Cerence (CRNC) 10-Q 6 Feb 25 2025 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Dec. 31, 2024	Jan. 30, 2025
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2024
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-39030
Entity Registrant Name	CERENCE INC.
Entity Central Index Key	0001768267
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	83-4177087
Entity Address Address Line1	25 Mall Road
Entity Address Address Line2	Suite 416
Entity Address City Or Town	Burlington
Entity Address State Or Province	MA
Entity Address Postal Zip Code	01803
City Area Code	857
Local Phone Number	362-7300
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	CRNC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		43,198,993

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Total revenues	$ 50,896	$ 138,335
Cost of revenues:
Amortization of intangible assets		103
Total cost of revenues	17,824	26,335
Gross profit	33,072	112,000
Operating expenses:
Research and development	20,869	33,306
Sales and marketing	4,766	6,071
General and administrative	12,754	12,793
Amortization of intangible assets	554	545
Restructuring and other costs, net	11,062	705
Total operating expenses	50,005	53,420
(Loss) income from operations	(16,933)	58,580
Interest income	1,437	1,432
Interest expense	(3,393)	(3,236)
Other income, net	272	1,422
(Loss) income before income taxes	(18,617)	58,198
Provision for income taxes	5,671	34,341
Net (loss) income	$ (24,288)	$ 23,857
Net (loss) income per share:
Basic	$ (0.57)	$ 0.58
Diluted	$ (0.57)	$ 0.53
Weighted-average common share outstanding:
Basic	42,897	41,186
Diluted	42,897	49,255
License
Revenues:
Total revenues	$ 22,725	$ 20,823
Cost of revenues:
Total cost of revenues	1,782	1,604
Connected Services
Revenues:
Total revenues	13,707	96,820
Cost of revenues:
Total cost of revenues	6,311	7,303
Professional Services
Revenues:
Total revenues	14,464	20,692
Cost of revenues:
Total cost of revenues	$ 9,731	$ 17,325

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (24,288)	$ 23,857
Other comprehensive (loss) income:
Foreign currency translation adjustments	(3,849)	4,280
Pension adjustments, net	(3)	27
Net unrealized (loss) gains on available-for-sale securities	(21)	163
Total other comprehensive (loss) income	(3,873)	4,470
Comprehensive (loss) income	$ (28,161)	$ 28,327

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Current assets:
Cash and cash equivalents	$ 104,103	$ 121,485
Marketable securities	3,889	5,502
Accounts receivable, net of allowances of $53 and $1,613	47,671	62,755
Deferred costs	4,739	5,286
Prepaid expenses and other current assets	39,670	70,481
Total current assets	200,072	265,509
Long-term marketable securities	2,552	3,453
Property and equipment, net	29,371	30,139
Deferred costs	15,539	18,051
Operating lease right of use assets	13,156	12,879
Goodwill	288,886	296,858
Intangible assets, net	1,059	1,706
Deferred tax assets	46,035	51,398
Other assets	20,858	22,365
Total assets	617,528	702,358
Current liabilities:
Accounts payable	7,609	3,959
Deferred revenue	47,626	52,822
Short-term operating lease liabilities	3,828	4,528
Short-term debt	59,954	87,094
Accrued expenses and other current liabilities	32,967	68,405
Total current liabilities	151,984	216,808
Long-term debt	196,208	194,812
Deferred revenue, net of current portion	113,444	114,354
Long-term operating lease liabilities	10,071	8,803
Other liabilities	25,119	26,484
Total liabilities	496,826	561,261
Commitments and contingencies (Note 12)
Stockholders' Equity:
Common stock, $0.01 par value, 560,000 shares authorized; 42,988 and 41,924 shares issued and outstanding, respectively	430	419
Accumulated other comprehensive loss	(29,785)	(25,912)
Additional paid-in capital	1,096,085	1,088,330
Accumulated deficit	(946,028)	(921,740)
Total stockholders' equity	120,702	141,097
Total liabilities and stockholders' equity	$ 617,528	$ 702,358

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Statement of Financial Position [Abstract]
Accounts receivable allowances	$ 53	$ 1,613
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	560,000,000	560,000,000
Common stock, shares issued	42,988,000	41,924,000
Common stock, shares outstanding	42,988,000	41,924,000

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in-Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Balance at Sep. 30, 2023	$ 694,875	$ 404	$ 1,056,099	$ (333,662)	$ (27,966)
Balance (in shares) at Sep. 30, 2023		40,423
Net (loss) income	23,857			23,857
Other comprehensive income (loss)	4,470				4,470
Issuance of common stock	6,201	$ 8	6,193
Issuance of common stock, (in shares)		814
Stock withheld to cover tax withholdings requirements upon stock vesting	(6,209)		(6,209)
Stock-based compensation	7,939		7,939
Balance at Dec. 31, 2023	731,133	$ 412	1,064,022	(309,805)	(23,496)
Balance (in shares) at Dec. 31, 2023		41,237
Balance at Sep. 30, 2024	141,097	$ 419	1,088,330	(921,740)	(25,912)
Balance (in shares) at Sep. 30, 2024		41,924
Net (loss) income	(24,288)			(24,288)
Other comprehensive income (loss)	(3,873)				(3,873)
Issuance of common stock	1,364	$ 11	1,353
Issuance of common stock, (in shares)		1,066
Stock withheld to cover tax withholdings requirements upon stock vesting	(1,369)		(1,369)
Stock withheld to cover tax withholdings requirements upon stock vesting, (in shares)		(2)
Stock-based compensation	7,771		7,771
Balance at Dec. 31, 2024	$ 120,702	$ 430	$ 1,096,085	$ (946,028)	$ (29,785)
Balance (in shares) at Dec. 31, 2024		42,988

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Cash flows from operating activities:
Net (loss) income	$ (24,288)	$ 23,857
Adjustments to reconcile net (loss) income to net cash provided by (used in) operations:
Depreciation and amortization	2,445	2,686
Provision for expected credit loss reserve	207
Stock-based compensation	7,771	8,380
Non-cash interest expense	1,861	1,468
Gain on debt extinguishment	(327)
Deferred tax provision	4,927	30,298
Unrealized foreign currency transaction losses (gains)	1,997	(2,012)
Other, net	(33)	382
Changes in operating assets and liabilities:
Accounts receivable	8,800	4,933
Prepaid expenses and other assets	27,201	1,170
Deferred costs	1,859	2,589
Accounts payable	3,814	2,382
Accrued expenses and other liabilities	(33,087)	3,712
Deferred revenue	6,107	(82,660)
Net cash provided by (used in) operating activities	9,254	(2,815)
Cash flows from investing activities:
Capital expenditures	(1,360)	(931)
Sale and maturities of marketable securities	2,493	2,442
Other investing activities	(374)	(322)
Net cash provided by investing activities	759	1,189
Cash flows from financing activities:
Principal payments of short-term debt	(26,964)
Common stock repurchases for tax withholdings for net settlement of equity awards	(1,369)	(6,209)
Principal payment of lease liabilities arising from a finance lease	(115)	(122)
Proceeds from the issuance of common stock	1,364	6,201
Net cash used in financing activities	(27,084)	(130)
Effects of exchange rate changes on cash and cash equivalents	(311)	(662)
Net change in cash and cash equivalents	(17,382)	(2,418)
Cash and cash equivalents at beginning of period	121,485	101,154
Cash and cash equivalents at end of period	104,103	98,736
Supplemental information:
Cash paid for income taxes	9	3,104
Cash paid for interest	$ 3,077	$ 3,003

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (24,288)	$ 23,857

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Rule 10b5-1 Plans. Our policy governing transactions in our securities by directors, officers and employees permits our officers, directors and certain other persons to enter into trading plans complying with Rule 10b5-1 under the Exchange Act. Generally, under these trading plans, the individual relinquishes control over the transactions once the trading plan is put into place. Accordingly, sales under these plans may occur at any time, including possibly before, simultaneously with, or immediately after significant events involving our company. During the three-month period ended December 31, 2024, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K). We anticipate that, as permitted by Rule 10b5-1 and our policy governing transactions in our securities, some or all of our officers, directors and employees may establish trading plans in the future. We intend to disclose the names of executive officers and directors who establish a trading plan in compliance with Rule 10b5-1 and Regulation S-K, Item 408(a) and the requirements of our policy governing transactions in our securities in our future quarterly and annual reports on Form 10-Q and 10-K filed with the SEC. However, we undertake no obligation to update or revise the information provided herein, including for revision or termination of an established trading plan, other than in such quarterly and annual reports.
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Business Overview

