Latest news with #CDNS
CNBC
29-07-2025
- Business
- CNBC
Cadence Design Systems is up huge on earnings. What the charts say to do next
There's an old saying in the markets; "The longer the base, the higher in space." Cadence Design Systems 'CDNS' just broke from a 16-month base following a strong earnings report. Sixteen months may not seem that ridiculously extended, but for a company that helps the biggest chip makers in the world design, test, and perfect their chips before they even begin manufacturing, and NVDA higher by 84% in that same 16-month period, I think it's significant. I've been watching this name for some time to add to my portfolio and have owned this in the past, but Tuesday morning's earnings popped the stock out of the base consolidation. I was hesitant to buy this stock up 10% following the report, but looking at the weekly chart you'll see a series of 1-year or greater bases followed by breakouts ranging from 64% to 130%. With room to run, I added a 4% allocation to my Active Opps portfolio this morning and with confirmation that support is holding and buyers continue to push the stock higher, I'll aim for an 8% holding. Notice the GAAP earnings projection below the chart of $4.27 in 2025, but then a 28.9% growth to $5.50. Non-GAAP EPS for 2025 is expected to be $6.75 and then grow to $7.79 in 2026. Top line is also growing nicely at a 11%-19% clip. Moving down to the daily chart you see an up-close look at the range that's been in play since March 2024. I would not be surprised to see a pullback towards $350/$340 and if buyers appear offering the stock support, I'll know there is more institutional money coming to market to get on board the initial missed breakout. Cadence shares essentially a duopoly with Synopsys, Inc (SNPS) in the electronic design automation (EDA) market. This is a high barrier to entry, highly technical segment that is a foundation to the entire semiconductor design market. Their customer base includes Nvidia, AMD , Intel , AMR, Tesla , and Apple and are deeply entrenched in these company's workflows. Jensen Huang, CEO of Nvidia, said that Cadence's Palladium emulation system is indispensable to Nvidia. Apple uses Cadenece's EDA suite in their custom M-series chip and their growing AI infrastructure projects. Moreover, they are diversified from just consumer electronics as they service automotive, aerospace, and AI infrastructure. In our Active Opps portfolio we hold a 4.07% allocation in CDNS established July 29. - Todd Gordon, Founder of Inside Edge Capital , LLC We offer active portfolio management and regular subscriber updates like the idea presented above DISCLOSURES: (Gordon and his firm own CDNS) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
29-07-2025
- Business
- Yahoo
Cadence Design Systems Inc (CDNS) Q2 2025 Earnings Call Highlights: Strong AI-Driven Growth ...
Total Revenue: $1.275 billion for Q2 2025. Revenue Growth: 20% year-over-year for Q2 2025. GAAP Operating Margin: 19% for Q2 2025. Non-GAAP Operating Margin: 42.8% for Q2 2025. GAAP EPS: $0.59 for Q2 2025. Non-GAAP EPS: $1.65 for Q2 2025. Cash Balance: $2.823 billion at quarter end. Operating Cash Flow: $378 million for Q2 2025. Debt Outstanding: $2.5 billion principal value. Share Repurchase: $175 million used to repurchase shares in Q2 2025. Core EDA Revenue Growth: 16% year-over-year in Q2 2025. IP Business Revenue Growth: Over 25% year-over-year in Q2 2025. System Design and Analysis Revenue Growth: 35% year-over-year in Q2 2025. Updated 2025 Revenue Outlook: $5.21 billion to $5.27 billion. Updated 2025 Non-GAAP EPS Outlook: $6.85 to $6.95. Updated 2025 Operating Cash Flow Outlook: $1.65 billion to $1.75 billion. Q3 2025 Revenue Outlook: $1.305 billion to $1.335 billion. Q3 2025 Non-GAAP EPS Outlook: $1.75 to $1.81. Warning! GuruFocus has detected 6 Warning Sign with CDNS. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Cadence Design Systems Inc (NASDAQ:CDNS) exceeded its Q2 revenue and EPS guidance, driven by strong demand across its AI-driven product portfolio. The company raised its financial outlook for 2025 to 13% revenue growth and 16% EPS growth, reflecting confidence in ongoing demand. Cadence's AI-driven portfolio, including the new Millennium M2000 AI supercomputer, is delivering significant performance and efficiency gains for customers. The company reported a 25% year-over-year growth in its IP business, driven by strong demand for AI and HPC use cases. Cadence's system design and analysis business achieved 35% year-over-year revenue growth, highlighting strong customer uptake of its 3D-IC technology. Negative Points Cadence faced export restrictions on China, which impacted its revenue, although strength