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Cerence

Cerence Inc. is an multinational software company specializing in ()-powered virtual assistants primarily for the . Founded in 2019 as a spin-off from ' automotive division, it became an independent listed on under the ticker CRNC. Headquartered in , Cerence develops conversational solutions that enable interactions in vehicles, enhancing , , and for drivers and passengers. Cerence's technology is deployed in over 525 million worldwide, powering one in every two cars globally with voice-enabled features. The company holds nearly 650 patents and supports an extensive portfolio of languages, offering automotive-grade for cars, two-wheelers, and trucks. Key products include Cerence Chat Pro, an advanced conversational assistant, and integrated solutions for connected and autonomous that seamlessly blend with automaker brands. With 25 years of expertise inherited from Nuance, Cerence partners with leading automakers and tech firms such as , , , , and to deliver immersive, agentic experiences. Operating from 16 global offices, including locations in Merelbeke, , , , and , the company focuses on creating safer and more enjoyable transportation journeys through innovation in voice and . As of 2025, Cerence continues to expand beyond automotive into broader mobility applications, maintaining its position as a leader in for a world in motion.

History

Founding and spin-off from Nuance

In November 2018, Nuance Communications announced its intention to spin off its automotive business unit into a separate, independent publicly traded company, aiming to sharpen its strategic focus on conversational solutions for healthcare and enterprise sectors. This decision allowed Nuance to streamline operations around its growing healthcare portfolio, which accounted for a significant portion of its revenue at the time. The spin-off process involved distributing shares of the new entity to Nuance shareholders on a pro-rata basis, with the transaction structured as tax-free for U.S. federal purposes. The was completed on October 1, 2019, when Cerence Inc. emerged as an independent entity from Nuance's automotive division, with its beginning regular-way trading on the Global Select Market under the "CRNC" the following day. Cerence inherited Nuance's extensive automotive voice AI technologies, built on over 20 years of expertise in and tailored for vehicles. At inception, the company powered AI-driven experiences in more than 280 million vehicles worldwide, supporting interactions in over 70 languages and serving nearly every major automaker. Cerence was headquartered in , leveraging the established infrastructure of Nuance's automotive operations in the region. The founding leadership team was drawn primarily from Nuance's automotive executives, with Sanjay Dhawan appointed as the inaugural and to guide the new company's direction in automotive innovation. This setup positioned Cerence to exclusively advance voice-enabled technologies for mobility, distinct from Nuance's broader enterprise focus.

Early growth and market expansion

Following its from in October 2019, Cerence began trading on the Global Select Market under the CRNC, with shares opening at $17.19 and closing at $15.35 on the first day of regular trading, , reflecting an initial decline amid market volatility for the newly independent entity. The distribution provided Nuance shareholders with one share of Cerence for every eight shares of Nuance held, establishing Cerence's initial at approximately $630 million based on the opening price. This marked Cerence's entry as a standalone , inheriting a robust automotive customer base from Nuance as its foundational asset. By its first anniversary in 2020, Cerence reflected on a successful transition to independence despite the onset of the global , which necessitated a rapid shift to remote operations with minimal disruption to productivity. Key early wins included maintaining and deepening partnerships with major automakers such as , Daimler, , , , and , achieving an over 90% close rate on new (OEM) programs and securing the two largest contracts in company history. These achievements underscored Cerence's operational , as the company met all sales key performance indicators for bookings and revenue amid industry headwinds. Cerence expanded its employee base from approximately 1,500 full-time employees as of September 30, 2020, to about 1,700 by September 30, 2021, supporting growth in research, development, and . This included establishing a new development site in , , with over 100 employees, alongside maintaining an international headquarters in , , and other facilities beyond its U.S. base in , to enhance global engineering and support capabilities. Early was evidenced by Cerence's technology being integrated into nearly 400 million vehicles shipped worldwide by 2021, demonstrating rapid adoption across over 65 global automobile brands and more than 70 languages. This cumulative shipment metric highlighted Cerence's established position in the automotive sector during its initial independent phase.

