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

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Other financials

Income statement

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Revenue$64.2M-17.7%

Gross profit$47.3M-21.4%

Operating income-$2.4M-114%

Net income$1.7M-92.3%

EPS (diluted)$0.04-91.3%

Balance sheet

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Cash & equivalents$108.3M-7.8%

Total debt$187.5M-32.2%

Total equity$158.5M+6.2%

Total assets$617.0M-7.3%

Cash flow

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Operating cash flow$14.1M-8.8%

CapEx$482.0K-79.4%

Free cash flow$13.6M+3.8%

Valuation

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Market cap$445.1M+19.4%

Enterprise value$524.39M-1.4%

P/S1.5×0.0×

Profitability

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Gross margin78.3%+8.0pp

Operating margin8%+4.1pp

Net margin-6.5%-3.2pp

FCF margin24.8%+10.0pp

Returns & leverage

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Return on equity-12.8%-6.0pp

Debt / equity1.2×-0.7×

Current ratio1.9×+0.4×

Where this comes from

Reported directly by Cerence Inc. in its filing.

Tagged under the XBRL concept us-gaap:CostOfGoodsAndServicesSold.

The official record: Cerence Inc.’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Cerence Inc.'s connected services — total cost of revenues?: Cerence Inc. (CRNC) reported connected services — total cost of revenues of $5.04M in Q1 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.