STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

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


	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
	(In thousands)
Cost of product and maintenance	$	3,205	$	2,122	$	6,211	$	4,276
Cost of services	3,660		2,449		7,081		4,915
Marketing and sales	26,285		22,857		50,387		44,528
Research and development	93,318		73,188		180,659		140,277
General and administrative	20,422		17,709		40,735		31,942
Total stock-based compensation expense	$	146,890	$	118,325	$	285,073	$	225,938

Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $970.8 million as of June 30, 2026, which is expected to be recognized over a weighted average vesting period of 2.2 years.