Key milestones since 2020

In January 2021, Cerence launched Cerence Cloud Services, a suite of products designed to integrate drivers' digital ecosystems—including mobile apps, smart homes, and IoT devices—with in-car assistants, enhancing connectivity and user experience in connected mobility environments. On the same date, the company unveiled Cerence Drive 2.0, an advanced AI assistant platform touted as the fastest and most intelligent for global mobility applications. Later that year, in December 2021, Cerence secured its largest contract to date, valued at $149 million, with a major automaker to deploy cloud-based conversational solutions across its vehicles, marking a significant step in the company's global expansion. Beginning in 2021 and accelerating into 2022, Cerence expanded beyond traditional passenger vehicles into non-automotive sectors, including two-wheelers and heavy trucking; notable early advancements included a July 2021 collaboration to integrate voice-enabled electronics for s and securing four additional two-wheeler customers in the first half of fiscal 2022, alongside initiatives for trucker-focused voice controls in commercial fleets. This diversification supported safer, hands-free operations in emerging areas. From 2023 onward, Cerence advanced its AI capabilities in response to evolving automotive trends, such as the rise in (EV) adoption, exemplified by a multi-year agreement in October 2022 with to develop humanized co-pilot systems tailored for EV experiences. In March 2024, the company engaged its first automaker customers for CaLLM, its pioneering automotive designed for on-device, privacy-focused interactions. By November 2024, Cerence introduced CaLLM Edge, an embedded small language model optimized for automotive in partnership with , enabling efficient, low-latency generative AI processing directly in vehicles. In October 2024, Brian Krzanich was appointed as President and Chief Executive Officer, succeeding Sanjay Dhawan, and the company rebranded to Cerence AI to emphasize its focus on artificial intelligence solutions. Into 2025, this technology saw further integrations, including collaborations with Arm for enhanced edge AI performance in May and with MediaTek for multi-modal language models on NVIDIA hardware in April, alongside a September demonstration at IAA Mobility showcasing CaLLM Edge on specialized hardware for next-generation conversational AI. In September 2025, Cerence AI announced the development of a Mobile Work AI Agent integrating Microsoft 365 Copilot for hands-free productivity in vehicles and collaborated with DSP Concepts to advance in-car audio processing. In October 2025, its hybrid AI platform Cerence xUI was selected as the AutoTech AI Solution of the Year by AutoTech Breakthrough.

Products and technologies

Core AI platforms

Cerence Assistant serves as the foundational conversational AI platform for in-vehicle interactions, integrating advanced speech-to-text capabilities with to enable hands-free, intuitive dialogues between drivers, passengers, and vehicle systems. This platform employs robust automatic speech recognition (ASR) to convert spoken commands into actionable text even in noisy cabin environments, complemented by (NLP) that interprets context, intent, and multi-turn conversations for more human-like responses. Supporting an extensive portfolio of languages and dialects worldwide, Cerence Assistant facilitates global and customization, allowing automakers to tailor interactions while maintaining brand consistency. Complementing the core assistant, Cerence's embedded technologies provide efficient, on-device processing essential for real-time vehicle operations. These include wake word detection, which activates the assistant through customizable phrases like "Hey Cerence" or user-defined terms, optimized for reliability amid road noise and multiple speakers via . Low-resource , featured in products like Cerence Input AI Lite, enables lightweight ASR and wake-up functionality on resource-constrained hardware, supporting both activation and basic command processing without heavy cloud reliance. Additionally, sound identification capabilities, such as , use microphone arrays to recognize siren patterns from over 1,500 emergency vehicle types and estimate their direction, enhancing driver awareness and safety. CaLLM Edge represents Cerence's advancement in on-device , a small (SLM) fine-tuned from Microsoft's Phi-3 family specifically for automotive . This embedded solution processes complex queries locally, enabling proactive, multi-turn conversations and reasoning tasks like route planning or diagnostics with low latency and power consumption, even in areas with limited connectivity. Optimized for hardware, CaLLM Edge integrates seamlessly with Cerence Assistant to deliver secure, privacy-focused interactions without compromising performance. Underpinning these platforms is Cerence's extensive portfolio, comprising over 650 patents focused on voice innovations and automotive integration, including advancements in , multimodal processing, and edge deployment. This body of work, developed over 25 years, protects key technologies like hybrid cloud-edge architectures and noise-robust audio processing, ensuring Cerence's competitive edge in the industry.

