Cerence Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
CRNC$8.15+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001628280-26-032139
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001628280-26-054339
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 160 previous paragraphs and 166 current paragraphs.
87 unchanged; 54 reworded; 23 added; 17 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
On August 5, 2026, our Board of Directors authorized a program to repurchase up to $30 million of our outstanding common stock. The program has a term of 12 months, expiring in August 2027 unless extended, renewed, or earlier terminated, and it may be suspended, modified, or discontinued at any time without prior notice. See“Liquidity and Capital Resources – Share Repurchase Program” below.
Current report
•Total revenue increased by $7.4 million, or 11.8%, to $69.6 million from $62.2 million.
Current report
•Operating margin increased 4.2 percentage points to positive 2.7% from negative 1.5%.
Current report
For the nine months ended June 30, 2026 as compared to the nine months ended June 30, 2025:
Current report
•Total revenue increased by $57.7 million, or 30.2%, to $248.9 million from $191.1 million.
Current report
Total revenues for the three months ended June 30, 2026 were $69.6 million, an increase of $7.4 million, or 11.8%, from $62.2 million for the three months ended June 30, 2025. Increases in revenue were attributable to higher fixed license revenue and higher connected services revenue, partially offset by lower variable license revenue resulting primarily from reduced production volumes reported, and lower professional services revenue compared to the three months ended June 30, 2025.
Current report
License revenue for the three months ended June 30, 2026 was $41.6 million, an increase of $7.4 million, or 21.7%, from $34.2 million for the three months ended June 30, 2025. The increase in license revenue was primarily driven by a $12.5 million increase in fixed license contracts, which vary quarter over quarter based on the timing of contract execution. There was no revenue from fixed license contracts entered into during the three months ended June 30, 2025. The increase in fixed license revenue was offset by a decrease in variable license revenue of $5.1 million, driven primarily by lower production volumes reported for the period. The decrease reflects both a particularly strong prior-year comparative period and lower production levels among certain customers and regions that represent a significant portion of our revenue base, as well as the timing of vehicle program lifecycle transitions. As a percentage of total revenues, license revenue increased 4.9 percentage points from 54.9% for the three months ended June 30, 2025 to 59.8% for the three months ended June 30, 2026.
Current report
Connected services revenue for the three months ended June 30, 2026 was $15.5 million, an increase of $2.6 million, or 20.4%, from $12.8 million for the three months ended June 30, 2025. This increase was primarily driven by continued expansion of our connected installed base and a higher attach rate. As a percentage of total revenues, connected services revenue increased by 1.6 percentage points from 20.6% for the three months ended June 30, 2025 to 22.2% for the three months ended June 30, 2026.
Current report
Connected services revenue for the nine months ended June 30, 2026 was $45.3 million, an increase of $6.1 million, or 15.6%, from $39.2 million for the nine months ended June 30, 2025. This increase was primarily driven by continued expansion of our connected installed base and a higher attach rate. As a percentage of total revenues, connected services revenue decreased by 2.3 percentage points from 20.5% for the nine months ended June 30, 2025 to 18.2% for the nine months ended June 30, 2026.
Current report
Total cost of revenues for the three months ended June 30, 2026 were $16.7 million, an increase of $0.3 million, or 2.0%, from $16.3 million for the three months ended June 30, 2025.
Current report
We experienced an increase in total gross profit of $7.0 million, or 15.3%, from $45.9 million for the three months ended June 30, 2025 to $52.9 million for the three months ended June 30, 2026. The increase was primarily driven by license gross profit of $7.1 million.
Current report
Cost of license revenue for the three months ended June 30, 2026 was $1.4 million, an increase of $0.3 million, or 26.8%, from $1.1 million for the three months ended June 30, 2025. Cost of license revenues increased primarily due to comparatively higher costs associated with our Cerence Link product. As a percentage of total cost of revenues, cost of license revenue increased by 1.6 percentage points from 6.6% for the three months ended June 30, 2025 to 8.2% for the three months ended June 30, 2026.
Current report
Cost of connected services revenue for the three months ended June 30, 2026 was $4.9 million, an increase of $0.1 million, or 2.1%, from $4.8 million for the three months ended June 30, 2025. Cost of connected services revenue increased primarily due to higher public cloud costs of $0.3 million and higher labor allocation costs of $0.1 million, partially offset by lower connected professional services cost of goods sold of $0.2 million and lower allocation expenses of $0.1 million. Cost of connected services revenue was flat as a percentage of total cost of revenues at 29.4% for both the three months ended June 30, 2025 and 2026.
Current report
Cost of professional services revenue for the three months ended June 30, 2026 was $10.4 million, a decrease of $0.1 million, or 0.6%, from $10.5 million for the three months ended June 30, 2025. As a percentage of total cost of revenues, cost of professional services revenue decreased by 1.6 percentage points from 64.0% for the three months ended June 30, 2025 to 62.4% for the three months ended June 30, 2026.
Current report
Cost of connected services revenue for the nine months ended June 30, 2026 was $14.9 million, a decrease of $1.2 million, or 7.7%, from $16.1 million for the nine months ended June 30, 2025. Cost of connected services revenue decreased primarily due to lower connected professional services cost of goods sold of $0.8 million, lower labor allocation costs of $0.4 million, lower connected professional services cost of goods sold of $0.2 million and lower allocation expenses of $0.2 million, partially offset by higher public cloud costs of $0.3 million. As a percentage of total cost of revenues, cost of connected services revenue decreased by 0.8 percentage points from 31.0% for the nine months ended June 30, 2025 to 30.1% for the nine months ended June 30, 2026.
Current report
Cost of professional services revenue for the nine months ended June 30, 2026 was $30.1 million, a decrease of $0.5 million, or 1.5%, from $30.6 million for the nine months ended June 30, 2025. Decreases were driven by lower temporary employee costs of $1.4 million, lower personnel related costs of $0.8 million, and higher tax credits offsetting expenses. Decreases were partially offset by higher labor allocation costs of $2.1 million. As a percentage of total cost of revenues, cost of professional services revenue increased by 2.3 percentage points from 58.9% for the nine months ended June 30, 2025 to 61.2% for the nine months ended June 30, 2026.
