PDF Solutions (PDFS)
NASDAQ:PDFS
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PDF Solutions
(NASDAQ:PDFS)
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Rating:62Neutral
Price Target:
$43.00
▲(5.76% Upside)
Action:ReiteratedDate:02/25/26
The score is driven primarily by mixed financial fundamentals (strong growth and gross margins but negative free cash flow and higher leverage). Technicals are supportive with an established uptrend, while the latest earnings call adds confidence via reiterated ~20% growth guidance and strong backlog/recurring trends. Valuation is a headwind due to an extreme negative P/E and no dividend yield data.
Positive Factors
Revenue Scaling
Sustained top-line scaling over multiple years demonstrates strong product-market fit across semiconductor customers. Growing revenue provides a durable base for cross‑sell, R&D investment and margin expansion as platform adoption and factory deployments broaden over the 2–6 month horizon and beyond.
Negative Factors
Higher Leverage
A step‑up in debt from prior years (driven by the secureWISE acquisition) reduces financial flexibility and elevates refinancing and interest risks. With modest cash on hand and earnings variability, higher leverage could constrain opportunistic investments or force tighter cost management if profitability stalls.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scaling
Sustained top-line scaling over multiple years demonstrates strong product-market fit across semiconductor customers. Growing revenue provides a durable base for cross‑sell, R&D investment and margin expansion as platform adoption and factory deployments broaden over the 2–6 month horizon and beyond.
Read all positive factors
PDF Solutions (PDFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.55B
Dividend YieldN/A
Average Volume (3M)322.54K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth21.23%
EPS Growth-101.40%
CountryUS
Employees539
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.30
Shares Outstanding39,890,710
10 Day Avg. Volume284,322
30 Day Avg. Volume322,543
Financial Highlights & Ratios
PEG Ratio15.26
Price to Book (P/B)4.14
Price to Sales (P/S)5.12
P/FCF Ratio-130.77
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue7.68
Enterprise Value/Gross Profit10.56
Enterprise Value/Ebitda101.98
Forecast
1Y Price Target
$36.50Price Target Upside-10.23% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.12
Revenue Forecast (FY)$262.25M
PDF Solutions Business Overview & Revenue Model
Company Description
PDF Solutions, Inc. provides proprietary software and physical intellectual property products for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, China, Japan...
How the Company Makes Money
PDF Solutions makes money primarily by selling and licensing its software and by delivering associated services that support deployment, integration, and ongoing use of its analytics and manufacturing-data solutions. Key revenue streams include: (...
PDF Solutions Key Performance Indicators (KPIs)
PDF Solutions Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: record revenues, strong recurring revenue growth, expanding margins that exceeded prior targets, successful product launches and strategic acquisitions (secureWISE, Exensio enhancements, Exensio Studio AI), and a healthy backlog of $254M. Key challenges include increased leverage from the secureWISE acquisition (approx. $130M), modest cash on hand (~$42M) relative to debt (~$68M), lumpiness in upfront/CapEx revenue, and variability in Volume-based streams tied to customer production. Management reiterated a 20% revenue growth target for 2026 and longer term and signaled confidence in continued margin expansion, suggesting management believes positives outweigh near-term balance sheet and variability risks.Positive Updates
Record Total Revenues and Strong YoY Growth
Q4 total revenue of $62.4M versus $50.1M a year prior (+25% YoY). Full year 2025 total revenue of $219.0M versus $179.5M in 2024 (+22% YoY). Company achieved record quarterly and annual revenue.
Negative Updates
Upfront Revenue Decline
Upfront revenue declined year-over-year due to absence of a CapEx DirectScan sale that had occurred in Q4 2024, highlighting lumpiness in upfront/CapEx-related sales.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Total Revenues and Strong YoY Growth
Q4 total revenue of $62.4M versus $50.1M a year prior (+25% YoY). Full year 2025 total revenue of $219.0M versus $179.5M in 2024 (+22% YoY). Company achieved record quarterly and annual revenue.
Read all positive updates
Company Guidance
PDF guided that 2026 should be another growth year, forecasting full‑year total revenue growth "consistent with" its 20% target (and reiterating its long‑term model of 20% YoY revenue growth/CAGR, 77% gross margin and 27% operating margin); management said 2026 CapEx should be roughly similar to 2025’s ~$32.8M, expects operating cash flow to increase versus 2025 (2025 operating cash flow ≈$24M), plans to nearly double the number of eProbe/DirectScan machines in the field this year, and expects elevated customer activity across fabless, fab and equipment segments with continued growth from secureWISE/Cimetrix—all set against a $254M backlog, year‑end cash and short‑term investments of ≈$42M and ending debt of ≈$68M.PDF Solutions Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 219.02M | 179.47M | 165.84M | 148.55M | 111.06M |
| Gross Profit | 162.07M | 125.32M | 114.09M | 100.64M | 66.87M |
| EBITDA | 18.50M | 5.46M | 6.12M | 4.70M | -6.26M |
| Net Income | -640.00K | 4.06M | 3.10M | -3.43M | -21.49M |
Balance Sheet | |||||
| Total Assets | 418.70M | 315.29M | 290.14M | 278.67M | 273.77M |
| Cash, Cash Equivalents and Short-Term Investments | 42.22M | 114.89M | 135.52M | 139.18M | 140.23M |
| Total Debt | 76.66M | 5.18M | 6.19M | 7.34M | 7.02M |
| Total Liabilities | 147.68M | 69.25M | 61.19M | 68.66M | 54.18M |
| Stockholders Equity | 271.02M | 246.04M | 228.95M | 210.01M | 219.59M |
Cash Flow | |||||
| Free Cash Flow | -8.58M | -7.45M | 3.13M | 23.72M | 190.00K |
| Operating Cash Flow | 24.05M | 9.70M | 14.60M | 32.30M | 4.24M |
| Investing Cash Flow | -137.36M | -5.94M | -28.99M | 84.60M | -4.67M |
| Financing Cash Flow | 64.56M | -11.23M | -5.89M | -24.31M | -5.53M |
PDF Solutions Technical Analysis
Positive
40.66
Price Trends
33.07
Positive
31.58
Positive
27.58
Positive
Market Momentum
1.43
Negative
71.73
Negative
97.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDFS, the sentiment is Positive. The current price of 40.66 is above the 20-day moving average (MA) of 34.61, above the 50-day MA of 33.07, and above the 200-day MA of 27.58, indicating a bullish trend. The MACD of 1.43 indicates Negative momentum. The RSI at 71.73 is Negative, neither overbought nor oversold. The STOCH value of 97.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PDFS.
PDF Solutions Risk Analysis
PDF Solutions disclosed 33 risk factors in its most recent earnings report. PDF Solutions reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PDF Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $697.16M | 34.81 | 8.24% | ― | 3.62% | -20.45% | |
64 Neutral | $592.82M | -28.39 | -8.42% | ― | 6.54% | -19.17% | |
62 Neutral | $1.55B | -1,752.68 | -0.25% | ― | 21.23% | -101.40% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $297.61M | -15.56 | -22.88% | ― | 13.09% | 32.34% | |
57 Neutral | $441.37M | -0.53 | -106.91% | ― | -7.43% | 61.36% |
* Technology Sector Average
PDFS
PDF Solutions
40.66
22.73
126.77%
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RSKD
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4.19
-0.23
-5.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.