Cerence Repurchases $30M of Convertible Senior Notes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 24 2025
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Cerence entered into privately negotiated transactions with certain holders of its 1.50% Convertible Senior Notes Due 2028, pursuant to which the Company agreed to repurchase $30M aggregate principal amount of the Notes from such holders at a cash repurchase price equal to 92% of their principal amount, together with the accrued and unpaid interest thereon to the settlement date. The repurchase of the Notes at a price below par represents a strategic decision by the Company to utilize its cash reserves efficiently. The transaction will reduce interest expense, eliminate potential dilution from refinancing the Notes being repurchased, and lower leverage - intended to deliver a net positive outcome for shareholders. Assuming completion of the repurchase of the Notes, the Company will continue to evaluate cash on hand and the market for the remaining $180M of Notes through maturity in 2028.
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Analyst Views on CRNC
Wall Street analysts forecast CRNC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRNC is 10.50 USD with a low forecast of 10.00 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 11.760
Low
10.00
Averages
10.50
High
11.00
Current: 11.760
Low
10.00
Averages
10.50
High
11.00
About CRNC
Cerence Inc. is a provider of artificial intelligence (AI)-powered assistants for connected and autonomous vehicles. The Company builds AI-powered virtual assistants for the mobility/transportation market. Its software platform is used to build virtual assistants that can communicate, find information and take action across an expanding variety of categories. Its software platform has a hybrid architecture combining edge software components with cloud-connected components. Its Edge software components are installed on a vehicle’s head unit and can operate without access to external networks and information. Its Cloud-connected components comprise certain speech and natural language understanding-related technologies, AI-enabled personalization and context-based response frameworks, and a content integration platform. Virtual assistants built with its software platform address user requests across various categories, such as navigation, control, media, communication, and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Neusoft and Cerence Sign AI Collaboration Agreement to Enhance Smart Vehicle Interaction
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