RECEIVABLES, NET

9 Months Ended

Sep. 30, 2026

Cadence’s current and long-term receivables balances as of September 30, 2026 and December 31, 2025 were as follows:


	As of
	September 30, 2026		December 31, 2025
	(In thousands)
Accounts receivable	$	560,975	$	492,834
Unbilled accounts receivable	553,903		455,993
Long-term receivables	60,900		52,451
Total receivables	1,175,778		1,001,278
Less allowance for doubtful accounts	(4,287)		(3,888)
Total receivables, net	$	1,171,491	$	997,390

Although most of Cadence’s revenue from its hardware business comes from sales of hardware, Cadence also leases its hardware products to some customers. Revenue from leasing arrangements of its hardware product offerings is immaterial to Cadence’s condensed consolidated financial statements. Assets subject to sales-type leases are reclassified at lease commencement and a net investment in the lease asset is recognized in unbilled accounts receivable in Cadence’s condensed consolidated balance sheets. Cadence’s net investment in sales-type leases related to its hardware business was $145.0 million and $103.5 million as of September 30, 2026 and December 31, 2025, respectively. The portion of Cadence’s net investment in sales-type leases included in long-term receivables was $33.0 million and $34.0 million as of September 30, 2026 and December 31, 2025, respectively.

Cadence’s customers are primarily concentrated within the semiconductor and electronics systems industries. As of September 30, 2026 and December 31, 2025, no single customer accounted for 10% or more of Cadence’s total receivables.