Cerence AI Q3 FY2026 Earnings Call
With Brian Krzanich (CEO) and Tony Rodriguez (CFO).
Cerence AI (NASDAQ: CRNC) is a global industry leader in creating intuitive, seamless, AI-powered experiences across automotive and transportation.
More about Cerence AI
Leveraging decades of innovation and expertise in voice, generative AI, and large language models, Cerence AI powers integrated experiences that create safer, more connected, and more enjoyable journeys for drivers and passengers alike. With more than 525 million cars shipped with Cerence AI technology, the company partners with leading automakers, transportation OEMs, and technology companies to advance the next generation of user experiences. Cerence AI is headquartered in Burlington, Massachusetts, with operations globally and a worldwide team dedicated to pushing the boundaries of AI innovation. For more information, visit www.cerence.ai.
1Prepared remarks3 speakers
Hello, everyone. Welcome to Cerence's third quarter 2026 conference call. Before we begin, I would like to remind you that this call may involve certain forward-looking statements. Any statements that are not statements of historical fact, including statements related to our expectations, anticipations, intentions, estimates, assumptions, beliefs, outlook, strategies, goals, priorities, objectives, targets, and plans are forward-looking statements. Cerence makes no representations to update those statements after…
Thank you, Kate. Good afternoon, everyone. Before we dig in, I'd like to briefly reflect on Cerence's progress as I approach my two-year anniversary as CEO in October. When I stepped into the role, we established a clear roadmap. The first year was about strengthening the foundation of the business, improving our financial profile, restoring profitability, generating cash flow, and reducing debt. I believe we delivered on those commitments. We said the second year would be about execution as we approach the end of…
Thank you, Brian. Good afternoon, everyone, and thank you for joining us today. We appreciate your continued interest in Cerence. Today, I'll review our third quarter fiscal 2026 results, highlight the key drivers of the quarter, then provide guidance for our fourth quarter and the resulting full fiscal year. For the quarter, total revenue was approximately $70 million within our guidance range of $68 million-$72 million, and up 12% from $62 million in the prior year period.
The increase was led by higher license…
Thanks, Tony. In closing, we're proud of our performance as we approach the end of fiscal 2026. We believe that our results reflect strong execution, solid cash generation, and continued customer momentum, together with a disciplined approach to capital allocation. We believe the underlying trajectory of the business remains…