Cadence Design Systems

Cadence’s model is highly recurring with 83 percent TTM recurring revenue and multi‑year contracts that produce durable RPO. Year‑end 2024 backlog was 6.8 billion dollars and reached 7.0 billion dollars in Q3 2025; management expects 52 percent of contracted but unsatisfied obligations to be recognized within 12 months.

TTM revenue of roughly 5.21 billion dollars shows steady growth from diversified end‑markets, supported by foundry certifications at the newest nodes. The primary sources of variability are hardware shipment timing and IP/hardware mix, but these are cushioned by ratable software.

Exposure to China has moderated to ~12 percent of 2024 revenue, reducing geopolitical concentration.