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CDNS

Cadence Design Systems, Inc.

CDNS

Cadence Design Systems, Inc. • NASDAQ
$311.84 ▲ 1.79% (+5.49)
Market Cap $84.88 B
52w High $376.45
52w Low $221.56
Dividend Yield 0%
P/E 80.58
Volume 875.05K
Outstanding Shares 272.20M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.339B ▲ $849.955M ▲ $287.122M ▲ 21.446% ▲ $1.06 ▲ $475.866M ▲
Q2-2025 $1.275B ▲ $849.477M ▲ $160.051M ▼ 12.549% ▼ $0.59 ▼ $367.306M ▼
Q1-2025 $1.242B ▼ $713.713M ▲ $273.579M ▼ 22.021% ▼ $1.01 ▼ $436.28M ▼
Q4-2024 $1.356B ▲ $679.115M ▼ $340.21M ▲ 25.09% ▲ $1.25 ▲ $520.422M ▲
Q3-2024 $1.215B $702.399M $238.111M 19.59% $0.87 $413.269M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $2.753B ▼ $9.599B ▲ $4.4B ▼ $5.199B ▲
Q2-2025 $2.823B ▲ $9.509B ▲ $4.502B ▲ $5.007B ▲
Q1-2025 $2.778B ▼ $9.013B ▲ $4.237B ▼ $4.776B ▲
Q4-2024 $2.785B ▼ $8.974B ▼ $4.301B ▼ $4.674B ▲
Q3-2024 $2.786B $9.167B $4.604B $4.563B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $287.122M ▲ $310.662M ▼ $-174.315M ▲ $-194.058M ▲ $-69.516M ▼ $276.978M ▼
Q2-2025 $160.051M ▼ $377.603M ▼ $-175.615M ▼ $-195.244M ▲ $45.088M ▼ $333.518M ▼
Q1-2025 $273.579M ▼ $487.021M ▲ $-21.784M ▲ $-345.784M ▲ $133.644M ▲ $463.96M ▲
Q4-2024 $340.21M ▲ $441.359M ▲ $-40.012M ▼ $-511.138M ▼ $-142.01M ▼ $404.157M ▲
Q3-2024 $238.111M $409.995M $-39.254M $1.335B $1.727B $383.455M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Product and maintenance
Product and maintenance
 $1.24Bn ▲$1.11Bn ▼$1.17Bn ▲$1.21Bn ▲
Technology Service
Technology Service
 $120.00M ▲$130.00M ▲$100.00M ▼$130.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Cadence’s income statement shows a clear growth story. Revenue has risen steadily each year for the past five years, and it has done so while keeping very strong gross margins. Operating profit and earnings have also climbed over time, though profit growth has been a bit slower than revenue growth in the most recent year, suggesting higher costs, heavier investment, or more interest expense from added debt. Overall, this is a high‑margin software business that continues to scale, but the latest year hints at some pressure on profitability even as sales expand.

Balance Sheet

Balance Sheet The balance sheet has grown meaningfully, with total assets and shareholder equity both moving higher over the period. Cash has built up to a solid level, but financial debt has also increased sharply in the latest year, shifting the company from being only modestly leveraged to carrying a more noticeable debt load. The result is a stronger asset base and more financial flexibility, but also higher financial risk if conditions weaken. Equity growth indicates value is being built over time, yet the jump in debt is a key item to watch going forward.

Cash Flow

Cash Flow Cadence consistently converts its profits into cash. Operating cash flow has been strong and fairly stable relative to earnings, and free cash flow has remained healthy even after funding capital spending, which itself is modest for a software‑heavy business. This pattern suggests that the company’s earnings quality is high and that it has ample internally generated cash to support R&D, acquisitions, and shareholder returns. The one trade‑off is that recent growth in debt means cash flow now also has to cover higher interest and potential repayments over time.

Competitive Edge

Competitive Edge Cadence operates in a niche but crucial part of the semiconductor ecosystem, where only a few global players dominate. It benefits from deep integration into customers’ design flows, meaning its tools become embedded in how engineers work, which makes switching to a rival costly and risky. Its portfolio covers almost the full chip and system design lifecycle, from circuit design to verification and system analysis, reinforcing customer stickiness. Close partnerships with leading chip manufacturers and a strong reputation for reliability and performance further support its standing. The main structural risk is intense competition from a small number of very capable peers and the heavy dependence of EDA demand on the broader chip and electronics cycles.

Innovation and R&D

Innovation and R&D Innovation is at the core of Cadence’s strategy. The company has leaned heavily into AI‑driven design tools, multiphysics simulation, and advanced 3D‑IC and chiplet architectures. It also offers a growing library of specialized IP, especially for AI and high‑performance applications, which helps customers shorten development time. This broad and evolving toolset, plus newer system‑level and “digital twin” capabilities, positions Cadence well as designs become more complex. The flip side is that maintaining this edge demands sustained high R&D spending, rapid product refresh cycles, and successful execution in new fields like enterprise multiphysics platforms, where competition and technical risk are both significant.

Summary

Cadence combines steady growth, high margins, and robust cash generation with a strong competitive moat in a mission‑critical niche of the chip design world. Financially, it looks like a high‑quality software and IP business that has scaled well, though the latest year shows some rising costs and a notable increase in debt that introduce more balance‑sheet risk than in the past. Strategically, its deep integration with customers, AI‑centric tools, advanced packaging and 3D‑IC capabilities, and system‑level simulation platforms give it meaningful long‑term opportunities as chips and systems become more complex. Key uncertainties to monitor include the health of the semiconductor cycle, ongoing battles with top EDA rivals, the payback from heavy R&D and AI investments, and how comfortably the business can manage its higher leverage over time.

NEWS

November 25, 2025 · 4:15 PM UTC

Cadence to Present at UBS Global Technology and AI Conference

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November 17, 2025 · 4:05 PM UTC

Cadence Appoints Luc Van den hove to Board of Directors

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November 11, 2025 · 4:15 PM UTC

Cadence to Present at Wells Fargo TMT Summit

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October 30, 2025 · 4:10 PM UTC

Cadence Completes Acquisition of Secure-IC

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October 27, 2025 · 4:02 PM UTC

Cadence Reports Third Quarter 2025 Financial Results

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