Current report
Historically, R&D expenses are our largest operating expense as we continue to build on our existing software platforms and develop new technologies. R&D expenses for the nine months ended June 30, 2026 were $84.2 million, an increase of $12.9 million, or 18.1%, from $71.4 million for the nine months ended June 30, 2025. The increase was primarily attributable to $4.6 million of higher compensation costs, $3.7 million of net unfavorable research and development tax credits, $3.4 million of lower capitalization of internally developed software, $1.9 million of higher amortization of previously capitalized software, $0.7 million of increased travel costs, partially offset by a total decrease of $1.3 million, driven primarily by lower internal allocations. As a percentage of total operating expenses, R&D expenses decreased by 1.8 percentage points from 51.1% for the nine months ended June 30, 2025 to 49.3% for the nine months ended June 30, 2026.
Current report
Sales and marketing expenses for the three months ended June 30, 2026 were $5.8 million, a decrease of $0.1 million, or 1.5%, from $5.9 million for the three months ended June 30, 2025. This decrease was not driven by any material changes between the periods presented. As a percentage of total operating expenses, sales and marketing expenses decreased by 1.2 percentage points from 12.6% for the three months ended June 30, 2025 to 11.4% for the three months ended June 30, 2026.
Current report
Share Repurchase Program
Current report
On August 5, 2026, our Board of Directors authorized a program to repurchase up to $30 million of our outstanding common stock. The program has a term of 12 months, expiring in August 2027 unless extended, renewed, or earlier terminated, and it may be suspended, modified, or discontinued at any time without prior notice. Repurchases may be made from time to time in the open market in compliance with Rule 10b‑18 under the Securities Exchange Act of 1934, pursuant to Rule 10b5-1 trading plans, in privately negotiated transactions, through accelerated share repurchase arrangements, or by other means. The Company may repurchase shares under this program depending on a variety of factors, including, among other things, capital availability, our financial condition, earnings, the impact of dilution from employee stock awards, market conditions, stock price, applicable legal and regulatory requirements, and other factors. Because the program is discretionary, the program does not obligate us to acquire any particular number of shares or any specific dollar amount, and there is no assurance as to the timing or amount of any repurchases.
Current report
We intend to fund repurchases under the program primarily with existing cash and cash equivalents and, secondarily, free cash flow generated by operations. As of June 30, 2026, we had cash and cash equivalents of $127.6 million.
Current report
We expect that any repurchases under the program will reduce cash otherwise available for other purposes. We intend to balance potential repurchases of common stock against our other capital allocation priorities. Repurchases under the program will also be subject to the 1% excise tax on net stock repurchases enacted under the Inflation Reduction Act of 2022, which will represent an additional cash cost of the program.
Current report
As of June 30, 2026, and through the date of this filing, no shares had been repurchased under the program. Accordingly, the program did not affect our liquidity, capital resources, or shares outstanding during the three and nine months ended June 30, 2026.
Removed paragraphs (17)
Previous report
•Total revenue decreased by $13.8 million, or 17.7%, to $64.2 million from $78.0 million.
Previous report
•Operating margin decreased 26.1 percentage points to negative 3.8% from positive 22.2%.
Previous report
For the six months ended March 31, 2026 as compared to the six months ended March 31, 2025:
Previous report
•Total revenue increased by $50.4 million, or 39.1%, to $179.3 million from $128.9 million.
Previous report
Total revenues for the three months ended March 31, 2026 were $64.2 million, a decrease of $13.8 million, or 17.7%, from $78.0 million for the three months ended March 31, 2025. Decreases in revenue were attributable to lower fixed license contracts compared to the three months ended March 31, 2025, and lower volume of professional services, partially offset by increased connected services revenue.
Previous report
License revenue for the three months ended March 31, 2026 was $37.6 million, a decrease of $13.9 million, or 27.0%, from $51.5 million for the three months ended March 31, 2025. The decrease in license revenue was primarily driven by a $15.7 million decrease in fixed contracts, offset by an increase in variable license revenue of $1.9 million, driven primarily by increased volumes reported. As a percentage of total revenues, license revenue decreased 7.4 percentage points from 66.0% for the three months ended March 31, 2025 to 58.5% for the three months ended March 31, 2026.
Previous report
Connected services revenue for the three months ended March 31, 2026 was $15.3 million, an increase of $2.7 million, or 21.0%, from $12.6 million for the three months ended March 31, 2025. This increase was primarily driven by continued expansion of our connected installed base. As a percentage of total revenues, connected services revenue increased by 7.6 percentage points from 16.2% for the three months ended March 31, 2025 to 23.9% for the three months ended March 31, 2026.
Previous report
Connected services revenue for the six months ended March 31, 2026 was $29.8 million, an increase of $3.5 million, or 13.2%, from $26.4 million for the six months ended March 31, 2025. This increase was primarily driven by continued expansion of our connected installed base. As a percentage of total revenues, connected services revenue decreased by 3.8 percentage points from 20.4% for the six months ended March 31, 2025 to 16.6% for the six months ended March 31, 2026.
Previous report
We experienced a decrease in total gross profit of $12.9 million, or 21.4%, from $60.2 million for the three months ended March 31, 2025 to $47.3 million for the three months ended March 31, 2026. The decrease was primarily driven by a decrease in fixed license revenue of $15.7 million.
Previous report
Cost of license revenue for the three months ended March 31, 2026 was $1.6 million, a decrease of $0.8 million, or 34.0%, from $2.4 million for the three months ended March 31, 2025. Cost of license revenues decreased due to lower hardware costs attributable to decreased volume of our Cerence Link product revenue. As a percentage of total cost of revenues, cost of license revenue decreased by 4.1 percentage points from 13.6% for the three months ended March 31, 2025 to 9.5% for the three months ended March 31, 2026.
Previous report
Cost of connected services revenue for the three months ended March 31, 2026 was $5.0 million, an increase of $0.1 million, or 1.3%, from $5.0 million for the three months ended March 31, 2025. Cost of connected services revenue increased primarily due to a higher volume of connected service deliveries and related costs incurred of $0.4 million, partially offset by lower labor costs of $0.2 million. As a percentage of total cost of revenues, cost of connected services revenue increased by 1.9 percentage points from 27.9% for the three months ended March 31, 2025 to 29.8% for the three months ended March 31, 2026.