in other regions offset this impact. The company had to reserve certain China bookings from its backlog due to restrictions, affecting its reported backlog at the end of Q2. Recurring revenue as a percentage of total revenue dipped to 78% in Q2, a multiyear low, due to strong demand for upfront businesses like IP and hardware. Cadence's settlement with the DOJ and BIS over past transactions with China resulted in a $141 million payment, impacting financials. The dynamic export control environment and geopolitical factors present ongoing risks and uncertainties for Cadence's operations in China. Q & A Highlights Q: How is the demand for physical AI impacting Cadence's bookings and customer spending? A: Anirudh Devgan, President and CEO, explained that there is significant optimism around AI, leading to increased customer investment in innovation and Cadence's products. Physical AI, which involves edge devices and autonomous systems, is expected to be a major growth area. It impacts both data center and edge silicon, requiring different design and simulation tools. The market is still evolving, but the customer environment is improving, with more investment in AI infrastructure and physical AI. Q: What led to Cadence's increased growth outlook despite not recognizing one month of China revenue? A: John Wall, CFO, noted that strong demand across all geographies offset any near-term softness related to China. The growth in bookings from AI, HPC, and system design workloads globally contributed to the increased outlook. The backlog at the end of Q2 was stronger than expected, indicating broad-based demand. Q: What is the near and long-term impact of China on Cadence's business? A: John Wall stated that while China was 9% of Q2 revenue, down from 11% in Q1, the outlook for China remains optimistic but prudent. The company expects China sales to be slightly up year-over-year. Anirudh Devgan added that while China will continue to invest in chip design, the rest of the world is also seeing significant investment, which may lead to a slight decrease in China's percentage of total revenue over time. Q: How is the transition to 3.5D advanced packaging architectures contributing to Cadence's bookings and revenue? A: Anirudh Devgan highlighted that the industry is moving towards chiplet-based architectures, especially in HPC and AI. Cadence is well-positioned with its Allegro platform and 3D-IC technology, which are critical for these new packaging architectures. The demand for advanced packaging is significant and contributes to the overall revenue, pulling in other products like analysis tools. Q: What are the adoption barriers for agentic AI, and how does Cadence plan to monetize it? A: Anirudh Devgan explained that Cadence packages agentic AI solutions separately from base tools, offering significant productivity and PPA benefits. The adoption barriers are not significant as customers are used to automation and face increasing workloads. Cadence focuses on delivering value and productivity, with various business models to monetize these solutions over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
29-07-2025
- Business
- Business Recorder
National Saving Schemes: CDNS reduces rates of return
The Central Directorate of National Savings (CDNS) has reduced the rates of return on a number of its National Savings Schemes (NSS) with effect from July 28, 2025, it was learnt on Tuesday. The rate of Short Term Savings Certificate (STSA) reduced by 26 basis points (bps) to 10.14%, brokerage house Arif Habib Limited (AHL) reported. Similarly, Regular Income Certificates (RIC) will offer a 10.68% return, as compared to 11.16% earlier, a drop of 48bps. The Defence Saving Certificates (DSC) will offer a return of 11.61%, after a decline of 15bps from 11.76%. The return on Bahbood Savings Certificates (BSC) declined by 24bps to 12.96% from 13.20%. National Saving Schemes: CDNS lowers rates of return Meanwhile, the rates of Pensioners Benefit Account (PBA) and Shuhda Family Welfare Account (SFWA) also lowered by 24bps each, to 12.96% each. Special Savings Certificate (SSC) and Special Savings Account (SSA) will now offer a return of 10.4% each, amid a drop of 20bps each. On the other hand, the rates of Serwa Islamic Saving Account (SISA) and Serwa Islamic Term Account (SITA) were up by 19bps each, to 9.94% each. The National Savings Organisation is Pakistan's largest financial institution, managing a portfolio exceeding Rs3.4 trillion and serving over 4 million customers through a network of 376 branches across the country, administered by 12 Regional Directorates. The CDNS helps the government finance budgetary deficits and support critical infrastructure projects.
