Cadence Design Systems supplies software, specialized computing hardware, reusable semiconductor intellectual property and engineering services used to design and verify chips and electronic systems. Its portfolio also includes mechanical simulation, data-center analysis and molecular modeling.
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3 reports in this collection
| Report period | Filed with SEC | Form | Source |
|---|---|---|---|
| Dec 31, 20230000813672-24-000034 | Feb 14, 2024 | 10-K | Open 10-Ksec.gov |
| Dec 31, 20240000813672-25-000024 | Feb 21, 2025 | 10-K | Open 10-Ksec.gov |
| Dec 31, 20250000813672-26-000016 | Feb 19, 2026 | 10-K | Open 10-Ksec.gov |
Dates describe the filing metadata. Figures and reporting periods should be checked against the original statement. SEC links open in a new tab.
Cadence combines multiyear software contracts with delivery-sensitive hardware, IP and simulation products. Revenue reached $5.297 billion in 2025, but settlement costs, financing expense and taxes restrained GAAP earnings growth. Operating cash flow improved partly because U.S. tax-law changes reduced cash taxes, not simply because collections improved. After the February 19, 2026 annual filing, the main Hexagon D&E acquisition closed, expanding simulation capabilities while consuming cash and increasing amortization. First-half results strengthened, although the prior-year export-control charge and China delivery restrictions make comparisons unusually favorable. July guidance raised revenue and earnings expectations, but remained conditional. Continuing export-compliance obligations, acquisition integration and an unverified separate Belgian closing remain important qualifications. This October 24 view uses supplied financial reporting through June 30, 2026.
Sources: 10-K · 2025-12-31 · 8-K · 2026-02-23 · EX-2.1 · 2026-03-31 · 10-Q · 2026-06-30 · EX-99.02 · 2026-07-27
Cadence helps customers design chips, verify their behavior and analyze the systems containing them. Management links demand to increasing design complexity, AI infrastructure and customers developing differentiated products. Purchases depend on design projects and engineering budgets, not simply semiconductor shipments. Core EDA, Semiconductor IP and System Design and Analysis are product categories within one operating segment, not separately disclosed profit centers.
Software contracts generally run two to three years. Hardware, individual IP licenses and some simulation software produce revenue upon delivery. Company-defined recurring revenue declined from 84% in 2023 to 80% in 2025; only 76% of 2025 revenue was recognized over time. The distinction matters because a recurring classification does not eliminate delivery or product-selection timing.
Sources: 10-K · 2025-12-31
All dollar amounts are U.S. dollars unless otherwise identified. Revenue rose from $4.090 billion in 2023 to $4.641 billion in 2024 and $5.297 billion in 2025. GAAP net income moved much less, from $1.041 billion to $1.055 billion and $1.109 billion. Acquisitions broadened the portfolio, but their contributions are not separated sufficiently to establish organic growth.
The reasons for margin pressure changed. In 2024, hardware inventory charges, service delivery costs and acquired expenses weighed on profitability. In 2025, management identified the $128.545 million export-control settlement charge as the principal reason operating margin declined again. Higher interest expense and a 27.1% effective tax rate also restrained net income. Conversely, service costs improved relative to revenue, and investment and interest income supported earnings outside operations.
Sources: 10-K · 2025-12-31 · 10-K · 2024-12-31
Operating cash flow recovered to $1.729 billion in 2025 after falling to $1.261 billion in 2024. California's three-year limit beginning in 2024 capped annual R&D credit use at $5 million, with a refund mechanism, increasing 2024 cash taxes by approximately $33 million and long-term receivables by approximately $21 million. This contributed to, but did not explain all of, the $88.6 million operating-cash-flow decline; it was not a permanent loss of the credits or an equivalent increase in GAAP tax expense. The July 2025 U.S. tax legislation restored immediate domestic R&D deductions and reduced 2025 cash taxes by approximately $151 million, already included in operating cash flow. Settlement payments were an offset. Receivables and inventories continued to absorb cash, while stock compensation and depreciation were substantial noncash add-backs. Thus cash-flow improvement was neither equivalent to profit growth nor entirely evidence of stronger collections.
