REVENUE (Tables)

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue from external customers by product category

The following table shows the percentage of revenue contributed by each of Cadence’s product categories for the three and six months ended June 30, 2025 and June 30, 2024:

	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Core EDA*	71	%	73	%	71	%	74	%
Semiconductor IP (“IP”)	13	%	13	%	13	%	13	%
System Design and Analysis	16	%	14	%	16	%	13	%
Total	100	%	100	%	100	%	100	%

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* Includes immaterial amount of revenue accounted for under leasing arrangements.

Disaggregation of revenue

The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three and six months ended June 30, 2025 and June 30, 2024:

	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Revenue recognized over time	73	%	85	%	75	%	86	%
Other recurring revenue	5	%	3	%	5	%	3	%
Recurring revenue	78	%	88	%	80	%	89	%
Up-front revenue	22	%	12	%	20	%	11	%
Total revenue	100	%	100	%	100	%	100	%

Contract balances

Cadence’s contract balances as of June 30, 2025 and December 31, 2024 were as follows:

	As of
	June 30, 2025		December 31, 2024
	(In thousands)
Contract assets	$	83,599	$	29,339
Deferred revenue	884,377		852,581