Previous report
Cost of professional services revenue for the three months ended March 31, 2026 was $10.2 million, a decrease of $0.2 million, or 1.6%, from $10.4 million for the three months ended March 31, 2025. Cost of professional services revenue decreased primarily due to a decrease in allocated facilities and infrastructure costs of $0.4 million, offset by an increase in personnel related costs of $0.2 million. As a percentage of total cost of revenues, cost of professional services revenue increased by 2.2 percentage points from 58.4% for the three months ended March 31, 2025 to 60.6% for the three months ended March 31, 2026.
Previous report
Total cost of revenues for the six months ended March 31, 2026 were $32.6 million, a decrease of $3.0 million, or 8.5%, from $35.7 million for the six months ended March 31, 2025.
Previous report
Cost of connected services revenue for the six months ended March 31, 2026 was $10.0 million, a decrease of $1.3 million, or 11.8%, from $11.3 million for the six months ended March 31, 2025. Cost of connected services revenue decreased primarily due to a $0.8 million decrease in amortization of costs previously deferred and a $0.5 million decrease in internally allocated labor costs. As a percentage of total cost of revenues, cost of connected services revenue decreased by 1.2 percentage points from 31.7% for the six months ended March 31, 2025 to 30.5% for the six months ended March 31, 2026.
Previous report
Cost of professional services revenue for the six months ended March 31, 2026 was $19.7 million, a decrease of $0.4 million, or 2.0%, from $20.1 million for the six months ended March 31, 2025. Decreases were driven by lower direct costs of professional service delivery and lower infrastructure costs, partially offset by higher personnel related costs. As a percentage of total cost of revenues, cost of professional services revenue increased by 4.0 percentage points from 56.5% for the six months ended March 31, 2025 to 60.5% for the six months ended March 31, 2026.
Previous report
2025 which did not recur in the six months ended March 31, 2026, a $3.7 million increase in personnel related costs, a $1.5 million increase due to lower capitalization of internal software development costs, and a $1.0 million increase in amortization of capitalized internal-use software recently placed in service. As a percentage of total operating expenses, R&D expenses decreased by 1.7 percentage points from 47.6% for the six months ended March 31, 2025 to 45.9% for the six months ended March 31, 2026.
Previous report
For the three months ended March 31, 2026, we recorded restructuring and other costs, net of $0.1 million, related to the elimination of personnel.
Reworded paragraphs (54)
Previous wording
You should read the following discussion and analysis of our financial condition and results of operations together with our Unaudited Condensed Consolidated Financial Statements, and the related notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”), and our consolidated financial statements and the related notes and other financial information included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the Securities and Exchange Commission (“SEC”) on November 20, 2025. Some of the information contained in this discussion and analysis or elsewhere in this Quarterly Report, including, but not limited to, information with respect to our plans and strategy for our business, our performance and future success, our liquidity and capital resources, including our ability to meet our liquidity needs, macroeconomic conditions, volatility in the political, legal and regulatory environment in which we operate including trade, tariffs and other policies implemented by the United States or actions taken by other countries in response, trends in the global auto industry and adjacent markets, including shipping and production issues, new products, process optimization efforts and cost management, litigation, and tax estimates and other tax matters, includes forward-looking statements that involve risks and uncertainties. See “Cautionary Statement Concerning Forward-Looking Statements.” You should review the “Risk Factors” sections in Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Note that the results of operations for the three and six months ended March 31, 2026 are not necessarily indicative of what our operating results for the full fiscal year will be. In this Item, “we,” “us,” “our,” “Cerence” and the “Company” refer to Cerence Inc. and its consolidated subsidiaries, collectively.
Current wording
You should read the following discussion and analysis of our financial condition and results of operations together with our Unaudited Condensed Consolidated Financial Statements, and the related notes thereto, appearing elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”), and our consolidated financial statements and the related notes and other financial information included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the Securities and Exchange Commission (“SEC”) on November 20, 2025. Some of the information contained in this discussion and analysis or elsewhere in this Quarterly Report, including, but not limited to, information with respect to our plans and strategy for our business, our performance and future success, our liquidity and capital resources, including our ability to meet our liquidity needs, potential stock repurchases, expectations regarding fixed license contracts, macroeconomicmic conditions, volatility in the political, legal and regulatory environment in which we operate including trade, tariffs and other policies implemented by the United States or actions taken by other countries in response, trends in the global auto industry and adjacent markets, including shipping and production issues, new products, process optimization efforts and cost management, litigation, and tax estimates and other tax matters, includes forward-looking statements that involve risks and uncertainties. See “Cautionary Statement Concerning Forward-Looking Statements.” You should review the “Risk Factors” sections in Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis. Note that the results of operations for the three and nine months ended June 30, 2026 are not necessarily indicative of what our operating results for the full fiscal year will be. In this Item, “we,” “us,” “our,” “Cerence” and the “Company” refer to Cerence Inc. and its consolidated subsidiaries, collectively.
Previous wording
The condensed consolidated balance sheet data as of September 30, 2025 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and six months ended March 31, 2026 are not necessarily indicative of the results expected for the full fiscal year ending September 30, 2026.
Current wording
The condensed consolidated balance sheet data as of September 30, 2025 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting primarily of normal recurring accruals, necessary for a fair presentation of our financial position and results of operations. The operating results for the three and nine months ended June 30, 2026 are not necessarily indicative of the results expected for the full fiscal year ending September 30, 2026.
Previous wording
•Cash provided by operating activities was $14.1 million, a reduction of $1.4 million, or 8.8%, from cash provided by operating activities of $15.5 million.
Current wording
•Cash provided by operating activities was $20.0 million, a reduction of $3.7 million, or 15.8%, from cash provided by operating activities of $23.7 million.
Previous wording
•Operating margin increased 14.7 percentage points to positive 15.0% from positive 0.3%.
Current wording
•Operating margin increased 11.8 percentage points to positive 11.6% from negative 0.3%.
