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PDF Solutions
(NASDAQ:PDFS)
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Rating:68Neutral
Price Target:
$58.00
▲(31.91% Upside)
Action:Reiterated
Date:06/19/26
The score is driven by strong technical momentum and a constructive earnings outlook with improving profitability and backlog growth. Offsetting these positives are weaker cash-flow quality (negative free cash flow) and a very high P/E valuation that increases downside sensitivity if growth or margins disappoint.
Positive Factors
Platform revenue growth
A 36% YoY rise in platform revenue to $50.9M indicates the company is shifting mix toward higher‑margin, recurring software and analytics offerings. That durable shift supports more predictable multi‑quarter revenue, higher lifetime customer value, and margin expansion as platform adoption scales across fabs and OSATs.
Negative Factors
Negative free cash flow
Multi‑year negative free cash flow and weak cash conversion (~0.23 of revenue) indicate operations are not fully funding growth and CapEx needs. Persistently negative FCF forces reliance on external financing or equity raises, constraining capital allocation and increasing execution risk over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Platform revenue growth
A 36% YoY rise in platform revenue to $50.9M indicates the company is shifting mix toward higher‑margin, recurring software and analytics offerings. That durable shift supports more predictable multi‑quarter revenue, higher lifetime customer value, and margin expansion as platform adoption scales across fabs and OSATs.
Read all positive factors
PDF Solutions Key Performance Indicators (KPIs)
PDF Solutions (PDFS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.17B
Dividend YieldN/A
Average Volume (3M)783.73K
Price to Earnings (P/E)287.1
Beta (1Y)1.59
Revenue Growth24.44%
EPS Growth382.67%
CountryUS
Employees600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.18
Shares Outstanding41,867,720
10 Day Avg. Volume629,034
30 Day Avg. Volume783,728
Financial Highlights & Ratios
PEG Ratio15.24
Price to Book (P/B)4.14
Price to Sales (P/S)5.12
P/FCF Ratio-130.77
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$61.75Price Target Upside40.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.24
Revenue Forecast (FY)$262.88M
PDF Solutions Business Overview & Revenue Model
Company Description
PDF Solutions, Inc. offers a comprehensive array of solutions to the semiconductor sector, encompassing proprietary software, physical intellectual property for integrated circuit designs, electrical measurement hardware, proven methodologies, and...
How the Company Makes Money
PDF Solutions primarily makes money by selling and supporting software and data/analytics solutions used by semiconductor manufacturers, foundries, and related customers to monitor and improve manufacturing and test performance. Revenue is general...
PDF Solutions Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a clearly positive operational trajectory: strong top-line growth (total revenue +26%, platform +36%), improving profitability (operating margin 25%, net income +56% YoY), expanded backlog (+9%) and promising product momentum (eProbe shipments, secureWISE expansion, AI-enabled Exensio beta). Headwinds are manageable and largely execution/timing and volume-variability related: a 12% decline in volume-based revenue, increased CapEx reducing cash near-term, modest QoQ gross margin dip, and some customer concentration risk. Management provided constructive guidance and liquidity actions (expanded revolver), and reiterated targets for 20% revenue growth and margin progression, suggesting the positives materially outweigh the negatives.Positive Updates
Strong Revenue Growth
Total revenue of $60.1M in Q1 2026, up 26% year-over-year, with management reconfirming full-year revenue growth consistent with their 20% long-term target.
Negative Updates
Volume-Based Revenue Decline
Volume-based revenue (including gain-share/Advantest-related) was $9.2M, down 12% year-over-year, reflecting volatility in wafer volumes/gain-share that can pressure gross margin and short-term revenue.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of $60.1M in Q1 2026, up 26% year-over-year, with management reconfirming full-year revenue growth consistent with their 20% long-term target.
