STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2026

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and nine months ended September 30, 2026 and September 30, 2025 as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
	(In thousands)
Cost of product and maintenance	$	3,010	$	2,014	$	9,221	$	6,290
Cost of services	3,448		2,337		10,529		7,252
Marketing and sales	24,978		21,726		75,365		66,254
Research and development	90,484		70,204		271,143		210,481
General and administrative	22,843		19,792		63,578		51,734
Total stock-based compensation expense	$	144,763	$	116,073	$	429,836	$	342,011

Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $857.4 million as of September 30, 2026, which is expected to be recognized over a weighted average vesting period of 2.0 years.