Previous wording
•Cash provided by operating activities was $52.0 million, an increase of $27.3 million, or 110.4%, from cash provided by operating activities of $24.7 million.
Current wording
•Cash provided by operating activities was $72.0 million, an increase of $23.5 million, or 48.6%, from cash provided by operating activities of $48.4 million.
Previous wording
The following table shows the Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
The following table shows the Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business.
Current wording
Restructuring and other costs, net include restructuring expenses, as well as charges relating to our transformation initiatives, and other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business.
Previous wording
We expect our revenue to continue to be impacted by the changing dynamics in the global automotive industry which has experienced production delays and slowdowns. Volatility in the political, legal and regulatory environment in which we operate, including trade, tariffs and related policies also has resulted in increased pricing pressure from customers and delays in program timelines. Macroeconomic conditions such as high interest rates and lack of credit availability have contributed to these production delays and slowdowns. In addition, the software and technology systems in automobiles have become increasingly complex, leading to substantial challenges and delays in production for some of our customers. Our business in adjacent markets, such as two-wheeled vehicles, trucks and AIoT, is also developing slower than anticipated due to the challenges of introducing different technology into a new market. In light of these challenges, we intend to make efforts to streamline our operations, and we continue to focus on our cost management and have taken, and expect to continue to take, cost reduction actions, which may result in additional restructuring costs. In particular, in September 2025, we announced the 2025 Plan intended to streamline certain foreign operations. In August 2024, we announced the 2024 Plan intended to reduce operating expenses and position us for profitable growth. The implementation of the 2024 Plan was substantially complete by the end of the first quarter of fiscal year 2025 and was formally concluded as of December 31, 2025. The implementation of the 2025 Plan was substantially completed during the three months ended December 31, 2025. Potential position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond the second quarter of fiscal year 2026 in certain cases. The charges that we expect to incur from the implementation of the 2025 Plan are subject to a number of assumptions, including legal requirements in various jurisdictions, and actual expenses and charges may differ materially from estimates previously disclosed. For additional details, refer to the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
Current wording
We expect our revenue to continue to be impacted by the changing dynamics in the global automotive industry which has experienced production delays and slowdowns. Volatility in the political, legal and regulatory environment in which we operate, including trade, tariffs and related policies, also has resulted in increased pricing pressure from customers and delays in program timelines. Macroeconomic conditions such as high interest rates and lack of credit availability have contributed to these production delays and slowdowns. In addition, the software and technology systems in automobiles have become increasingly complex, leading to substantial challenges and delays in production for some of our customers. Our business in adjacent markets, such as two-wheeled vehicles, trucks and AIoT, is also developing slower than anticipated due to the challenges of introducing different technology into a new market. In light of these challenges, we intend to make efforts to streamline our operations, and we continue to focus on our cost management and have taken, and expect to continue to take, cost reduction actions, which may result in additional charges to restructuring and other costs, net. For example, in September 2025, we announced a restructuring plan (the “2025 Plan”) intended to streamline certain foreign operations, and in August 2024, we announced a restructuring plan (the “2024 Plan”) intended to reduce operating expenses and position us for profitable growth. The implementation of the 2024 Plan was substantially complete by the end of the first quarter of fiscal year 2025 and was formally concluded as of December 31, 2025. The implementation of the 2025 Plan was substantially completed during the three months ended December 31, 2025. Potential position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond the third quarter of fiscal year 2026 in certain cases. The charges that are incurred as a result of implementing a restructuring plan are subject to a number of assumptions, including legal requirement in various jurisdictions, the outcome of negotiations with third parties or former employees, or other contingencies, as a result, actual expenses and charges may differ materially from estimates previously disclosed. For additional details, refer to the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
Previous wording
Professional services revenue for the three months ended March 31, 2026 was $11.3 million, a decrease of $2.6 million, or 18.7%, from $13.9 million for the three months ended March 31, 2025. This decrease was primarily driven by the increased standardization of our software product offerings, which requires less professional services effort to implement, other efficiencies in our professional services processes and, in some cases, customers opting to perform these activities internally. As a percentage of total revenues, professional services revenue decreased by 0.2 percentage points from 17.8% for the three months ended March 31, 2025 to 17.6% for the three months ended March 31, 2026.
Current wording
Professional services revenue for the three months ended June 30, 2026 was $12.5 million, a decrease of $2.7 million, or 17.7%, from $15.2 million for the three months ended June 30, 2025. This decrease was primarily driven by the increased standardization of our software product offerings, which requires less professional services effort to implement and other efficiencies in our professional services processes. As a percentage of total revenues, professional services revenue decreased by 6.5 percentage points from 24.5% for the three months ended June 30, 2025 to 18.0% for the three months ended June 30, 2026.
Previous wording
The following table shows total revenues by product type, including the corresponding percentage change, for the six months ended March 31, 2026 and 2025 (dollars in thousands):
Current wording
The following table shows total revenues by product type, including the corresponding percentage change, for the nine months ended June 30, 2026 and 2025 (dollars in thousands):
Previous wording
Total revenues for the six months ended March 31, 2026 were $179.3 million, an increase of $50.4 million, or 39.1%, from $128.9 million for the six months ended March 31, 2025. The increase in revenue was primarily driven by our IP license agreement with Samsung, resulting in $49.5 million of revenue recognized in the applicable period pursuant to ASC 606.
Current wording
Total revenues for the nine months ended June 30, 2026 were $248.9 million, an increase of $57.7 million, or 30.2%, from $191.1 million for the nine months ended June 30, 2025. The increase in revenue was primarily driven by our IP license agreement with Samsung, resulting in $49.5 million of revenue recognized in the applicable period pursuant to ASC 606.
Previous wording
License revenue for the six months ended March 31, 2026 was $125.3 million, an increase of $51.2 million, or 68.9%, from $74.2 million for the six months ended March 31, 2025. The increase in revenue was primarily driven by our IP license agreement with Samsung, resulting in $49.5 million of one-time revenue, recognized in accordance with ASC 606. Other license revenue activity included a $9.6 million increase associated with variable contract revenue attributable to higher reported volumes, partially offset by a $8.0 million decrease in fixed license contracts as the timing of fixed license contracts between quarters differs year over year. As a percentage of total revenues, license revenue increased 12.4 percentage points from 57.5% for the six months ended March 31, 2025 to 69.9% for the six months ended March 31, 2026.
