Company: SNPS
Filing Date: 2025-09-09
Form Type: 10-Q
Source: 0000883241-25-000024
Chunk: 197

Company: SYNOPSYS INC
Filing Date: 2025-09-09
Form: 10-Q
Item: Item 8
Chunk 197
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, 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% Change (dollars in millions)Three months endedCost of products revenue$230.9 $179.5 $51.4 29 %Cost of maintenance and service revenue103.3 96.6 6.7 7 %Amortization of acquired intangible assets46.4 14.5 31.9 220 %Total$380.6 $290.6 $90.0 31 %Percentage of total revenue22 %19 %Nine months endedCost of products revenue$616.0 $553.8 $62.2 11 %Cost of maintenance and service revenue290.3 275.3 15.0 5 %Am