Yahoo
28-07-2025
- Business
- Yahoo
Cadence lifts FY outlook after Q2 results top estimates; shares jump
- Cadence on Monday lifted its full-year guidance after reporting second-quarter results that topped Wall Street estimates as stronger demand helped offset the hit from temporary U.S. restrictions on exports to China. Cadence Design Systems Inc (NASDAQ:CDNS) jumped 7% in recent afterhours trading following the report. For the three months ended Jun. 30, Cadence Design announced earnings per share of $1.65 on revenue of $1.28 million. Analysts polled by anticipated EPS of $1.56 on revenue of $1.25 billion. "Strength across all businesses, more than offsetting the impact of the temporary restrictions on exports to China imposed on May 23," the company said. For Q3, the company sees adjusted diluted EPS of $1.75 to $1.85, beating estimates of $1.73. Looking ahead to the full-year, the electronic systems designer forecasts adjusted EPS in a range of $6.85 to $6.95 on revenue between $5.21 billion to $5.27 billion, up from a prior estimate for adjusted EPS of $6.73 to $6.83 on revenue of $5.15 billion to $5.23 billion. Related articles Cadence lifts FY outlook after Q2 results top estimates; shares jump After soaring 149%, this stock is back in our AI's favor - & already +25% in July Surge of 50% since our AI selection, this chip giant still has great potential Sign in to access your portfolio
Yahoo
28-07-2025
- Business
- Yahoo
Cadence Reports Second Quarter 2025 Financial Results
Exceeded Q2 Guidance for Revenue & Non-GAAP EPS Raising 2025 Revenue, Non-GAAP EPS & Cash Flow Outlook SAN JOSE, Calif., July 28, 2025--(BUSINESS WIRE)--Cadence (Nasdaq: CDNS) today announced results for the second quarter of 2025. Second Quarter 2025 Financial Results Revenue of $1.275 billion, compared to revenue of $1.061 billion in Q2 2024 GAAP operating margin of 19.0%, compared to 27.7% in Q2 2024 GAAP diluted net income per share of $0.59, compared to $0.84 in Q2 2024 Non-GAAP operating margin of 42.8%, compared to 40.1% in Q2 2024 Non-GAAP diluted net income per share of $1.65, compared to $1.28 in Q2 2024 Quarter-end backlog was $6.4 billion and current remaining performance obligations ("cRPO"), contract revenue expected to be recognized as revenue in the next 12 months, was $3.1 billion GAAP results include a one-time charge relating to the $140.6 million settlements of our previously disclosed legal proceedings with the U.S. Department of Justice ("DOJ") and the Bureau of Industry and Security ("BIS") of the U.S. Department of Commerce "Cadence delivered an exceptional Q2, with 20% year-over-year revenue growth and stronger than expected bookings. This highlighted the strategic relevance of our AI-driven portfolio and the depth of our customer relationships," said Anirudh Devgan, president and chief executive officer. "The strength and breadth of our products are enabling us to lead through the accelerating waves of the AI Supercycle, from AI infrastructure build-out, to physical AI in autonomous systems, to the emerging frontier of science AI." "I am pleased to report that Cadence delivered excellent results for Q2, with broad-based strength across all businesses, more than offsetting the impact of the temporary restrictions on exports to China imposed on May 23rd," said John Wall, senior vice president and chief financial officer. "We are raising our 2025 revenue outlook to 13% growth year-over-year, and non-GAAP operating margin to 44%." CFO Commentary Commentary on the second quarter of 2025 financial results by John Wall, senior vice president and chief financial officer, is available at Business Outlook For fiscal year 2025, the company expects: Revenue in the range of $5.21 billion to $5.27 billion GAAP operating margin in the range of 28.5% to 29.5% Non-GAAP operating margin in the range of 43.5% to 44.5% GAAP diluted net income per share in the range of $3.97 to $4.07 Non-GAAP diluted net income per share in the range of $6.85 to $6.95 Operating cash flow in the range of $1.65 billion to $1.75 billion At the midpoint, the $50 million increase in operating cash flow outlook is primarily driven by the $50 million increase in revenue outlook. Cadence anticipates a $140.6 million cash outflow relating to the DOJ and BIS settlements. In addition, Cadence expects to benefit from approximately $140 million in reduced cash tax payments due to the immediate expensing of U.S. R&D expenditures under the One Big Beautiful Bill Act. The company utilizes a long-term projected non-GAAP tax rate, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in the company's geographic earnings mix, or other changes to the company's strategy or business operations. The company expects to use the current normalized non-GAAP tax