The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.
The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.
Cadence Design Systems Inc., consolidated cash flow statement (quarterly data)
US$ in thousands
3 months ended:
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
Sep 30, 2024
Jun 30, 2024
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Dec 31, 2022
Oct 1, 2022
Jul 2, 2022
Apr 2, 2022
Dec 31, 2021
Oct 2, 2021
Jul 3, 2021
Apr 3, 2021
Net income
367,076)
335,660)
388,136)
287,122)
160,051)
273,579)
340,210)
238,111)
229,520)
247,643)
323,899)
254,321)
221,120)
241,804)
240,392)
186,305)
186,920)
235,335)
176,579)
176,307)
155,900)
187,169)
Depreciation and amortization
116,989)
84,622)
64,559)
56,677)
53,676)
52,916)
54,683)
55,050)
47,646)
39,556)
38,509)
36,351)
36,032)
34,400)
33,910)
30,488)
32,865)
34,825)
35,346)
35,163)
35,581)
36,218)
Stock-based compensation
146,890)
138,183)
113,164)
116,073)
118,325)
107,613)
106,508)
109,013)
87,569)
88,129)
86,683)
88,032)
76,608)
74,288)
73,249)
73,451)
64,270)
59,469)
54,230)
52,746)
50,518)
52,596)
(Gain) loss on divestitures and investments, net
(71,892)
(13,925)
(46,954)
14,519)
(38,445)
1,791)
14,865)
16,141)
(25,205)
(55,394)
(21,870)
(13,286)
677)
(123)
648)
1,653)
1,086)
2,038)
(250)
465)
638)
(1,433)
Deferred income taxes
3,061)
73,128)
(23,708)
86,515)
5,102)
(1,861)
(123,655)
4,424)
(7,983)
(1,523)
(13,006)
(3,335)
(8,531)
(11,640)
(57,772)
(8,237)
(16,677)
(24,920)
(8,612)
(36,276)
(1,000)
2,710)
ROU asset amortization and change in operating lease liabilities
1,322)
(250)
4,314)
(927)
4,075)
(1,446)
(820)
310)
(493)
(917)
3,135)
859)
(2,151)
(1,392)
4,225)
(2,625)
816)
926)
(8,689)
(434)
(347)
(2,136)
Other non-cash items
2,292)
1,629)
2,453)
1,211)
2,640)
862)
2,324)
2,304)
954)
556)
1,974)
1,416)
2,556)
624)
270)
679)
748)
12)
839)
220)
469)
643)
Receivables
(19,778)
(18,548)
(184,228)
(79,455)
(113,347)
102,136)
(135,521)
4,618)
(152,375)
102,991)
(61,772)
8,816)
49,927)
(8,719)
(81,162)
6,727)
(35,610)
(28,426)
(13,118)
63,148)
(2,089)
(45,927)
Inventories
(75,611)
(31,376)
(30,171)
(68,386)
(7,490)
15,018)
56,408)
(123,201)
(5,289)
(10,689)
(18,602)
(30,312)
(17,380)
399)
(15,053)
(8,387)
(4,213)
4,580)
(13,419)
(11,081)
(13,858)
(669)
Prepaid expenses and other
47,196)
9,100)
58,216)
9,367)
(34,517)
10,316)
33,256)
(74,917)
(24,795)
(15,073)
5,708)
(17,486)
(5,419)
56,212)
(69,523)
(9,975)
(3,848)
44,419)
(70,974)
28,942)
10,704)
(3,014)
Other assets
(18,600)
(1,870)
(24,380)
(6,428)
2)
12,237)
20,625)
30,208)
(31,432)
(7,535)
(19,204)
5,258)
10,246)
(42,084)
(18,577)
3,168)
2,888)
11,588)
(15,260)
1,136)
731)
6,260)
Accounts payable and accrued liabilities
(22,918)
(232,568)
208,134)
(138,840)
185,224)
(69,621)
11,818)
114,936)
24,213)
(117,291)
(37,696)
80,160)
80,866)
(117,915)
89,431)
7,044)
75,673)
(58,203)
56,855)
25,272)
65,998)
(80,769)
Deferred revenue
149,306)
20,422)
24,955)
22,632)
36,201)
(14,377)
59,798)
25,279)
5,342)
(23,941)
(6,955)
(15,897)
(39,381)
40,650)
17,750)
33,252)
24,235)
56,225)
16,548)
(43,103)
68,120)
59,166)
Other long-term liabilities
9,596)
(8,425)
(995)
10,582)
6,106)
(2,142)
860)
7,719)
8,293)
6,720)
(8,712)
1,017)
8,600)
897)
45,847)
3,567)
(4,612)
(1,260)
5,782)
3,778)
9,011)
(2,372)
Changes in operating assets and liabilities, net of effect of acquired businesses
69,191)
(263,265)
51,531)
(250,528)
72,179)
53,567)
47,244)
(15,358)
(176,043)
(64,818)
(147,233)
