NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2025

Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting.

The calculations for basic and diluted net income per share for the three and six months ended June 30, 2025 and June 30, 2024 are as follows:


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
	(In thousands, except per share amounts)
Net income	$	160,051	$	229,520	$	433,630	$	477,163
Weighted average common shares used to calculate basic net income per share	271,294		270,912		271,633		270,259
Stock-based awards	1,605		2,608		1,631		3,273
Weighted average common shares used to calculate diluted net income per share	272,899		273,520		273,264		273,532
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

The following table presents shares of Cadence’s common stock outstanding for the three and six months ended June 30, 2025 and June 30, 2024 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive:


	Three Months Ended		Six Months Ended
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
	(In thousands)
Market-based awards	1,472	—	830	—
Options to purchase shares of common stock	206	229	220	144
Non-vested shares of restricted stock	22	3	106	6
Total potential common shares excluded	1,700	232	1,156	150