rate through fiscal 2025 but will re-evaluate this rate periodically for significant items that may materially affect its projections. Reconciliations of the financial results and business outlook from GAAP operating margin, GAAP net income and GAAP diluted net income per share to non-GAAP operating margin, non-GAAP net income and non-GAAP diluted net income per share, respectively, are included in this press release. Business Highlights Launched Cadence Cerebrus AI Studio, an agentic AI implementation platform delivering up to 20% PPA improvement and 5x to 10x faster chip delivery time. Launched Millennium M2000 AI Supercomputer featuring Nvidia Blackwell, delivering AI-accelerated simulation at unprecedented speed and scale across engineering and science workloads. Core EDA, comprised of Cadence's digital, custom / analog and verification businesses, delivered 16% year-over-year revenue growth, driven by further proliferation of Cadence's AI portfolio. IP business delivered more than 25% year-over-year revenue growth, driven by product strength and a broadening silicon solutions portfolio. System Design & Analysis business achieved 35% year-over-year revenue growth driven by Cadence's multi-physics analysis platform and AI-driven optimization, which delivered superior results. Audio Webcast Scheduled Anirudh Devgan, president and chief executive officer, and John Wall, senior vice president and chief financial officer, will host the second quarter 2025 financial results audio webcast today, July 28, 2025, at 2 p.m. (Pacific) / 5 p.m. (Eastern). Attendees are asked to register at the website at least 10 minutes prior to the scheduled webcast. An archive of the webcast will be available starting July 28, 2025 at 5 p.m. (Pacific) and ending September 16, 2025 at 5 p.m. (Pacific). Webcast access is available at About Cadence Cadence is a market leader in AI and digital twins, pioneering the application of computational software to accelerate innovation in the engineering design of silicon to systems. Our design solutions, based on Cadence's Intelligent System Design™ strategy, are essential for the world's leading semiconductor and systems companies to build their next-generation products from chips to full electromechanical systems that serve a wide range of markets, including hyperscale computing, mobile communications, automotive, aerospace, industrial, life sciences and robotics. In 2024, Cadence was recognized by the Wall Street Journal as one of the world's top 100 best-managed companies. Cadence solutions offer limitless opportunities—learn more at © 2025 Cadence Design Systems, Inc. All rights reserved worldwide. Cadence, the Cadence logo and the other Cadence marks found at are trademarks or registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners. This press release contains forward-looking statements, including Cadence's outlook on future operating results, financial condition, strategic objectives, business model and prospects, technology and product developments, backlog, industry trends, market growth, settlements of legal proceedings, tax payments and rates and other statements using words such as "anticipates," "believes," "expects," "intends," "plans," "will," and words of similar import and the negatives thereof. Forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside Cadence's control, and which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements, including, among others: (i) Cadence's ability to compete successfully in the highly competitive industries in which it operates and realize the benefits of its investments in research and development, including opportunities presented by AI; (ii) the success of Cadence's efforts to maintain and improve operational efficiency and growth; (iii) the mix of products and services sold, the timing of orders and deliveries and the ability to develop, install or deliver Cadence's products or services; (iv) changes in customer demands or supply constraints that could result in delays in purchases, development, installations or deliveries of Cadence's products or services, including those resulting from consolidation, restructurings and other operational efficiency improvements of Cadence's customers; (v) economic, geopolitical and industry conditions, including export controls, tariffs, other trade restrictions and other government regulations, as well as rising tensions and armed conflicts around the world; (vi) changes in tax laws, interest rate and currency exchange rate fluctuations, inflation rates, Cadence's increased debt levels and obligations and Cadence's ability to access capital and debt markets in the future; (vii) legislative or regulatory requirements; (viii) Cadence's pending acquisitions which remain subject to