Read all positive updates
Company Guidance
PDF reaffirmed 2026 guidance, expecting full-year revenue growth consistent with its 20% long-term target and to make meaningful progress toward a 27% operating margin and 77% gross margin. In Q1 the company reported $60.1M revenue (+26% YoY), platform revenue $50.9M (+36% YoY), volume-based revenue $9.2M (-12% YoY), backlog $246M (+9% YoY), gross margin 76% (vs. 77% prior quarter), operating margin 25% (vs. 24% last quarter and 18% a year ago) and operating profit of ~$15M (up ~75% YoY from $8.6M); net income was $12.6M, $0.31/share (up 56% in net income and 48% in EPS YoY from $8.1M, $0.21). The quarter ended with $31M cash and short‑term investments (down from $42M), roughly $10M of CapEx spent on eProbe buildout, an expanded $30M unused revolver, and plans to ship six eProbe systems in 2026 (1 shipped in Q1, expected to begin contributing in Q2; company expects ~5 of 6 to be revenue‑generating, ~1 demo, and ~2 net‑new customers), with higher CapEx this year and an anticipated cash build in the second half; management also targets a beta Exensio AI release in Q3.PDF Solutions Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
83
Very Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 231.38M | 219.02M | 179.47M | 165.84M | 148.55M | 111.06M |
| Gross Profit | 166.71M | 162.07M | 125.32M | 114.09M | 100.64M | 66.87M |
| EBITDA | 25.79M | 18.50M | 5.46M | 6.12M | 4.70M | -6.26M |
| Net Income | 7.18M | -640.00K | 4.06M | 3.10M | -3.43M | -21.49M |
Balance Sheet | ||||||
| Total Assets | 430.56M | 418.70M | 315.29M | 290.14M | 278.67M | 273.77M |
| Cash, Cash Equivalents and Short-Term Investments | 31.15M | 42.22M | 114.89M | 135.52M | 139.18M | 140.23M |
| Total Debt | 72.00M | 76.66M | 5.18M | 6.19M | 7.34M | 7.02M |
| Total Liabilities | 150.10M | 147.68M | 69.25M | 61.19M | 68.66M | 54.18M |
| Stockholders Equity | 280.46M | 271.02M | 246.04M | 228.95M | 210.01M | 219.59M |
Cash Flow | ||||||
| Free Cash Flow | -18.05M | -8.58M | -7.45M | 3.13M | 23.72M | 190.00K |
| Operating Cash Flow | 17.09M | 24.05M | 9.70M | 14.60M | 32.30M | 4.24M |
| Investing Cash Flow | -24.00M | -137.36M | -5.94M | -28.99M | 84.60M | -4.67M |
| Financing Cash Flow | -5.54M | 64.56M | -11.23M | -5.89M | -24.31M | -5.53M |
PDF Solutions Technical Analysis
Negative
43.97
Price Trends
54.99
Negative
45.79
Positive
37.50
Positive
Market Momentum
-1.03
Positive
42.95
Neutral
20.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PDFS, the sentiment is Negative. The current price of 43.97 is below the 20-day moving average (MA) of 59.73, below the 50-day MA of 54.99, and above the 200-day MA of 37.50, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 20.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $678.53M | 30.36 | 9.69% | ― | 8.25% | -99.84% | |
69 Neutral | $518.11M | -13.06 | -19.29% | ― | 12.27% | 37.41% | |
69 Neutral | $689.09M | -44.74 | -5.93% | ― | 5.10% | 48.36% | |
68 Neutral | $2.17B | 287.06 | 2.68% | ― | 24.44% | 382.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $395.21M | -0.48 | -110.37% | ― | -11.42% | -20.07% |
* Technology Sector Average
PDFS
PDF Solutions
51.93
28.41
120.79%
SPT
Sprout Social
8.62
-10.32
-54.49%
BMBL
Bumble
3.03
-3.88
-56.15%
VTEX
VTEX
3.98
-2.78
-41.12%
RSKD
Riskified
5.15
-0.13
-2.46%
PDF Solutions Corporate Events
Executive/Board ChangesShareholder Meetings
PDF Solutions Shareholders Approve Governance and Compensation Measures
Positive
Jun 18, 2026
At its annual meeting of stockholders on June 16, 2026, PDF Solutions’ shareholders elected Class I directors Joseph R. Bronson and Ye Jane Li, affirming the company’s existing board composition and governance structure. Investors also...
Private Placements and Financing
PDF Solutions Completes Public Stock Offering to Raise Capital
Positive
May 15, 2026
On May 13, 2026, PDF Solutions, Inc. entered into an underwriting agreement with Morgan Stanley Co. LLC and Advantest America, Inc. for a public offering of its common stock, comprising 1,946,630 new shares issued by the company and 3,306,924 sha...
Business Operations and StrategyPrivate Placements and Financing
PDF Solutions Expands Revolving Credit Facility and Flexibility
Positive
Apr 24, 2026
On April 23, 2026, PDF Solutions, Inc. amended its existing credit agreement, increasing its revolving credit facility to an aggregate principal amount of $75 million, while keeping all other material terms unchanged. The amendment also introduced...
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.