Cerence (NASDAQ: CRNC) reported strong Q3 FY2025 results, exceeding guidance with revenue of $62.2 million and Adjusted EBITDA of $9.0 million. The company achieved its fifth consecutive quarter of positive free cash flow at $16.1 million.
Based on strong performance, Cerence raised and narrowed its full fiscal year 2025 guidance, projecting revenue of $244-249 million. The company's Cerence xUI, a hybrid LLM-based platform, continues to gain customer momentum. Key metrics show 52% penetration of worldwide auto production and a 12% increase in connected cars shipped.
For Q4 FY2025, Cerence expects revenue between $53-58 million with Adjusted EBITDA of $2-6 million. The company maintains strong market position with its AI technology, serving 52% of worldwide auto production.