CRNC official logo CRNC
CRNC 4-star rating from Upturn Advisory
Cerence Inc (CRNC) company logo

Cerence Inc (CRNC)

Cerence Inc (CRNC) 4-star rating from Upturn Advisory
$10.65
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PASS
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Upturn Stock price based on last close icon Stock price based on last close
*as per simulation
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Upturn Advisory Summary

12/01/2025: CRNC (4-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

Upturn 4 star rating for performance

Above Average Performance

These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.

Number of Analysts

2 star rating from financial analysts

7 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $12.5

1 Year Target Price $12.5

Analysts Price Target For last 52 week
$12.5 Target price
52w Low $5.94
Current$10.65
52w High $27.5

Analysis of Past Performance

Type Stock
Historic Profit 87.21%
Avg. Invested days 41
Today’s Advisory PASS
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 4.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 12/01/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 497.92M USD
Price to earnings Ratio -
1Y Target Price 12.5
Price to earnings Ratio -
1Y Target Price 12.5
Volume (30-day avg) 7
Beta 2.57
52 Weeks Range 5.94 - 27.50
Updated Date 11/30/2025
52 Weeks Range 5.94 - 27.50
Updated Date 11/30/2025
Dividends yield (FY) -
Basic EPS (TTM) -0.43

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-11-20
When After Market
Estimate -0.22
Actual -0.1242

Profitability

Profit Margin -7.43%
Operating Margin (TTM) -1.79%

Management Effectiveness

Return on Assets (TTM) 1.23%
Return on Equity (TTM) -12.83%

Valuation

Trailing PE -
Forward PE 36.9
Enterprise Value 627591427
Price to Sales(TTM) 1.98
Enterprise Value 627591427
Price to Sales(TTM) 1.98
Enterprise Value to Revenue 2.49
Enterprise Value to EBITDA 52.51
Shares Outstanding 44938757
Shares Floating 43243218
Shares Outstanding 44938757
Shares Floating 43243218
Percent Insiders 6.58
Percent Institutions 69.19

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Cerence Inc

Cerence Inc(CRNC) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

Cerence Inc. was formed in 2019 as a spin-off from Nuance Communications. It focuses on AI-powered virtual assistants and connected mobility solutions, building upon Nuance's automotive expertise.

Company business area logo Core Business Areas

  • Automotive: Provides AI-powered virtual assistants and connected car technologies for the automotive industry. It has the widest range of cars and vehicles with AI-powered assistance.

leadership logo Leadership and Structure

The leadership team is headed by Stefan Ortmanns as CEO. The company has a functional organizational structure, focused on product development, sales, and marketing.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Cerence Drive: An AI-powered automotive assistant that integrates voice, touch, gesture, and gaze recognition. It is designed to improve the driving experience. It has a significant market share within the automotive AI assistant sector. Competitors include Google Automotive Services and Amazon Alexa Auto.

Market Dynamics

industry overview logo Industry Overview

The automotive AI market is growing rapidly, driven by demand for connected cars, autonomous driving, and personalized in-car experiences.

Positioning

Cerence is a leading provider of AI-powered virtual assistants for the automotive industry, with a strong focus on innovation and customer experience.

Total Addressable Market (TAM)

The total addressable market for automotive AI is expected to reach billions of dollars in the coming years. Cerence is positioned to capture a significant portion of this market.

Upturn SWOT Analysis

Strengths

  • Strong market position in automotive AI
  • Deep expertise in voice recognition and natural language processing
  • Long-standing relationships with automotive manufacturers
  • Comprehensive product portfolio

Weaknesses

  • High customer concentration
  • Dependence on the automotive industry
  • Limited diversification beyond automotive
  • History of inconsistent profits

Opportunities

  • Expansion into new automotive segments
  • Integration with other connected car technologies
  • Partnerships with technology companies
  • Increased demand for autonomous driving features

Threats

  • Intense competition from technology giants
  • Rapid technological changes
  • Economic downturn in the automotive industry
  • Cybersecurity risks

Competitors and Market Share

Key competitor logo Key Competitors

  • GOOG
  • AMZN
  • NVDA

Competitive Landscape

Cerence benefits from automotive industry knowledge and integrations, while facing strong competition from larger tech companies with diverse AI offerings.

Major Acquisitions

Cubic Telecom

  • Year: 2023
  • Acquisition Price (USD millions): 244
  • Strategic Rationale: Enhanced its connected car platform and expanded its global reach.

Growth Trajectory and Initiatives

Historical Growth: Cerence's growth has been driven by increasing adoption of AI-powered virtual assistants in cars.

Future Projections: Analysts project continued growth for Cerence, driven by expanding demand for connected car technologies.

Recent Initiatives: Recent initiatives include new partnerships with automotive manufacturers and the introduction of new AI-powered features.

Summary

Cerence is a leading provider of AI-powered automotive assistants with a strong market position, but faces competition from tech giants. Its automotive focus provides expertise, while the company must continue to innovate and diversify its offerings. Acquisitions strengthen the portfolio and reduce risk. Managing macroeconomic factors and cyber security is critical.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company Filings
  • Analyst Reports
  • Market Research Reports

Disclaimers:

This analysis is based on publicly available information and is not financial advice.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Cerence Inc

Exchange NASDAQ
Headquaters Burlington, MA, United States
IPO Launch date 2019-10-02
President, CEO & Director Mr. Brian Matthew Krzanich
Sector Technology
Industry Software - Application
Full time employees 1300
Full time employees 1300

Cerence Inc. provides AI-powered assistants for the mobility/transportation market in the United States, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the Asia-Pacific. The company offers edge software components, cloud-connected components, virtual assistant, and professional services. It also provides conversational and generative artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic tuning. The company has a strategic partnership with Arm Kleidi; and SiMa.ai to advance the capabilities and performance of CaLLM Edge. Cerence Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.