Cerence Inc. (CRNC) stock plummeted 5.41% in after-hours trading on Thursday, following the release of the company's disappointing Q1 2025 financial results.

The key highlights from Cerence's Q1 earnings report that likely contributed to the stock's drop:

• Adjusted gross margin of 65.9%, indicating potential margin pressures
• Operating margin of -33.3%, reflecting poor profitability
• Adjusted EBITDA margin of only 2.7%, further evidence of weak profitability
• Adjusted operating margin of -1%, missing expectations