OTHER INCOME (EXPENSE), NET

9 Months Ended

Sep. 30, 2025

Other Income and Expenses [Abstract]

OTHER INCOME (EXPENSE), NET

Cadence’s other income, net, for the three and nine months ended September 30, 2025 and September 30, 2024 was as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
	(In thousands)
Interest income	$	24,627	$	16,933	$	76,827	$	35,330
Gain on sale of IP and other assets	—		—		11,500		—
Gain (loss) on investments	(14,519)		(16,141)		10,635		64,458
Gain on securities in Non-Qualified Deferred Compensation (“NQDC”) trust	5,760		4,567		11,965		10,852
Gain (loss) on foreign exchange	(19,006)		2,779		(22,369)		1,740
Other expense, net	(434)		(285)		(1,082)		(1,009)
Total other income (expense), net	$	(3,572)	$	7,853	$	87,476	$	111,371

For additional information relating to Cadence’s investment activity, see Note 13 in the notes to condensed consolidated financial statements.

In September 2025, Cadence entered into foreign currency forward exchange contracts with an aggregate notional value of €1.89 billion to mitigate the impact of currency price fluctuations of the European Union euro relative to the U.S. dollar for its pending acquisition of Hexagon’s design and engineering business. These forward contracts are not designated as accounting hedges, so the unrealized gains and losses from the change in the fair value of these contracts are included as a component of other income (expense), net as gains or losses on foreign exchange. During the three and nine months ended September 30, 2025, Cadence recognized losses associated with these foreign currency forward contracts of $18.6 million.