Cadence said it completed its acquisition of the design and engineering (D&E) business of Hexagon Smart Solutions AB on February 23, 2026, and that the deal accelerates its ISD strategy by expanding its SD&A portfolio.

10-QQuarterly reportFiled Oct 28, 2026Period of report Sep 30, 2026Summary published (UTC) Oct 28, 2026

Key points

AI summary

Cadence said it completed its acquisition of the design and engineering (D&E) business of Hexagon Smart Solutions AB on February 23, 2026, and that the deal accelerates its ISD strategy by expanding its SD&A portfolio.
The company cited the following as factors behind the decline in operating margin for the three months ended September 30, 2026: incremental operating expenses from acquisitions, including amortization of acquired intangibles, exceeded incremental revenue; higher contributions to non-profit organizations; and the product and services mix. It cited the absence of the prior-year loss related to a contingent liability, which had lowered operating margin in the prior year, as a factor behind the increase in operating margin for the 9-month period.
Cadence said cash and cash equivalents decreased to $1.5 billion as of September 30, 2026 from $3.0 billion as of December 31, 2025. It cited higher cash paid for business combinations as the reason for increased cash used in investing activities over the 9 months, and said cash flow from operating activities increased.
Cadence said that as of September 30, 2026, outstanding borrowings under its Credit Facility were $150.0 million, and the 2027 Notes were classified as current liabilities. On the same day, the remaining authorization under its share repurchase program was $601.6 million, and on October 23, 2026 its board approved an additional repurchase of up to $2.5 billion.

Summary

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Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

D&E Business Acquisition and Expansion of SD&A Portfolio

Cadence said it completed its acquisition of the design and engineering (D&E) business of Hexagon Smart Solutions AB on February 23, 2026, and that the deal accelerates its ISD strategy by expanding its SD&A portfolio.

Source · Based on the MD&A text of the filing

Quarterly Operating Margin Declines, 9-Month Cumulative Rises

The company cited the following as factors behind the decline in operating margin for the three months ended September 30, 2026: incremental operating expenses from acquisitions, including amortization of acquired intangibles, exceeded incremental revenue; higher contributions to non-profit organizations; and the product and services mix. It cited the absence of the prior-year loss related to a contingent liability, which had lowered operating margin in the prior year, as a factor behind the increase in operating margin for the 9-month period.

Source · Based on the MD&A text of the filing

Cash Balance and Investing and Operating Cash Flows

Cadence said cash and cash equivalents decreased to $1.5 billion as of September 30, 2026 from $3.0 billion as of December 31, 2025. It cited higher cash paid for business combinations as the reason for increased cash used in investing activities over the 9 months, and said cash flow from operating activities increased.

Source · Based on the MD&A text of the filing

Debt Position and Share Repurchase Authorization

Cadence said that as of September 30, 2026, outstanding borrowings under its Credit Facility were $150.0 million, and the 2027 Notes were classified as current liabilities. On the same day, the remaining authorization under its share repurchase program was $601.6 million, and on October 23, 2026 its board approved an additional repurchase of up to $2.5 billion.

Source · Based on the MD&A text of the filing

Structured SEC financial data for this filing is not available yet. Please check the figures in the SEC filing.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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