Company: SNPS
Filing Date: 2025-03-03
Form Type: 424B5
Source: 0001140361-25-006661
Chunk: 28

Company: SYNOPSYS INC
Filing Date: 2025-03-03
Form: 424B5
Chunk 28
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     |      $46,016,549 |

S-16

TABLE OF CONTENTS

Other Financial Data Synopsys is presenting certain non-GAAP financial measures in this prospectus supplement to provide an additional tool to evaluate Synopsys’ operating results in a manner that focuses on how Synopsys evaluates certain metrics relating to the Ansys Merger and the notes offered hereby. Adjusted gross margin and Adjusted EBITDA are not key operating metrics used by Synopsys management to evaluate Synopsys’ ongoing operations. Non-GAAP measures may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles, and management has exercised judgment in determining which items should be excluded in the calculation of non-GAAP measures. The presentation of non-GAAP financial information is not meant to be considered in isolation from, as superior to or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. These non-GAAP financial measures are meant to supplement, and be viewed in conjunction with, the corresponding GAAP financial measures. Adjusted Gross Margin Adjusted gross margin is a non-GAAP financial measure of Synopsys and is defined herein as gross margin, adjusted for stock-based compensation expense, fair value changes of deferred compensation plan obligations and amortization of acquired intangible assets. The following table presents a reconciliation of gross margin of Synopsys, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted gross margin for each of the periods indicated:

| ($ in millions)(1)                                       |     | Synopsys Historical 
          Year Ended 
    October 31, 2022 |     | October 31, 2023 |     | October 31, 2024 |
|:---------------------------------------------------------|:----|--------------------:|:----|-----------------:|:----|-----------------:|
| Gross margin                                             |     |            $3,717.7 |     |         $4,287.2 |     |         $4,882.1 |
| Stock-based compensation expense                         |     |                67.8 |     |             79.5 |     |             98.6 |
| Deferred compensation plan obligation fair value changes |     |                -4.5 |     |              1.4 |     |              4.8 |
| Amortization of acquired intangible assets               |     |                44.7 |