Business Overview	3 Months Ended
	Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Overview	Note 1. Business Overview Business Cerence Inc. (referred to in this Quarterly Report on Form 10-Q as “we,” “our,” “us,” “ourselves,” the “Company” or “Cerence”) is a global, premier provider of AI-powered assistants and innovations for connected and autonomous vehicles. Our customers include nearly all major automobile original equipment manufacturers (“OEMs”), or their tier 1 suppliers worldwide. We deliver our solutions on a white-label basis, enabling our customers to deliver customized virtual assistants with unique, branded personalities and ultimately strengthening the bond between automobile brands and end users. We generate revenue primarily by selling software licenses and cloud-connected services. In addition, we generate professional services revenue from our work with OEMs and suppliers during the design, development and deployment phases of the vehicle model lifecycle and through maintenance and enhancement projects.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Significant Accounting Policies	Note 2. Significant Accounting Policies Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, as well as those of our wholly owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. The condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three months ended December 31, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the fiscal year ending September 30, 2025. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 . Use of Estimates The financial statements are prepared in accordance with GAAP, which requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions can affect the reported amounts in the financial statements and the footnotes thereto. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, assumptions and judgments. Significant estimates inherent to the preparation of financial statements include: revenue recognition; allowance for credit losses; accounting for deferred costs; accounting for internally developed software; the valuation of goodwill and intangible assets; accounting for stock-based compensation; accounting for income taxes; accounting for leases; accounting for convertible debt; and loss contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual amounts could differ significantly from these estimates. Concentration of Risk Financial instruments that potentially subject us to significant concentrations of credit risk primarily consist of trade accounts receivable. We perform ongoing credit evaluations of our customers’ financial condition and limit the amount of credit extended when deemed appropriate. Two customers accounted for 16.5 % and 14.6 % of our Accounts receivable, net balance at December 31, 2024 . One customer accounte d for 21.4 % of our Accounts receivable, net balance at September 30, 2024 . Allowance for Credit Losses We are exposed to credit losses primarily through our sales of software licenses and services to customers. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. A credit limit for each customer is established and in certain cases we may require collateral or prepayment to mitigate credit risk. Our expected loss methodology is developed using historical collection experience, current customer credit information, current and future economic and market conditions and a review of the current status of the customer's account balances. We monitor our ongoing credit exposure through reviews of customer balances against contract terms and due dates, current economic conditions, and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible. The change in the allowance for credit losses for the three months ended December 31, 2024 is as follows (dollars in thousands): Allowance for Credit Losses Balance as of September 30, 2024 $ 1,614 Credit loss provision 207 Write-offs, net of recoveries ( 1,745 ) Effect of foreign currency translation ( 13 ) Balance as of December 31, 2024 $ 63 During the three months ended December 31, 2024, we signed a termination agreement with an international electric vehicle maker. As a result, we wrote off a $ 1.7 million balance, of which $ 1.5 million had been previously reserved for within our allowance for credit losses. Inventory Inventory, consisting primarily of finished goods related to our Cerence Link product, is accounted for using the first in, first out method, and is valued at the lower of cost and net realizable value. Inventory is included within Prepaid expenses and other current assets. As of December 31, 2024 and September 30, 2024, inventory was $ 1.8 million an d $ 1.0 million, respectively. Recently Adopted Accounting Standards None. Issued Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), to expand reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. ASU 2023-07 applies to entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the financial statements, with early adoption permitted. We are currently in the process of evaluating the effects of this pronouncement on our condensed consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. We are currently in the process of evaluating the effects of this pronouncement on our condensed consolidated financial statements and disclosures. In March 2024, the U.S. Securities and Exchange Commission (the "SEC") adopted the final rule under SEC Release No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors”. This rule would require registrants to disclose certain climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the final rule as a result of pending legal challenges. The disclosure requirements would apply to our fiscal year beginning October 1, 2025, pending resolution of the stay. We are currently evaluating the final rule to determine its impact on our disclosures. In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, and may be applied either prospectively or retrospectively. We are currently evaluating this pronouncement to determine its impact on our disclosures.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Note 3. Revenue Recognition We primarily derive revenue from the following sources: (1) royalty-based software license arrangements, (2) connected services, and (3) professional services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transaction including mandatory government charges that are passed through to our customers. We account for a contract when both parties have approved and committed to the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. (a) Disaggregated Revenue Revenues, classified by the major geographic region in which our customers are located, for the three months ended December 31, 2024 and 2023 (dollars in thousands): Three Months Ended December 31, 2024 2023 Revenues: United States $ 9,448 $ 99,469 Other Americas 197 84 Germany 19,409 19,133 Other Europe, Middle East and Africa 5,543 4,775 Japan 5,957 5,623 Other Asia-Pacific 10,342 9,251 Total net revenues $ 50,896 $ 138,335 For the three months ended December 31, 2024, revenues within China were $ 5.4 million, which were over 10 % of revenues. Revenues relating to three customers accounted for $ 7.4 million, or 14.5 %, $ 6.2 million, or 12.2 %, and $ 6.0 million, or 11.8 %, of revenues for the three months ended December 31, 2024. Revenues relating to one customer accounted for $ 78.4 million, or 56.7 %, of revenues for the three months ended December 31, 2023. On October 31, 2023, we entered into an early termination agreement relating to a legacy contract acquired by Nuance Communications Inc. (“Nuance”) through a 2013 acquisition. Previously, the term of the contract ended on December 31, 2025 , whereas the agreement signed on October 31, 2023 updated the termination date to December 31, 2023 . There was no cash flow associated with this legacy contract. For the three months ended December 31, 2023, a total of $ 76.3 million was recognized in relation to this contract including $ 67.8 million of deferred revenue that was accelerated into the first quarter of fiscal year 2024. (b) Contract Acquisition Costs We are required to capitalize certain contract acquisition costs. The capitalized costs primarily relate to paid commissions. The current and noncurrent portions of contract acquisition costs are included in Prepaid expenses and other current assets and in Other assets, respectively. As of December 31, 2024 and September 30, 2024, we had $ 6.2 million a nd $ 7.1 million of contract acquisition costs, respectively. We had amortization expens e of $ 0.6 million and $ 0.7 million related to these costs during the three months ended December 31, 2024 and 2023, respectively. There was no impairment related to contract acquisition costs . (c) Capitalized Contract Costs We capitalize incremental costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (iii) are expected to be recovered through revenue generated under the contract. The current and noncurrent portions of capitalized contract fulfillment costs are presented as Deferred costs. We had amortization expense of $ 2.4 million and $ 4.1 million related to these costs during the three months ended December 31, 2024 and 2023, respectively. There was no impairment related to contract costs capitalized. Within the first quarter of fiscal 2024, we had an acceleration of $ 2.0 million in expenses associated with the termination of the legacy contract acquired by Nuance through a 2013 acquisition. (d) Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e., only the passage of time is required before payment is due). We present such receivables in Accounts receivable, net at their net estimated realizable value. Accounts receivable, net as of September 30, 2024 and 2023 was $ 62.8 million and $ 61.3 million, respectively. We maintain an allowance for credit losses to provide for the estimated amount of receivables and contract assets that may not be collected. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets include unbilled amounts from long-term contracts when revenue recognized exceeds the amount billed to the customer, and the right to payment is not solely subject to the passage of time. Contract assets were $ 56.7 million as of September 30, 2023. The current and noncurrent portions of contract assets are included in Prepaid expenses and other current assets and Other assets, respectively. The table below shows significant changes in contract assets (dollars in thousands): Contract assets Balance as of September 30, 2024 $ 22,219 Revenues recognized but not billed 7,782 Amounts reclassified to Accounts receivable, net ( 11,384 ) Effect of foreign currency translation ( 1,786 ) Balance as of December 31, 2024 $ 16,831 Our contract liabilities, which we present as deferred revenue, consist of advance payments and billings in excess of revenues recognized. Deferred revenues were $ 222.6 million as of September 30, 2023. We classify deferred revenue as current or noncurrent based on when we expect to recognize the revenues. The table below shows significant changes in deferred revenue (dollars in thousands): Deferred revenue Balance as of September 30, 2024 $ 167,176 Amounts billed but not recognized 20,430 Revenue recognized ( 19,215 ) Effect of foreign currency translation ( 7,321 ) Balance as of December 31, 2024 $ 161,070 (e) Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at December 31, 2024 (dollars in thousands): Within One Two to Five Greater Total Total revenue $ 72,853 $ 90,877 $ 32,139 $ 195,869 The table above includes fixed remaining performance obligations and does not include contingent usage-based activities, such as royalties and usage-based connected services.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Note 4. Earnings Per Share Basic earnings per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of restricted stock units is reflected in diluted net (loss) income per share by applying the treasury stock method. The dilutive effect of the Notes (as defined in Note 14) is reflected in net (loss) income per share by application of the “if-converted” method. The “if-converted” method is only assumed in periods where such application would be dilutive. In applying the “if-converted” method for diluted net (loss) income per share, we would assume conversion of the Notes at the respective conversion ratio as further described in Note 14. Assumed converted shares of our common stock are weighted for the period the Notes were outstanding. The following table presents the reconciliation of the numerator and denominator for calculating net (loss) income pe r share: Three Months Ended December 31, in thousands, except per share data 2024 2023 Numerator: Net (loss) income - basic $ ( 24,288 ) $ 23,857 Interest on the Notes, net of tax - 2,250 Net (loss) income - diluted $ ( 24,288 ) $ 26,107 Denominator: Weighted average common shares outstanding - basic 42,897 41,186 Dilutive effect of contingently issuable stock awards - 574 Dilutive effect of the Notes - 7,495 Weighted average common shares outstanding - diluted 42,897 49,255 Net (loss) income per common share: Basic $ ( 0.57 ) $ 0.58 Diluted $ ( 0.57 ) $ 0.53 We exclude weighted-average potential shares from the calculations of diluted net (loss) income pe r share during the applicable periods when their inclusion is anti-dilutive. The following table sets forth potential shares that were considered anti-dilutive during the three months ended December 31, 2024 and 2023. Three Months Ended December 31, in thousands 2024 2023 Contingently issuable stock awards 121 - Conversion option of our Notes 7,431 -

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 5. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques must maximize the use of observable inputs and minimize the use of unobservable inputs. When determining fair value measurements for assets and liabilities recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement as of the measurement date as follows: • Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the assets or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity. The following table presents information about our financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (dollars in thousands) as of: December 31, 2024 Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Money market funds, $ 51,119 at cost (a) $ 51,119 $ 51,119 $ - Level 2: Government securities, $ 2,435 at cost (b) 2,439 - 2,439 Time deposits, $ 4,440 at cost (a) 4,440 4,440 - Corporate bonds, $ 3,997 at cost (b) 4,002 - 4,002 Debt securities, $ 2,000 at cost (c) 3,166 - - Total assets $ 65,166 $ 55,559 $ 6,441 September 30, 2024 Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Money market funds, $ 77,785 at cost (a) $ 77,785 $ 77,785 $ - Level 2: Government securities, $ 3,940 at cost (b) 3,950 - 3,950 Time deposits, $ 3,700 at cost (a) 3,700 3,700 - Corporate bonds, $ 4,984 at cost (b) 5,005 - 5,005 Debt securities, $ 2,000 at cost (c) 3,099 - - Total assets $ 93,539 $ 81,485 $ 8,955 (a) Money market funds and other highly liquid investments with original maturities of 90 days or less are included within Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Government securities, commercial paper and corporate bonds with original maturities greater than 90 days are included within Marketable securities in the Condensed Consolidated Balance Sheets and classified as current or noncurrent based upon whether the maturity of the financial asset is less than or greater than 12 months. (c) Debt securities within the Condensed Consolidated Balance Sheets are classified as current or noncurrent based upon whether the maturity of the financial asset is less than or greater than 12 months. During the three months ended December 31, 2024 and 2023, unrealized (losses) gains related to our marketable securities were immaterial and $ 0.2 million, re spectively, within Accumulated other comprehensive loss. The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above. Derivative financial instruments are recognized at fair value using quoted forward rates and prices and classified within Level 2 of the fair value hierarchy. See Note 6 – Derivative Financial Instruments for additional details. Long-term debt The estimated fair value of our Long-term debt is determined by Level 2 inputs and is based on observable market data including prices for similar instruments. As of December 31, 2024 and September 30, 2024 , the estimated fair value of our Notes was $ 199.0 million a nd $ 184.8 million, respectively. The Notes are recorded at face value less transaction costs on our Condensed Consolidated Balance Sheets. Equity securities We have equity securities in a privately held company obtained as part of a non-cash transaction. These equity securities are recognized at fair value and are classified within Level 2 of the fair value hierarchy. We have non-controlling equity investments in privately held companies. We evaluated the equity investments under the voting model and concluded consolidation was not applicable. We accounted for the investments by electing the measurement alternative for investments without readily determinable fair values and for which we do not have the ability to exercise significant influence. The non-marketable equity securities are carried at cost less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, which is recorded within the Condensed Consolidated Statements of Operations. Investments without readily determinable fair values w ere $ 2.6 million as of December 31, 2024 and September 30, 2024. The investments are included within Other assets on the Condens ed Consolidated Balance Sheets. No impairment was recorded for the three months ended December 31, 2024 and 2023.

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Note 6. Derivative Financial Instruments We operate internationally and, in the normal course of business, are exposed to fluctuations in foreign currency exchange rates related to third-party vendor and intercompany payments for goods and services within our non-U.S. subsidiaries. We use foreign exchange forward contracts that are not designated as hedges to manage currency risk. The contracts can have maturities up to two years . As of December 31, 2024 and September 30, 2024, the total notional amount of forward contracts was $ 43.2 million and $ 59.1 million, respectively. As of December 31, 2024 and September 30, 2024, the weighted-average remaining maturity of these instruments was approximately 9.0 and 9.9 months, respectiv ely. The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments as of December 31, 2024 and September 30, 2024 (dollars in thousands): Fair Value Derivatives not designated as hedges Classification December 31, 2024 September 30, 2024 Foreign currency forward contracts Prepaid expenses and other current assets $ 551 $ 65 Foreign currency forward contracts Other assets 225 68 Foreign currency forward contracts Accrued expenses and other current liabilities 1,097 691 Foreign currency forward contracts Other liabilities 138 163 The following tables display a summary of the loss related to foreign currency forward contracts for the three months ended December 31, 2024 and 2023 (dollars in thousands): Loss recognized in earnings Three Months Ended December 31, Derivatives not designated as hedges Classification 2024 2023 Foreign currency forward contracts Other income, net $ ( 104 ) $ ( 329 )

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Note 7. Goodwill and Other Intangible Assets (a) Goodwill We consider our Chief Executive Officer (“CEO”) to be our CODM. Our CEO approves all major decisions, including reorganizations and new business initiatives. Our CODM reviews routine consolidated operating information and makes decisions on the allocation of resources at this level, as such, we have concluded that we have one operating segment. All goodwill is assigned to one or more reporting units. A reporting unit represents an operating segment or a component within an operating segment for which discrete financial information is available and is regularly reviewed by segment management for performance assessment and resource allocation. Upon consideration of our components, we have concluded that our goodwill is associated with one reporting unit. The changes in the carrying amount of goodwill for the three months ended December 31, 2024 are as follows (dollars in thousands): Total Balance as of September 30, 2024 $ 296,858 Effect of foreign currency translation ( 7,972 ) Balance as of December 31, 2024 $ 288,886 (b) Intangible Assets, Net The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands): December 31, 2024 Gross Accumulated Net Weighted Average Customer relationships $ 106,043 $ ( 104,984 ) $ 1,059 0.2 Technology and patents 89,013 ( 89,013 ) - - Total $ 195,056 $ ( 193,997 ) $ 1,059 September 30, 2024 Gross Accumulated Net Weighted Average Customer relationships $ 108,659 $ ( 106,953 ) $ 1,706 0.5 Technology and patents 90,042 ( 90,042 ) - - Total $ 198,701 $ ( 196,995 ) $ 1,706 Amortization expense related to intangible assets in the agg regate was $ 0.6 million and $ 0.6 million for the three months ended December 31, 2024 and 2023, respectively. We expect amortization of intangible assets to be approximat ely $ 1.1 million f or the remainder of fiscal year 2025 .

