Name: Cadence Design Systems Inc. (NASDAQ:CDNS) | Cash Flow Statement (Quarterly)
Creator: Stock Analysis on Net

Cash Flow Statement
Quarterly Data

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.

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Cadence Design Systems Inc., consolidated cash flow statement (quarterly data)

US$ in thousands

3 months ended:	Sep 30, 2026	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	289,747)	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	118,548)	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	144,763)	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	(2,794)	(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	42,495)	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	(3,177)	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	3,345)	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	(45,959)	(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	(65,940)	(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	(16,484)	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	(18,512)	(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	(7,538)	(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	(20,893)	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	6,124)	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	(169,202)	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	133,978)	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	423,725)	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	(58,601)	(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	3,640)	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	(61,806)	(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	(43,137)	(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	(159,904)	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	275,000)	175,000)	425,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	50,000)	135,000)	450,000)	—)	—)	—)	—)	—)	—)
Payments on revolving credit facility	(125,000)	(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	50,233)	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	(54,886)	(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	(400,019)	(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	(254,672)	(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	2,428)	(1,019)	(12,972)	(2,726)	(11,805)	38,344)	14,191)	(32,219)	21,380)	(6,164)	(9,793)	10,360)	(9,662)	(8,486)	261)	13,966)	(28,568)	(27,994)	(10,230)	(2,004)	(2,785)	6,480)	(5,395)
Increase (decrease) in cash and cash equivalents	11,577)	33,775)	(1,594,649)	248,071)	(69,516)	45,088)	133,644)	(142,010)	1,727,085)	46,537)	4,266)	46,170)	88,057)	(43,038)	34,638)	(143,726)	(3,493)	(105,208)	45,812)	75,121)	166,659)	104,179)	(185,451)

The financial data reveals a company with strong operational cash generation used to fund an aggressive inorganic growth strategy and consistent shareholder returns. There is a clear trend of increasing operational efficiency and scale, punctuated by significant capital allocation toward business combinations and a strategic shift in financing through debt issuance.

Operational Cash Flow Trends: Net cash provided by operating activities exhibits a long-term growth trajectory, rising from 208.4 million in April 2021 to a peak of 634.9 million in June 2026. This growth is supported by a general increase in net income, which grew from 187.2 million in early 2021 to reach 367.1 million by June 2026, despite some quarterly volatility. Non-cash adjustments have played a significant role in this trend; stock-based compensation increased steadily from 52.6 million in April 2021 to 144.8 million by September 2026, and depreciation and amortization nearly tripled from 36.2 million to 118.5 million over the same period.
Investing Activity and Capital Allocation: Investing activities are characterized by high volatility due to substantial expenditures on business combinations. Major acquisitions are evident in October 2022 (561.2 million), June 2024 (649.4 million), and a massive transaction in March 2026 totaling 2.07 billion. Alongside these acquisitions, capital expenditures for property, plant, and equipment have trended upward, increasing from quarterly spends of approximately 14-18 million in 2021 to 61.8 million by September 2026, indicating expanding infrastructure requirements.
Financing and Capital Structure: The financing strategy involves a consistent program of share repurchases, with quarterly outflows typically ranging between 125 million and 400 million. To balance these outflows and fund acquisitions, the company shifted toward debt financing in 2024, notably issuing 700 million in June 2024 and 2.5 billion in September 2024. This influx of debt-related cash explains the significant spike in the total cash position during the third quarter of 2024, which was subsequently utilized for the large-scale acquisition in early 2026.
Working Capital Dynamics: Changes in operating assets and liabilities show significant quarterly swings. Receivables and accounts payable fluctuate substantially, suggesting seasonal billing cycles or the timing of large contract payments. A notable trend is the volatility in deferred revenue, which peaked at 149.3 million in June 2026, reflecting timing differences in revenue recognition and cash collection.

Overall, the company maintains a highly liquid position supported by robust operating cash flows, though it accepts significant short-term cash volatility to execute large-scale strategic acquisitions. The transition from relying primarily on operational cash and equity for growth to utilizing large-scale debt issuance suggests an increased appetite for aggressive expansion in the later periods of the analyzed timeframe.

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Cadence Design Systems Inc. (NASDAQ:CDNS)

Cash Flow StatementQuarterly Data

Cash Flow Statement
Quarterly Data