Automotive and mobility solutions

Cerence's in-car virtual assistants enable seamless interactions in connected and autonomous vehicles, supporting features such as real-time , controls, and safety enhancements like hands-free communication to reduce driver distraction. These assistants, exemplified by partnerships like VinFast's implementation, allow drivers to access traffic updates, make calls, send messages, and manage media without manual input, promoting safer roadways. In autonomous contexts, the technology facilitates multi-modal interactions, combining with gestures for intuitive control in evolving vehicle environments. For electric vehicles, Cerence delivers tailored solutions that integrate voice AI to optimize user experiences, as announced for the 2025 e VITARA in a September 2025 partnership. This bespoke assistant, built on Cerence's core platforms, enables natural voice commands for climate control, navigation, and vehicle-specific functions like monitoring, enhancing in sustainable . The integration supports 's global strategy by providing a connected, intuitive that aligns with the model's eco-focused . Cerence extends its voice AI to broader mobility sectors, including two-wheelers and trucking, where it offers hands-free controls for , music, and to improve and . The Cerence 2-Wheeler provides integration and enhanced human-machine interfaces for motorcycles and e-bikes, while truck solutions enable voice-activated management of route planning, communication, and vehicle health monitoring. In non-car applications, such as fleet operations, these capabilities support voice-driven oversight of truck performance and , keeping operators focused . Integration with partner hardware, particularly systems, forms a cornerstone of Cerence's automotive deployments, ensuring voice AI operates natively within vehicle ecosystems. Collaborations with on the MBUX system and LG's Auto IVI platform embed Cerence's voice controls directly into dashboards for responsive, multi-device experiences. Similarly, partnerships with and deliver advanced AI within luxury and setups, enabling seamless hardware-software synergy for features like entertainment and safety alerts. In September 2025, Cerence announced a mobile work AI agent integrating Copilot, enabling hands-free productivity features like management and document editing in to enhance safer driving experiences.

Cloud and integration services

Cerence Cloud Services provides a comprehensive suite designed to integrate with external digital ecosystems, enabling seamless connectivity to smartphones, smart homes, and third-party applications. Launched in January 2021, this platform leverages the Cerence Drive framework to extend in-car experiences beyond the itself. Key components include Cerence Extend, which allows voice-activated access to native smartphone apps such as calendaring, messaging, and video calls on and devices, while maintaining OEM control over safety and functionality. Cerence Connect facilitates integration with smart home devices, permitting drivers to control features like lighting or security systems via voice commands, often triggered by such as arrival at home. Additionally, Cerence Browse delivers -powered search capabilities directly in the , providing real-time information without requiring manual device interaction. These services enhance automotive solutions by bridging on-device with cloud-based resources for more dynamic and personalized interactions. To support OEM implementation, Cerence offers professional services focused on (UX) , , and . UX services involve creating intuitive voice interfaces aligned with brand identity, market needs, and user expectations, including against competitors and specifying functionality for multi-language rollouts. tailors voice user interfaces to specific use cases, environments, and preferences, such as developing unique wake-up words or adapting off-the-shelf solutions for novel experiences. support connects Cerence's conversational with OEM systems and third-party platforms, offering flexible deployment options—either or cloud-based—to ensure contextual relevance and minimal disruption to existing infrastructure. These services emphasize precision , native-language testing, and to help automakers differentiate their offerings and foster customer loyalty. Cerence provides and SDK tools through its developer platforms to enable embedding of its technologies into software stacks. Cerence Studio is a web-based that allows OEMs and suppliers to build and deploy custom voice domains using automotive-optimized (NLU) and dialog tools, supporting full-stack speech from automatic (ASR) to text-to-speech (TTS). Complementing this, Cerence Edge SDKs offer an framework with abstracted s for integrating advanced speech , including connectivity for hybrid operations and over-the-air () updates to extend functionality without hardware changes. These tools promote , streamlined , and global , allowing developers to innovate rapidly while optimizing for system efficiency. Security and privacy are integral to Cerence's deployments, with features designed to meet stringent automotive standards. The processes user requests in a pseudonymized manner on its multi-tenant Cerence Cloud Services (CCS), prioritizing anonymized or aggregated data to minimize personal information exposure. Cerence maintains ISO 27001 certification for , verified by independent auditors, alongside compliance with TISAX for automotive and ISO 21434 for cybersecurity in road vehicles. These measures include technical safeguards for data transmission and storage, as well as organizational controls to ensure adherence to global data protection regulations, enabling secure integration while giving OEMs control over data handling.

Business operations

Major partnerships and contracts

Cerence has formed a with , announced on May 28, 2025, to optimize its CaLLM Edge embedded small using 's Kleidi software , enabling enhanced performance of generative AI workloads on -based CPUs for automotive applications. This collaboration focuses on accelerating operations at the edge, improving efficiency for in-vehicle AI experiences without relying on cloud connectivity. In January 2025, Cerence expanded its collaboration with to advance the CaLLM family of language models, leveraging , TensorRT-LLM for inference optimization, and the for model customization tailored to automotive environments. This partnership aims to deliver faster, more responsive large language models for in-vehicle interactions, reducing and costs for automakers deploying -driven assistants. Cerence initiated a partnership with in early 2024 to integrate into vehicle infotainment systems from automakers including , , and , utilizing OpenAI Service for secure, cloud-based voice interactions. This collaboration has enabled millions of vehicles to access generative AI capabilities, with expansions in 2025 incorporating Copilot for hands-free productivity features like email management during drives. On January 2, 2025, Cerence signed a multi-year strategic deal with (JLR) to develop next-generation -powered in-car experiences, integrating Cerence's voice and multimodal technologies to enhance safety, enjoyment, and productivity in luxury vehicles. The agreement supports JLR's evolution by deploying agentic assistants that handle complex, context-aware commands across global markets. In September 2025, Cerence announced additional partnerships, including with SiMa.ai to power next-generation conversational at the edge using MLSoC for efficient in-vehicle processing. It also collaborated with DSP Concepts to revolutionize in-car audio through advanced integrated with Cerence's voice . On September 30, 2025, Cerence partnered with Motor Corporation to deploy an in-car assistant in the e VITARA model, enhancing voice interactions for and global markets.