Leases

Leases	3 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Leases	Note 8. Leases We have entered into a number of facility and equipment leases which qualify as operating leases under GAAP. We also have a limited number of equipment leases that qualify as finance leases. The following table presents certain information related to lease term and incremental borrowing rates for leases as of December 31, 2024 and September 30, 2024: December 31, 2024 September 30, 2024 Weighted-average remaining lease term (in months): Operating leases 47.9 46.0 Finance leases 10.2 13.4 Weighted-average discount rate: Operating leases 6.8 % 6.6 % Finance leases 4.4 % 4.4 % The following table presents lease expense for the three months ended December 31, 2024 and 2023 (dollars in thousands): Three Months Ended December 31, 2024 2023 Finance lease costs: Amortization of right of use asset $ 96 $ 108 Interest on lease liability 3 7 Operating lease cost 1,410 1,628 Variable lease cost 455 764 Sublease income ( 43 ) ( 60 ) Total lease cost $ 1,921 $ 2,447 For the three months ended December 31, 2024 and 2023 , cash payments related to operating leases were $ 1.3 million and $ 1.7 million, respectively . For the three months ended December 31, 2024 and 2023, cash payments related to finance leases w ere $ 0.1 million and $ 0.1 million, respectively, of which an immaterial amount related to the interest portion of the lease liability. Fo r the three months ended December 31, 2024 and 2023 , right of use assets obtained in exchange for lease obligations were $ 2.0 million and $ 1.5 million, respectively . The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized on the Condensed Consolidated Balance Sheet as of December 31, 2024 (dollars in thousands): Year Ending September 30, Operating Leases Financing Leases Total 2025 $ 3,702 $ 259 $ 3,961 2026 3,698 53 3,751 2027 3,302 — 3,302 2028 2,691 — 2,691 2029 1,986 — 1,986 Thereafter 764 — 764 Total future minimum lease payments $ 16,143 $ 312 $ 16,455 Less effects of discounting ( 2,244 ) ( 4 ) ( 2,248 ) Total lease liabilities $ 13,899 $ 308 $ 14,207 Reported as of December 31, 2024 Short-term lease liabilities $ 3,828 $ 282 $ 4,110 Long-term lease liabilities 10,071 26 10,097 Total lease liabilities $ 13,899 $ 308 $ 14,207

Accrued Expenses and Other Liab

Accrued Expenses and Other Liabilities	3 Months Ended
	Dec. 31, 2024
Accrued Liabilities and Other Liabilities [Abstract]
Accrued Expenses and Other Liabilities	Note 9. Accrued Expenses and Other Liabilities Accrued expenses and other current liabilities consisted of the following (dollars in thousands): December 31, 2024 September 30, 2024 Compensation $ 17,102 $ 18,755 Professional fees 4,218 4,015 Cost of revenue related liabilities 2,864 2,864 Sales and other taxes payable 2,804 3,668 Interest payable 155 1,735 Legal settlement - 30,000 Other 5,824 7,368 Total $ 32,967 $ 68,405 At September 30, 2024, we recorded a $ 30.0 million legal settlement related to the settlement of the Securities Action (as defined in Note 12) and a corresponding receivable related to the insurance proceeds in Prepaid and other current assets. The entire settlement amount was funded by insurance proceeds in the first quarter of fiscal year 2025. See Note 12 - Commitments and Contingencies for additional details.

Restructuring and Other Costs,

Restructuring and Other Costs, Net	3 Months Ended
	Dec. 31, 2024
Restructuring and Related Activities [Abstract]
Restructuring and Other Costs, Net	Note 10. Restructuring and Other Costs, Net Restructuring and other costs, net includes restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of our business. The following table sets forth accrual activity relating to restructuring reserves for the three months ended December 31, 2024 (dollars in thousands): Personnel Other Total Balance as of September 30, 2024 $ 3,758 $ 572 $ 4,330 Restructuring and other costs, net 10,196 866 11,062 Non-cash adjustments ( 2,963 ) — ( 2,963 ) Cash payments ( 8,428 ) ( 491 ) ( 8,919 ) Effect of foreign currency translation ( 41 ) — ( 41 ) Balance at December 31, 2024 $ 2,522 $ 947 $ 3,469 The following table sets forth restructuring and other costs, net recognized for the three months ended December 31, 2024 and 2023 (dollars in thousands): Three Months Ended December 31, 2024 2023 Personnel $ 10,196 $ 115 Facilities — 145 Other 866 445 Restructuring and other costs, net $ 11,062 $ 705 Fiscal Year 2025 For the three months ended December 31, 2024 , we recorded restructuring and other costs, net of $ 11.1 million, which included a $ 10.2 million charge related to the elimination of personnel, of which $ 3.0 million related to the stock-based compensation expense related to the termination of our former senior management employees, and a $ 0.9 million charge relating to our transformation initiatives. Fiscal Year 2024 For the three months ended December 31, 2023 , we recorded restructuring and other costs, net of $ 0.7 million which included a $ 0.1 million severance charge related to the elimination of personnel, a $ 0.1 million charge resulting from the closure of facilities that will no longer be utilized, and $ 0.4 million related to other one-time charges.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Dec. 31, 2024
Equity [Abstract]
Stockholders' Equity	Note 11. Stockholders’ Equity On October 2, 2019, we registered the issuance of 6,350,000 shares of Common Stock, par value $ 0.01 per share (“Common Stock”), consisting of 5,300,000 shares of Common Stock reserved for issuance upon the exercise of options granted, or in respect of awards granted, under the Cerence 2019 Equity Incentive Plan (“Equity Incentive Plan”), and 1,050,000 shares of Common Stock that are reserved for issuance under the Cerence 2019 Employee Stock Purchase Plan. The Equity Incentive Plan provides for the grant of incentive stock options, stock awards, stock units, stock appreciation rights, and certain other stock-based awards. The shares available for issuance will automatically increase on January 1st of each year, by the lesser of (A) 3 % of the number of shares of Common Stock outstanding as of the close of business on the immediately preceding December 31st; and (B) the number of shares of Common Stock determined by our board of directors on or prior to such date for such year. On March 4, 2024, we registered the issuance of 600,000 shares of Common Stock, reserved for issuance under the Cerence Inc. 2024 Inducement Plan (the "Inducement Plan"). On October 6, 2024, we adopted Amendment No. 1 to the Inducement Plan, which increased the number of authorized shares of our Common Stock available for issuance under the 2024 Inducement Plan from 600,000 to 3,000,000 . On November 29, 2024, we adopted Amendment No. 2 to the Inducement Plan, which increased the number of authorized shares of our Common Stock available for issuance under the Inducement Plan from 3,000,000 to 4,500,000 . Restricted Units Information with respect to our non-vested restricted stock units for the three months ended December 31, 2024 was as follows: Non-Vested Restricted Stock Units Time-Based Performance- Total Shares Weighted- Weighted- Aggregate Non-vested at September 30, 2024 2,587,386 1,119,437 3,706,823 $ 23.51 Granted 2,011,534 1,867,288 3,878,822 $ 4.95 Vested ( 923,091 ) ( 143,369 ) ( 1,066,460 ) $ 30.80 Forfeited ( 91,259 ) ( 420,577 ) ( 511,836 ) $ 24.48 Non-vested at December 31, 2024 3,584,570 2,422,779 6,007,349 $ 14.18 Expected to vest 6,007,349 $ 14.18 1.42 $ 47,098 Stock-based Compensation Stock-based compensation was included in the following captions in our Condensed Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023 (in thousands): Three Months Ended December 31, 2024 2023 Cost of connected services $ 53 $ 81 Cost of professional services 437 560 Research and development 1,829 3,831 Sales and marketing 509 718 General and administrative 1,980 3,190 Restructuring and other costs, net 2,963 — $ 7,771 $ 8,380 During the three months ended December 31, 2024, we recorded $ 2.6 million in stock-based compensation due to the termination of employment of our former CEO and the resulting vesting of certain stock-based awards in Restructuring and other costs, net. During the three months ended December 31, 2024, we recorded $ 0.4 million in stock-based compensation due to the termination of employment of our former senior management employee and the resulting vesting of certain stock-based awards in Restructuring and other costs, net.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12. Commitments and Contingencies Litigation and Other Claims Similar to many companies in the software industry, we are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including at times actions with respect to contracts, intellectual property, employment, benefits and securities matters. At each balance sheet date, we evaluate contingent liabilities associated with these matters in accordance with ASC 450 “ Contingencies .” If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss. Significant judgments are required for the determination of probability and the range of the outcomes, and estimates are based only on the best information available at the time. Due to the inherent uncertainties involved in claims and legal proceedings and in estimating losses that may arise, actual outcomes may differ from our estimates. Contingencies deemed not probable or for which losses were not estimable in one period may become probable, or losses may become estimable in later periods, which may have a material impact on our results of operations and financial position. As of December 31, 2024, accrued losses were not material to our condensed consolidated financial statements, and we do not expect any pending matter to have a material impact on our condensed consolidated financial statements. City of Miami Fire Fighters’ and Police Officers' Retirement Trust Action On February 25, 2022, a purported shareholder class action captioned as City Of Miami Fire Fighters’ and Police Officers’ Retirement Trust v. Cerence Inc., et al. (the “Securities Action”) was filed in the United States District Court for the District of Massachusetts, naming the Company and two of its former officers as defendants. Following the court’s selection of a lead plaintiff and lead counsel, an amended complaint was filed on July 26, 2022. The plaintiff claims to be suing on behalf of anyone who purchased the Company’s common stock between November 16, 2020 and February 4, 2022. The lawsuit alleges that material misrepresentations and/or omissions of material fact regarding the Company’s operations, financial performance and prospects were made in the Company’s public disclosures during the period from November 16, 2020 to February 4, 2022, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The plaintiff seeks unspecified monetary damages on behalf of the putative class and an award of costs and expenses, including attorney’s fees. On September 9, 2022, the defendants in the Securities Action moved to dismiss the action in its entirety. On March 25, 2024, the court granted in part and denied in part the motion to dismiss, dismissing certain of the alleged misrepresentations and omissions while allowing claims challenging certain other alleged misrepresentations and omissions to proceed. On April 15, 2024, the defendants filed their answer to the amended complaint. On August 14, 2024, the parties conducted a mediation and thereafter the parties agreed to settle the matter for $ 30.0 million, subject to court approval. On September 18, 2024, the Court granted preliminary approval of the settlement and, on December 18, 2024 the Court approved the final settlement. During the three months ended December 31, 2024, the entire settlement amount was paid by insurance proceeds. Derivative Actions On May 10 and 12, 2022, respectively, plaintiffs William Shafer and Peter Morse filed shareholder derivative complaints in the United States District Court for the District of Massachusetts on behalf of Cerence Inc. against defendants (and former officers) Sanjay Dwahan and Mark J. Gallenberger as well as board members Arun Sarin, Thomas Beaudoin, Marianne Budnik, Sanjay Jha, Kristi Ann Matus, Alfred Nietzel and then-current CEO and board member Stefan Ortmanns. These actions are premised on factual contentions substantially similar to those made in the Securities Action and contain substantially similar legal contentions. As such, on June 13, 2022, at the parties’ request, the court consolidated these derivative actions into a single action and appointed co-lead counsel for plaintiffs in that consolidated action. On May 24, 2024, defendants filed a motion to dismiss under the forum selection clause in the Company’s charter which the court denied on December 20, 2024. Under the current schedule, defendants have until February 3, 2025 to file a further motion to dismiss on the grounds of demand futility and failure to state a claim, and that motion will be fully briefed by April 3, 2025. Three shareholder derivative complaints making factual and legal contentions substantially similar to those raised in the consolidated federal derivative action have been also filed in the Delaware Court of Chancery: the first filed on October 19, 2022 by plaintiff Melinda Hipp against the defendants named in the consolidated federal derivative action and board member Douglas Davis, the second filed on August 17, 2023 by plaintiff Catherine Fleming against the defendants named in the consolidated federal derivative action, and the third filed on July 10, 2024 by plaintiff Alberto Goncalves against the defendants named in the consolidated federal derivative action. On October 20, 2023, Ms. Hipp voluntarily dismissed her action with prejudice. On June 26, 2024, the court stayed the Fleming action pending the outcome of mediation. On August 12, 2024, the court stayed the Goncalves action pending the outcome of mediation. Given the uncertainty of litigation, the preliminary stage of the cases, and the legal standards that must be met for, among other things, derivative standing and success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from these derivative actions. A.P., a minor, by and through her guardian, Carlos Pena and Carlos Pena Action On March 24, 2023 , plaintiffs A.P., a minor, by and through her guardian, Carlos Pena, and Carlos Pena, each individually and on behalf of similarly situated individuals filed a purported class action lawsuit in the Circuit Court of Cook County, Illinois, Chancery Division (Case. No. 2023CH02866 (Cir. Ct. Cook Cnty. 2023)). The case was removed to Federal Court (Case No. 1:23CV2667 (N.D. Ill.)), and then severed and remanded back in part, so there are two pending cases. Plaintiffs subsequently amended the federal complaint twice, with the latest second amended complaint, filed on July 13, 2023, adding plaintiffs Randolph Freshour and Vincenzo Allan, each also filing individually and on behalf of similarly situated individuals. Plaintiffs allege that Cerence violated the Illinois Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/1 et seq. through Cerence’s Drive Platform technology, which is integrated in various automobiles. The named plaintiffs allegedly drove or rode in a vehicle with Cerence’s Drive Platform technology. Across both cases, plaintiffs allege that Cerence violated: (1) BIPA Section 15(a) by possessing biometrics without any public written policy for their retention or destruction; (2) BIPA Section 15(b) by collecting, capturing, or obtaining biometrics without written notice or consent; (3) BIPA Section 15(c) by profiting from biometrics obtained from Plaintiffs and putative class members; and (4) BIPA Section 15(d) by disclosing biometrics to third party companies without consent. Cerence has filed motions to dismiss both cases. On February 27, 2024, the Circuit Court issued an order denying Cerence's motion to dismiss. On April 16, 2024, Cerence filed its answer and affirmative defenses, a motion to certify the Court’s order on Cerence’s motion to dismiss, and a motion to stay. Thereafter, in exchange for Cerence withdrawing its motions to certify and stay, plaintiffs filed amended complaints in both the Circuit Court and Federal Court. Cerence’s answers in the Federal Court and Circuit Court were due on July 15 and July 18, 2024, respectively, which the Company filed on such dates. Plaintiffs are seeking statutory damages of $ 5,000 for each willful and/or reckless violation of BIPA and, alternatively, damages of $ 1,000 for each negligent violation of BIPA. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from this action. Samsung Electronics Co. Ltd and Samsung Electronics America, Inc. March 15, 2024, Cerence filed its second patent infringement complaint against Samsung alleging infringement of four Cerence patents. In its responsive pleading on July 10, 2024, Samsung asserted counterclaims, alleging infringement of U.S. Patent Nos. 10,395,657 ; 10,720,162 ; 11,823,682 ; and 9,583,103 against the Cerence Assistant. Samsung seeks damages, including trebled damages, and its costs and fees. Cerence filed its answer denying the allegations and counterclaims of invalidity and noninfringement on September 4, 2024. Trial is scheduled to begin in January 2026. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from this action. Guarantees and Other We include indemnification provisions in the contracts we enter with customers and business partners. Generally, these provisions require us to defend claims arising out of our products’ infringement of third-party intellectual property rights, breach of contractual obligations and/or unlawful or otherwise culpable conduct. The indemnity obligations generally cover damages, costs and attorneys’ fees arising out of such claims. In most, but not all cases, our total liability under such provisions is limited to either the value of the contract or a specified, agreed-upon amount. In some cases, our total liability under such provisions is unlimited. In many, but not all cases, the term of the indemnity provision is perpetual. While the maximum potential amount of future payments we could be required to make under all the indemnification provisions is unlimited, we believe the estimated fair value of these provisions is minimal due to the low frequency with which these provisions have been triggered. We indemnify our directors and officers to the fullest extent permitted by Delaware law, which provides among other things, indemnification to directors and officers for expenses, judgments, fines, penalties and settlement amounts incurred by such persons in their capacity as a director or officer of the Company, regardless of whether the individual is serving in any such capacity at the time the liability or expense is incurred. Additionally, in connection with certain acquisitions, we agreed to indemnify the former officers and members of the boards of directors of those companies, on similar terms as described above, for a period of six years from the acquisition date. In certain cases, we purchase director and officer insurance policies related to these obligations, which fully cover the six-year period. To the extent that we do not purchase a director and officer insurance policy for the full period of any contractual indemnification, and such directors and officers do not have coverage under separate insurance policies, we would be required to pay for costs incurred, if any, as described above. As of December 31, 2024, our letters of credit in connection with security deposits for facility leases tota led $ 0.6 million in the aggregate. These letters of credit have various terms and expiration dates that align with the underlying facilities for which they relate.

