Common-Size Income Statement
Quarterly Data
Cadence Design Systems Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
The common-size income statement reveals a gradual shift in revenue composition and a moderate compression of gross margins over the analyzed period. While the organization maintains high overall profitability, fluctuations in operating expenses and the occurrence of one-time liabilities have impacted the consistency of net margins.
- Revenue Mix and Composition
- A steady transition is observed from a heavily product-centric model, where product and maintenance accounted for 94.98% of revenue in April 2021, toward a slightly higher reliance on services. Service revenue increased from 5.02% in early 2021 to a peak of 10.59% in March 2025, eventually stabilizing at 8.94% by September 2026.
- Gross Margin Analysis
- Gross margins experienced a gradual downward trend, moving from peaks exceeding 90% in late 2021 to a range between 84% and 86% between 2024 and 2026. This compression is primarily driven by an increase in the cost of product and maintenance, which rose from an average of 6% to 8% in the early periods to consistently exceed 10% in the later years of the analysis.
- Operating Expenditure Patterns
- Research and development remains the most significant operating expense, though a general trend of efficiency or reallocation is evident as it declined from a peak of 39.16% in July 2021 to 32.91% by September 2026. Similarly, marketing and sales expenses saw a reduction from peaks of 19.15% to a range of 14% to 15% in the final year.
- Operating and Net Profitability
- Operating income typically fluctuated between 25% and 33% of revenue. A significant anomaly occurred in June 2025, where operating income dropped to 18.96% due to a loss related to a contingent liability representing 10.08% of revenue. Net income margins generally mirrored this volatility, remaining largely between 20% and 27% before dipping to 12.55% in June 2025 and concluding the period at 17.74% in September 2026.
- Non-Operating and Other Items
- Interest expenses as a percentage of revenue exhibited a steady increase, rising from approximately 0.5% in 2021 to over 2% starting in late 2024. Furthermore, the amortization of acquired intangibles increased significantly in 2026, peaking at 2.17% of revenue in June 2026, suggesting increased acquisition activity or changes in amortization schedules.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?