Is Cerence Inc. (CRNC) Halal?

NASDAQ Technology United States $273M
✗ NOT HALAL
Confidence: 90/100
Cerence Inc. (CRNC) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 65.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Cerence Inc. operates in the Technology sector.

Shariah Screening — 5 Standards

Based on financial data from September 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 65.8%
/ 30%
26.5%
/ 30%
17.9%
/ 30%
1.53%
/ 5%
✗ NOT HALAL
DJIM 65.8%
/ 33%
26.5%
/ 33%
17.9%
/ 33%
1.53%
/ 5%
✗ NOT HALAL
MSCI 34.4%
/ 33%
13.9%
/ 33%
9.3%
/ 33%
1.53%
/ 5%
✗ NOT HALAL
S&P 65.8%
/ 33%
26.5%
/ 33%
17.9%
/ 33%
1.53%
/ 5%
✗ NOT HALAL
FTSE 34.4%
/ 33%
13.9%
/ 33%
9.3%
/ 50%
1.53%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
303.0
Forward: 9.0
EPS
$0.02
P/B Ratio
1.8
EV/EBITDA
5.8
EV: $367M
Revenue
$252M
Growth: 126.1%
Beta
2.7
High volatility
Current Ratio
1.9

Profitability

Gross Margin 78.9%
Operating Margin 32.2%
Net Margin 0.1%
Return on Equity (ROE) 0.2%
Return on Assets (ROA) 5.8%

Cash Flow & Balance Sheet

Operating Cash Flow$61M
Free Cash Flow$47M
Total Debt$217M
Debt-to-Equity125.2
Current Ratio1.9
Total Assets$631M

Price & Trading

Last Close$6.51
50-Day MA$8.57
200-Day MA$10.07
Avg Volume952K
Beta2.7
52-Week Range
$5.94
$13.74

About Cerence Inc. (CRNC)

CEO
Mr. Brian Matthew Krzanich
Employees
1,300
Sector
Technology
Industry
Software - Application
Country
United States
Exchange
NASDAQ
Market Cap
$273M
Currency
USD

Cerence Inc. provides AI-powered assistants for the mobility/transportation market in the United States, the rest of the Americas, Germany, the rest of Europe, the Middle East, Africa, Japan, and the rest of the Asia-Pacific. The company offers edge software components, cloud-connected components, virtual assistant, and professional services. It also provides conversational and generative artificial intelligence-based solutions, including speech recognition, natural language understanding, speech signal enhancement, text-to-speech, and acoustic tuning. The company has a strategic partnership with Arm Kleidi; and SiMa.ai to advance the capabilities and performance of CaLLM Edge. Cerence Inc. was incorporated in 2020 and is headquartered in Burlington, Massachusetts.

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Frequently Asked Questions

Is Cerence Inc. (CRNC) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Cerence Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Cerence Inc.'s debt ratio?

Cerence Inc.'s debt ratio is 65.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 34.4%.

What are Cerence Inc.'s key financial metrics?

Cerence Inc. has a market capitalization of $273M, trailing P/E ratio of 303.0, and revenue of $252M. The company maintains a gross margin of 78.9% and a net margin of 0.1%. Return on equity stands at 0.2%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.