Sources: 10-K · 2025-12-31 · 10-K · 2024-12-31
During 2025, Cadence spent $429.5 million on acquisitions net of acquired cash, $141.9 million on capital expenditure and $925.0 million on program repurchases. Employee tax withholding was a separate cash use. Year-end cash was $3.001 billion against $2.5 billion of debt principal; the earlier 2024 cash increase had been partly debt-funded. Cadence does not pay cash dividends. Repurchases seek to offset stock-plan dilution, but acquisition shares and employee awards can still increase the share count. Authorization is permission to purchase, not a spending obligation.
Sources: 10-K · 2024-12-31 · 10-K · 2025-12-31
Cadence reported paying $140.6 million of net penalties and forfeitures in the third quarter of 2025. That payment is not additional to the settlement expense, and it did not end audit, reporting and cooperation obligations. Continued export privileges depend on compliance. Separately, restrictions can interrupt China deliveries and encourage competing local products. Other dependencies include foundry and third-party compatibility, scarce engineering talent and limited-source hardware components. AI adoption presents opportunities, but its standalone revenue and returns are not quantified.
Sources: 10-K · 2025-12-31 · EX-10.3 · 2025-06-30 · BIS FINAL ORDER WITH ATTACHED SETTLEMENT AND CHARGING LETTER · 2025-07-28
The main Hexagon D&E acquisition closed February 23, 2026, after the February 19 annual filing. A separate Belgian transfer had different approval and closing conditions; its subsequent outcome is not established. First-half revenue reached $3.059 billion and GAAP net income $702.7 million. The absence of the prior-year settlement charge materially helped margins, while China's comparison benefited from delivery restrictions in 2025. Acquisition expenses and amortization partly offset these benefits. Higher investment gains and a lower effective tax rate also supported GAAP earnings, so the improvement was not solely operational.
Cadence reported second-quarter IP revenue growth of more than 40% year over year, citing strong Star IP demand, a significant Intel agreement and additional wins with leading semiconductor companies. The agreement's value, revenue-recognition timing and allocation, duration, repeatability, refund terms and quantified contribution are not verified.
By June 30, cash had fallen to $1.440 billion after $2.100 billion of net acquisition cash outflows. Temporary revolver borrowings had been repaid. July 27 guidance projected 2026 revenue of $6.260–$6.340 billion and GAAP EPS of $4.76–$4.86; these are forecasts, not completed-year results. The May and July quarterly filings described the same cyber incident: a threat actor obtained limited confidential information, including test, configuration-setting and source-code files. Cadence assessed the files as not material to its business, believed the incident contained and reported no operational disruption or customer-environment impact.
Sources: 8-K · 2026-02-23 · EX-2.1 · 2026-03-31 · 10-Q · 2026-06-30 · EX-99.01 · 2026-07-27 · EX-99.02 · 2026-07-27 · 10-Q · 2026-03-31
USD 5.296759 bn
FY2025 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2025 | USD 5.296759 bn | 14.1% |
| 2024 | USD 4.641264 bn | 13.5% |
| 2023 | USD 4.089986 bn | — |
Consolidated product and maintenance plus services revenue.
Sources: 10-K · 2025-12-31
USD 1.108888 bn
FY2025 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2025 | USD 1.108888 bn | 5.1% |
| 2024 | USD 1.055484 bn | 1.4% |
| 2023 | USD 1.041144 bn | — |
Consolidated GAAP income after income taxes; all consolidated subsidiaries are wholly owned.
Sources: 10-K · 2025-12-31
USD 1.728781 bn
FY2025 · GAAP · consolidated · Attribution: consolidated · Reported currency
| Fiscal year | Value | YoY |
|---|---|---|
| 2025 | USD 1.728781 bn | 37.1% |
| 2024 | USD 1.260551 bn | -6.6% |
| 2023 | USD 1.349176 bn | — |
GAAP operating cash flow after noncash adjustments and changes in operating assets and liabilities.
Sources: 10-K · 2025-12-31
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