Income Taxes

Income Taxes	3 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Note 13. Income Taxes The components of (loss) income before income taxes are as follows (dollars in thousands): Three Months Ended December 31, 2024 2023 Domestic $ ( 11,825 ) $ 65,636 Foreign ( 6,792 ) ( 7,438 ) (Loss) income before income taxes $ ( 18,617 ) $ 58,198 The components of the provision for income taxes are as follows (dollars in thousands): Three Months Ended December 31, 2024 2023 Domestic $ 1,291 $ 29,078 Foreign 4,380 5,263 Provision for income taxes $ 5,671 $ 34,341 Effective income tax rate ( 30.5 )% 59.0 % The effective tax rates for the periods presented are based upon estimated income for the fiscal year and the statutory tax rates enacted in the jurisdictions in which we operate. For all periods presented, the effective tax rate differs from the 21.0 % statutory U.S. tax rate due to the impact of the nondeductible stock-based compensation and our mix of jurisdictional earnings and related differences in foreign statutory tax rates. Our effective tax rate for the three months ended December 31, 2024 was negative 30.5 % compared to 59.0 % for the three months ended December 31, 2023. Consequently, our provision for income taxes for the three months ended December 31, 2024 was $ 5.7 million , a net change of $ 28.6 million from a provision for income taxes of $ 34.3 million for the three months ended December 31, 2023. This difference was attributable to the one-time acceleration of legacy deferred revenue in the three months ended December 31, 2023. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon all available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Note 14. Long-Term Debt Long-term debt consisted of the following (in thousands): December 31, 2024 Description Maturity Date Convertible Debt Coupon Rate Effective Interest Rate Principal Unamortized Discount Deferred Issuance Costs Carrying Value 2025 Modified Notes 6/1/2025 3.00 % 4.01 % $ 60,125 $ - $ ( 171 ) $ 59,954 2025 Modified Notes 7/1/2028 1.50 % 8.51 % 87,500 ( 2,512 ) ( 9,588 ) 75,400 2028 Notes 7/1/2028 1.50 % 1.91 % 122,500 - ( 1,692 ) 120,808 Total debt $ 270,125 $ ( 2,512 ) $ ( 11,451 ) 256,162 Less: current portion of long-term debt ( 59,954 ) Total long-term debt $ 196,208 September 30, 2024 Description Maturity Date Convertible Debt Coupon Rate Effective Interest Rate Principal Unamortized Discount Deferred Issuance Costs Carrying Value 2025 Modified Notes 6/1/2025 3.00 % 3.70 % $ 87,500 $ - $ ( 406 ) $ 87,094 2025 Modified Notes 7/1/2028 1.50 % 8.55 % 87,500 ( 2,777 ) ( 10,602 ) 74,121 2028 Notes 7/1/2028 1.50 % 1.91 % 122,500 - ( 1,809 ) 120,691 Total debt $ 297,500 $ ( 2,777 ) $ ( 12,817 ) 281,906 Less: current portion of long-term debt ( 87,094 ) Total long-term debt $ 194,812 The following table summarizes the maturities of our borrowing obligations as of December 31, 2024 (in thousands): Fiscal Year 2028 Notes 2025 Modified Notes Total 2025 $ — $ 60,125 $ 60,125 2026 — — — 2027 — — — 2028 122,500 87,500 210,000 2029 Thereafter — — — Total before unamortized discount and issuance costs and current portion $ 122,500 $ 147,625 $ 270,125 Less: unamortized discount and issuance costs ( 1,692 ) ( 12,271 ) ( 13,963 ) Less: current portion of long-term debt — ( 59,954 ) ( 59,954 ) Total long-term debt $ 120,808 $ 75,400 $ 196,208 1.50% Senior Convertible Notes due 2028 On June 26, 2023, we issued $ 190.0 million in aggregate principal amount of 1.50 % Convertible Senior Notes due 2028 (the “2028 Notes”), which are governed by an indenture (the “2028 Indenture”), between us and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). On July 3, 2023, we issued a n additional $ 20.0 million in aggregate principal amount of 2028 Notes. The initial net proceeds from the issuance of the 2028 Notes we re $ 193.2 million a fter deducting transaction costs. The 2028 Notes are senior, unsecured obligations and accrue interest payable semiannually in arrears on January 1 and July 1 of each year at a rate of 1.50 % per year. The 2028 Notes will mature on July 1, 2028 , unless earlier converted, redeemed, or repurchased. The 2028 Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. A holder of 2028 Notes may convert all or any portion of its 2028 Notes at its option at any time prior to the close of business on the business day immediately preceding April 3, 2028 only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2023 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the 2028 Indenture) per $ 1,000 principal amount of 2028 Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call such 2028 Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after April 3, 2028 until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2028 Notes at any time, regardless of the foregoing circumstances. The conversion rate is 24.5586 shares of our common stock per $ 1,000 principal amount of 2028 Notes (equivalent to an initial conversion price of approximately $ 40.72 per share of our common stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2028 Notes in connection with such a corporate event or convert its 2028 Notes called for redemption in connection with such notice of redemption, as the case may be. We may not redeem the 2028 Notes prior to July 6, 2026. We may redeem for cash all or any portion of the 2028 Notes (subject to certain limitations), at our option, on a redemption date occurring on or after July 6, 2026 and on or before the 31st scheduled trading day immediately before the maturity date, if the last reported sale price of our common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100 % of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 2028 Notes. If we undergo a “fundamental change”, subject to certain conditions, holders may require us to repurchase for cash all or any portion of their 2028 Notes at a fundamental change repurchase price equal to 100 % of the principal amount of the 2028 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The 2028 Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee or the holders of not less than 25 % in aggregate principal amount of the 2028 Notes then outstanding may declare the entire principal amount of all the 2028 Notes plus accrued special interest, if any, to be immediately due and payable. In connection with the offering of the 2028 Notes, we repurchased $ 87.5 million in aggregate principal amount of the 2025 Notes in a privately negotiated transaction. We specifically negotiated the repurchase of the 2025 Notes with investors who concurrently purchased the 2028 Notes. We evaluated the transaction to determine whether the exchange should be accounted for as a modification or extinguishment under the provisions of ASC 470-50, which allows for an exchange of debt instruments between the same debtor and creditor to be accounted for as a modification so long as the instruments do not have substantially different terms. Because the concurrent redemption of the 2025 Notes and a portion of issuance of the 2028 Notes were executed with the same investors, we evaluated the transaction as a debt modification, on a creditor by creditor basis. The repurchase of the 2025 Notes and issuance of the 2028 Notes were deemed to not have substantially different terms on the basis that (1) the present value of the cash flows under the terms of the new debt instrument were less than 10 % different from the present value of the remaining cash flows under the terms of the original instrument and (2) the fair value of the conversion feature did not change by more than 10 % of the carrying value of the 2025 Notes, and therefore, the repurchase of the 2025 Notes was accounted for as a debt modification. As a result, $ 87.5 million of the 2028 Notes are considered a modification of the 2025 Notes and are included in the balances of the 2025 Notes along with the remaining $ 87.5 million of the 2025 Notes (together the “2025 Modified Notes” and together with the 2028 Notes, the “Notes”) that were not repurchased as part of the transaction. We recorded $ 14.3 million of fees paid directly to the lenders as deferred debt issuance costs, and $ 3.8 million of fees paid to third-parties were expensed in the period. As of December 31, 2024 , the carrying amount of the 2025 Modified Notes was $ 135.4 million, net of unamortized costs of $ 12.3 million. If a convertible debt instrument is modified or exchanged in a transaction that is not accounted for as an extinguishment, an increase in the fair value of the embedded conversion option shall reduce the carrying amount of the debt instrument with a corresponding increase in Additional paid-in capital. We recognized the increase in the fair value of the embedded conversion feature of $ 4.1 million as Additional paid-in capital and an equivalent discount that reduced the carrying value of the 2025 Modified Notes. We accounted for $ 122.5 million of the 2028 Notes, that were not negotiated with the investors of the 2025 Notes, as a single liability. We incurred transaction costs of $ 2.4 million relating to the issuance of the 2028 Notes, which were recorded as a direct deduction from the face amount of the 2028 Notes and are being amortized as interest expense over the term of the 2028 Notes using the interest method. As of December 31, 2024 , the carrying amount of the 2028 Notes was $ 120.8 million and unamortized issuance costs of $ 1.7 million. As of December 31, 2024, the 2028 Notes were not convertible. As of December 31, 2024 and September 30, 2024, the if-converted value of the 2028 Notes was $ 98.9 million and $ 113.0 million, respectively, l ess than its principal amount. 3.00% Senior Convertible Notes due 2025 On June 2, 2020, we issued $ 175.0 million in aggregate principal amount of 3.00 % Convertible Senior Notes due 2025 (the “2025 Notes”), including the initial purchasers’ exercise in full of their option to purchase $ 25.0 million principal amount of the 2025 Notes, which are governed by an indenture (the “2025 Indenture”), between us and the Trustee, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the issuance of the 2025 Notes were $ 169.8 million after deducting transaction costs. The 2025 Notes are senior, unsecured obligations and accrue interest payable semiannually in arrears on June 1 and December 1 of each year at a rate of 3.00 % per year. The 2025 Notes will mature on June 1, 2025 , unless earlier converted, redeemed, or repurchased. The 2025 Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. As of December 31, 2024 and September 30, 2024, the if-converted value of the 2025 Modified Notes was $ 118.1 million and $ 160.9 million, respectively, les s than its principal amount. A holder of 2025 Notes may convert all or any portion of its 2025 Notes at its option at any time prior to the close of business on the business day immediately preceding March 1, 2025 only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2020 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the 2025 Indenture) per $ 1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call such 2025 Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after March 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2025 Notes at any time, regardless of the foregoing circumstances. The conversion rate is 26.7271 shares of our common stock per $ 1,000 principal amount of 2025 Notes (equivalent to an initial conversion price of approximately $ 37.42 per share of our common stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2025 Notes in connection with such a corporate event or convert its 2025 Notes called for redemption in connection with such notice of redemption, as the case may be. The 2025 Notes did not by their terms permit repayment prior to June 5, 2023. We may redeem for cash all or any portion of the 2025 Notes, at our option, on a redemption date occurring on or after June 5, 2023 and on or before the 31st scheduled trading day immediately before the maturity date, if the last reported sale price of our common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100 % of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes. During the three months ended December 31, 2024, we repurchased $ 27.4 million aggregate principal amount of our 2025 Notes for $ 27.0 million in cash, including accrued interest and fees, via privately negotiated transactions with certain holders. The repurchased notes were subsequently cancelled and retired, resulting in a gain on extinguishment of debt of $ 0.3 million. See “1.50% Senior Convertible Notes due 2028” section above for discussion on the modification of the 2025 Notes as part of the offering of the 2028 Notes. The interest expense recognized related to the Notes for the three months ended December 31, 2024 and 2023 was as follows (dollars in thousands): Three Months Ended December 31, 2024 2023 Contractual interest expense $ 1,425 $ 1,442 Amortization of debt