Current wording
License revenue for the nine months ended June 30, 2026 was $166.9 million, an increase of $58.6 million, or 54.1%, from $108.4 million for the nine months ended June 30, 2025. The increase in revenue was primarily driven by our IP license agreement with Samsung, resulting in $49.5 million of one-time revenue, recognized in accordance with ASC 606. Other license revenue activity included a $4.6 million increase associated with variable contract revenue attributable to higher reported volume coupled with a $4.5 million increase in fixed license contracts as the timing of fixed license contracts between quarters differs year over year. There was $26.0 million of revenue from fixed license contracts entered into during the nine months ended June 30, 2026, as compared to $21.5 million of revenue from fixed license contracts entered into during the corresponding period in 2025. No fixed license revenue is expected in the fourth quarter of 2026. As a percentage of total revenues, license revenue increased 10.4 percentage points from 56.7% for the nine months ended June 30, 2025 to 67.1% for the nine months ended June 30, 2026.
Previous wording
Professional service revenue for the six months ended March 31, 2026 was $24.1 million, a decrease of $4.3 million, or 15.1%, from $28.4 million for the six months ended March 31, 2025. This decrease was primarily driven by the increased standardization of our software product offerings, which requires less professional services effort to implement, other efficiencies in our professional services processes and, in some cases, customers opting to perform these activities internally. As a percentage of total revenues, professional services revenue decreased by 8.7 percentage points from 22.1% for the six months ended March 31, 2025 to 13.4% for the six months ended March 31, 2026.
Current wording
Professional service revenue for the nine months ended June 30, 2026 was $36.6 million, a decrease of $7.0 million, or 16.0%, from $43.6 million for the nine months ended June 30, 2025. This decrease was primarily driven by the increased standardization of our software product offerings, which requires less professional services effort to implement and other efficiencies in our professional services processes. As a percentage of total revenues, professional services revenue decreased by 8.1 percentage points from 22.8% for the nine months ended June 30, 2025 to 14.7% for the nine months ended June 30, 2026.
Previous wording
License gross profit decreased by $13.1 million, or 26.6%, for the three months ended March 31, 2026 when compared to the three months ended March 31, 2025, primarily driven by a decrease in fixed license revenue of $15.7 million, offset by an increase in variable license revenue of $1.9 million.
Current wording
License gross profit increased by $7.1 million, or 21.6%, for the three months ended June 30, 2026 when compared to the three months ended June 30, 2025, primarily driven by the $7.4 million increase in license revenues recognized for the three months ended June 30, 2026.
Previous wording
Connected services gross profit increased $2.6 million, or 33.9%, from $7.7 million for the three months ended March 31, 2025 to $10.3 million for the three months ended March 31, 2026, primarily due to our continued expansion of our connected installed base resulting in increased revenue, and similar overall costs associated with the delivery of connected services.
Current wording
Connected services gross profit increased $2.5 million, or 31.4%, from $8.0 million for the three months ended June 30, 2025 to $10.6 million for the three months ended June 30, 2026, primarily due to our continued expansion of our connected installed base resulting in increased revenue, and similar overall costs associated with the delivery of connected services.
Previous wording
Professional services gross profit decreased $2.4 million, or 69.6%, from $3.5 million for the three months ended March 31, 2025 to $1.1 million for the three months ended March 31, 2026, which was primarily due to a decrease in related revenues.
Current wording
Professional services gross profit decreased $2.6 million, or 55.4%, from $4.7 million for the three months ended June 30, 2025 to $2.1 million for the three months ended June 30, 2026, which was primarily due to a decrease in related revenues.
Previous wording
Total cost of revenues for the three months ended March 31, 2026 were $16.9 million, a decrease of $0.9 million, or 5.2%, from $17.8 million for the three months ended March 31, 2025.
Current wording
Total cost of revenues for the nine months ended June 30, 2026 were $49.3 million, a decrease of $2.7 million, or 5.2%, from $52.0 million for the nine months ended June 30, 2025.
Previous wording
We experienced an increase in total gross profit of $53.4 million, or 57.3%, from $93.3 million for the six months ended March 31, 2025 to $146.6 million for the six months ended March 31, 2026. The increase was primarily driven by our IP license agreement with Samsung, resulting in $49.5 million revenue recognized in the applicable period pursuant to ASC 606.
Current wording
We experienced an increase in total gross profit of $60.4 million, or 43.4%, from $139.1 million for the nine months ended June 30, 2025 to $199.6 million for the nine months ended June 30, 2026. The increase was primarily driven by our IP license agreement with Samsung, resulting in $49.5 million revenue recognized in the applicable period pursuant to ASC 606.
Previous wording
Cost of license revenue for the six months ended March 31, 2026 was $2.9 million, a decrease of $1.3 million, or 30.5%, from $4.2 million for the six months ended March 31, 2025. Cost of license revenue decreased due to lower costs attributable to lower volume of our Cerence Link product revenue. As a percentage of total cost of revenues, cost of license revenue decreased by 2.8 percentage points from 11.8% for the six months ended March 31, 2025 to 9.0% for the six months ended March 31, 2026.
Current wording
Cost of license revenue for the nine months ended June 30, 2026 was $4.3 million, a decrease of $1.0 million, or 18.9%, from $5.3 million for the nine months ended June 30, 2025. Cost of license revenue decreased due to lower costs attributable to lower volume of our Cerence Link product revenue. As a percentage of total cost of revenues, cost of license revenue decreased by 1.5 percentage points from 10.2% for the nine months ended June 30, 2025 to 8.7% for the nine months ended June 30, 2026.
Previous wording
License gross profit increased by $52.4 million, or 74.9%, for the six months ended March 31, 2026 when compared to the six months ended March 31, 2025, primarily due to the increase in license revenues attributable to the IP license agreement with Samsung, as well as increased variable license revenue due to higher reported volumes.
