How Cadence Design Systems (CDNS) Makes Money: A Visual Guide
Cadence Design Systems (CDNS) generated $5.30B in revenue (TTM through Q4 2025), earning $1.11B in net profit (20.9% margin). Its largest revenue source is Product and maintenance (91% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.
Cadence Design Systems (CDNS) Income Statement Flow
Frequently asked questions
How does Cadence Design Systems (CDNS) make money?
- Cadence Design Systems (CDNS) primarily makes money through Product and maintenance, which accounts for 91% of total revenue. For TTM through Q4 2025, Cadence Design Systems generated $5.30B in total revenue with a net profit margin of 20.9%.
What is Cadence Design Systems (CDNS) gross profit margin?
- Cadence Design Systems (CDNS) reported a gross profit margin of 96.2% for TTM through Q4 2025, equivalent to $5.09B in gross profit. This means Cadence Design Systems retains 96.2% of each revenue unit after direct costs of production.
What is Cadence Design Systems (CDNS) operating profit margin?
- Cadence Design Systems (CDNS) reported an operating profit margin of 28.2% for TTM through Q4 2025, equivalent to $1.49B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Cadence Design Systems (CDNS) net profit margin?
- Cadence Design Systems (CDNS) reported a net profit margin of 20.9% for TTM through Q4 2025, equivalent to $1.11B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Cadence Design Systems (CDNS) invest in R&D?
- Cadence Design Systems (CDNS) invested $1.77B in research and development in TTM through Q4 2025 (33.4% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Cadence Design Systems (CDNS) spend on capital expenditures?
- Cadence Design Systems (CDNS) spent $141.87M on capital expenditures in TTM through Q4 2025 (2.7% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Cadence Design Systems (CDNS) free cash flow?
- Cadence Design Systems (CDNS) generated $1.59B in free cash flow for TTM through Q4 2025 (30.0% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Cadence Design Systems (CDNS) effective tax rate?
- Cadence Design Systems (CDNS) had an effective tax rate of 27.1% for TTM through Q4 2025. This is the actual percentage of pre-tax income paid as income taxes.
About this data
- What is a Sankey diagram?
- A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
- How is the data calculated?
- We use the income statement from company filings. For TTM (Trailing Twelve Months), we sum the last four quarters. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
- When was this data last updated?
- Based on company filings through TTM through Q4 2025.