Slide 1: Cerence Q3
Cerence Q3 August 6, 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 regarding: Cerence’s future performance, results and financial condition; expected growth, profitability and cash flow; outlook and momentum; transformation plans and cost efficiency initiatives; strategy; opportunities; business, industry a
Slide 3: Q3 FY25 Financial Details
ww @cerenceai’ Q3 FY25 Financial Details
Slide 4: Q3FY25 Results
Q3FY25 Results Q3FY24 Q3FY25 Q3FY25 Guidance Total Revenue $70.5M $62.2M $52M - $56M Gross Margin 71.5% 73.7% 66% - 68% Net Income (Loss) $(313.5)M $(2.7)M $(10)M - $(13)M EPS – diluted $(7.50) $(0.06) $(0.24) - $(0.31) (a,b) Adjusted EBITDA $12.5 $9.0 $1M - $4M Cash Provided by Operating Activities
Slide 5: Detailed Revenue Breakdown
Detailed Revenue Breakdown Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 In millions Total License: $43.1 $25.3 $22.7 $51.5 $34.2 (a) Variable $23.1 $25.3 $22.7 $29.9 $34.2 (b) Total Fixed $20.0 $— $— $21.5 $— Connected Services: $10.9 $12.1 $13.7 $12.6 $12.8 (c) Connected Services $10.9 $12.1 $13.7 $12.6 $12.
Slide 6: Operational Metrics and Variable License Revenue
Operational Metrics and Variable License Revenue In millions FY24 FY25 Operational Metrics: Q3 Q4 Q1 Q2 Q3 Pro Forma(a) $39.6 $41.9 $36.7 $39.7 $43.2 Royalties Consumption of (b) $16.5 $16.6 $14.0 $9.7 $9.1 Fixed Contracts Variable License Revenue $23.1 $25.3 $22.7 $29.9 $34.2 IHS Production (units)
Slide 7: Q3 FY25 KPI Performance
(a) • Adjusted Total Billings TTM of $226M, an increase of 3.5% compared to the same period last year. • Percent of worldwide auto production with Cerence Technology – 52% (TTM) (e) • Approximately 12 million units shipped with Q3 FY25 KPI Cerence technology in Q3 • An increase of 2.5% YoY (IHS up 1
Slide 8: Fiscal Q4 and FY25 Guidance
Fiscal Q4 and FY25 Guidance(d) Q4FY25 FY25 Guidance Guidance In millions except per share Low High Low High amounts Revenue $53 $58 $244 $249 Gross Margin 68% 69% 72% 72% Net Income (Loss) ($22M) ($18M) ($28M) ($24M) EPS – diluted $(0.52) $(0.43) $(0.65) $(0.55) (a,b) Adjusted EBITDA $2 $6 $42 $46 C
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) (a) R
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: Q3 FY25 Reconciliations of GAAP to Non-GAAP Results
Q3 FY25 Reconciliations of GAAP to Non-GAAP Results (unaudited - in thousands) Three Months Ended June 30, Nine Months Ended June 30, (unaudited - in thousands) 2025 2024 2025 2024 GAAP revenue $ 62,236 $ 70,539 $ 191,142 $ 276,699 GAAP gross profit $ 45,888 $ 50,434 $ 139,141 $ 209,377 GAAP gross m
Slide 17: Q4 FY25 and Full Year FY25 Reconciliations of GAAP to Non-GAAP Guidance
Q4 FY25 and Full Year FY25 Reconciliations of GAAP to Non-GAAP Guidance (unaudited - in thousands, except per share data) Q4 2025 FY2025 Low High Low High GAAP revenue $ 53,000 $ 58,000 $ 244,000 $ 249,000 GAAP gross profit $ 36,224 $ 40,224 $ 175,224 $ 179,224 GAAP gross margin 68 % 69 % 72 % 72 %