Cerence Inc. (CRNC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Cerence Inc. Do?
Cerence Inc. provides AI powered virtual assistants for the mobility/transportation market worldwide. The company offers edge software components; cloud-connected components and related toolkits and applications; and virtual assistant coexistence and professional services. It also provides conversational artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic modeling technology. Cerence Inc. is headquartered in Burlington, Massachusetts. Cerence Inc. (CRNC) is classified as a small-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Stefan Ortmanns and employs approximately 1,700 people. With a market capitalization of $305M, CRNC is one of the notable companies in the Technology sector.
Cerence Inc. (CRNC) Stock Rating — Reduce (April 2026)
As of April 2026, Cerence Inc. receives a Reduce rating with a composite score of 33.0/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.CRNC ranks #3,489 out of 4,446 stocks in our coverage universe. Within the Technology sector, Cerence Inc. ranks #409 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CRNC Stock Price and 52-Week Range
Cerence Inc. (CRNC) currently trades at $7.60. The 52-week high for CRNC is $13.74, which means the stock is currently trading -44.7% from its annual peak. The 52-week low is $5.94, putting the stock 27.9% above its annual trough. Recent trading volume was 440K shares, suggesting relatively thin trading activity.
Is CRNC Overvalued or Undervalued? — Valuation Analysis
Cerence Inc. (CRNC) carries a value factor score of 58/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The price-to-book ratio stands at 2.27x, versus the sector average of 3.16x. The price-to-sales ratio is 1.05x, compared to 1.06x for the average Technology stock. On an enterprise value basis, CRNC trades at 4.08x EV/EBITDA, versus 12.79x for the sector.
Overall, CRNC's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Cerence Inc. Profitability — ROE, Margins, and Quality Score
Cerence Inc. (CRNC) earns a quality factor score of 36/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -199.3%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -49.8% versus the sector average of -1.0%.
On a margin basis, Cerence Inc. reports gross margins of 77.2%, compared to 50.9% for the sector. The operating margin is -114.2% (sector: -0.5%). Net profit margin stands at -106.4%, versus -1.5% for the average Technology stock. Revenue growth is running at 69.7% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
CRNC Debt, Balance Sheet, and Financial Health
Cerence Inc. has a debt-to-equity ratio of 114.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.88x, suggesting adequate working capital coverage. Total debt on the balance sheet is $172M.
CRNC has a beta of 2.35, meaning it is more volatile than the broader market — a $10,000 investment in CRNC would be expected to move 134.8% more than the S&P 500 on any given day. The stability factor score for Cerence Inc. is 24/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Cerence Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Cerence Inc. reported revenue of $326M and earnings per share (EPS) of $-0.12. Net income for the quarter was $-300M. Gross margin was 77.2%. Operating income came in at $-309M.
In Q1 2026, Cerence Inc. reported revenue of $115M and earnings per share (EPS) of $-0.12. Net income for the quarter was $-5M. Gross margin was 86.3%. Operating income came in at $29M.
In FY 2025, Cerence Inc. reported revenue of $252M and earnings per share (EPS) of $-0.43. Net income for the quarter was $-19M. Gross margin was 72.7%. Revenue grew -24.0% year-over-year compared to FY 2024. Operating income came in at $-2M.
In Q3 2025, Cerence Inc. reported revenue of $62M and earnings per share (EPS) of $-0.06. Net income for the quarter was $-3M. Gross margin was 73.7%. Revenue grew -11.8% year-over-year compared to Q3 2024. Operating income came in at $-948,000.
Over the past 8 quarters, Cerence Inc. has demonstrated a growth trajectory, with revenue expanding from $68M to $326M. Investors analyzing CRNC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CRNC Dividend Yield and Income Analysis
Cerence Inc. (CRNC) does not currently pay a dividend. This is common among smaller companies in the Computer Software industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
CRNC Momentum and Technical Analysis Profile
Cerence Inc. (CRNC) has a momentum factor score of 21/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 22/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 36/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CRNC vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Cerence Inc. (CRNC) ranks #409 out of 584 stocks based on the Blank Capital composite score. This places CRNC in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing CRNC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CRNC vs S&P 500 (SPY) comparison to assess how Cerence Inc. stacks up against the broader market across all factor dimensions.
CRNC Next Earnings Date
No upcoming earnings date has been announced for Cerence Inc. (CRNC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CRNC? — Investment Thesis Summary
The quantitative profile for Cerence Inc. suggests caution. The quality score of 36/100 flags below-average profitability. Momentum is weak at 21/100, a headwind for near-term performance. High volatility (stability score 24/100) increases portfolio risk.
In summary, Cerence Inc. (CRNC) earns a Reduce rating with a composite score of 33.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CRNC stock.
Related Resources for CRNC Investors
Explore more research and tools: CRNC vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare CRNC head-to-head with peers: CRNC vs IHS, CRNC vs VRSN, CRNC vs ESE.