Slide 1: Cerence Q4
Cerence Q4 November 19, 2025 Brian Krzanich, Chief Executive Officer Tony Rodriquez, Chief Financial Officer © 2025 Cerence Inc.
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
Slide 3: Q4 FY25 Financial Details
Q4 FY25 Financial Details © 2025 Cerence Inc. 3
Slide 4: Q4FY25 Results
Q4FY25 Results Q4FY24 Q4FY25 Q4FY25 Guidance Total Revenue $54.8M $60.6M $53M - $58M Gross Margin 63.7% 72.6% 68% - 69% Net Income (Loss) $(20.4)M $(13.4)M $(22)M - $(18)M EPS – diluted $(0.49) $(0.31) $(0.52) - $(0.43) Adjusted EBITDA(a,b) $(1.9) $8.3 $2M - $6M Cash Provided by Operating Activities
Slide 5: Detailed Revenue Breakdown
Detailed Revenue Breakdown Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 In millions Total License: $25.3 $22.7 $51.4 $34.2 $32.3 Variable(a) $25.3 $22.7 $29.9 $34.2 $31.6 Total Fixed(b) $— $— $21.5 $— $0.7 Connected Services: $12.1 $13.7 $12.6 $12.8 $14.2 Connected Services(c) $12.1 $13.7 $12.6 $12.8 $14.2 Pr
Slide 6: Operational Metrics and Variable License Revenue
Operational Metrics and Variable License Revenue In millions FY24 FY25 Operational Metrics: Q4 Q1 Q2 Q3 Q4 Pro Forma $41.9 $36.7 $39.7 $43.2 $40.1 Royalties(a) Consumption of $16.6 $14.0 $9.7 $9.1 $8.5 Fixed Contracts(b) Variable License Revenue $25.3 $22.7 $29.9 $34.2 $31.6 IHS Production (units) 2
Slide 7: Q4 FY25 KPI Performance
• Adjusted Total Billings TTM(a) of $236M, an increase of 8.4% compared to the same period last year. • Percent of worldwide auto production with Cerence Technology – 52% (TTM) Q4 FY25 KPI(e) • Approximately 12 million units shipped with Cerence technology in Q4 Performance • • An increase of 10.4%
Slide 8: Fiscal Q1 and FY26 Guidance
Fiscal Q1 and FY26 Guidance(d) Q1FY26 FY26 a. Adjusted EBITDA excludes goodwill impairment, amortization of acquired Guidance Guidance intangible assets, restructuring expense, and stock-based compensation. b. Refer to the Appendix for more information on GAAP to non-GAAP In millions except per shar
Slide 9: Appendix
Appendix © 2025 Cerence Inc. 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: Q4 FY25 Reconciliations of GAAP to Non-GAAP Results
Q4 FY25 Reconciliations of GAAP to Non-GAAP Results Twelve months ended September (unaudited - in thousands) (unaudited - in thousands) Three months ended September 30, 30, 2025 2024 2025 2024 GAAP revenue $ 60,639 $ 54,805 $ 251,781 $ 331,504 GAAP gross profit $ 43,995 $ 34,895 $ 183,136 $ 244,272
Slide 17: Q1 FY26 and Full Year FY26 Reconciliations of GAAP to Non-GAAP Guidance
Q1 FY25 and Full Year FY26 Reconciliations of GAAP to Non-GAAP Guidance (unaudited - in thousands, except per share data) Q1 2026 FY2026 Low High Low High GAAP revenue $ 110,000 $ 120,000 $ 300,000 $ 320,000 GAAP gross profit $ 93,497 $ 103,497 $ 236,205 $ 256,205 GAAP gross margin 85 % 86 % 79 % 80