certain closing conditions, the acquisition of other companies, businesses or technologies or the failure to successfully integrate and operate them; (ix) potential harm caused by compromises in cybersecurity and cybersecurity attacks; (x) capital expenditure requirements and events that affect cash flow, liquidity or reserves, or estimates Cadence may take from time to time with respect to accounts receivable, taxes and tax examinations, litigation, regulatory or other matters; (xi) the effects of any litigation, regulatory, tax or other proceedings to which Cadence is or may become a party or to which Cadence or its products, services, technologies or properties are subject, including the settlements with the DOJ (which is subject to court approval) and BIS, Cadence's ongoing compliance, cooperation, audit and other obligations under the settlement agreements, any further inquiries or adverse actions by the court, the DOJ, BIS or other U.S. or foreign governmental authorities and any impact of the settlements on Cadence's operations and business dealings in China, U.S. government contracting business and other customer relationships; and (xii) Cadence's ability to successfully meet any environmental, social and governance targets and practices. In addition, the timing and amount of Cadence's repurchases of its common stock are subject to business and market conditions, corporate and regulatory requirements, stock price, acquisition opportunities and other factors. For a detailed discussion of these and other cautionary statements related to Cadence and its business, please refer to Cadence's filings with the U.S. Securities and Exchange Commission, including its most recent report on Form 10-K, subsequent reports on Form 10-Q and future filings. Cadence plans to file a current report on Form 8-K with more information about the DOJ and BIS settlements and will include further information in its Form 10-Q for the fiscal quarter ended June 30, 2025. All forward-looking statements in this press release are based on management's expectations as of the date of this press release and, except as required by law, Cadence disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. GAAP to Non-GAAP Reconciliation Non-GAAP financial measures should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles, or GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures contained within this press release with their most directly comparable GAAP results. Investors are also encouraged to look at the GAAP results as the best measure of financial performance. To supplement Cadence's financial results presented on a GAAP basis, Cadence management uses non-GAAP measures that it believes are helpful in understanding Cadence's performance. One such measure is non-GAAP net income, which is a financial measure not calculated under GAAP. Non-GAAP net income is calculated by Cadence management by taking GAAP net income and excluding, as applicable, amortization of intangible assets, stock-based compensation expense, acquisition and integration-related costs including retention expenses, income or expenses related to investments, divestitures and Cadence's non-qualified deferred compensation plan, restructuring, loss related to contingent liability and other significant items not directly related to Cadence's core business operations, and the income tax effect of non-GAAP pre-tax adjustments. Cadence management uses non-GAAP net income because it excludes items that are generally not directly related to the performance of Cadence's core business operations and therefore provides supplemental information to Cadence management and investors regarding the performance of the business operations, facilitates comparisons to the historical operating results and allows the review of Cadence's business from the same perspective as Cadence management, including forecasting and budgeting. The following tables reconcile the specific items excluded from GAAP operating margin, GAAP net income and GAAP net income per diluted share in the calculation of non-GAAP operating margin, non-GAAP net income and non-GAAP net income per diluted share for the periods shown below: Operating Margin Reconciliation Three Months Ended June 30, 2025 June 30, 2024 (unaudited) GAAP operating margin as a percent of total revenue 19.0 % 27.7 % Reconciling items to non-GAAP operating margin as a percent of total revenue: Stock-based compensation expense 9.3 % 8.3 % Amortization of acquired intangibles 1.8 % 1.9 % Acquisition and integration-related costs 2.0 % 1.9 % Restructuring 0.0 % 0.0 % Non-qualified deferred compensation expenses 0.6 % 0.2 % Special charges 0.0 % 0.1 % Loss related to contingent liability* 10.1 % 0.0 % Non-GAAP operating margin as a percent of