Market presence and customers

Cerence serves nearly every major automaker worldwide as its primary customers, including European manufacturers such as , , , and ; Asian OEMs like , , , , Subaru, and SAIC; and U.S.-based companies including and . In total, the company collaborates with more than 80 automakers and suppliers globally, embedding its voice AI solutions into their vehicle lineups. Cerence's technology is deployed in vehicles across all continents, with a strong established presence in the , , and , including and other key automotive markets. The company has emphasized growth in through major contracts with large OEMs and in the Asia-Pacific region via partnerships with Japanese and Chinese manufacturers, such as and , to expand its footprint in high-volume markets. As a leader in automotive voice AI, Cerence holds over 50% global , with more than 70% outside , and its technology has been shipped in over 525 million vehicles as of 2025. This scale underscores its dominant position in the sector, powering conversational in a substantial portion of the world's connected vehicles. In the competitive landscape, Cerence differentiates itself from general technology giants like , Apple, and through its specialized focus on automotive-specific , offering tailored, vehicle-integrated solutions that prioritize domain expertise, data privacy, and seamless integration with OEM ecosystems over broad consumer applications. This niche positioning allows it to maintain leadership in transportation-focused virtual assistants amid broader advancements.

Research and development

Cerence invests substantially in (R&D) to drive advancements in AI-powered mobility solutions. In 2024, R&D expenses reached $121.6 million, accounting for approximately 36.7% of the company's $331.5 million in . This follows a similar pattern in prior years, with FY2023 R&D at $123.3 million (41.9% of $294.5 million ) and FY2022 at $107.1 million (32.7% of $327.9 million ), reflecting a consistent emphasis on amid varying revenue streams. The company's R&D efforts prioritize key areas such as generative tailored for vehicular applications, enabling more natural and context-aware in-car interactions. For instance, Cerence leverages generative to enhance user experiences through partnerships with , integrating and technologies for processing. interactions, combining voice commands with gestures and visual cues, form another core focus, allowing seamless control of vehicle functions like and . Additionally, in is integrated into R&D through commitments to efficient, low-impact solutions that support environmental goals in transportation. Cerence operates the Cerence DRIVE Labs as global hubs for R&D, concentrating on research, interface design, and prototyping to foster safer and more intuitive automotive interactions. These labs drive internal innovation by testing in real-world scenarios. Externally, Cerence collaborates with academic institutions like the Mila Artificial Intelligence Institute in to advance research in speech and . Partnerships with tech firms, including for generative optimization and for efficiency on edge devices, further bolster these efforts. Building on its Nuance legacy, Cerence has actively expanded its intellectual property since the 2019 spin-off, with an ongoing patent strategy to protect AI innovations. As of September 30, 2024, the company holds approximately 869 and patent applications worldwide, many filed post-spin-off to cover advancements in voice recognition, interfaces, and generative for mobility. In September 2025, Cerence filed a lawsuit against Apple, alleging infringement of technologies related to text input, recognition, and voice command monitoring in Apple devices. On November 3, 2025, Cerence settled a patent dispute with for $49.5 million, resolving claims of infringement on Cerence's voice and patents. This portfolio, supplemented by a non-exclusive to certain Nuance patents, underscores Cerence's commitment to proprietary technology development.

