3 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-09-30) · FY2024 10-K (period ended 2024-09-30) · FY2023 10-K (period ended 2023-09-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer