Cerence Inc. (CRNC)

Over the past six months, Cerence reported strong Q4 and FY25 results, exceeding guidance and projecting a 23% year-over-year revenue increase for FY26. The company showcased AI innovations at CES 2026 and launched AI Agents. Cerence also repurchased $30M of convertible senior notes. Despite these positive developments, the stock experienced a decline of 18.48% between January 10, 2025, and January 9, 2026.

Analysis of Cerence Inc.'s seasonal charts suggests a potential seasonal pattern for its stock performance. Over the past five years, a "Buy Date" of October 11 and a "Sell Date" of January 1 has resulted in a geometric average return of 29.97% above the S&P 500 Total Return Index. This seasonal timeframe has shown positive results compared to the benchmark in 4 out of 5 periods and strongly outperforms the relative buy-and-hold performance of the stock. However, it is important to note that only five years of data are available for CRNC, which may be insufficient to create a fully reliable seasonal profile.

Cerence Inc. is a software company specializing in conversational AI solutions for the automotive and transportation sectors. It designs, develops, and licenses AI software, including speech recognition and natural language understanding. Its technology is embedded in vehicles to provide voice-first user experiences. Major products include Cerence xUI, an agentic AI platform, and Cerence Pay, enabling drivers to pay for fuel via voice commands. The company generates revenue through software licenses and cloud-connected services, shifting towards a recurring model based on usage-based fees.

Cerence Inc. has a global geographic footprint, deriving a majority of its revenue from the United States. The company also maintains a significant presence and generates revenue from other regions, including Other Americas; Germany; Other Europe, the Middle East, Africa; Japan; and Other Asia-Pacific.

In the past year, Cerence Inc. has focused on innovation and strategic growth, contributing positively to its brand reputation. The company announced its intention to showcase agentic AI and LLM-powered innovations at CES 2026. Additionally, Cerence expanded its offerings beyond in-vehicle solutions with the launch of AI Agents, targeting new areas of the automotive ecosystem in December 2025. The company also reported multiple new design wins and the adoption of generative AI technologies, which are expected to drive growth and operational efficiency.

Cerence Inc.'s ownership is heavily weighted towards institutional investors, holding approximately 71.9% of shares. Major institutional owners include The Vanguard Group, Inc. and BlackRock, Inc. Public/retail investors hold approximately 22.64% of the float, while insider ownership remains relatively small.