Financial research concept

EDA Remaining Performance Obligations

EDA remaining performance obligations measure contracted but unrecognized revenue allocated to unsatisfied or partially unsatisfied performance obligations.

By Lee BaileyPublished Sep 22, 2026
Research context

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Research date
Sep 22, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context
12 connected conceptsPart of the reviewed Electronic Design Automation Economics; issuer definitions remain distinct where disclosed.
Company examples
1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.
  1. Why it matters
  2. Investor caution
  3. Part of the Electronic Design Automation Economics
  4. See It in Company Research
  5. Continue Research

EDA remaining performance obligations, or RPO, measure contracted but unrecognized revenue allocated to unsatisfied or partially unsatisfied performance obligations.

Cadence reported $7.8 billion of contracted but unsatisfied performance obligations at December 31, 2025, including $0.6 billion of non-cancelable commitments for which customers had not yet selected specific products or services.

Why it matters

RPO provides a view of contracted revenue expected to be recognized in future periods and can help investors separate current-period revenue from future contractual visibility.

Investor caution

RPO is not the same as bookings, billings, or a generic sales backlog. Cadence excludes potential future royalty receipts and separately identifies certain non-cancelable commitments.

Source:

Compare RPO only after reconciling contract scope, exclusions, and timing assumptions across companies.

Part of the Electronic Design Automation Economics

Connect recurring and up-front revenue recognition, product-category mix, and contracted revenue plus contract balances to understand electronic design automation economics.

How the model fits together
  • Revenue recognition and recurrence: Recurring revenue mix is Cadence's issuer-defined classification and includes revenue recognized over time plus certain other recurring arrangements. Up-front revenue is recognized at a point in time and is driven primarily by hardware, individual IP licenses, and certain software licenses. Revenue recognized over time is related to recurring revenue but is not identical to it.
  • Product-category mix: Core EDA, Semiconductor IP, and System Design and Analysis show Cadence's product-category composition. These categories are issuer-defined portfolio views and are not standardized peer segments or profitability measures.
  • Contracted revenue and working capital: Remaining performance obligations capture contracted but unrecognized revenue, while the 12-month conversion estimate adds expected recognition timing. Contract assets and deferred revenue describe different positions in the contract-to-cash cycle and are not interchangeable with RPO, bookings, or accounts receivable.

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

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