Current wording
License gross profit increased by $59.6 million, or 57.8%, for the nine months ended June 30, 2026 when compared to the nine months ended June 30, 2025, primarily due to the increase in license revenues attributable to the IP license agreement with Samsung, as well as increased variable license revenue due to higher reported volumes.
Previous wording
Connected services gross profit increased $4.8 million, or 32.0%, from $15.1 million for the six months ended March 31, 2025 to $19.9 million for the six months ended March 31, 2026, due to the combination of increased connected services revenues and decreased cost of connected services revenues.
Current wording
Connected services gross profit increased $7.3 million, or 31.8%, from $23.1 million for the nine months ended June 30, 2025 to $30.4 million for the nine months ended June 30, 2026, due to the combination of increased connected services revenues and decreased cost of connected services revenues.
Previous wording
Professional services gross profit decreased $3.9 million, or 47.0%, from $8.2 million for the six months ended March 31, 2025 to $4.4 million for the six months ended March 31, 2026, which was primarily due to the reduction in professional services revenue.
Current wording
Professional services gross profit decreased $6.5 million, or 50.1%, from $13.0 million for the nine months ended June 30, 2025 to $6.5 million for the nine months ended June 30, 2026, which was primarily due to the reduction in professional services revenue.
Previous wording
Historically, R&D expenses are our largest operating expense as we continue to build on our existing software platforms and develop new technologies. R&D expenses for the three months ended March 31, 2026 were $30.3 million, an increase of $7.0 million, or 29.9%, from $23.3 million for the three months ended March 31, 2025. The increase was primarily attributable to $2.1 million of international tax credit catch-ups recorded in three months ended March 31, 2025 which did not recur in the three months ended March 31, 2026, a $2.2 million increase in personnel related costs, a $1.7 million increase due to lower capitalization of internal-use software development costs, and a $0.8 million increase in amortization of capitalized internal-use software recently placed in service. As a percentage of total operating expenses, R&D expenses increased by 6.4 percentage points from 54.5% for the three months ended March 31, 2025 to 60.9% for the three months ended March 31, 2026.
Current wording
Historically, R&D expenses are our largest operating expense as we continue to build on our existing software platforms and develop new technologies. R&D expenses for the three months ended June 30, 2026 were $29.2 million, an increase of $2.1 million, or 7.7%, from $27.2 million for the three months ended June 30, 2025. The increase was primarily attributable to $1.9 million of lower capitalization of internally developed software, a $0.8 million increase in amortization costs of previously capitalized internally developed software, offset partially by a net decrease of $0.5 million driven primarily by international R&D tax credits and internal cost allocations. As a percentage of total operating expenses, R&D expenses decreased by 0.7 percentage points from 58.0% for the three months ended June 30, 2025 to 57.3% for the three months ended June 30, 2026.
Previous wording
Sales and marketing expenses for the six months ended March 31, 2026 were $12.1 million, an increase of $2.4 million, or 24.5%, from $9.7 million for the six months ended March 31, 2025. The increase in sales and marketing expenses was primarily driven by increased employee compensation costs of $1.7 million and a $0.7 million increase in marketing costs associated primarily with trade shows. As a percentage of total operating expenses, sales and marketing expenses decreased by 0.4 percentage points from 10.4% for the six months ended March 31, 2025 to 10.1% for the six months ended March 31, 2026.
Current wording
Sales and marketing expenses for the nine months ended June 30, 2026 were $17.9 million, an increase of $2.3 million, or 14.7%, from $15.6 million for the nine months ended June 30, 2025. The increase in sales and marketing expenses was primarily driven by increased employee compensation costs of $1.4 million and a $0.7 million increase in marketing costs associated primarily with trade shows. As a percentage of total operating expenses, sales and marketing expenses decreased by 0.7 percentage points from 11.2% for the nine months ended June 30, 2025 to 10.5% for the nine months ended June 30, 2026.
Previous wording
General and administrative expenses for the three months ended March 31, 2026 were $12.8 million, an increase of $1.6 million, or 14.3%, from $11.2 million for the three months ended March 31, 2025. The increase in general and administrative expenses was primarily driven by increased legal expenses as we continue our efforts to protect, enforce, and license our intellectual property portfolio. As a percentage of total operating expenses, general and administrative expenses decreased by 0.4 percentage points from 26.1% for the three months ended March 31, 2025 to 25.7% for the three months ended March 31, 2026.
Current wording
General and administrative expenses for the three months ended June 30, 2026 were $14.7 million, an increase of $2.4 million, or 19.2%, from $12.3 million for the three months ended June 30, 2025. The increase in general and administrative expenses was primarily driven by increased legal expenses as we continue our efforts to protect, enforce, and license our intellectual property portfolio. As a percentage of total operating expenses, general and administrative expenses increased by 2.5 percentage points from 26.3% for the three months ended June 30, 2025 to 28.8% for the three months ended June 30, 2026.
Previous wording
General and administrative expenses for the six months ended March 31, 2026 were $44.8 million, an increase of $20.8 million, or 87.0%, from $24.0 million for the six months ended March 31, 2025. The increase in general and administrative expenses was primarily attributable to a $20.8 million increase in legal professional services driven by costs related to the Samsung IP license agreement, $2.0 million driven by other increased legal expenses as we continue our efforts to protect, enforce, and license our intellectual property portfolio. These increases were partially offset by lower depreciation of $0.7 million due to one-time acceleration of depreciation for facilities closures recognized during the six months ended March 31, 2025 which did not recur, lower insurance and other infrastructure costs of $0.6 million, and lower personnel related costs of $0.6 million. As a percentage of total operating expenses, general and administrative expenses increased by 11.6 percentage points from 25.8% for the six months ended March 31, 2025 to 37.4% for the six months ended March 31, 2026.
Current wording
General and administrative expenses for the nine months ended June 30, 2026 were $59.5 million, an increase of $23.2 million, or 63.9%, from $36.3 million for the nine months ended June 30, 2025. The increase in general and administrative expenses was primarily attributable to a $23.9 million increase in professional services and related fees, primarily comprised of legal professional services related to the Samsung IP license agreement and other efforts to protect, enforce, and license our intellectual property portfolio. These increases were offset by a net decrease of $0.6 million in personnel and compensation related expenses across the periods compared. As a percentage of total operating expenses, general and administrative expenses increased by 8.8 percentage points from 26.0% for the nine months ended June 30, 2025 to 34.8% for the nine months ended June 30, 2026.
