STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

Stock-based compensation expense is reflected in Cadence’s condensed consolidated income statements for the three and nine months ended September 30, 2025 and September 30, 2024 as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
	(In thousands)
Cost of product and maintenance	$	2,014	$	1,855	$	6,290	$	4,487
Cost of services	2,337		2,361		7,252		5,711
Marketing and sales	21,726		21,677		66,254		55,513
Research and development	70,204		67,857		210,481		175,985
General and administrative	19,792		15,263		51,734		43,015
Total stock-based compensation expense	$	116,073	$	109,013	$	342,011	$	284,711

Cadence had total unrecognized compensation expense related to stock option and restricted stock grants of $686.0 million as of September 30, 2025, which is expected to be recognized over a weighted average vesting period of 2.0 years.