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Operating cash flow exceeded net income in seven of the last ten quarters, with Q2 2026 OCF/NI at 1.73x and FCF margin expanding to 36.8%, though working capital swings and aggressive buybacks ($200M quarterly) create volatility.
Cadence Design Systems, Inc. (CDNS) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1.85B | 1.73B | 1.26B | 1.35B | 1.24B | 1.1B | 904.92M | 729.6M | 604.75M | 470.74M | 444.88M | 378.2M | 316.72M | 367.61M | 315.99M | 240.34M | 199.14M | 25.64M | 70.29M | 402.44M | 421.22M | 426.28M | 372.52M | 171M | 350.2M | 250.91M | 142.1M | 127.22M | 246.07M | 198.36M | 175.31M |
| Operating CF Margin % | - | 32.64% | 27.16% | 32.99% | 34.87% | 36.84% | 33.73% | 31.23% | 28.29% | 24.23% | 24.5% | 22.22% | 20.03% | 25.18% | 23.82% | 20.9% | 21.28% | 3.01% | 6.77% | 24.92% | 28.39% | 32.07% | 31.11% | 15.28% | 27.08% | 17.54% | 11.11% | 11.64% | 20.23% | 21.66% | 23.64% |
| Operating CF Growth % | 42.38% | 37.14% | -6.57% | 8.64% | 12.8% | 21.66% | 24.03% | 20.64% | 28.47% | 5.81% | 17.63% | 19.41% | -13.84% | 16.33% | 31.48% | 20.69% | 676.78% | -63.52% | -82.53% | -4.46% | -1.19% | 14.43% | 117.85% | -51.17% | 39.57% | 76.57% | 11.69% | -48.3% | 24.05% | 13.15% | -11.05% |
| Net Income | 1.38B | 1.11B | 1.06B | 1.04B | 848.95M | 695.96M | 590.64M | 988.98M | 345.78M | 204.1M | 203.09M | 252.42M | 158.9M | 164.24M | 439.95M | 72.23M | 142.34M | -149.87M | -1.85B | 296.25M | 142.59M | 49.34M | 74.47M | -17.57M | 71.95M | 141.29M | 49.98M | -14.07M | 31.98M | 169.47M | 29.04M |
| Depreciation & Amortization | 325.86M | 233.84M | 195.01M | 140.37M | 135.43M | 130.7M | 150.14M | 123.35M | 118.72M | 115.52M | 119.59M | 118.17M | 115.63M | 98.31M | 89.22M | 91.65M | 88.33M | 93.14M | 128.72M | 130.65M | 147.12M | 184.72M | 210.61M | 232.73M | 242.54M | 230.43M | 206.81M | 163.9M | 102.41M | 56.64M | 51.74M |
| Stock-Based Compensation | 514.31M | 455.18M | 391.22M | 325.61M | 270.44M | 210.09M | 197.27M | 181.55M | 167.72M | 130.02M | 109.22M | 92.34M | 83.79M | 66.28M | 47.56M | 43.59M | 43.46M | 54.71M | 81.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 139M | 66.05M | -128.74M | -36.51M | -107.61M | -43.18M | -26.12M | -576.74M | -11.68M | 79.93M | -4.87M | -13.15M | 12.48M | -2.37M | -240.42M | -7.81M | -64.19M | -3.44M | 205.74M | 12.81M | 29.54M | -22.97M | -15.7M | -60.05M | -23.87M | -13.19M | -29.04M | -1.43M | 29.23M | -68.47M | -15.94M |
| Other Non-Cash Items | -109.22M | -61.92M | -43.45M | -22.66M | 7.13M | 1.59M | 8.41M | 6.15M | 6.17M | -7.59M | -552K | 7.92M | 22.68M | 24M | 20.72M | 18.86M | -2.21M | 57.7M | 1.48B | 207.34M | 288.47M | 264.56M | 66.79M | 71.58M | 94.27M | 120.34M | -10.74M | 62.88M | 234.85M | 49.32M | 110.93M |
| Working Capital Changes | -393.07M | -73.25M | -208.97M | -98.78M | 87.55M | 105.8M | -15.42M | 6.31M | -21.96M | -51.25M | 18.41M | -79.5M | -76.76M | 17.13M | -41.03M | 21.83M | -24.39M | -26.59M | 30.11M | -346.03M | -186.5M | -49.37M | 36.34M | -55.7M | -54.08M | -227.96M | -74.91M | -84.04M | -135.89M | 10.37M | -451K |