31,556)
87,459)
(70,560)
(31,287)
35,396)
54,513)
28,923)
(33,586)
68,092)
138,617)
(67,325)
Adjustments to reconcile net income to net cash provided by operating activities
267,853)
20,122)
165,359)
23,540)
217,552)
213,442)
101,149)
171,884)
(73,555)
5,589)
(51,808)
141,593)
192,650)
25,597)
23,243)
130,805)
137,621)
101,273)
39,278)
119,976)
224,476)
21,273)
Net cash provided by operating activities
634,929)
355,782)
553,495)
310,662)
377,603)
487,021)
441,359)
409,995)
155,965)
253,232)
272,091)
395,914)
413,770)
267,401)
263,635)
317,110)
324,541)
336,608)
215,857)
296,283)
380,376)
208,442)
Purchases of investments
(10,816)
(29,064)
(5,713)
(13,586)
(10,127)
(11,469)
(2,887)
—)
—)
(2,095)
(31,020)
(115,938)
(20,157)
(9,055)
—)
—)
—)
(1,000)
—)
—)
—)
—)
Proceeds from the sale and maturity of investments
122,446)
40,443)
136,788)
1,504)
743)
1,246)
2,324)
1,792)
487)
43,377)
601)
62,669)
1,403)
102)
366)
—)
—)
—)
—)
128)
—)
—)
Proceeds from the sale of IP and other assets
—)
—)
—)
—)
—)
11,500)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
Purchases of property, plant and equipment
(52,628)
(48,820)
(41,041)
(33,684)
(44,085)
(23,061)
(37,202)
(26,540)
(29,199)
(49,601)
(33,703)
(21,979)
(19,936)
(26,719)
(36,920)
(44,093)
(24,072)
(18,130)
(15,321)
(18,838)
(14,171)
(16,968)
Purchases of intangible assets
(6,975)
—)
—)
—)
—)
—)
—)
—)
—)
—)
(166)
—)
—)
—)
—)
(250)
—)
(750)
(1,583)
—)
—)
—)
Cash paid in business combinations, net of cash acquired
(25,758)
(2,074,534)
(178,843)
(128,549)
(122,146)
—)
(2,247)
(14,506)
(649,371)
(71,450)
(34,388)
(108,584)
(55,379)
—)
(27,622)
(561,163)
(25,000)
—)
(6,175)
634)
(31,398)
(189,262)
Net cash used for investing activities
26,269)
(2,111,975)
(88,809)
(174,315)
(175,615)
(21,784)
(40,012)
(39,254)
(678,083)
(79,769)
(98,676)
(183,832)
(94,069)
(35,672)
(64,176)
(605,506)
(49,072)
(19,880)
(23,079)
(18,076)
(45,569)
(206,230)
Proceeds from revolving credit facility
175,000)
425,000)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
50,000)
135,000)
450,000)
—)
—)
—)
—)
—)
—)
Payments on revolving credit facility
(600,000)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
(30,000)
(120,000)
(185,000)
(300,000)
—)
—)
—)
—)
—)
—)
Proceeds from issuance of debt
—)
—)
—)
—)
—)
—)
—)
2,496,595)
700,000)
—)
—)
—)
—)
—)
—)
300,000)
—)
—)
—)
—)
—)
—)
Payments of debt
—)
—)
—)
—)
—)
—)
(350,000)
(1,000,000)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
Payment of debt issuance costs
—)
—)
—)
—)
—)
—)
(1,159)
(21,725)
(944)
—)
—)
—)
—)
—)
—)
(425)
—)
—)
—)
—)
(1,285)
—)
Proceeds from issuance of common stock
16,230)
72,610)
7,832)
59,747)
1,533)
76,789)
10,304)
60,661)
16,547)
116,725)
1,616)
53,839)
12,132)
65,370)
1,649)
53,458)
4,551)
45,673)
4,140)
31,380)
5,868)
46,384)
Stock received for payment of employee taxes on vesting of restricted stock
(17,628)
(123,094)
(21,712)
(53,796)
(21,768)
(72,566)
(20,275)
(50,559)
(15,780)
(151,123)
(14,214)
(43,194)
(11,276)
(67,712)
(8,771)
(39,549)
(7,201)
(56,343)
(9,797)
(30,132)
(21,668)
(56,385)
Payments for repurchases of common stock
(200,006)
(200,000)
(200,009)
(200,009)
(175,009)
(350,007)
(150,008)
(150,008)
(125,004)
(125,006)
(125,007)
(125,008)
(325,109)
(125,010)
(300,029)
(150,013)
(350,033)
(250,016)
(109,996)
(110,011)
(220,023)
(172,267)
Net cash provided by (used for) financing activities
(626,404)
174,516)
(213,889)
(194,058)
(195,244)
(345,784)
(511,138)
