Slide 1: Cerence Q1
Cerence Q1 February 4, 2026 Brian Krzanich, Chief Executive Officer Tony Rodriquez, Chief Financial Officer
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation as well as oral statements made by Cerence management from time to time, regarding: Cerence’s future performance, results and financial condition; expected growth, profitability and cash flow; outlook and momentum; transformation plans and c
Slide 3: Q1 FY26 Financial Details
- @ cerence ai Q1 FY26 Financial Details
Slide 4: Q1FY26 Results
Q1FY26 Results Q1FY25 Q1FY26 Q1FY26 Guidance Total Revenue $50.9M $115.1M $110M - $120M Gross Margin 65.0% 86.3% 85% - 86% Net (Loss) income $(24.3)M $(5.2)M $(2)M - $8M EPS – diluted $(0.57) $(0.12) $(0.05) - $0.16 Adjusted EBITDA (a,b) $1.4 $44.6 $30M - $40M Cash Provided by Operating Activities $
Slide 5: Detailed Revenue Breakdown
Detailed Revenue Breakdown Q1FY25 Q2FY25 Q3FY25 Q4FY25 Q1FY26 In millions Total License: $22.7 $51.4 $34.2 $32.3 $87.8 Variable (a) $22.7 $29.9 $34.2 $31.6 $30.5 Total Fixed (b) $— $21.5 $— $0.7 $7.8 Patent (c) $— $— $— $— $49.5 Connected Services: $13.7 $12.6 $12.8 $14.2 $14.5 Connected Services (d
Slide 6: Operational Metrics and Variable License Revenue
Operational Metrics and Variable License Revenue In millions FY25 FY26 Operational Metrics: Q1 Q2 Q3 Q4 Q1 Pro Forma $36.7 $39.7 $43.2 $40.1 $39.8 Royalties (a) Consumption of $14.0 $9.7 $9.1 $8.5 $8.7 Fixed Contracts (b) Variable License Revenue $22.7 $29.9 $34.2 $31.6 $30.5 IHS Production (units)
Slide 7: Q1 FY26 KPI Performance
• Adjusted Total Billings TTM of $231 million, an increase (a) of 1.5% compared to the same period last year. • Percent of worldwide auto production with Cerence Technology – 51% (TTM) • Approximately 12 million units shipped with Q1 FY26 KPI(d) Cerence technology in Q1 • an increase of 0.3% YoY (IH
Slide 8: Fiscal Q2 and FY26 Guidance
Fiscal Q2 and FY26 Guidance(d) Q2FY26 FY26 Guidance Guidance In millions except per share Low High Low High amounts Revenue $58 $62 $300 $320 Gross Margin 71% 72% 79% 80% Net Income (Loss) ($1) $4 ($8) $12 EPS – diluted $(0.01) $0.08 $(0.18) $0.25 Adjusted EBITDA (a,b) $2 $6 $50 $70 Cash Provided by
Slide 9: Appendix
Appendix 9
Slide 10: License Business Revenue Recognition
License Business Revenue Recognition Type of Contract Description GAAP Revenue Recognition Cash Receipt Quarter car is produced. Based on Quarter following GAAP revenue Variable License applied at production volume recognition Full value of contract at signing. Standard payment terms for full Fixed
Slide 11: Connected and Professional Services Revenue Recognition
Connected and Professional Services Revenue Recognition Connected Services Typical Period GAAP Revenue Recognition Cash Receipt Billed/collected full amount at start of Subscription Term 1 – 5 years Amortized evenly over subscription period subscription period (value added to deferred revenue) Recog
Slide 12: KPI Measures – Definitions
KPI Measures – Definitions We believe that providing key performance indicators (“KPIs”) allows investors to gain insight into the way management views the performance of the business as well as a potentially new KPI, Average PPU. We further believe that providing KPIs allows investors to better und
Slide 13: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Discussion of Non-GAAP Financial Measures We believe that providing the non-GAAP information, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that prov
Slide 14: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Adjusted EBITDA. Adjusted EBITDA is defined as net income attributable to Cerence Inc. before net income (loss) attributable to income tax (benefit) expense, other income (expense) items, net, depreciation and amortization expense, and excluding amortization
Slide 15: Non-GAAP Financial Measures – Definitions
Non-GAAP Financial Measures – Definitions Stock-based compensation. Because of varying valuation methodologies, subjective assumptions and the variety of award types, we exclude stock-based compensation from our operating results. We evaluate performance both with and without these measures because
Slide 16: Q1 FY26 Reconciliations of GAAP to Non-GAAP Results
Q1 FY26 Reconciliations of GAAP to Non-GAAP Results (unaudited - in thousands) Three Months Ended December 31, (unaudited - in thousands) 2025 2024 GAAP revenue $ 115,076 $ 50,896 GAAP gross profit $ 99,350 $ 33,072 GAAP gross margin 86.3% 65.0% GAAP total operating expenses $ 70,039 $ 50,005 Stock-
Slide 17: Q2 FY26 and Full Year FY26 Reconciliations of GAAP to Non-GAAP Guidance
Q2 FY26 and Full Year FY26 Reconciliations of GAAP to Non-GAAP Guidance (unaudited - in thousands, except per share data) Q2 2026 FY2026 Low High Low High GAAP revenue $ 58,000 $ 62,000 $ 300,000 $ 320,000 GAAP gross profit $ 40,920 $ 44,920 $ 236,205 $ 256,205 GAAP gross margin 71 % 72 % 79 % 80 %