NET INCOME PER SHARE

3 Months Ended

Mar. 31, 2025

Basic net income per share is computed by dividing net income during the period by the weighted average number of shares of common stock outstanding during that period, less unvested restricted stock awards. Diluted net income per share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock method of accounting.

The calculations for basic and diluted net income per share for the three months ended March 31, 2025 and March 31, 2024 are as follows:


	Three Months Ended
		March 31, 2025		March 31, 2024
		(In thousands, except per share amounts)
Net income		$	273,579	$	247,643
Weighted average common shares used to calculate basic net income per share		271,973		269,606
Stock-based awards		1,658		3,938
Weighted average common shares used to calculate diluted net income per share		273,631		273,544
Net income per share - basic		$	1.01	$	0.92
Net income per share - diluted		$	1.00	$	0.91

The following table presents shares of Cadence’s common stock outstanding for the three months ended March 31, 2025 and March 31, 2024 that were excluded from the computation of diluted net income per share because the effect of including these shares in the computation of diluted net income per share would have been anti-dilutive:


	Three Months Ended
		March 31, 2025	March 31, 2024
		(In thousands)
Market-based awards		187	—
Options to purchase shares of common stock		234	59
Non-vested shares of restricted stock		190	8
Total potential common shares excluded		611	67