What does connected services — total cost of revenues mean?

This metric captures the direct costs associated with delivering cloud-connected services, including infrastructure hosting, maintenance, and technical support expenses. It serves as a key indicator of the operational efficiency and scalability of the company's service delivery model. Monitoring this cost relative to segment revenue helps assess the gross margin profile of the connected services business unit.

Cerence Inc. (CRNC) Connected services — Total cost of revenues

Screener

Other product segments

Professional services

$10.41M-0.6%

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Other financials

Income statement

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Revenue$69.6M+11.8%

Gross profit$52.9M+15.3%

Operating income$1.9M+298%

Net income$1.5M+156%

EPS (diluted)$0.03+150%

Balance sheet

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Cash & equivalents$127.6M+73.2%

Total debt$187.1M-13.8%

Total equity$166.4M+6.9%

Total assets$620.9M-2.5%

Cash flow

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Operating cash flow$20.0M-15.8%

CapEx$340.0K-95.6%

Free cash flow$19.6M+22.2%

Valuation

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Market cap$402.78M-0.1%

Enterprise value$462.22M-15.4%

P/S1.3×-0.3×

Profitability

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Gross margin78.7%+7.9pp

Operating margin8.7%+5.9pp

Net margin-5%-1.7pp

FCF margin25.4%+8.4pp

Returns & leverage

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Return on equity-9.6%-2.9pp

Debt / equity1.1×-0.3×

Current ratio2.1×+0.3×

Where this comes from

Reported directly by Cerence Inc. in its filing.

Tagged under the XBRL concept us-gaap:CostOfGoodsAndServicesSold.

The source filing: Cerence Inc.’s 10-Q, filed August 6, 2026.

Filed: Aug 6, 2026, 4:16 PM EDT
Fiscal quarter: Q3 FY2026
Calendar quarter: Q2 2026
Accession: 0001628280-26-054339

Line item	Three Months Ended June 30, 2026	Three Months Ended June 30, 2025	Nine Months Ended June 30, 2026	Nine Months Ended June 30, 2025
Total revenues	69,587	62,236	248,855	191,142
Cost of revenues:
License	1,362	1,074	4,291	5,288
Connected services	4,906	4,805	14,860	16,095
Professional services	10,405	10,469	30,144	30,618
Total cost of revenues	16,673	16,348	49,295	52,001
Gross profit	52,914	45,888	199,560	139,141
Operating expenses:

Item 1. Condensed Consolidated Financial Statements (Unaudited)

FAQ

What is Cerence Inc.'s connected services — total cost of revenues?: Cerence Inc. (CRNC) reported connected services — total cost of revenues of $4.91M in Q2 2026.
What does connected services — total cost of revenues mean?: This metric captures the direct costs associated with delivering cloud-connected services, including infrastructure hosting, maintenance, and technical support expenses. It serves as a key indicator of the operational efficiency and scalability of the company's service delivery model. Monitoring this cost relative to segment revenue helps assess the gross margin profile of the connected services business unit.