Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 94

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 1
Chunk 94
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% Change (dollars in millions)Three months ended$516.4 $442.5 $73.9 17 %Percentage of total revenue30 %29 %Nine months ended$1,395.2 $1,281.3 $113.9 9 %Percentage of total revenue29 %29 %

Changes in upfront products revenue are generally attributable to normal fluctuations in the extent and timing of customer requirements, which can drive the amount of upfront orders and revenue in any particular period.

The increase in upfront products revenue for the three and nine months ended July 31, 2025 compared to the same periods in fiscal 2024 was primarily due to an increase in the sale of hardware products, driven by higher demand from customers. 

Upfront products revenue as a percentage of total revenue will likely fluctuate based on the timing of IP and hardware product sales. Such fluctuations will continue to be impacted by the timing of shipments and FSA drawdowns due to customer requirements.

Maintenance and Service Revenue

 July 31,   20252024$ Change% Change (dollars in millions)Three months endedMaintenance revenue$193.6 $105.8 $87.8 83 %Professional service and other revenue137.4 174.3 (36.9)(21)%Total$331.0 $280.1 $50.9 18 %Percentage of total revenue19 %18 %Nine months endedMaintenance revenue$428.6 $318.0 $110.6 35 %Professional service and other revenue426.6 502.2 (75.6)(15)%Total$855.2 $820.2 $35.0 4 %Percentage of total revenue18 %18 %

The increase in maintenance revenue for the three and nine months ended July 31, 2025 compared to the same periods in fiscal 2024 was primarily due to an increase in the volume of arrangements that include maintenance largely due to contributions from Ansys following the completion of the Ansys Merger.

47

The decrease in professional service and other revenue for the three and nine months ended July 31, 2025 compared to the same periods in fiscal 2024 was primarily due to the timing of IP customization projects.

Cost of Revenue

 July 31,   20252024$ Change%