total revenue 42.8 % 40.1 % * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Net Income Reconciliation Three Months Ended June 30, 2025 June 30, 2024 (in thousands) (unaudited) Net income on a GAAP basis $ 160,051 $ 229,520 Stock-based compensation expense 118,325 87,569 Amortization of acquired intangibles 23,703 20,155 Acquisition and integration-related costs 26,021 20,715 Restructuring 47 (33 ) Non-qualified deferred compensation expenses 7,778 1,697 Special charges — 1,233 Loss related to contingent liability* 128,545 — Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets (46,248 ) (27,048 ) Income tax effect of non-GAAP adjustments 31,658 16,890 Net income on a non-GAAP basis $ 449,880 $ 350,698 * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Diluted Net Income Per Share Reconciliation Three Months Ended June 30, 2025 June 30, 2024 (in thousands, except per share data) (unaudited) Diluted net income per share on a GAAP basis $ 0.59 $ 0.84 Stock-based compensation expense 0.43 0.32 Amortization of acquired intangibles 0.09 0.07 Acquisition and integration-related costs 0.09 0.08 Restructuring — — Non-qualified deferred compensation expenses 0.03 0.01 Special charges — — Loss related to contingent liability* 0.47 — Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets (0.17 ) (0.10 ) Income tax effect of non-GAAP adjustments 0.12 0.06 Diluted net income per share on a non-GAAP basis $ 1.65 $ 1.28 Shares used in calculation of diluted net income per share 272,899 273,520 * Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. Cadence Design Systems, Inc. Condensed Consolidated Balance Sheets June 30, 2025 and December 31, 2024 (In thousands) (Unaudited) June 30,2025 December 31,2024 Current assets: Cash and cash equivalents $ 2,822,762 $ 2,644,030 Receivables, net 670,166 680,460 Inventories 226,162 257,711 Prepaid expenses and other 503,453 433,878 Total current assets 4,222,543 4,016,079 Property, plant and equipment, net 482,131 458,200 Goodwill 2,599,798 2,378,671 Acquired intangibles, net 618,952 594,734 Deferred taxes 980,223 982,057 Other assets 605,051 544,741 Total assets $ 9,508,698 $ 8,974,482 Current liabilities: Accounts payable and accrued liabilities $ 766,636 $ 632,692 Current portion of deferred revenue 729,929 737,413 Total current liabilities 1,496,565 1,370,105 Long-term liabilities: Long-term portion of deferred revenue 154,448 115,168 Long-term debt 2,478,145 2,476,183 Other long-term liabilities 373,002 339,448 Total long-term liabilities 3,005,595 2,930,799 Stockholders' equity 5,006,538 4,673,578 Total liabilities and stockholders' equity $ 9,508,698 $ 8,974,482 Cadence Design Systems, Inc. Condensed Consolidated Income Statements For the Three and Six Months Ended June 30, 2025 and June 30, 2024 (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue: Product and maintenance $ 1,170,510 $ 960,457 $ 2,281,360 $ 1,873,842 Services 104,931 100,224 236,447 195,942 Total revenue 1,275,441 1,060,681 2,517,807 2,069,784 Costs and expenses: Cost of product and maintenance 139,298 94,363 255,970 169,758 Cost of services 44,869 44,907 95,330 94,709 Marketing and sales 200,595 186,725 403,295 367,314 Research and development 442,057 370,740 881,159 749,698 General and administrative 69,029 63,436 132,127 132,152 Amortization of acquired intangibles 9,204 6,667 18,126 12,074 Loss related to contingent liability 128,545 - 128,545 - Restructuring 47 (33 ) (62 ) 247 Total costs and expenses 1,033,644 766,805 1,914,490 1,525,952 Income from operations 241,797 293,876 603,317 543,832 Interest expense (28,948 ) (12,905 ) (58,066 ) (21,597 ) Other income, net 67,758 34,739 91,048 103,518 Income before provision for income taxes 280,607 315,710 636,299 625,753 Provision for income taxes 120,556 86,190 202,669 148,590 Net income $ 160,051 $ 229,520 $ 433,630 $ 477,163 Net income per share - basic $ 0.59 $ 0.85 $ 1.60 $ 1.77 Net income per share - diluted $ 0.59 $ 0.84 $ 1.59 $ 1.74 Weighted average common shares outstanding - basic 271,294 270,912 271,633 270,259 Weighted average common shares outstanding - diluted 272,899 273,520 273,264 273,532 Cadence Design Systems, Inc. Condensed Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2025 and June 30, 2024 (In thousands) (Unaudited) Six Months Ended June 30, June 30, 2025 2024 Cash and cash equivalents at beginning of period $ 2,644,030 $ 1,008,152 Cash flows from operating activities: Net income 433,630 477,163 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 106,592 87,202 Stock-based compensation 225,938 175,698 Gain on divestitures and investments, net (36,654 ) (80,599 ) Deferred income taxes 3,241 (9,506 ) ROU asset amortization and change in operating lease liabilities 2,629 (1,410 ) Other non-cash items 3,502 