1,334,964)
574,819)
(159,404)
(137,605)
(114,363)
(354,253)
(197,352)
(357,151)
313,471)
(352,683)
(260,686)
(115,653)
(108,763)
(237,108)
(182,268)
Effect of exchange rate changes on cash and cash equivalents
The financial data reveals a company with strong operational cash generation that is being leveraged to fund an aggressive inorganic growth strategy through significant business combinations. Net income and net cash provided by operating activities exhibit a consistent long-term upward trend, though they are subject to quarterly volatility.
Operating Cash Flow Trends
Net cash provided by operating activities has grown substantially, rising from 208.4 million USD in April 2021 to a peak of 634.9 million USD by June 2026. This growth is supported by a general increase in net income, which climbed from an average of approximately 170 million USD per quarter in 2021 to over 300 million USD in several quarters of 2025 and 2026. Non-cash adjustments, specifically stock-based compensation and depreciation and amortization, have also trended upward, with stock-based compensation increasing from roughly 52 million USD per quarter in early 2021 to 146.9 million USD by June 2026.
Investing Activities and Strategic Acquisitions
Investing activities are characterized by extreme volatility due to large-scale business combinations. Several significant cash outflows are observed, most notably a 561.2 million USD expenditure in October 2022, a 649.4 million USD expenditure in March 2024, and a major 2.07 billion USD acquisition in March 2026. These expenditures are periodically offset by the sale and maturity of investments, though the scale of acquisitions remains the primary driver of investing cash flows. Capital expenditures for property, plant, and equipment have also increased over time, moving from approximately 15-18 million USD per quarter in 2021 to over 50 million USD per quarter by mid-2026.
Financing and Capital Allocation
Financing activities demonstrate a dual strategy of leveraging debt to fund acquisitions and returning capital to shareholders. A consistent pattern of common stock repurchases is evident, with quarterly outflows typically ranging between 125 million USD and 350 million USD. To maintain liquidity during periods of high acquisition spending, the company has utilized the debt markets, evidenced by a 700 million USD issuance in June 2024 and a 2.5 billion USD issuance in September 2024. These debt-driven inflows provided the necessary capital to sustain both the acquisition pace and the share buyback program.
Working Capital and Non-Cash Dynamics
Changes in operating assets and liabilities show significant fluctuations, particularly regarding receivables and accounts payable. There is a notable increase in the volatility of deferred income taxes and gains or losses on divestitures in the later periods, with large swings appearing in 2024 and 2025. The ROU asset amortization and lease liability changes remain relatively small compared to the overall cash flow volume, indicating that lease obligations are not a primary driver of liquidity.
Overall, the financial trajectory indicates a high-growth phase where operational efficiency and strong earnings are supplemented by strategic debt issuance to facilitate massive capital deployments into business acquisitions, while simultaneously maintaining a disciplined shareholder return policy through steady stock repurchases.
