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Cadence Design Systems cash flow, quarter by quarter

Latest: Q3 2026 · from the cash-flow statements filed with the SEC

Free cash flow$362M in Q3 2026 · $1.8B over twelve months

Operating cash flow$424M
Capital spending−$61.8M
Free cash flow+$362M
Cash / net income1.5×

Analysis

In Q3 2026, Cadence Design Systems generated $424M of operating cash flow and spent $61.8M on capital projects, leaving free cash flow of $362M. That is $84.9M more than in Q3 2025 ($277M).

Over the twelve months to Sep 30, 2026, operating cash flow was $2.0B; the largest uses were acquisitions ($2.3B), buybacks ($1.0B), taxes on employees’ shares ($217M); besides operations, cash came from other investing ($192M), net borrowing (+) / repaid (−) ($150M); the cash balance fell by $1.3B.

Operating cash flow was $424M against net income of $290M — 1.5× profit, cash ran ahead of reported earnings. The largest differences: stock-based pay +$145M, depreciation & amortization +$119M, inventory −$65.9M.

Free cash flow

Cadence Design Systems: free cash flow by quarterCadence Design Systems: free cash flow by quarter$404MQ4 2024$464MQ1 2025$334MQ2 2025$277MQ3 2025$512MQ4 2025$307MQ1 2026$582MQ2 2026$362MQ3 2026
Operating cash flow less capital spending.
Cadence Design Systems: operating cash flow against capital spendingCadence Design Systems: operating cash flow against capital spendingOperating cash flowCapital spending$441M$37.2MQ4 2024$487M$23.1MQ1 2025$378M$44.1MQ2 2025$311M$33.7MQ3 2025$553M$41.0MQ4 2025$356M$48.8MQ1 2026$635M$52.6MQ2 2026$424M$61.8MQ3 2026
Latest (Q3 2026): Operating cash flow $424M, Capital spending $61.8M.

Capital allocation, year by year

Cadence Design Systems: where the cash came from (up) and went (down), by fiscal yearCadence Design Systems: where the cash came from (up) and went (down), by fiscal yearOperating cash flowNet borrowingShares issuedCapital spendingAcquisitionsBuybacksFY2022: Operating cash flow $1.1BFY2022: Shares issued $112MFY2022: Capital spending −$65.3MFY2022: Acquisitions −$226MFY2022: Buybacks −$612M$1.2BFY2022FY2022: Operating cash flow $1.2BFY2022: Net borrowing $400MFY2022: Shares issued $121MFY2022: Capital spending −$123MFY2022: Acquisitions −$614MFY2022: Buybacks −$1.1B$1.8BFY2022FY2023: Operating cash flow $1.3BFY2023: Net borrowing −$100MFY2023: Shares issued $164MFY2023: Capital spending −$102MFY2023: Acquisitions −$198MFY2023: Buybacks −$700M$1.5BFY2023FY2024: Operating cash flow $1.3BFY2024: Net borrowing $1.8BFY2024: Shares issued $293MFY2024: Capital spending −$143MFY2024: Acquisitions −$738MFY2024: Buybacks −$550M$3.4BFY2024FY2025: Operating cash flow $1.7BFY2025: Shares issued $173MFY2025: Capital spending −$142MFY2025: Acquisitions −$430MFY2025: Buybacks −$925M$1.9BFY2025
Over these 5 years operating cash flow totalled $6.7B; the largest uses were buybacks ($3.8B) and acquisitions ($2.2B). Cash-flow statements as filed.

Cash runway and the debt wall

Cash & investments$1.6B
Debt$2.5B
Net debt$877M
Due within a year$499M

Cadence Design Systems funds itself: free cash flow was $1.8B over the last twelve months, and $1.6B of cash and investments stands against $2.5B of debt ($499M due within a year, 3.2× covered by cash).

Where the cash came from and went

Cadence Design Systems: sources (+) and uses (−) of cash, Q3 2026Cadence Design Systems: sources (+) and uses (−) of cash, Q3 2026Operating cash flow$424MBuybacks−$400MNet borrowing (+) / repaid (−)$150MCapital spending−$61.8MOther investing−$55.0MTaxes on employees’ shares−$54.9MShares issued$50.2MAcquisitions−$43.1MCash drawn (+) / kept (−)−$11.6MExchange rates$2.4M
Cadence Design Systems: sources (+) and uses (−) of cash, TTM to Q3 2026Cadence Design Systems: sources (+) and uses (−) of cash, TTM to Q3 2026Acquisitions−$2.3BOperating cash flow$2.0BCash drawn (+) / kept (−)$1.3BBuybacks−$1.0BTaxes on employees’ shares−$217MCapital spending−$204MOther investing$192MNet borrowing (+) / repaid (−)$150MShares issued$147MExchange rates−$14.3M

From profit to cash

Cadence Design Systems: net income to operating cash flow, Q3 2026Cadence Design Systems: net income to operating cash flow, Q3 2026Net income$290MDepreciation & amortization$119MStock-based pay$145MDeferred taxes$42.5MGains on investments−$2.8MOther non-cash$3.3MReceivables−$46.0MInventory−$65.9MPayables−$7.5MDeferred revenue−$20.9MPrepaid and other assets−$16.5MOther liabilities$6.1MOperating cash flow$424M
Non-cash charges are added back; money tied up in receivables or inventory is subtracted.

Every quarter

QuarterOperating cash flowCapital spendingAcquisitionsBuybacksNet borrowing (+) / repaid (−)Shares issuedCash drawn (+) / kept (−)Free cash flow
Q3 2026$424M−$61.8M−$43.1M−$400M$150M$50.2M−$11.6M$362M
Q2 2026$635M−$52.6M−$25.8M−$200M$175M$16.2M−$33.8M$582M
Q1 2026$356M−$48.8M−$2.1B−$200M$425M$72.6M$1.6B$307M
Q4 2025$553M−$41.0M−$179M−$200M—$7.8M−$248M$512M
Q3 2025$311M−$33.7M−$129M−$200M—$59.7M$69.5M$277M
Q2 2025$378M−$44.1M−$122M−$175M—$1.5M−$45.1M$334M
Q1 2025$487M−$23.1M—−$350M—$76.8M−$134M$464M
Q4 2024$441M−$37.2M−$2.2M−$150M−$350M$10.3M$142M$404M

Cadence Design Systems: income statement and cash flow

Cadence Design Systems, Q3 2026: revenue $1.6B (+22% year over year), operating margin 26.2%. The chart follows the revenue to costs, profit and cash.

Cadence Design Systems: every quarter, Q/Q and Y/Y → Open in the app

Read automatically from the company’s XBRL cash-flow statements; quarterly figures for the fourth quarter are the year less the first three. Errors are possible. Not investment advice.