| Change in Receivables | -302.01M | -274.89M | -180.29M | -11.75M | -138.47M | 2.01M | -25.93M | -4.72M | -87.08M | -28.41M | -3.3M | -44.73M | -17.93M | -3.61M | 45.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -205.54M | -91.03M | -82.77M | -65.89M | -23.07M | -39.03M | -25.68M | -33.02M | 752K | 5.03M | 4.93M | -1.12M | -11.71M | -14.59M | 5.25M | -6.82M | -26.53M | 3.9M | 2.58M | 6.2M | -10.87M | -7.59M | -3.56M | -7.31M | -801K | -16.52M | -5.74M | -9.97M | 0 | 0 | -981K |
| Change in Payables | 0 | 184.9M | 0 | 5.42M | 113.94M | 67.36M | 18.39M | 33.91M | 1.55M | -25.99M | 2.65M | 15.32M | 3.86M | 41.73M | 17.52M | -46.95M | 60.28M | -94.85M | -42.88M | 0 | 0 | 20.33M | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -2.35B | -460.52M | -837.12M | -412.25M | -738.63M | -292.95M | -292.16M | -105.71M | -173.84M | -191.21M | 1.36M | -44.5M | -198.01M | -426.89M | -201.24M | -56.5M | -285.11M | -50.51M | -126.89M | -108.44M | -111.76M | -222.7M | -214.95M | -325.98M | -138.64M | -161.32M | -226M | -254.54M | -516.6M | -195.1M | -85.7M |
| Capital Expenditures | -176.17M | -141.87M | -142.54M | -102.34M | -124.22M | -66.88M | -94.81M | -74.61M | -61.5M | -57.9M | -53.71M | -44.81M | -39.81M | -44.93M | -35.97M | -31.42M | -37.49M | -42.08M | -99.68M | -83.8M | -76.05M | -71.66M | -61.78M | -82.88M | -127.71M | -154.31M | -119.47M | -110.44M | -114.43M | -92.43M | -62.09M |
| CapEx % of Revenue | 3.02% | 2.68% | 3.07% | 2.5% | 3.49% | 2.24% | 3.53% | 3.19% | 2.88% | 2.98% | 2.96% | 2.63% | 2.52% | 3.08% | 2.71% | 2.73% | 4.01% | 4.94% | 9.6% | 5.19% | 5.12% | 5.39% | 5.16% | 7.4% | 9.88% | 10.79% | 9.34% | 10.1% | 9.41% | 10.09% | 8.37% |
| Acquisitions | -2.41B | -429.54M | -737.57M | -198.35M | -613.78M | -226.2M | -197.56M | -338K | 0 | -143.25M | -41.63M | 0 | -167.12M | -392.82M | -66.43M | -44.05M | -256.12M | -14.13M | -20.93M | -80.72M | -65.78M | -297.13M | -115.17M | -182.25M | -43.43M | 5.17M | -4.5M | -133.06M | -352.33M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -6.97M | 11.5M | 0 | -166K | 0 | -1.58M | -197.34M | 0 | 0 | 0 | 923K | 0 | 0 | 0 | 0 | 0 | 900K | 3.86M | -4.39M | 46.5M | 317K | 16.84M | -23.3M | -73.27M | -6.82M | 57.87M | -59.69M | -63.38M | -120.33M | -6.51M | -15.75M |
| Cash from Financing | -859.84M | -948.98M | 1.24B | -803.57M | -657.05M | -643.79M | -415.29M | -443.89M | -567.94M | -70.15M | -592.7M | -626.31M | 288.96M | -116.29M | 15.83M | -144.8M | 59.94M | 20.97M | -443.42M | -170.07M | -233.93M | 205.35M | -21.08M | 149.22M | -54.1M | 32.91M | 63.21M | 31.84M | 248.67M | -73.67M | 115.28M |
| Debt Issued (Net) | 425M | 0 | 1.85B | -100M | 300M | 0 | 0 | -100M | -288.87M | 38.87M | 300M | -350M | 348.65M | -144.64M | 0 | -155.84M | 157.64M | -2.47M | -230.21M | -28M | 139.52M | 159.94M | -370K | 366.14M | 50.47M | -2.3M | -23.7M | -111.2M | 132.2M | -25.2M | 17.1M |