discount 265 251 Amortization of issuance costs 1,281 1,217 Total interest expense related to the Notes $ 2,971 $ 2,910 The conditional conversion feature of the Notes was not triggered during the three months ended December 31, 2024. As of December 31, 2024, the Notes were not convertible. As of this Quarterly Report on Form 10-Q, no Notes have been converted by the holders. Whether any of the Notes will be converted in future quarters will depend on the satisfaction of one or more of the conversion conditions in the future. If one or more holders elect to convert their Notes at a time when any such Notes are convertible, unless we elect to satisfy our conversion obligation by delivering solely shares of our common stock (other than paying cash in lieu of delivering any fractional shares), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity. Senior Credit Facilities On June 12, 2020 (the “Financing Closing Date”), we entered into a Credit Agreement, by and among the Borrower, the lenders and issuing banks party thereto and Wells Fargo Bank, N.A., as administrative agent (the “Credit Agreement”), consisting of a four-year senior secured term loan facility in the aggregate principal amount of $ 125.0 million (the “Term Loan Facility”). The net proceeds from the issuance of the Term Loan Facility were $ 123.0 million. We also entered into a senior secured first-lien revolving credit facility in an aggregate principal amount of $ 50.0 million (the “Revolving Facility” and, together with the Term Loan Facility, the “Senior Credit Facilities”), which may be drawn on in the event that our working capital and other cash needs are not supported by our operating cash flow. In connection with the issuance of the 2028 Notes, in the third quarter of fiscal year 2023, we borrowed $ 24.7 million under our Revolving Facility and paid $ 106.3 million towards our Term Loan Facility. As a result, we recorded $ 104.9 million extinguishment of debt and $ 1.3 million loss on the extinguishment of debt. All principal and interest on the Term Loan Facility have been paid in full. On December 31, 2024, we terminated the Credit Agreement. On the date of termination, there were no revolving loans outstanding under the Credit Agreement. As a result of the Credit Agreement termination, we will not have access to the Revolving Facility and we will not be subject to the applicable Credit Agreement covenants. Total interest expense relating to the Senior Cre dit Facilities for the three months ended December 31, 2024 and 2023 was $ 0.4 million and $ 0.1 million, respectively. Amounts reflect the coupon and accretion of the discount.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, as well as those of our wholly owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. The condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the interim periods presented. All such adjustments are of a normal recurring nature. The results of operations for the three months ended December 31, 2024 are not necessarily indicative of the results to be expected for any other interim period or for the fiscal year ending September 30, 2025. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 .
Use of Estimates	Use of Estimates The financial statements are prepared in accordance with GAAP, which requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions can affect the reported amounts in the financial statements and the footnotes thereto. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, assumptions and judgments. Significant estimates inherent to the preparation of financial statements include: revenue recognition; allowance for credit losses; accounting for deferred costs; accounting for internally developed software; the valuation of goodwill and intangible assets; accounting for stock-based compensation; accounting for income taxes; accounting for leases; accounting for convertible debt; and loss contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual amounts could differ significantly from these estimates.
Concentration of Risk	Concentration of Risk Financial instruments that potentially subject us to significant concentrations of credit risk primarily consist of trade accounts receivable. We perform ongoing credit evaluations of our customers’ financial condition and limit the amount of credit extended when deemed appropriate. Two customers accounted for 16.5 % and 14.6 % of our Accounts receivable, net balance at December 31, 2024 . One customer accounte d for 21.4 % of our Accounts receivable, net balance at September 30, 2024 .
Allowance for Credit Losses	Allowance for Credit Losses We are exposed to credit losses primarily through our sales of software licenses and services to customers. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. A credit limit for each customer is established and in certain cases we may require collateral or prepayment to mitigate credit risk. Our expected loss methodology is developed using historical collection experience, current customer credit information, current and future economic and market conditions and a review of the current status of the customer's account balances. We monitor our ongoing credit exposure through reviews of customer balances against contract terms and due dates, current economic conditions, and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible. The change in the allowance for credit losses for the three months ended December 31, 2024 is as follows (dollars in thousands): Allowance for Credit Losses Balance as of September 30, 2024 $ 1,614 Credit loss provision 207 Write-offs, net of recoveries ( 1,745 ) Effect of foreign currency translation ( 13 ) Balance as of December 31, 2024 $ 63 During the three months ended December 31, 2024, we signed a termination agreement with an international electric vehicle maker. As a result, we wrote off a $ 1.7 million balance, of which $ 1.5 million had been previously reserved for within our allowance for credit losses.
Inventory	Inventory Inventory, consisting primarily of finished goods related to our Cerence Link product, is accounted for using the first in, first out method, and is valued at the lower of cost and net realizable value. Inventory is included within Prepaid expenses and other current assets. As of December 31, 2024 and September 30, 2024, inventory was $ 1.8 million an d $ 1.0 million, respectively.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards None.
Issued Accounting Standards Not Yet Adopted	Issued Accounting Standards Not Yet Adopted In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”), to expand reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. ASU 2023-07 applies to entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the financial statements, with early adoption permitted. We are currently in the process of evaluating the effects of this pronouncement on our condensed consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which requires greater disaggregation of income tax disclosures related to the income tax rate reconciliation and income taxes paid and is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued. The amendments should be applied on a prospective basis although retrospective application is permitted. We are currently in the process of evaluating the effects of this pronouncement on our condensed consolidated financial statements and disclosures. In March 2024, the U.S. Securities and Exchange Commission (the "SEC") adopted the final rule under SEC Release No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors”. This rule would require registrants to disclose certain climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the final rule as a result of pending legal challenges. The disclosure requirements would apply to our fiscal year beginning October 1, 2025, pending resolution of the stay. We are currently evaluating the final rule to determine its impact on our disclosures. In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, and may be applied either prospectively or retrospectively. We are currently evaluating this pronouncement to determine its impact on our disclosures.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	3 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Summary of Change in Allowance for Credit Losses	The change in the allowance for credit losses for the three months ended December 31, 2024 is as follows (dollars in thousands): Allowance for Credit Losses Balance as of September 30, 2024 $ 1,614 Credit loss provision 207 Write-offs, net of recoveries ( 1,745 ) Effect of foreign currency translation ( 13 ) Balance as of December 31, 2024 $ 63

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Summary of Revenues Classified by Major Geographic Region	Revenues, classified by the major geographic region in which our customers are located, for the three months ended December 31, 2024 and 2023 (dollars in thousands): Three Months Ended December 31, 2024 2023 Revenues: United States $ 9,448 $ 99,469 Other Americas 197 84 Germany 19,409 19,133 Other Europe, Middle East and Africa 5,543 4,775 Japan 5,957 5,623 Other Asia-Pacific 10,342 9,251 Total net revenues $ 50,896 $ 138,335
Summary of Significant Changes in Contract Assets and Deferred Revenue	The table below shows significant changes in contract assets (dollars in thousands): Contract assets Balance as of September 30, 2024 $ 22,219 Revenues recognized but not billed 7,782 Amounts reclassified to Accounts receivable, net ( 11,384 ) Effect of foreign currency translation ( 1,786 ) Balance as of December 31, 2024 $ 16,831 The table below shows significant changes in deferred revenue (dollars in thousands): Deferred revenue Balance as of September 30, 2024 $ 167,176 Amounts billed but not recognized 20,430 Revenue recognized ( 19,215 ) Effect of foreign currency translation ( 7,321 ) Balance as of December 31, 2024 $ 161,070
Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied	The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at December 31, 2024 (dollars in thousands): Within One Two to Five Greater Total Total revenue $ 72,853 $ 90,877 $ 32,139 $ 195,869

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Schedule of Reconciliation of Basic Shares to Diluted Shares	The following table presents the reconciliation of the numerator and denominator for calculating net (loss) income pe r share: Three Months Ended December 31, in thousands, except per share data 2024 2023 Numerator: Net (loss) income - basic $ ( 24,288 ) $ 23,857 Interest on the Notes, net of tax - 2,250 Net (loss) income - diluted $ ( 24,288 ) $ 26,107 Denominator: Weighted average common shares outstanding - basic 42,897 41,186 Dilutive effect of contingently issuable stock awards - 574 Dilutive effect of the Notes - 7,495 Weighted average common shares outstanding - diluted 42,897 49,255 Net (loss) income per common share: Basic $ ( 0.57 ) $ 0.58 Diluted $ ( 0.57 ) $ 0.53
Schedule of Potential Shares Considered Antidilutive	The following table sets forth potential shares that were considered anti-dilutive during the three months ended December 31, 2024 and 2023. Three Months Ended December 31, in thousands 2024 2023 Contingently issuable stock awards 121 - Conversion option of our Notes 7,431 -

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs	The following table presents information about our financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (dollars in thousands) as of: December 31, 2024 Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Money market funds, $ 51,119 at cost (a) $ 51,119 $ 51,119 $ - Level 2: Government securities, $ 2,435 at cost (b) 2,439 - 2,439 Time deposits, $ 4,440 at cost (a) 4,440 4,440 - Corporate bonds, $ 3,997 at cost (b) 4,002 - 4,002 Debt securities, $ 2,000 at cost (c) 3,166 - - Total assets $ 65,166 $ 55,559 $ 6,441 September 30, 2024 Fair Value Cash and Cash Equivalents Marketable Securities Level 1: Money market funds, $ 77,785 at cost (a) $ 77,785 $ 77,785 $ - Level 2: Government securities, $ 3,940 at cost (b) 3,950 - 3,950 Time deposits, $ 3,700 at cost (a) 3,700 3,700 - Corporate bonds, $ 4,984 at cost (b) 5,005 - 5,005 Debt securities, $ 2,000 at cost (c) 3,099 - - Total assets $ 93,539 $ 81,485 $ 8,955 (a) Money market funds and other highly liquid investments with original maturities of 90 days or less are included within Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Government securities, commercial paper and corporate bonds with original maturities greater than 90 days are included within Marketable securities in the Condensed Consolidated Balance Sheets and classified as current or noncurrent based upon whether the maturity of the financial asset is less than or greater than 12 months. (c) Debt securities within the Condensed Consolidated Balance Sheets are classified as current or noncurrent based upon whether the maturity of the financial asset is less than or greater than 12 months.

