Cerence raised its fiscal 2026 free cash flow guidance to a range of $76 million to $82 million, up from its prior outlook of $66 million to $76 million, and announced its first-ever share repurchase program authorizing up to $30 million in buybacks over the next 12 months. The company reported third-quarter revenue of approximately $70 million, in line with guidance, with adjusted EBITDA of $13.5 million and free cash flow of $20 million. For the fourth quarter, Cerence expects revenue between $61 million and $65 million, reflecting the absence of additional fixed license revenue and normal seasonal patterns. Management highlighted that approximately 100,000 vehicles equipped with its xUI platform are now on the road, with a ramp expected to begin at the end of 2026 and impact revenue in fiscal 2027 and beyond. The company also signed a new xUI deal with Stellantis and secured its first customer for a mobile work agent developed in collaboration with Microsoft.
Cerence IncRaised FY26 FCF guidance and announced $30M buyback
Microsoft Corporation
Stellantis NVSigned new xUI deal with Stellantis