Previous wording
As a percentage of total operating expenses, intangible asset amortization expenses within operating expenses decreased by 1.3 percentage points from 1.3% for the three months ended March 31, 2025, as compared to zero percent for the three months ended March 31, 2026.
Current wording
As a percentage of total operating expenses, intangible asset amortization expenses within operating expenses decreased by 1.2 percentage points from 1.2% for the three months ended June 30, 2025, as compared to zero percent for the three months ended June 30, 2026.
Previous wording
As a percentage of total operating expenses, intangible asset amortization expenses within operating expenses decreased by 1.2 percentage points from 1.2% for the six months ended March 31, 2025 as compared to zero percent for the six months ended March 31, 2026.
Current wording
As a percentage of total operating expenses, intangible asset amortization expenses within operating expenses decreased by 1.2 percentage points from 1.2% for the nine months ended June 30, 2025 as compared to zero percent for the nine months ended June 30, 2026.
Previous wording
For the six months ended March 31, 2026, we recorded restructuring and other costs, net of $7.9 million, which included a $7.6 million charge related to the elimination of personnel, a $0.3 million charge resulting from the closure of facilities that will no longer be utilized, and a $0.1 million charge relating to our transformation initiatives and other one-time charges.
Current wording
For the three months ended June 30, 2026, we recorded restructuring and other costs, net of $1.3 million, which included a $0.8 million charge related to our transformation initiatives and other one-time charges, a $0.4 million charge resulting from the closure of facilities that will no longer be utilized, and a $0.1 million charge related to the elimination of personnel.
Previous wording
For the three months ended March 31, 2025, we recorded restructuring and other costs, net of $2.8 million, which included a $1.8 million charge related to the elimination of personnel and a $1.0 million charge relating to our transformation initiatives.
Current wording
For the three months ended June 30, 2025, we recorded restructuring and other costs, net of $0.9 million, which included a $0.1 million charge related to the elimination of personnel and a $0.7 million charge relating to our transformation initiatives.
Previous wording
As a percentage of total operating expenses, restructuring and other costs, net decreased by 6.4 percentage points from 6.6% for the three months ended March 31, 2025 to 0.3% for the three months ended March 31, 2026.
Current wording
As a percentage of total operating expenses, restructuring and other costs, net increased by 0.7 percentage points from 1.8% for the three months ended June 30, 2025 to 2.5% for the three months ended June 30, 2026.
Previous wording
For the six months ended March 31, 2025, we recorded restructuring and other costs, net of $13.9 million, which included a $12.0 million charge related to the elimination of personnel, of which $3.0 million related to the stock-based compensation expense related to the termination of our former senior management employees, and a $1.9 million charge relating to our transformation initiatives.
Current wording
For the nine months ended June 30, 2025, we recorded restructuring and other costs, net of $14.7 million, which included a $12.1 million charge related to the elimination of personnel, of which $3.0 million related to the stock-based compensation expense related to the termination of former senior management employees, and a $2.6 million charge relating to our transformation initiatives.
Previous wording
As a percentage of total operating expenses, restructuring and other costs, net decreased by 8.4 percentage points from 15.0% for the six months ended March 31, 2025 to 6.6% for the six months ended March 31, 2026.
Current wording
As a percentage of total operating expenses, restructuring and other costs, net decreased by 5.2 percentage points from 10.6% for the nine months ended June 30, 2025 to 5.4% for the nine months ended June 30, 2026.
Previous wording
Total other (expense) income, net for the three months ended March 31, 2026 was expense of $0.5 million, a change of $0.8 million from $1.3 million of expense for the three months ended March 31, 2025. The decrease in interest income was primarily attributable to a lower balance of cash, cash equivalents and marketable securities, and a lower interest rate environment when compared to the three months ended March 31, 2025. The decrease in interest expense was primarily attributable to a lower overall principal balance outstanding coupled with a lower applicable interest rate on our Notes. The decrease in other income, net was primarily driven by comparatively unfavorable foreign exchange movements. For further information, see “Liquidity and Capital Resources” below.
Current wording
Total other (expense) income, net for the three months ended June 30, 2026 was expense of $0.3 million, a change of $0.5 million from $0.2 million of income for the three months ended June 30, 2025. The slight decrease in interest income was primarily attributable to lower average interest generating deposit and marketable securities balances and a lower interest rate environment when compared to the three months ended June 30, 2025. The decrease in interest expense was primarily attributable to a lower overall principal balance outstanding coupled with a lower applicable interest rate on our Notes. The decrease in other income, net was primarily driven by comparatively unfavorable foreign exchange movements. For further information, see “Liquidity and Capital Resources” below.
Previous wording
Total other income (expense), net for the six months ended March 31, 2026 was income of $0.2 million, a change of $3.2 million from $3.0 million of expense for the six months ended March 31, 2025. The decrease in interest income was primarily attributable to a lower balance of cash, cash equivalents and marketable securities, and a lower interest rate environment when compared to the six months ended March 31, 2025. The decrease in interest expense was primarily attributable to a lower overall principal balance outstanding coupled with a lower applicable interest rate on our Notes. The increase in other income, net was driven primarily by the gain on debt repurchase of the Notes during the six months ended March 31, 2026. For further information, see “Liquidity and Capital Resources” below.
Current wording
Total other income (expense), net for the nine months ended June 30, 2026 was expense of $0.1 million, a change of $2.7 million from $2.8 million of expense for the nine months ended June 30, 2025. The decrease in interest income was primarily attributable to lower average interest generating deposit and marketable securities balances and a lower interest rate environment when compared to the nine months ended June 30, 2025. The decrease in interest expense was primarily attributable to a lower overall principal balance outstanding coupled with a lower applicable interest rate on our Notes. The decrease in other income, net of $0.2 million was driven primarily by comparatively unfavorable foreign exchange movements during the nine months ended June 30, 2026. For further information, see “Liquidity and Capital Resources” below.
