Cerence Inc. (CRNC) stock plummeted 13.5% over the last 24 hours in Thursday's trading session, marking a significant one-day decline for the company.
The sharp sell-off in Cerence's shares was likely driven by the company's disappointing Q1 2025 earnings results, which revealed potential margin pressures and weak profitability. The key concerning metrics included an adjusted gross margin of 65.9%, an operating margin of -33.3%, an adjusted EBITDA margin of only 2.7%, and an adjusted operating margin of -1% that missed expectations.
The underwhelming Q1 performance, marked by declining margins and profitability, appears to have shaken investor confidence, leading to the substantial stock price drop after the earnings release.
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