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PDF Solutions
NASDAQ: PDFS Technology IT 🔎 Screen
$1.8B
Market Cap
270.8
P/E
1.31
PEG
5.9%
ROCE
-0.2%
ROE
0.25
D/E
2.7%
OPM
-36.5%
% from 52W High
87
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for PDFS including FX impact
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📈 Price History
Ratio Health
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About

PDF Solutions, Inc. provides proprietary software, physical intellectual property for integrated circuit designs, electrical measurement hardware tools, proven methodologies, and professional services in the United States, Japan, China, and internationally.

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📊 MIXED Q1 FY2026: Revenue $60.1M (up 26% YoY), operating margin 25%, net income $12.6M.
Revenue & Profitability
Total revenue for Q1 2026 was $60.1 million, up 26% year-over-year. Platform revenue grew 36% to $50.9 million, while volume-based revenue fell 12% to $9.2 million. Operating profit was $15 million (25% margin), and net income was $12.6 million ($0.31 per share), up 56% YoY. Gross margin was 76%. Backlog stood at $246 million, up 9% YoY.
Outlook
Management sees strong demand driven by AI, which is transforming how engineering is performed across the semiconductor industry. The CEO observed that eight of nine customer meetings in Asia included the CEO, underscoring executive interest in AI applications. PDF reaffirmed its expectation of 20% year-over-year revenue growth for 2026 and expects to make meaningful progress toward its long-term operating margin target of 27% and gross margin target of 77%.
Growth Drivers
Key growth drivers include eProbe systems (targeting six shipments in 2026, with five revenue-generating and two to new customers), secureWISE expansion into fabs, OSATs, and fabless customers, and Exensio enterprise deployments (including a double-digit million-dollar booking). Volume-based revenue is expected to recover as customer volumes increase. The new AI-enabled Exensio analytics system, beta in Q3 2026, is generating high customer interest.
Balance Sheet & CapEx
Q1 2026 CapEx was approximately $10 million, primarily for building eProbe systems to meet customer demand. Management expects higher CapEx this year versus last year, balanced by customer collections, and projects cash balance growth in the second half of the year. The company also expanded its revolving credit facility to $30 million after quarter-end.
Margins
Gross margin was 76% in Q1 2026 (long-term target 77%), while operating margin reached 25% (long-term target 27%). Management believes the company can achieve these targets faster than the typical three-year timeframe, citing scalability benefits as costs rise slower than revenue. Operating profit dollars increased 75% YoY to $15 million.
Key Risks
Risks flagged in the call include forward-looking statement risk factors (detailed in the 10-K), the volatility of volume-based revenue (outside of backlog and subject to customer shipment volumes), and execution risk in eProbe manufacturing (gated by ability to build machines). The CEO also noted that semiconductor cycles can overshoot, though the AI-driven environment is deemed different this time.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Q2 revenue grew 19% year-over-year to $61.5M, with strong bookings and backlog up 16% year-over-year. Gross margin was 73%, and EPS rose 42% to $0.27. Guidance for 20% annual revenue growth is reaffirmed, with continued momentum expected.
Q1 2026 Q1 2026 2026-05-07
Q1 2026 saw 26% revenue growth, strong bookings, and margin expansion, driven by AI-enabled analytics and increased demand for Exensio, Cimetrix, and eProbe. Full-year guidance for 20% revenue growth and margin improvement was reaffirmed, with CapEx rising to meet demand.
Q4 2025 Q4 2025 2026-02-12
Record 2025 revenue grew 22% year-over-year, with margin expansion and strong cash flow. Strategic acquisitions and product launches drove growth, and 2026 guidance targets another 20% revenue increase with continued margin improvement.
Q3 2025 Q3 2025 2025-11-06
Record Q3 revenue and bookings were driven by large contracts and strong analytics growth, with backlog up 25% sequentially. Integration of Tiber AI Studio and secureWISE expansion position the company for continued growth, reaffirming 21%-23% annual revenue guidance.
Q2 2025 Q2 2025 2025-08-07
Record Q2 revenue and strong analytics growth drove a 24% year-over-year increase, with gross margin at 76% and operating margin at 19%. Guidance for 2025 revenue growth of 21%-23% was reaffirmed, supported by robust bookings, expanding platform adoption, and strategic wins in China and with major customers.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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