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REVENUE (Tables)
9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from external customers by product category
The following table shows the percentage of revenue contributed by each of Cadence’s product categories for the three and nine months ended September 30, 2025 and September 30, 2024:
 Three Months Ended Nine Months Ended
 September 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Core EDA*
71 %70 %71 %73 %
Semiconductor IP (“IP”)
14 %14 %14 %13 %
System Design and Analysis15 %16 %15 %14 %
Total100 %100 %100 %100 %
_____________
* Includes immaterial amount of revenue accounted for under leasing arrangements.
Disaggregation of revenue
The following table shows the percentage of Cadence’s revenue that is classified as recurring or up-front for the three and nine months ended September 30, 2025 and September 30, 2024:
 Three Months Ended Nine Months Ended
 September 30,
2025
September 30,
2024
September 30,
2025
September 30,
2024
Revenue recognized over time78 %79 %76 %83 %
Other recurring revenue
%%%%
Recurring revenue82 %83 %81 %87 %
Up-front revenue18 %17 %19 %13 %
Total revenue
100 %100 %100 %100 %
Contract balances
Cadence’s contract balances as of September 30, 2025 and December 31, 2024 were as follows:
 As of
 September 30,
2025
December 31,
2024
 (In thousands)
Contract assets$91,119 $29,339 
Deferred revenue905,344 852,581