Previous wording
Our effective income tax rate for the three months ended March 31, 2026 was positive 156.2%, compared to negative 34.9% for the three months ended March 31, 2025. Our benefit from income taxes for the three months ended March 31, 2026 was $4.7 million, a net change of $1.0 million from a benefit from income taxes of $5.6 million for the three months ended March 31, 2025. This difference was attributable to the tax impacts of foreign income inclusions, stock-based compensation, research credits, and our composition of jurisdictional earnings.
Current wording
Our effective income tax rate for the three months ended June 30, 2026 was positive 1.0% compared to negative 244.9% for the three months ended June 30, 2025. Our provision for income taxes for the three months ended June 30, 2026 was $15.0 thousand, a net change of $1.9 million from a provision for income taxes of $1.9 million for the three months ended June 30, 2025. This difference was attributable to the tax impacts of valuation allowances, foreign income inclusions, stock-based compensation, and our composition of jurisdictional earnings.
Previous wording
Our effective income tax rate for the six months ended March 31, 2026 was 113.2%, compared to negative 2.7% for the six months ended March 31, 2025. Our provision for income taxes for the six months ended March 31, 2026 was $30.6 million, a net change of $30.6 million from a provision for income taxes of $0.1 million for the six months ended March 31, 2025. This difference was attributable to the tax impacts of valuation allowances, stock-based compensation, research credits, and our composition of jurisdictional earnings.
Current wording
Our effective income tax rate for the nine months ended June 30, 2026 was positive 107.1% compared to negative 59.6% for the nine months ended June 30, 2025. Our provision for income taxes for the nine months ended June 30, 2026 was $30.7 million, a net change of $28.7 million from a provision for income taxes of $2.0 million for the nine months ended June 30, 2025. This difference was attributable to the tax impacts of valuation allowances, foreign income inclusions, stock-based compensation, and our composition of jurisdictional earnings.
Previous wording
As of March 31, 2026, we had $108.3 million in cash and cash equivalents. Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. Marketable securities have historically included corporate bonds and government securities. As of March 31, 2026, all marketable securities were fully matured.
Current wording
As of June 30, 2026, we had $127.6 million in cash and cash equivalents. Cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less. Marketable securities have historically included corporate bonds and government securities. As of March 31, 2026, all marketable securities were fully matured, and the Company did not hold any marketable securities as of June 30, 2026.
Previous wording
Our ability to fund future operating needs will depend on our ability to generate positive cash flows from operations and access additional funding in the capital and debt markets as needed. Based on our expectations to generate positive cash flows and the $108.3 million of cash and cash equivalents as of March 31, 2026, we believe that we will be able to meet our liquidity needs over the next 12 months.
Current wording
Our ability to fund future operating needs will depend on our ability to generate positive cash flows from operations and access additional funding in the capital and debt markets as needed. Based on our expectations to generate positive cash flows and the $127.6 million of cash and cash equivalents as of June 30, 2026, we believe that we will be able to meet our liquidity needs over the next 12 months.
Previous wording
Should we need to secure additional sources of liquidity, we believe that we could finance our needs through the issuance of equity securities or debt offerings. However, we cannot guarantee that we will be able to obtain financing through the issuance of equity securities or debt offerings or that, if such financing is obtained, that it will be on acceptable terms. Our ability to issue debt or enter into other financing arrangements on acceptable terms could be adversely affected if there is a material decline in the demand for our products or in the solvency of our customers or suppliers or if there are other significantly unfavorable changes in economic conditions. For instance, inflation and persistently high interest rates, changes in the political, legal and regulatory environment, including trade policies and tariffs, and disruptions have negatively impacted the global economy and created significant volatility and disruption of financial markets. An extended period of economic disruption or market volatility, could materially affect our business, results of operations, access to sources of liquidity and financial condition.
Current wording
Should we need to secure additional sources of liquidity, we believe that we could finance our needs through the issuance of equity securities or debt offerings. However, we cannot guarantee that we will be able to obtain financing through the issuance of equity securities or debt offerings or that, if such financing is obtained, that it will be on acceptable terms. Our ability to issue debt or enter into other financing arrangements on acceptable terms could be adversely affected if there is a material decline in the demand for our products or in the solvency of our customers or suppliers or if there are other significantly unfavorable changes in economic conditions. For instance, inflation and higher interest rates, changes in the political, legal and regulatory environment, including trade policies and tariffs, and disruptions have negatively impacted the global economy and created significant volatility and disruption of financial markets. An extended period of economic disruption or market volatility, could materially affect our business, results of operations, access to sources of liquidity and financial condition.
Showing the first 40 of 54 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For the nine months ended June 30, 2026, we recorded restructuring and other costs, net of $9.2 million, which included a $7.7 million charge related to the elimination of personnel, a $0.6 million charge resulting from the closure of facilities that will no longer be utilized, and a $0.8 million charge relating to our transformation initiatives and other one-time charges.
Current report — wording carried from elsewhere
On June 12, 2020 (the “Financing Closing Date”), we entered into a Credit Agreement, by and among Cerence as the Borrower, the lenders and issuing banks party thereto and Wells Fargo Bank, N.A., as administrative agent
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Historically, R&D expenses are our largest operating expense as we continue to build on our existing software platforms and develop new technologies. R&D expenses for the six months ended March 31, 2026 were $55.0 million, an increase of $10.8 million, or 24.4%, from $44.2 million for the six months ended March 31, 2025. The increase was primarily attributable to $4.4 million of international tax credit catch-ups recorded in six months ended March 31,
Previous report — wording carried elsewhere
Sales and marketing expenses for the three months ended March 31, 2026 were $6.5 million, an increase of $1.6 million, or 32.2%, from $4.9 million for the three months ended March 31, 2025. This increase was primarily driven by increased employee compensation costs of $1.1 million and a $0.5 million increase in marketing costs associated primarily with trade shows. As a percentage of total operating expenses, sales and marketing expenses increased by 1.6 percentage points from 11.5% for the three months ended March 31, 2025 to 13.1% for the three months ended March 31, 2026.