1,510 Changes in operating assets and liabilities, net of effect of acquired businesses: Receivables (11,211 ) (49,384 ) Inventories 7,528 (15,978 ) Prepaid expenses and other (24,201 ) (39,868 ) Other assets 12,239 (38,967 ) Accounts payable and accrued liabilities 115,603 (93,078 ) Deferred revenue 21,824 (18,599 ) Other long-term liabilities 3,964 15,013 Net cash provided by operating activities 864,624 409,197 Cash flows from investing activities: Purchases of investments (21,596 ) (2,095 ) Proceeds from the sale and maturity of investments 1,989 43,864 Proceeds from the sale of IP and other assets 11,500 - Purchases of property, plant and equipment (67,146 ) (78,800 ) Cash paid in business combinations, net of cash acquired (122,146 ) (720,821 ) Net cash used for investing activities (197,399 ) (757,852 ) Cash flows from financing activities: Proceeds from issuance of debt - 700,000 Payments of debt issuance costs - (944 ) Proceeds from issuance of common stock 78,322 133,272 Stock received for payment of employee taxes on vesting of restricted stock (94,334 ) (166,903 ) Payments for repurchases of common stock (525,016 ) (250,010 ) Net cash provided by (used for) financing activities (541,028 ) 415,415 Effect of exchange rate changes on cash and cash equivalents 52,535 (15,957 ) Increase in cash and cash equivalents 178,732 50,803 Cash and cash equivalents at end of period $ 2,822,762 $ 1,058,955 Cadence Design Systems, Inc. (Unaudited) Revenue Mix by Geography (% of Total Revenue) 2024 2025 GEOGRAPHY Q1 Q2 Q3 Q4 Year Q1 Q2 Americas 46% 49% 50% 49% 49% 48% 49% China 12% 12% 13% 13% 12% 11% 9% Other Asia 20% 19% 17% 17% 18% 19% 19% Europe, Middle East and Africa 17% 14% 14% 15% 15% 16% 16% Japan 5% 6% 6% 6% 6% 6% 7% Total 100% 100% 100% 100% 100% 100% 100% Revenue Mix by Product Category (% of Total Revenue) 2024 2025 PRODUCT CATEGORY Q1 Q2 Q3 Q4 Year Q1 Q2 Core EDA 76% 73% 70% 68% 71% 71% 71% Semiconductor IP 12% 13% 14% 13% 13% 14% 13% System Design and Analysis 12% 14% 16% 19% 16% 15% 16% Total 100% 100% 100% 100% 100% 100% 100% Cadence Design Systems, Inc. Impact of Non-GAAP Adjustments on Forward Looking Operating Margin As of July 28, 2025 (Unaudited) Three Months Ending Year Ending September 30, 2025 December 31, 2025 Forecast Forecast GAAP operating margin as a percent of total revenue 32% - 33% 28.5% - 29.5% Reconciling items to non-GAAP operating margin as a percent of total revenue: Stock-based compensation expense 9% 9% Amortization of acquired intangibles 2% 2% Acquisition and integration-related costs 2% 2% Loss related to contingent liability* 0% 2% Non-GAAP operating margin as a percent of total revenue† 45% - 46% 43.5% - 44.5% *Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. Cadence Design Systems, Inc. Impact of Non-GAAP Adjustments on Forward Looking Diluted Net Income Per Share As of July 28, 2025 (Unaudited) Three Months Ending Year Ending September 30, 2025 December 31, 2025 Forecast Forecast Diluted net income per share on a GAAP basis $1.14 to $1.20 $3.97 to $4.07 Stock-based compensation expense 0.44 1.69 Amortization of acquired intangibles 0.10 0.37 Acquisition and integration-related costs 0.07 0.31 Non-qualified deferred compensation expenses - 0.02 Special charges - 0.01 Loss related to contingent liability* - 0.47 Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets - (0.16) Income tax effect of non-GAAP adjustments - 0.17 Diluted net income per share on a non-GAAP basis† $1.75 to $1.81 $6.85 to $6.95 *Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. Cadence Design Systems, Inc. Impact of Non-GAAP Adjustments on Forward Looking Net Income As of July 28, 2025 (Unaudited) Three Months Ending Year Ending September 30, 2025 December 31, 2025 ($ in millions) Forecast Forecast Net income on a GAAP basis $314 to $330 $1,087 to $1,114 Stock-based compensation expense 120 462 Amortization of acquired intangibles 26 101 Acquisition and integration-related costs 20 86 Non-qualified deferred compensation expenses - 6 Special charges - 2 Loss related to contingent liability* - 129 Other income or expense related to investments, divestitures and non-qualified deferred compensation plan assets - (43) Income tax effect of non-GAAP adjustments - 47 Net income on a non-GAAP basis† $480 to $496 $1,877 to $1,904 *Related to resolution of previously disclosed legal proceedings with the DOJ and BIS. †The non-GAAP measures presented in the table above should not be considered a substitute for financial results and measures determined or calculated in accordance with GAAP. CDNS–IRCategory: Financial, Featured View source version on Contacts For more information, please contact:Cadence Investor Relations408-944-7100investor_relations@ Cadence Newsroom408-944-7039newsroom@
