Cerence Inc.

In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, which could materially affect our business, financial condition or future results of operations. The risks described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and those described in this Quarterly Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. Other than as updated below, there are no material changes to the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

Benefits realized by our intellectual property monetization efforts may result in unpredictable or variable accounting treatments

Any agreements reached or damages awarded to us in connection with our intellectual property monetization efforts are subject to the appropriate application of relevant accounting standards under US GAAP based on the terms and conditions of any future potential agreement to license our IP. Our historical accounting treatment of such receipts and application of the relevant accounting standards may not be indicative of how future benefits may be accounted for. The revenue we may recognize from licenses,settlements or judgments in our favor may have a one-time effect of increasing revenue in the applicable period as required under applicable accounting standards, which may make comparisons with prior and future periods more difficult. For example, we recognized $49.5 million of revenue associated with the settlement of our litigation and IP license with Samsung and a one-time lump sum payment in connection therewith during the first quarter of fiscal year 2026.