| Equity Issued (Net) | -643.61M | -779.13M | -583.53M | -567.18M | -1.16B | -642.51M | -415.29M | -253.31M | -209.15M | -108.22M | -997.51M | -291.9M | -124.84M | 22.52M | 16.96M | 5.49M | -35.29M | 28.01M | -225.76M | -163.16M | -427.99M | 45.41M | -18.79M | -70.82M | -104.57M | -199.16M | -115.63M | -24.6M | -66M | -28.1M | 102M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -800.02M | -925.03M | -787.76M | -700.13M | -1.16B | -730.28M | -490.09M | -396.73M | -319.98M | -157.19M | -960.29M | -366.84M | -124.84M | -20.14M | -15.73M | -14.22M | -48.94M | 0 | -273.95M | -418.62M | -624.04M | -101.07M | -94.11M | -213.83M | -181.8M | -299.04M | -232.96M | -115.8M | -170.8M | -105.1M | -128.5M |
| Other Financing | -641.23M | -169.84M | -23.83M | -136.4M | 204.91M | -1.28M | 0 | -90.58M | -69.92M | -793K | 104.82M | 15.59M | 65.16M | 5.83M | -1.13M | 5.55M | -62.4M | -4.58M | 12.55M | 21.09M | 54.54M | 0 | -1.92M | -146.1M | 0 | -1.44M | 202.54M | 167.6M | 211.9M | -100K | -100K |
| Net Change in Cash | -1.38B | 357.29M | 1.64B | 125.83M | -206.62M | 160.51M | 223.22M | 171.91M | -154.79M | 222.85M | -151.45M | -315.48M | 395.9M | -190.1M | 124.75M | 44.19M | -11.71M | 860K | -494.67M | 128.58M | 73.03M | 412.8M | 139.34M | 13.2M | 165.02M | 121.09M | -26.18M | -97.67M | -23.96M | -77.49M | 199.65M |
| Free Cash Flow | 1.68B | 1.59B | 1.12B | 1.25B | 1.12B | 1.03B | 810.11M | 655M | 543.25M | 412.84M | 391.17M | 333.39M | 276.91M | 322.68M | 280.03M | 208.92M | 161.66M | -16.45M | -29.39M | 318.64M | 345.17M | 354.63M | 310.74M | 88.12M | 222.49M | 96.6M | 22.63M | 16.78M | 131.64M | 105.93M | 113.22M |
| FCF Margin % | 28.76% | 29.96% | 24.09% | 30.48% | 31.38% | 34.6% | 30.2% | 28.04% | 25.41% | 21.25% | 21.54% | 19.59% | 17.52% | 22.1% | 21.11% | 18.17% | 17.27% | -1.93% | -2.83% | 19.73% | 23.26% | 26.68% | 25.95% | 7.87% | 17.21% | 6.75% | 1.77% | 1.53% | 10.82% | 11.57% | 15.27% |
| FCF Growth % | 5.91% | 41.94% | -10.32% | 11.54% | 8.08% | 27.65% | 23.68% | 20.57% | 31.59% | 5.54% | 17.33% | 20.4% | -14.18% | 15.23% | 34.04% | 29.24% | 1083% | 44.05% | -109.22% | -7.69% | -2.67% | 14.12% | 252.64% | -60.39% | 130.32% | 326.89% | 34.87% | -87.25% | 24.27% | -6.44% | -32.91% |
| FCF per Share | 6.11 | 5.81 | 4.08 | 4.57 | 4.06 | 3.71 | 2.90 | 2.33 | 1.93 | 1.47 | 1.34 | 1.07 | 0.90 | 1.10 | 1.00 | 0.77 | 0.61 | -0.06 | -0.12 | 1.08 | 1.10 | 1.13 | 1.02 | 0.33 | 0.83 | 0.38 | 0.09 | 0.07 | 0.51 | 0.46 | 0.53 |
| FCF Conversion (FCF/Net Income) | 1.22x | 1.56x | 1.19x | 1.30x | 1.46x | 1.58x | 1.53x | 0.74x | 1.75x | 2.31x | 2.19x | 1.50x | 1.99x | 2.24x | 0.72x | 3.33x | 1.40x | -0.17x | -0.04x | 1.36x | 2.95x | 8.64x | 5.00x | -9.73x | 4.87x | 1.78x | 2.84x | -9.04x | 7.69x | 1.17x | 6.04x |
| Interest Paid | 113.21M | 111.95M | 43.22M | 34.93M | 21.12M | 15.95M | 19.78M | 17.84M | 23.02M | 24.16M | 21.02M | 19.92M | 9.96M | 0 | 11.35M | 13.42M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 78.62M | 0 | 509.98M | 253.7M | 233.24M | 146.42M | 105.92M | 41.95M | 68.04M | 59.07M | 36.82M | 29.49M | 26.45M | 0 | 18.64M | 18.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying CDNS stock.
