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PDF Solutions Inc
NASDAQ:PDFS

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PDF Solutions Inc
NASDAQ:PDFS
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Price: 33.46 USD -2.79%
Market Cap: $1.3B

PDF Solutions Inc
Investor Relations

PDF Solutions Inc. stands at the intriguing intersection of technology and semiconductor manufacturing, offering a specialized suite of solutions that optimize the intricacy of chip production. Founded in 1991, PDF Solutions has evolved from its core business of yield improvement to embracing data analytics and machine learning. The company's proprietary Design-for-Inspection™ approach, combined with its Exensio® analytics platform, transforms colossal volumes of semiconductor data into actionable insights. By doing so, they enable manufacturers to enhance yield, quality, and overall efficiency in their fabrication processes. This symbiotic relationship between data and manufacturing not only boosts clients' operational performance but also nurtures long-term partnerships grounded in shared technological advancements.

PDF Solutions generates revenue primarily through a blend of licensing models for its software platforms, subscription services, and consultation digests. The company has strategically leveraged its industry expertise to engage in both developmental programs and time-based license agreements with major semiconductor manufacturers. This diversified revenue stream ensures a stable cash flow, even in the volatile cycles of the tech industry. Furthermore, PDF Solutions extends its reach by aligning innovation trajectories with its clients' pressing needs, thus ensuring that every dollar spent brings both immediate and compound returns by minimizing production flaws and expediting time-to-market requisites. Through this dynamic business model, PDF Solutions not only maintains but steadily grows its influence in the semiconductor landscape.

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Last Earnings Call
Fiscal Period
Q4 2025
Call Date
Feb 12, 2026
AI Summary
Q4 2025

Record Revenue: PDF Solutions posted record annual revenue of $219 million in 2025, up 22% year-over-year and in line with long-term guidance.

Margin Expansion: Gross margin reached 76% and operating margin 21% for the full year, both above prior long-term targets.

AI & Platform Growth: Strong demand for AI-driven collaboration drove new contracts for Sapience Manufacturing Hub and Exensio products.

secureWISE Acquisition: The largest acquisition in company history contributed significantly to growth, with new 8-figure contracts signed.

Product & Segment Updates: Volume-based revenue grew 70%, with recurring revenue up 41% year-over-year; four DirectScan systems shipped, with plans to nearly double fielded systems in 2026.

2026 Outlook: Management expects revenue growth in 2026 to be consistent with the 20% long-term annual target, with continued margin expansion.

Key Financials
Revenue
$219.0 million
Revenue (Q4)
$62.4 million
Platform Revenue (Q4)
$52.5 million
Volume-based Revenue (Q4)
$9.9 million
Platform Revenue (Annual)
$181.0 million
Volume-based Revenue (Annual)
$38 million
Recurring Revenue (Q4)
$61.1 million
Recurring Revenue (Annual)
$205.1 million
Gross Margin (Q4)
77%
Gross Margin (Annual)
76%
Operating Margin (Q4)
24%
Operating Margin (Annual)
21%
EPS (Q4)
$0.30
EPS (Annual)
$0.94
Operating Cash Flow
$24 million
CapEx
$33 million
Backlog
$254 million
Cash and Equivalents plus Short-term Investments
$42 million
Debt
$68 million
DirectScan Systems Shipped
4
Earnings Call Recording
Other Earnings Calls

Management

Dr. John K. Kibarian Ph.D.
Co-Founder, President, CEO & Director
No Bio Available
Dr. Kimon W. Michaels Ph.D.
Co-Founder, Executive VP of Products & Solutions and Director
No Bio Available
Mr. Peter Cohn
Secretary
No Bio Available
Dr. P. K. Mozumder
Vice President of WW Sales
No Bio Available
Mr. Jeffrey David
Vice President of AI Solutions
No Bio Available
Said Akar
General Manager
No Bio Available
Mr. Michael Yu
Vice President of Sales & Operations - Asia
No Bio Available

Contacts

Address
CALIFORNIA
Santa Clara
2858 De La Cruz Boulevard
Contacts
+14082807900.0
www.pdf.com
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