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	3 Months Ended
	Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of Fair Value and Presentation in Condensed Consolidated Balance Sheet for Derivative Instruments	The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheet for derivative instruments as of December 31, 2024 and September 30, 2024 (dollars in thousands): Fair Value Derivatives not designated as hedges Classification December 31, 2024 September 30, 2024 Foreign currency forward contracts Prepaid expenses and other current assets $ 551 $ 65 Foreign currency forward contracts Other assets 225 68 Foreign currency forward contracts Accrued expenses and other current liabilities 1,097 691 Foreign currency forward contracts Other liabilities 138 163
Summary of (Loss) Income Related to Foreign Currency Forward Contracts	The following tables display a summary of the loss related to foreign currency forward contracts for the three months ended December 31, 2024 and 2023 (dollars in thousands): Loss recognized in earnings Three Months Ended December 31, Derivatives not designated as hedges Classification 2024 2023 Foreign currency forward contracts Other income, net $ ( 104 ) $ ( 329 )

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the three months ended December 31, 2024 are as follows (dollars in thousands): Total Balance as of September 30, 2024 $ 296,858 Effect of foreign currency translation ( 7,972 ) Balance as of December 31, 2024 $ 288,886
Summary of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets by Major Class	The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands): December 31, 2024 Gross Accumulated Net Weighted Average Customer relationships $ 106,043 $ ( 104,984 ) $ 1,059 0.2 Technology and patents 89,013 ( 89,013 ) - - Total $ 195,056 $ ( 193,997 ) $ 1,059 September 30, 2024 Gross Accumulated Net Weighted Average Customer relationships $ 108,659 $ ( 106,953 ) $ 1,706 0.5 Technology and patents 90,042 ( 90,042 ) - - Total $ 198,701 $ ( 196,995 ) $ 1,706

Leases (Tables)

Leases (Tables)	3 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Summary of Lease Term and Incremental Borrowing Rates for Leases	The following table presents certain information related to lease term and incremental borrowing rates for leases as of December 31, 2024 and September 30, 2024: December 31, 2024 September 30, 2024 Weighted-average remaining lease term (in months): Operating leases 47.9 46.0 Finance leases 10.2 13.4 Weighted-average discount rate: Operating leases 6.8 % 6.6 % Finance leases 4.4 % 4.4 %
Summary of Lease Expense	The following table presents lease expense for the three months ended December 31, 2024 and 2023 (dollars in thousands): Three Months Ended December 31, 2024 2023 Finance lease costs: Amortization of right of use asset $ 96 $ 108 Interest on lease liability 3 7 Operating lease cost 1,410 1,628 Variable lease cost 455 764 Sublease income ( 43 ) ( 60 ) Total lease cost $ 1,921 $ 2,447
Summary of Undiscounted Future Minimum Lease Payments Under Non-cancelable Leases	The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized on the Condensed Consolidated Balance Sheet as of December 31, 2024 (dollars in thousands): Year Ending September 30, Operating Leases Financing Leases Total 2025 $ 3,702 $ 259 $ 3,961 2026 3,698 53 3,751 2027 3,302 — 3,302 2028 2,691 — 2,691 2029 1,986 — 1,986 Thereafter 764 — 764 Total future minimum lease payments $ 16,143 $ 312 $ 16,455 Less effects of discounting ( 2,244 ) ( 4 ) ( 2,248 ) Total lease liabilities $ 13,899 $ 308 $ 14,207 Reported as of December 31, 2024 Short-term lease liabilities $ 3,828 $ 282 $ 4,110 Long-term lease liabilities 10,071 26 10,097 Total lease liabilities $ 13,899 $ 308 $ 14,207

Accrued Expenses and Other Li_2

Accrued Expenses and Other Liabilities (Tables)	3 Months Ended
	Dec. 31, 2024
Accrued Liabilities and Other Liabilities [Abstract]
Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following (dollars in thousands): December 31, 2024 September 30, 2024 Compensation $ 17,102 $ 18,755 Professional fees 4,218 4,015 Cost of revenue related liabilities 2,864 2,864 Sales and other taxes payable 2,804 3,668 Interest payable 155 1,735 Legal settlement - 30,000 Other 5,824 7,368 Total $ 32,967 $ 68,405

Restructuring and Other Costs_2

Restructuring and Other Costs, Net (Tables)	3 Months Ended
	Dec. 31, 2024
Restructuring and Related Activities [Abstract]
Schedule of Accrual Activity Relating to Restructuring Reserves	The following table sets forth accrual activity relating to restructuring reserves for the three months ended December 31, 2024 (dollars in thousands): Personnel Other Total Balance as of September 30, 2024 $ 3,758 $ 572 $ 4,330 Restructuring and other costs, net 10,196 866 11,062 Non-cash adjustments ( 2,963 ) — ( 2,963 ) Cash payments ( 8,428 ) ( 491 ) ( 8,919 ) Effect of foreign currency translation ( 41 ) — ( 41 ) Balance at December 31, 2024 $ 2,522 $ 947 $ 3,469
Schedule of Restructuring and Other Costs, Net	The following table sets forth restructuring and other costs, net recognized for the three months ended December 31, 2024 and 2023 (dollars in thousands): Three Months Ended December 31, 2024 2023 Personnel $ 10,196 $ 115 Facilities — 145 Other 866 445 Restructuring and other costs, net $ 11,062 $ 705

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Dec. 31, 2024
Equity [Abstract]
Schedule of Non-vested Restricted Stock Units	Information with respect to our non-vested restricted stock units for the three months ended December 31, 2024 was as follows: Non-Vested Restricted Stock Units Time-Based Performance- Total Shares Weighted- Weighted- Aggregate Non-vested at September 30, 2024 2,587,386 1,119,437 3,706,823 $ 23.51 Granted 2,011,534 1,867,288 3,878,822 $ 4.95 Vested ( 923,091 ) ( 143,369 ) ( 1,066,460 ) $ 30.80 Forfeited ( 91,259 ) ( 420,577 ) ( 511,836 ) $ 24.48 Non-vested at December 31, 2024 3,584,570 2,422,779 6,007,349 $ 14.18 Expected to vest 6,007,349 $ 14.18 1.42 $ 47,098
Schedule of Stock-based Compensation	Stock-based compensation was included in the following captions in our Condensed Consolidated Statements of Operations for the three months ended December 31, 2024 and 2023 (in thousands): Three Months Ended December 31, 2024 2023 Cost of connected services $ 53 $ 81 Cost of professional services 437 560 Research and development 1,829 3,831 Sales and marketing 509 718 General and administrative 1,980 3,190 Restructuring and other costs, net 2,963 — $ 7,771 $ 8,380

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Components of (Loss) Income Before Income Taxes	The components of (loss) income before income taxes are as follows (dollars in thousands): Three Months Ended December 31, 2024 2023 Domestic $ ( 11,825 ) $ 65,636 Foreign ( 6,792 ) ( 7,438 ) (Loss) income before income taxes $ ( 18,617 ) $ 58,198
Components of the Provision for Income Taxes	The components of the provision for income taxes are as follows (dollars in thousands): Three Months Ended December 31, 2024 2023 Domestic $ 1,291 $ 29,078 Foreign 4,380 5,263 Provision for income taxes $ 5,671 $ 34,341 Effective income tax rate ( 30.5 )% 59.0 %

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	Long-term debt consisted of the following (in thousands): December 31, 2024 Description Maturity Date Convertible Debt Coupon Rate Effective Interest Rate Principal Unamortized Discount Deferred Issuance Costs Carrying Value 2025 Modified Notes 6/1/2025 3.00 % 4.01 % $ 60,125 $ - $ ( 171 ) $ 59,954 2025 Modified Notes 7/1/2028 1.50 % 8.51 % 87,500 ( 2,512 ) ( 9,588 ) 75,400 2028 Notes 7/1/2028 1.50 % 1.91 % 122,500 - ( 1,692 ) 120,808 Total debt $ 270,125 $ ( 2,512 ) $ ( 11,451 ) 256,162 Less: current portion of long-term debt ( 59,954 ) Total long-term debt $ 196,208 September 30, 2024 Description Maturity Date Convertible Debt Coupon Rate Effective Interest Rate Principal Unamortized Discount Deferred Issuance Costs Carrying Value 2025 Modified Notes 6/1/2025 3.00 % 3.70 % $ 87,500 $ - $ ( 406 ) $ 87,094 2025 Modified Notes 7/1/2028 1.50 % 8.55 % 87,500 ( 2,777 ) ( 10,602 ) 74,121 2028 Notes 7/1/2028 1.50 % 1.91 % 122,500 - ( 1,809 ) 120,691 Total debt $ 297,500 $ ( 2,777 ) $ ( 12,817 ) 281,906 Less: current portion of long-term debt ( 87,094 ) Total long-term debt $ 194,812
Summary of Maturities of Borrowing Obligations	The following table summarizes the maturities of our borrowing obligations as of December 31, 2024 (in thousands): Fiscal Year 2028 Notes 2025 Modified Notes Total 2025 $ — $ 60,125 $ 60,125 2026 — — — 2027 — — — 2028 122,500 87,500 210,000 2029 Thereafter — — — Total before unamortized discount and issuance costs and current portion $ 122,500 $ 147,625 $ 270,125 Less: unamortized discount and issuance costs ( 1,692 ) ( 12,271 ) ( 13,963 ) Less: current portion of long-term debt — ( 59,954 ) ( 59,954 ) Total long-term debt $ 120,808 $ 75,400 $ 196,208
Schedule of Interest Expense Related to Notes	The interest expense recognized related to the Notes for the three months ended December 31, 2024 and 2023 was as follows (dollars in thousands): Three Months Ended December 31, 2024 2023 Contractual interest expense $ 1,425 $ 1,442 Amortization of debt discount 265 251 Amortization of issuance costs 1,281 1,217 Total interest expense related to the Notes $ 2,971 $ 2,910

Significant Accounting Polici_4

Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2024 USD ($) Customer	Sep. 30, 2024 USD ($) Customer
Significant Accounting Policies [Line Items]
Write-offs, net of recoveries	$ 1,745
Provision for allowance of credit losses	1,500
Inventories	$ 1,800	$ 1,000
Concentration of Credit Risk | Accounts Receivable, Net
Significant Accounting Policies [Line Items]
Number of major customers | Customer	2	1
Concentration of Credit Risk | Accounts Receivable, Net | Customer One
Significant Accounting Policies [Line Items]
Concentration risk, percentage	16.50%	21.40%
Concentration of Credit Risk | Accounts Receivable, Net | Customer Two
Significant Accounting Policies [Line Items]
Concentration risk, percentage	14.60%

Summary of Significant Accounti

Summary of Significant Accounting Policies - Summary of Change in Allowance for Credit Losses (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2024 USD ($)
Receivables [Abstract]
Beginning balance	$ 1,614
Credit loss provision	207
Write-offs, net of recoveries	(1,745)
Effect of foreign currency translation	(13)
Ending balance	$ 63

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details)			3 Months Ended		12 Months Ended
	Oct. 31, 2023	Oct. 30, 2023	Dec. 31, 2024 USD ($) Customer	Dec. 31, 2023 USD ($) Customer	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)
Disaggregation Of Revenue [Line Items]
Revenues			$ 50,896,000	$ 138,335,000
Revenue recognized			19,215,000	76,300,000
Acceleration of deferred revenue				67,800,000
Accounts receivable, net			47,671,000		$ 62,755,000	$ 61,300,000
Contract assets			16,831,000		22,219,000	56,700,000
Deferred revenue			161,070,000		167,176,000	$ 222,600,000
Contract acquisition costs			6,200,000		$ 7,100,000
Contract acquisition cost, amortization			600,000	700,000
Contract acquisition cost, impairment			0
Capitalized contract cost, amortization			2,400,000	4,100,000
Capitalized contract cost, impairment			0
China
Disaggregation Of Revenue [Line Items]
Revenues			5,400,000
2013 Acquisition
Disaggregation Of Revenue [Line Items]
Contract termination date	Dec. 31, 2023	Dec. 31, 2025
Expenses for terminating legacy contract			2,000,000
Customer One
Disaggregation Of Revenue [Line Items]
Revenues			7,400,000	$ 78,400,000
Customer Two
Disaggregation Of Revenue [Line Items]
Revenues			6,200,000
Customer Three
Disaggregation Of Revenue [Line Items]
Revenues			$ 6,000,000
Revenues | Geographic Concentration Risk | Minimum
Disaggregation Of Revenue [Line Items]
Percentage of revenue			10%
Revenues | Customer Concentration Risk
Disaggregation Of Revenue [Line Items]
Number of customers accounted for revenues | Customer			3	1
Revenues | Customer Concentration Risk | Customer One
Disaggregation Of Revenue [Line Items]
Percentage of revenue			14.50%	56.70%
Revenues | Customer Concentration Risk | Customer Two
Disaggregation Of Revenue [Line Items]
Percentage of revenue			12.20%
Revenues | Customer Concentration Risk | Customer Three
Disaggregation Of Revenue [Line Items]
Percentage of revenue			11.80%

