Cerence Q2 revenue $64.2M beats guidance, raises full-year outlook
Cerence posted Q2 revenue of $64.2 million, surpassing high-end guidance, and achieved $7.2 million in adjusted EBITDA with net income of $1.7 million for the quarter. Operating cash flow reached $14.1 million, free cash flow was $13.6 million, and the company raised midpoints of full-year revenue, EBITDA and free cash flow forecasts.
1. Q2 Financial Performance
Cerence reported Q2 FY26 revenue of $64.2 million, exceeding the high end of guidance, and delivered adjusted EBITDA of $7.2 million. Net income came in at $1.7 million, landing within its projected range.
2. Cash Flow Highlights
The company generated $14.1 million in operating cash flow and $13.6 million in free cash flow during the quarter, reflecting strong conversion of earnings into liquidity.
3. Technology and Customer Momentum
Cerence noted production starts for xUI-powered vehicles and broadened adoption of its Audio AI and generative AI solutions among global OEM partners.
4. Full-Year Outlook Raised
Management raised midpoints of full-year revenue, adjusted EBITDA and free cash flow guidance, reflecting confidence in continued growth and margin expansion.