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:
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
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
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
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
(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
(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
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
2,453)
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
(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
(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
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
(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
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
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
(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
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
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
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
(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
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
(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
—)
—)
—)
—)
—)
—)
—)
—)
(166)
—)
—)
—)
—)
(250)
—)
(750)
(1,583)
—)
—)
—)
Cash paid in business combinations, net of cash acquired
(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
(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
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
50,000)
135,000)
450,000)
—)
—)
—)
—)
—)
—)
Payments on revolving credit facility
—)
—)
—)
—)
—)
—)
—)
—)
—)
—)
(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
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
(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
(200,009)
(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
(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 statement information reveals fluctuating cash flow patterns over the analyzed period. Net cash provided by operating activities generally increased over time, with significant peaks in certain quarters, but also experienced volatility. Investing and financing activities demonstrate substantial shifts, impacting overall cash positions.
Net Income
Net income exhibited considerable variation. While generally increasing from 2021 to late 2023, a substantial decrease is observed in the first half of 2024, followed by a recovery. The final quarters of the period show a return towards levels seen earlier in the timeframe, but with continued fluctuation.
Operating Activities
Net cash provided by operating activities showed a generally upward trend, peaking in the June 2023 quarter. However, this was followed by a decline in the subsequent quarters, with a notable increase in the final quarter of 2025. Adjustments to reconcile net income to net cash provided by operating activities were consistently positive, indicating non-cash items significantly contributed to cash flow from operations. Stock-based compensation and depreciation/amortization consistently added to operating cash flow.
Investing Activities
Net cash used for investing activities was consistently negative, indicating ongoing investments. Significant outflows were observed related to purchases of property, plant, and equipment, and, particularly, purchases of intangible assets and business combinations. Proceeds from the sale of investments and IP assets provided some offsetting inflows, but were generally insufficient to offset the outflows. A particularly large cash outflow related to business combinations occurred in late 2022 and early 2024.
Financing Activities
Net cash provided by (used for) financing activities demonstrated substantial volatility. Significant inflows were generated through debt issuance and common stock issuance, particularly in late 2023 and early 2024. However, these were offset by substantial outflows related to stock repurchases and payments on revolving credit facilities. The revolving credit facility was utilized actively, with both proceeds and payments fluctuating throughout the period. A large net inflow occurred in the third quarter of 2023, followed by a substantial outflow in the fourth quarter of the same year.
Working Capital
Changes in operating assets and liabilities had a significant impact on cash flow. Fluctuations in receivables, inventories, and other assets contributed to substantial variability in cash flow from operations. Accounts payable and deferred revenue also exhibited considerable changes, influencing the overall cash position. The impact of these changes was often substantial, exceeding the impact of net income in certain periods.
Cash Position
The overall effect of these activities resulted in a fluctuating cash position. While there were periods of significant cash increases, particularly in 2023 and early 2024, there were also periods of substantial decreases. Exchange rate changes had a relatively minor, but noticeable, impact on cash and cash equivalents.
In summary, the company experienced dynamic cash flow patterns driven by a combination of operating performance, investment decisions, and financing activities. The significant fluctuations observed across all three activity types suggest a complex financial strategy and a sensitivity to external factors.
