Filing Flows › Cadence Design Systems (CDNS) › Q2 2025
Cadence Design Systems (CDNS) Q2 2025 earnings results (second quarter 2025)
10-Q filed Jul 30, 2025
Cadence Design Systems (CDNS) reported revenue of $1.3B for the second quarter 2025 (Q2 2025), +20% from a year earlier and +3% from the quarter before. Operating margin was 19.0%, net earnings $160M (12.5% of revenue).
Cadence Design Systems, Q2 2025: revenue $1.3B (+20% year over year), operating margin 19.0%, net earnings $160M, operating cash flow $378M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $1.3B | +3% | +20% |
| Operating profit | $242M | -33% | -18% |
| Net earnings | $160M | -41% | -30% |
| Operating cash flow | $378M | -22% | +142% |
| Free cash flow | $334M | -28% | +163% |
What changed
Revenue was $1.3B in Q2 2025, up 20% year over year and up 3% from the previous quarter. Product and maintenance was the largest line at 92% of revenue. Product and maintenance added $0.21B year over year (up 22%), 98% of the total change.
Operating profit was $0.24B, a 19.0% margin (down 8.7 points year over year). Operating profit fell $0.05B even though revenue rose $0.21B versus a year earlier, so costs grew faster than sales. Total costs grew 35% against revenue growth of 20%. The fastest-growing cost line was Other operating costs (+121%). Net earnings were $0.16B, down 30% year over year. The effective tax rate was 43.0%.
Operating cash flow was $0.38B (up 142% year over year), 236% of net earnings. Non-cash charges added back $0.05B of depreciation and amortization and $0.12B of share-based compensation. Working capital and other items added $0.05B. Capital expenditures of $0.04B left free cash flow of $0.33B.
Questions
What was Cadence Design Systems' revenue in the second quarter 2025?
Cadence Design Systems (CDNS) reported revenue of $1.3B for the second quarter 2025 (Q2 2025), +20% from a year earlier and +3% from the quarter before.
Was Cadence Design Systems profitable in the second quarter 2025?
Operating profit was $242M (19.0% of revenue) and net earnings $160M.