Revenue Recognition - Summary o

Revenue Recognition - Summary of Revenues Classified by Major Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Total net revenues	$ 50,896	$ 138,335
United States
Revenues:
Total net revenues	9,448	99,469
Other Americas
Revenues:
Total net revenues	197	84
Germany
Revenues:
Total net revenues	19,409	19,133
Other Europe, Middle East and Africa
Revenues:
Total net revenues	5,543	4,775
Japan
Revenues:
Total net revenues	5,957	5,623
Other Asia-Pacific
Revenues:
Total net revenues	$ 10,342	$ 9,251

Revenue Recognition - Summary_2

Revenue Recognition - Summary of Significant Changes in Contract Assets (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Balance	$ 22,219
Revenues recognized but not billed	7,782
Amounts reclassified to Accounts receivable, net	(11,384)
Effect of foreign currency translation	(1,786)
Balance	$ 16,831

Revenue Recognition - Summary_3

Revenue Recognition - Summary of Significant Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Balance	$ 167,176	$ 222,600
Amounts billed but not recognized	20,430
Revenue recognized	(19,215)	$ (76,300)
Effect of foreign currency translation	(7,321)
Balance	$ 161,070

Revenue Recognition - Summary_4

Revenue Recognition - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Remaining Performance Obligations
Total revenue	$ 195,869
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01
Remaining Performance Obligations
Total revenue	$ 72,853
Remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01
Remaining Performance Obligations
Total revenue	$ 90,877
Remaining performance obligation, expected timing of satisfaction, period	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2030-01-01
Remaining Performance Obligations
Total revenue	$ 32,139
Remaining performance obligation, expected timing of satisfaction, period

Revenue Recognition - Summary_5

Revenue Recognition - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details 1) $ in Thousands	Dec. 31, 2024 USD ($)
Remaining Performance Obligations
Total revenue	$ 195,869

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Reconciliation of Basic Shares to Diluted Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Numerator:
Net (loss) income - basic	$ (24,288)	$ 23,857
Interest on the Notes, net of tax		2,250
Net (loss) income - diluted	$ (24,288)	$ 26,107
Denominator:
Weighted average common shares outstanding - basic	42,897	41,186
Dilutive effect of contingently issuable stock awards		574
Dilutive effect of the Notes		7,495
Weighted average common shares outstanding - diluted	42,897	49,255
Net income per common share:
Basic	$ (0.57)	$ 0.58
Diluted	$ (0.57)	$ 0.53

Earnings Per Share - Schedule_2

Earnings Per Share - Schedule of Potential Shares Considered Antidilutive (Details) shares in Thousands	3 Months Ended
	Dec. 31, 2024 shares
Contingently Issuable Stock Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares	121
Conversion Option of our Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares	7,431

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 65,166	$ 93,539
Cash and Cash Equivalents	55,559	81,485
Marketable Securities	6,441	8,955
Money Market Funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	51,119	77,785
Cash and Cash Equivalents	51,119	77,785
Government Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	2,439	3,950
Marketable Securities	2,439	3,950
Time Deposits | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	4,440	3,700
Cash and Cash Equivalents	4,440	3,700
Corporate Debt Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	4,002	5,005
Marketable Securities	4,002	5,005
Debt Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 3,166	$ 3,099

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs (Parenthetical) (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Money Market Funds | Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	$ 51,119	$ 77,785
Government Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	2,435	3,940
Time Deposits | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	4,440	3,700
Corporate Debt Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	3,997	4,984
Debt Securities | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	$ 2,000	$ 2,000

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Sep. 30, 2024
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unrealized (losses) gains to marketable securities	$ 200,000	$ 200,000
Equity investments without readily determinable fair values	2,600,000		$ 2,600,000
Impairment related to investments without readily determinable fair values	0	$ 0
Estimated Fair Value | Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of notes	$ 199,000,000		$ 184,800,000

Derivative Financial Instrume_3

Derivative Financial Instruments - Additional Information (Details) - Foreign Exchange Forward Contracts - Not Designated - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2024	Sep. 30, 2024
Derivative [Line Items]
Derivative, notional amount	$ 43.2	$ 59.1
Derivative, weighted-average remaining maturity	9 months	9 months 27 days
Maximum
Derivative [Line Items]
Derivative, contract maturity	2 years

Derivative Financial Instrume_4

Derivative Financial Instruments - Summary of Fair Value and Presentation in Condensed Consolidated Balance Sheet for Derivative Instruments (Details) - Foreign Currency Forward Contracts - Not Designated - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Prepaid Expenses and Other Current Assets
Derivatives Fair Value [Line Items]
Derivative instrument assets at fair value	$ 551	$ 65
Other Assets
Derivatives Fair Value [Line Items]
Derivative instrument assets at fair value	225	68
Accrued Expenses and Other Current Liabilities
Derivatives Fair Value [Line Items]
Derivative instrument liabilities at fair value	1,097	691
Other Liabilities
Derivatives Fair Value [Line Items]
Derivative instrument liabilities at fair value	$ 138	$ 163

Derivative Financial Instrume_5

Derivative Financial Instruments - Summary of (Loss) Income Related to Foreign Forward Currency Contracts (Details) - Foreign Exchange Forward Contracts - Not Designated - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Derivative Instruments Gain Loss [Line Items]
Loss recognized in earnings	$ (104)	$ (329)
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income (Expense)	Other Nonoperating Income (Expense)

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill - Additional Information (Details)	3 Months Ended
	Dec. 31, 2024 Segment
Goodwill and Intangible Assets Disclosure [Abstract]
Number of reportable segments	1
Number of Operating Segment	1

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Balance as of September 30, 2024	$ 296,858
Effect of foreign currency translation	(7,972)
Balance as of December 31, 2024	$ 288,886

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense related to intangible assets	$ 0.6	$ 0.6
Expected amortization of intangible assets for remainder of 2025	$ 1.1

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Summary of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets by Major Class (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 195,056	$ 198,701
Accumulated Amortization	(193,997)	(196,995)
Net Carrying Amount	1,059	1,706
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	106,043	108,659
Accumulated Amortization	(104,984)	(106,953)
Net Carrying Amount	$ 1,059	$ 1,706
Weighted Average Remaining Life (Years)	2 months 12 days	6 months
Technology and Patents
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 89,013	$ 90,042
Accumulated Amortization	$ (89,013)	$ (90,042)

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Lessee Lease Description [Line Items]
Cash payments related to operating leases	$ 1.3	$ 1.7
Cash payments related to financing leases	0.1	0.1
Right of use assets obtained in exchange for lease obligations	$ 2	$ 1.5

Leases - Summary of Lease Term

Leases - Summary of Lease Term and Incremental Borrowing Rates for Leases (Details)	Dec. 31, 2024	Sep. 30, 2024
Weighted-average remaining lease term (in months):
Operating leases	47 months 27 days	46 months
Finance leases	10 months 6 days	13 months 12 days
Weighted-average discount rate:
Operating leases	6.80%	6.60%
Finance leases	4.40%	4.40%

Leases - Summary of Lease Expen

Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Finance lease costs:
Amortization of right of use asset	$ 96	$ 108
Interest on lease liability	3	7
Operating lease cost	1,410	1,628
Variable lease cost	455	764
Sublease income	(43)	(60)
Total lease cost	$ 1,921	$ 2,447

Leases - Summary of Undiscounte

Leases - Summary of Undiscounted Future Minimum Lease Payments Under Non-cancelable Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Operating Leases
2025	$ 3,702
2026	3,698
2027	3,302
2028	2,691
2029	1,986
Thereafter	764
Total future minimum lease payments	16,143
Less effects of discounting	(2,244)
Total lease liabilities	13,899
Short-term lease liabilities	3,828	$ 4,528
Long-term lease liabilities	10,071	$ 8,803
Financing Leases
2025	259
2026	53
Total future minimum lease payments	312
Less effects of discounting	(4)
Total lease liabilities	308
Short-term lease liabilities	282
Long-term lease liabilities	26
Total
2025	3,961
2026	3,751
2027	3,302
2028	2,691
2029	1,986
Thereafter	764
Total future minimum lease payments	16,455
Less effects of discounting	(2,248)
Total lease liabilities	14,207
Short-term lease liabilities	4,110
Long-term lease liabilities	$ 10,097

Accrued Expenses and Other Li_3

Accrued Expenses and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Accrued Liabilities and Other Liabilities [Abstract]
Compensation	$ 17,102	$ 18,755
Professional fees	4,218	4,015
Cost of revenue related liabilities	2,864	2,864
Sales and other taxes payable	2,804	3,668
Interest payable	155	1,735
Legal settlement		30,000
Other	5,824	7,368
Total	$ 32,967	$ 68,405

Accrued Expenses and Other Li_4

Accrued Expenses and Other Liabilities - Additional Information (Details) $ in Millions	Sep. 30, 2024 USD ($)
Prepaid and Other Current Assets
Receivable related to insurance proceeds	$ 30

Restructuring and Other Costs_3

Restructuring and Other Costs, Net - Schedule of Accrual Activity Relating to Restructuring Reserves (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Restructuring Cost And Reserve [Line Items]
Balance as of September 30, 2023	$ 4,330
Restructuring and other costs, net	11,062	$ 705
Non-cash adjustments	(2,963)
Cash payments	(8,919)
Effect of foreign currency translation	(41)
Balance at March 31, 2024	3,469
Personnel
Restructuring Cost And Reserve [Line Items]
Balance as of September 30, 2023	3,758
Restructuring and other costs, net	10,196	115
Non-cash adjustments	(2,963)
Cash payments	(8,428)
Effect of foreign currency translation	(41)
Balance at March 31, 2024	2,522
Other
Restructuring Cost And Reserve [Line Items]
Balance as of September 30, 2023	572
Restructuring and other costs, net	866	$ 445
Non-cash adjustments	0
Cash payments	(491)
Balance at March 31, 2024	$ 947

Restructuring and Other Costs_4

Restructuring and Other Costs, Net - Schedule of Restructuring and Other Costs, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 11,062	$ 705
Personnel
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	10,196	115
Facilities
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	0	145
Other
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 866	$ 445

Restructuring and Other Costs_5

Restructuring and Other Costs, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 11,062	$ 705
Severance Charge
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	10,196	115
Stock-based Compensation Expense Related to Termination of Former Senior Management Employees
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	3,000
Transformation Initiatives
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	900
Facilities Closure
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 0	145
Other One-Time Charges
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net		$ 400

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Oct. 02, 2019	Dec. 31, 2024	Dec. 31, 2023	Nov. 29, 2024	Oct. 06, 2024	Sep. 30, 2024	Mar. 04, 2024
Class Of Stock [Line Items]
Common stock reserved for issuance	6,350,000			4,500,000	3,000,000		600,000
Common stock, par value	$ 0.01	$ 0.01				$ 0.01
Increase in shares available for issuance, description	The shares available for issuance will automatically increase on January 1st of each year, by the lesser of (A) 3% of the number of shares of Common Stock outstanding as of the close of business on the immediately preceding December 31st; and (B) the number of shares of Common Stock determined by our board of directors on or prior to such date for such year.
Increase in shares available for issuance expressed as percentage of number of shares of common stock outstanding	3%
Stock-based compensation		$ 7,771	$ 8,380
Due to Termination of Former CEO
Class Of Stock [Line Items]
Stock-based compensation		2,600
Due to Termination of Former Senior Management Employee
Class Of Stock [Line Items]
Stock-based compensation		$ 400
2019 Equity Incentive Plan
Class Of Stock [Line Items]
Common stock reserved for issuance	5,300,000
2019 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock reserved for issuance	1,050,000

