CRNC

Cerence Inc. Technology Software - Application

6/12
Innovation Score

Patent Activity

1/3
1 patent found OK

Cash Runway

3/3
Operating cash flow positive — self-funding.
Cash on hand: $108.3M

Revenue Trajectory

0/3
Revenue: $302.1M
YoY Growth: -17.7%

Management Quality

2/3
Insider ownership: 3.0%
SBC/Revenue: 35.8%
No reverse splits detected

Key Metrics

Market Cap $445.8M
Revenue $302.1M
Revenue Growth (YoY) -17.7%
Cash on Hand $108.3M
Cash Runway Cash Flow Positive
Shares Outstanding 45.2M
Insider Ownership 3.0%
SBC / Revenue 35.8%
Sector / Industry Technology / Software - Application

Patents (1)

Match type: OK

7-Step Risk Assessment

How CRNC maps to our micro cap methodology:

  1. Innovation Signal 1 patent identified. This suggests the company is investing in defensible IP.
  2. Cash Runway Check Cash flow positive. No dilution risk from capital raises.
  3. Revenue Trajectory -17.7% YoY growth on $302.1M revenue. Revenue declining — investigate whether this is temporary or structural.
  4. Management Alignment Insiders hold 3.0% of shares. SBC is 35.8% of revenue.
  5. Competitive Moat Review the company's 10-K for barriers to entry: patents, network effects, switching costs, regulatory approvals. This step requires manual research.
  6. Catalyst Identification Look for upcoming catalysts: FDA decisions, contract wins, product launches, partnerships. Check recent 8-K filings and earnings transcripts.
  7. Position Sizing Micro caps carry outsized risk. Consider position sizing relative to conviction level and portfolio concentration. This is a $445.8M company.

Financial Detail

Free Cash Flow $61.5M
FCF Yield 13.8%
Return on Equity -12.8%
Debt / Equity 118.3%
Gross Margin 78.3%
Profit Margin -6.5%
Operating Margin -3.6%
Price / Book 2.95
Current Ratio 1.90
Dividend Yield None
Share Count Change (YoY) N/A
Share Count Change (3yr) N/A

Quality Flags

FCF Positive

Free Cash Flow Trend

Insufficient Data
Consecutive Years FCF Positive 0

Disclaimer: This is an automated screening tool, not investment advice. Micro cap stocks are inherently risky with low liquidity and high volatility. The innovation score is based on publicly available data and may not reflect the full picture. Steps 5-7 of the methodology require your own research. See our full disclaimer.

Last screened: 2026-05-11