Corporate affairs

Leadership and governance

Cerence's leadership is headed by , who was appointed and joined the in October 2024. Krzanich brings extensive experience in technology leadership, having served as CEO of Corporation from 2013 to 2018, where he advanced manufacturing and technologies, and later as CEO of from 2018 to 2022, focusing on automotive software solutions. His expertise in , , and operational scaling has positioned him to guide Cerence's strategic initiatives in automotive AI innovation. The role is held by Antonio "Tony" Rodriquez, appointed effective November 29, 2024. Rodriquez, previously a partner at CSuite Financial Partners, oversees Cerence's finance organization, with a focus on accelerating growth, enhancing operational efficiency, and delivering long-term value through strategic . His over two decades of experience in finance across , , and media sectors support Cerence's expansion in AI-driven mobility solutions. Other key executives include Jennifer Salinas, Executive Vice President, , , and Corporate Secretary, who manages legal affairs, compliance, and administrative operations. Salinas has been instrumental in navigating regulatory landscapes for technologies. Nils Schanz serves as Executive Vice President of Product and Technology, leading the development of Cerence's platforms and innovations in voice and interactions. Under this executive team's direction, Cerence has advanced key milestones in deployment for automotive applications. Cerence's comprises a diverse mix of experts, including Krzanich, Chairperson Kristi Ann Matus, and members such as Marianne Budnik, Douglas Davis, , Marcy Klevorn, Alfred Nietzel, and , drawing from backgrounds in , automotive, , and . The board emphasizes strong through policies outlined in its Guidelines and and Ethics, which promote , , , and responsible practices across operations. These frameworks ensure accountability and alignment with goals, including equitable representation and ethical innovation.

Financial performance

Cerence's financial performance in 2024 (FY2024, ended September 30, 2024) showed revenue growth amid ongoing investments in technologies for the automotive sector. The company reported of $331.5 million, marking a 12.6% increase from $294.5 million in FY2023, driven by expanded licensing and connected services agreements with original equipment manufacturers (OEMs). This growth reflected steady demand for Cerence's voice solutions in vehicles, though the company faced significant non-cash charges that impacted profitability. Profitability metrics highlighted challenges from charges. Gross reached $244.3 million, representing a 73.7% on total revenue. However, operating income resulted in a loss of $579.9 million, primarily due to charges totaling $609.2 million recorded in the second and third quarters ($252 million in Q2 and $357 million in Q3). These impairments stemmed from a reassessment of asset values amid market conditions and strategic shifts, leading to a net loss of $588.1 million for the year. Revenue sources were predominantly tied to automotive OEM contracts and licensing, underscoring Cerence's focus on the sector. The for FY2024 included $124.7 million from licensing (royalties and upfront fees for software integration), $133.4 million from connected services (ongoing subscriptions for cloud-based features), and $73.3 million from (implementation and customization support). This structure highlights reliance on long-term OEM partnerships, with licensing and connected services comprising approximately 77% of . The cost structure emphasized heavy investment in innovation, with research and development (R&D) expenses at $121.6 million, or 37% of , supporting advancements in generative and interfaces. Total operating expenses amounted to $824.2 million, equivalent to about 249% of , largely inflated by the charges; excluding these, adjusted operating expenses were more aligned with historical norms around 100-120% of in prior years. Looking ahead to 2025 (FY2025), Cerence projected total revenue of $244 million to $249 million, indicating a potential decline due to timing of OEM program launches and macroeconomic pressures in the . In the third quarter of FY2025 (ended June 30, 2025), revenue was $62.2 million, exceeding guidance despite an 11.8% year-over-year decrease from $70.5 million in Q3 FY2024, supported by strong of $16.1 million.
Revenue Breakdown (FY2024)Amount ($ million)Percentage of Total
Licensing124.737.6%
Connected Services133.440.2%
73.322.1%
Total331.5100%

Stock information and challenges

Cerence Inc. (: CRNC) completed its through a from on , 2019. As of November 2025, the has experienced significant , with a 52-week trading range of $2.80 to $27.50. The company's is approximately $402 million, reflecting a price-to-sales ratio of about 1.62 based on trailing twelve-month of $248 million. Cerence has encountered notable challenges in its stock performance, including a trailing twelve-month revenue growth rate of -31.2%, driven by quarterly declines such as -11.8% year-over-year in the most recent period. Intense from Big Tech companies like , Apple, and , which are developing advanced voice assistants for vehicles, has pressured Cerence's market position despite its 52% share in automotive virtual assistants. Furthermore, shifts in the (EV) market, including slower adoption rates in the United States due to regulatory uncertainties and production constraints, have created headwinds for Cerence as a key supplier of in-car technologies. In 2025, Cerence filed a against Apple, alleging misuse of its technologies in text input and voice recognition, adding to legal challenges amid competitive pressures. To address these issues, Cerence, under new CEO who assumed the role in October 2024, has pursued cost-cutting initiatives and strategic pivots. This includes a September 2025 restructuring plan for certain foreign operations, expected to incur cash charges of $7.2-7.9 million, alongside a shift toward generative and hybrid AI platforms to bolster innovation and long-term growth.

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