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Non-vested Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2024 USD ($) $ / shares shares
Time-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	2,587,386
Non-vested, Shares, Granted	2,011,534
Non-vested, Shares, Vested	(923,091)
Non-vested, Shares, Forfeited	(91,259)
Non-vested, Shares, Ending balance	3,584,570
Performance-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	1,119,437
Non-vested, Shares, Granted	1,867,288
Non-vested, Shares, Vested	(143,369)
Non-vested, Shares, Forfeited	(420,577)
Non-vested, Shares, Ending balance	2,422,779
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	3,706,823
Non-vested, Shares, Granted	3,878,822
Non-vested, Shares, Vested	(1,066,460)
Non-vested, Shares, Forfeited	(511,836)
Non-vested, Shares, Ending balance	6,007,349
Non-vested, Shares, Expected to vest	6,007,349
Non-vested, Weighted-Average Grant-Date Fair Value, Beginning balance | $ / shares	$ 23.51
Non-vested, Weighted-Average Grant-Date Fair Value, Granted | $ / shares	4.95
Non-vested, Weighted-Average Grant-Date Fair Value, Vested | $ / shares	30.8
Non-vested, Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares	24.48
Non-vested, Weighted-Average Grant-Date Fair Value, Ending balance | $ / shares	14.18
Non-vested, Weighted-Average Grant-Date Fair Value, Expected to vest | $ / shares	$ 14.18
Non-vested, Weighted-Average Remaining Contractual Term (years), Expected to vest	1 year 5 months 1 day
Non-vested, Aggregate Intrinsic Value, Expected to vest | $	$ 47,098

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 7,771	$ 8,380
Cost of Connected Services
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	53	81
Cost of Professional Services
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	437	560
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	1,829	3,831
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	509	718
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	1,980	$ 3,190
Restructuring and Other Costs, Net
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 2,963

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)				3 Months Ended
	Aug. 14, 2024 USD ($)	Jul. 10, 2024 Patent	Mar. 24, 2023 USD ($)	Dec. 31, 2024 USD ($)
Loss Contingencies [Line Items]
Settlement agreed to award | $	$ 30,000,000
Loss contingency, lawsuit filing date			Mar. 24, 2023
Loss contingency, statutory damages | $			$ 5,000
Indemnification period for former officers and members of the boards of directors				6 years
Patent No.1
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number | Patent		10,395,657
Patent No.2
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number | Patent		10,720,162
Patent No.3
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number | Patent		11,823,682
Patent No.4
Loss Contingencies [Line Items]
Loss contingency, patents allegedly infringed, number | Patent		9,583,103
Other Facility
Loss Contingencies [Line Items]
Letter of credit as security deposit | $				$ 600,000
Negligent Violation
Loss Contingencies [Line Items]
Loss contingency, statutory damages | $			$ 1,000

Income Taxes - Components of (L

Income Taxes - Components of (Loss) Income Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Domestic	$ (11,825)	$ 65,636
Foreign	(6,792)	(7,438)
(Loss) income before income taxes	$ (18,617)	$ 58,198

Income Taxes - Components of th

Income Taxes - Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Domestic	$ 1,291	$ 29,078
Foreign	4,380	5,263
Provision for income taxes	$ 5,671	$ 34,341
Effective income tax rate	(30.50%)	59%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Line Items]
U.S. federal statutory rates	21%	21%
Effective income tax rate	(30.50%)	59%
Provision for income taxes	$ 5,671	$ 34,341
Net change in provision for income taxes	$ 28,600

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($)			3 Months Ended	12 Months Ended
	Jun. 26, 2023	Jun. 02, 2020	Dec. 31, 2024	Sep. 30, 2024
Debt Instrument [Line Items]
Principal			$ 270,125,000	$ 297,500,000
Unamortized discount			(2,512,000)	(2,777,000)
Deferred issuance costs			(11,451,000)	(12,817,000)
Total debt			256,162,000	281,906,000
Less: current portion of long-term debt			(59,954,000)	(87,094,000)
Total long-term debt			$ 196,208,000	$ 194,812,000
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Maturity date		Jun. 01, 2025	Jun. 01, 2025	Jun. 01, 2025
Convertible debt coupon rate		3%	3%	3%
Effective interest rate			4.01%	3.70%
Principal		$ 175,000,000	$ 60,125,000	$ 87,500,000
Deferred issuance costs			(171,000)	(406,000)
Total debt			59,954,000	$ 87,094,000
Less: current portion of long-term debt			(59,954,000)
Total long-term debt			$ 75,400,000
1.50% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Maturity date			Jul. 01, 2028	Jul. 01, 2028
Convertible debt coupon rate			1.50%	1.50%
Effective interest rate			8.51%	8.55%
Principal			$ 87,500,000	$ 87,500,000
Unamortized discount			(2,512,000)	(2,777,000)
Deferred issuance costs			(9,588,000)	(10,602,000)
Total debt			$ 75,400,000	$ 74,121,000
1.50% Convertible Senior Notes Due 2028
Debt Instrument [Line Items]
Maturity date	Jul. 01, 2028		Jul. 01, 2028	Jul. 01, 2028
Convertible debt coupon rate	1.50%		1.50%	1.50%
Effective interest rate			1.91%	1.91%
Principal	$ 190,000,000		$ 122,500,000	$ 122,500,000
Deferred issuance costs			(1,692,000)	(1,809,000)
Total debt			120,808,000	$ 120,691,000
Total long-term debt			$ 120,808,000

Long-Term Debt - Summary of Mat

Long-Term Debt - Summary of Maturities of Borrowing Obligations (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Sep. 30, 2024
Debt Instrument [Line Items]
2025	$ 60,125
2028	210,000
Total before unamortized discount and issuance costs and current portion	270,125
Less: unamortized discount and issuance costs	(13,963)
Less: current portion of long-term debt	(59,954)	$ (87,094)
Total long-term debt	196,208	$ 194,812
2028 Notes
Debt Instrument [Line Items]
2028	122,500
Total before unamortized discount and issuance costs and current portion	122,500
Less: unamortized discount and issuance costs	(1,692)
Total long-term debt	120,808
2025 Modified Notes
Debt Instrument [Line Items]
2025	60,125
2028	87,500
Total before unamortized discount and issuance costs and current portion	147,625
Less: unamortized discount and issuance costs	(12,271)
Less: current portion of long-term debt	(59,954)
Total long-term debt	$ 75,400

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details)				3 Months Ended			12 Months Ended
	Jun. 26, 2023 USD ($) Days $ / shares shares	Jun. 12, 2020 USD ($)	Jun. 02, 2020 USD ($) Days $ / shares shares	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Jul. 03, 2023 USD ($)
Debt Instrument [Line Items]
Aggregate principal amount				$ 270,125,000			$ 297,500,000
Debt, principal amount, net				270,125,000
Long-Term Debt				256,162,000			281,906,000
Debt unamortized issuance costs, net				11,451,000			12,817,000
Gain (Loss) on extinguishment of debt				$ 327,000
Credit Agreement Amendment Two
Debt Instrument [Line Items]
Debt Instrument, interest rate description				Total interest expense relating to the Senior Credit Facilities for the three months ended December 31, 2024 and 2023 was $0.4 million and $0.1 million, respectively. Amounts reflect the coupon and accretion of the discount.
Credit Agreement Amendment Three
Debt Instrument [Line Items]
Interest expense				$ 400,000	$ 100,000
Maximum
Debt Instrument [Line Items]
Percentage of the remaining cash flow of original instrument				10%
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Aggregate principal amount			$ 175,000,000	$ 60,125,000			$ 87,500,000
Debt instrument, interest rate			3%	3%			3%
Debt Instrument, option to purchase additional principal amount			$ 25,000,000
Debt, principal amount, net				$ 147,625,000
Proceeds from issuance of notes			$ 169,800,000
Debt instrument, maturity date			Jun. 01, 2025	Jun. 01, 2025			Jun. 01, 2025
Debt instrument repurchase amount	$ 87,500,000			$ 27,400,000
Debt instrument repurchase amount paid in cash				27,000,000
Debt instrument, conversion initial rate | shares			26.7271
Debt instrument, convertible principal amount			$ 1,000
Debt instrument, conversion price | $ / shares			$ 37.42
Debt instrument convertible, if-converted value of the Notes less than its principal amount				118,100,000			$ 160,900,000
Debt instrument, convertible trading days | Days			20
Debt instrument, convertible consecutive trading days | Days			30
Debt instrument, convertible conversion price percentage			130%
Debt instrument, convertible maximum conversion price percentage			98%
Debt instrument, redemption price percentage of principal amount			100%
Debt instrument, sinking fund			$ 0
Long-Term Debt				59,954,000			87,094,000
Debt unamortized issuance costs, net				171,000			406,000
Gain (Loss) on extinguishment of debt				$ 300,000
3.00% Convertible Senior Notes Due 2025 | Minimum
Debt Instrument [Line Items]
Conversion feature percentage				10%
Debt instrument, convertible trading days | Days			20
Debt instrument, convertible conversion price percentage			130%
2025 Modified Notes
Debt Instrument [Line Items]
Aggregate principal amount				$ 87,500,000			$ 87,500,000
Debt instrument, interest rate				1.50%			1.50%
Debt instrument, maturity date				Jul. 01, 2028			Jul. 01, 2028
Long-Term Debt				$ 75,400,000			$ 74,121,000
Debt unamortized issuance costs, net				9,588,000			10,602,000
Payment on debt issuance costs				14,300,000
Payment of refinancing fees to lender				3,800,000
1.50% Convertible Senior Notes Due 2028
Debt Instrument [Line Items]
Aggregate principal amount	$ 190,000,000			$ 122,500,000			$ 122,500,000
Debt instrument, interest rate	1.50%			1.50%			1.50%
Debt Instrument, option to purchase additional principal amount								$ 20,000,000
Debt, principal amount, net				$ 122,500,000
Proceeds from issuance of notes	$ 193,200,000
Debt instrument, maturity date	Jul. 01, 2028			Jul. 01, 2028			Jul. 01, 2028
Debt instrument, conversion initial rate | shares	24.5586
Debt instrument, convertible principal amount	$ 1,000
Debt instrument, conversion price | $ / shares	$ 40.72
Debt instrument convertible, if-converted value of the Notes less than its principal amount				$ 98,900,000			$ 113,000,000
Debt instrument, convertible trading days | Days	20
Debt instrument, convertible consecutive trading days | Days	30
Debt instrument, convertible conversion price percentage	130%
Debt instrument, convertible maximum conversion price percentage	98%
Debt instrument, redemption price percentage of principal amount	100%
Debt instrument, sinking fund	$ 0
Long-Term Debt				120,808,000			120,691,000
Debt unamortized issuance costs, net				1,692,000			$ 1,809,000
Payment on debt issuance costs				2,400,000
Unamortized issuance costs				1,700,000
Debt instrument, percentage of repurchase principal amount	100%
1.50% Convertible Senior Notes Due 2028 | Maximum
Debt Instrument [Line Items]
Debt instrument covenants, percentage of aggregate principal amount payable.	25%
1.50% Convertible Senior Notes Due 2028 | Minimum
Debt Instrument [Line Items]
Debt instrument, convertible trading days | Days	20
Debt instrument, convertible conversion price percentage	130%
1.50% Convertible Senior Notes Due 2028 | Additional Paid-in-Capital
Debt Instrument [Line Items]
Fair value of the embedded conversion feature				4,100,000
Modified Notes
Debt Instrument [Line Items]
Long-Term Debt				135,400,000
Debt unamortized issuance costs, net				$ 12,300,000
Four Year Senior Secured Term Loan Facility | Senior Credit Facilities
Debt Instrument [Line Items]
Debt instrument term		4 years
Credit facility maximum borrowing capacity		$ 125,000,000
Net proceeds from issuance of credit facility		123,000,000
Senior Secured First-lien Revolving Credit Facility | Senior Credit Facilities
Debt Instrument [Line Items]
Aggregate principal amount						$ 24,700,000
Credit facility maximum borrowing capacity		$ 50,000,000
Extinguishment of debt						104,900,000
Gain (Loss) on extinguishment of debt						(1,300,000)
Debt repayment cost						$ 106,300,000

Long-Term Debt - Schedule of In

Long-Term Debt - Schedule of Interest Expense Related to Notes (Details) - 2028 and 2025 Notes - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Contractual interest expense	$ 1,425	$ 1,442
Amortization of debt discount	265	251
Amortization of issuance costs	1,281	1,217
Total interest expense related to the Notes	$ 2,971	$ 2,910