Cadence Design Systems, Inc. (CDNS) generated $1.73B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Cadence Design Systems, Inc. (CDNS) generated $1.59B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Cadence Design Systems, Inc. (CDNS) spent $141.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Cadence Design Systems, Inc. (CDNS) spent $925.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Elevated valuation and competitive pressure
Metrics are mathematically derived from official filings.
Cash Conversion Outpaces Reported Earnings
Operating cash flow exceeded net income in seven of the last ten quarters, with Q2 2026 OCF/NI at 1.73x, according to the latest cash flow statement, indicating high earnings quality.
The persistent OCF/NI ratio above 1.0, except for Q2 2024 and Q1 2024, suggests that non-cash charges like D&A and SBC are more than offsetting working capital drags. The Q2 2026 ratio of 1.73x, as reported in the cash flow statement, implies that reported earnings are backed by strong cash generation, though the Q1 2026 working capital outflow of -$263.3M warrants monitoring for timing effects.
Free Cash Flow Momentum Accelerates
Free cash flow surged to $582.3M in Q2 2026, a 74.6% increase year-over-year, with FCF margin expanding to 36.8%, based on reported figures, signaling robust cash generation.
The FCF margin has trended upward from 12.0% in Q2 2024 to 36.8% in Q2 2026, reflecting operating leverage and disciplined capex. This trajectory, as disclosed in the cash flow statement, suggests that the company is converting revenue growth into cash at an accelerating rate, though the Q1 2026 dip to 20.8% highlights quarterly volatility.
Capital Intensity Remains Low and Stable
Capital expenditures averaged 2.9% of revenue over the last ten quarters, with Q2 2026 at 3.3%, as reported in the cash flow statement, indicating a capital-light model.
The low and stable capex-to-revenue ratio, ranging from 1.9% to 4.9%, suggests that the company's growth does not require significant fixed asset investment, consistent with a software-centric business. The slight uptick in Q2 2026 to 3.3% may reflect investments in emulation hardware capacity, but it remains modest relative to the 36.8% FCF margin.
Working Capital Swings Create Quarterly Noise
Working capital changes swung from -$263.3M in Q1 2026 to +$69.2M in Q2 2026, as per the cash flow statement, highlighting timing effects that obscure underlying cash generation.
The volatility in working capital, particularly the large negative changes in Q1 2026 and Q3 2025, appears to be driven by contract timing and collections, given the company's recurring revenue model. Investors should focus on the trailing twelve-month trend rather than quarterly fluctuations, as the positive Q2 2026 change suggests a reversal of the prior quarter's outflow.
Buybacks and Acquisitions Absorb Cash
Share repurchases totaled $200.0M in Q2 2026, consistent with prior quarters, while acquisition outflows reached $2.1B in Q1 2026, as reported in the cash flow statement, indicating aggressive capital deployment.
The company has consistently returned capital via buybacks, with quarterly repurchases ranging from $125.0M to $350.0M, but the $2.1B acquisition outflow in Q1 2026 stands out as a significant deployment. This suggests management is actively pursuing strategic acquisitions, likely in the system analysis space, which may enhance long-term growth but also introduces integration risk.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, cumulative operating cash flow of $3.98B surpassed cumulative net income of $2.87B, based on reported figures, indicating a persistent cash conversion premium.
The cumulative OCF/NI ratio of 1.39x over the period suggests that the company's earnings are backed by strong cash generation, likely due to non-cash charges like D&A and SBC. This divergence, as reported in the cash flow statement, reinforces the quality of earnings and provides a cushion for capital deployment.
What Could Invalidate the Base Case
The $2.1B acquisition outflow in Q1 2026, as reported in the cash flow statement, may signal integration risk that could pressure future cash returns if not managed effectively.
While the cash flow statement shows robust operating cash generation, the significant acquisition spending suggests potential overpayment or integration challenges that could divert cash from buybacks or dividends. Investors should monitor whether these acquisitions generate the expected synergies, as any shortfall could lead to lower future FCF and a reassessment of the company's premium valuation.