PDF Solutions (PDFS)
Market Price (5/17/2026): $44.0 | Market Cap: $1.8 BilSector: Information Technology | Industry: Semiconductor Materials & Equipment
PDF Solutions (PDFS)
Market Price (5/17/2026): $44.0Market Cap: $1.8 BilSector: Information TechnologyIndustry: Semiconductor Materials & Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and Automation & Robotics. Themes include AI Chips, Show more. | Weak multi-year price returns2Y Excs Rtn is -11%, 3Y Excs Rtn is -46% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 106x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 104x, P/EPrice/Earnings or Price/(Net Income) is 248x Stock price has recently run up significantly12M Rtn12 month market price return is 127% Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 11% Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -7.8% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.8% Key risksPDFS key risks include [1] significant customer concentration, Show more. |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Cloud Computing, and Automation & Robotics. Themes include AI Chips, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -11%, 3Y Excs Rtn is -46% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 106x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 104x, P/EPrice/Earnings or Price/(Net Income) is 248x |
| Stock price has recently run up significantly12M Rtn12 month market price return is 127% |
| Significant share based compensationSBC/Rev LTMShare Based Compensation / Revenue (Sales), Last Twelve Months (LTM) is 11% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -7.8% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.8% |
| Key risksPDFS key risks include [1] significant customer concentration, Show more. |
Qualitative Assessment
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PDF Solutions (PDFS) stock has gained about 40% since 1/31/2026 because of the following key factors:
1. Strong Financial Performance Exceeded Expectations.
PDF Solutions consistently surpassed analysts' earnings and revenue estimates during the period. The company reported Q4 2025 EPS of $0.30, beating the consensus by 25% (versus $0.24), and revenues of $62.4 million, exceeding estimates by 1.47%. This strong performance contributed to a 4.92% stock gain on February 13, 2026. Furthermore, Q1 2026 results announced on May 7, 2026, showed an EPS of $0.31, a significant beat over the $0.23 consensus estimate (34.78%), and quarterly revenues of $60.1 million, surpassing estimates of $59.71 million. The company also reaffirmed its guidance for approximately 20% annual revenue growth for 2026.
2. Robust Growth in the Semiconductor Industry.
The broader semiconductor market experienced a substantial upturn, providing a favorable environment for PDF Solutions. Global semiconductor sales in Q1 2026 surged by 79.2% year-on-year, reaching $298.55 billion. Quarter-over-quarter sales also increased by 25.0% from Q4 2025. This growth was largely fueled by increasing demand from data centers and AI applications, benefiting companies like PDF Solutions that offer data solutions crucial to the semiconductor ecosystem.
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1. Strong Financial Performance Exceeded Expectations.
PDF Solutions consistently surpassed analysts' earnings and revenue estimates during the period. The company reported Q4 2025 EPS of $0.30, beating the consensus by 25% (versus $0.24), and revenues of $62.4 million, exceeding estimates by 1.47%. This strong performance contributed to a 4.92% stock gain on February 13, 2026. Furthermore, Q1 2026 results announced on May 7, 2026, showed an EPS of $0.31, a significant beat over the $0.23 consensus estimate (34.78%), and quarterly revenues of $60.1 million, surpassing estimates of $59.71 million. The company also reaffirmed its guidance for approximately 20% annual revenue growth for 2026.
2. Robust Growth in the Semiconductor Industry.
The broader semiconductor market experienced a substantial upturn, providing a favorable environment for PDF Solutions. Global semiconductor sales in Q1 2026 surged by 79.2% year-on-year, reaching $298.55 billion. Quarter-over-quarter sales also increased by 25.0% from Q4 2025. This growth was largely fueled by increasing demand from data centers and AI applications, benefiting companies like PDF Solutions that offer data solutions crucial to the semiconductor ecosystem.
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Stock Movement Drivers
Fundamental Drivers
The 40.3% change in PDFS stock from 1/31/2026 to 5/16/2026 was primarily driven by a 26.5% change in the company's P/S Multiple.| (LTM values as of) | 1312026 | 5162026 | Change |
|---|---|---|---|
| Stock Price ($) | 31.85 | 44.70 | 40.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 207 | 231 | 11.9% |
| P/S Multiple | 6.1 | 7.7 | 26.5% |
| Shares Outstanding (Mil) | 40 | 40 | -0.9% |
| Cumulative Contribution | 40.3% |
Market Drivers
1/31/2026 to 5/16/2026| Return | Correlation | |
|---|---|---|
| PDFS | 40.3% | |
| Market (SPY) | 7.1% | 57.8% |
| Sector (XLK) | 22.7% | 67.4% |
Fundamental Drivers
The 53.5% change in PDFS stock from 10/31/2025 to 5/16/2026 was primarily driven by a 608.4% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 5162026 | Change |
|---|---|---|---|
| Stock Price ($) | 29.13 | 44.70 | 53.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 196 | 231 | 18.0% |
| Net Income Margin (%) | 0.4% | 3.1% | 608.4% |
| P/E Multiple | 1,327.6 | 248.0 | -81.3% |
| Shares Outstanding (Mil) | 39 | 40 | -1.8% |
| Cumulative Contribution | 53.5% |
Market Drivers
10/31/2025 to 5/16/2026| Return | Correlation | |
|---|---|---|
| PDFS | 53.5% | |
| Market (SPY) | 9.0% | 56.2% |
| Sector (XLK) | 17.6% | 65.8% |
Fundamental Drivers
The 143.6% change in PDFS stock from 4/30/2025 to 5/16/2026 was primarily driven by a 41.4% change in the company's P/E Multiple.| (LTM values as of) | 4302025 | 5162026 | Change |
|---|---|---|---|
| Stock Price ($) | 18.35 | 44.70 | 143.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 179 | 231 | 28.9% |
| Net Income Margin (%) | 2.3% | 3.1% | 37.3% |
| P/E Multiple | 175.4 | 248.0 | 41.4% |
| Shares Outstanding (Mil) | 39 | 40 | -2.7% |
| Cumulative Contribution | 143.6% |
Market Drivers
4/30/2025 to 5/16/2026| Return | Correlation | |
|---|---|---|
| PDFS | 143.6% | |
| Market (SPY) | 34.8% | 50.9% |
| Sector (XLK) | 68.8% | 57.6% |
Fundamental Drivers
The 24.0% change in PDFS stock from 4/30/2023 to 5/16/2026 was primarily driven by a 55.8% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 4302023 | 5162026 | Change |
|---|---|---|---|
| Stock Price ($) | 36.05 | 44.70 | 24.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 149 | 231 | 55.8% |
| P/S Multiple | 9.1 | 7.7 | -15.1% |
| Shares Outstanding (Mil) | 37 | 40 | -6.2% |
| Cumulative Contribution | 24.0% |
Market Drivers
4/30/2023 to 5/16/2026| Return | Correlation | |
|---|---|---|
| PDFS | 24.0% | |
| Market (SPY) | 84.7% | 56.0% |
| Sector (XLK) | 138.6% | 61.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| PDFS Return | 47% | -10% | 13% | -16% | 5% | 61% | 113% |
| Peers Return | 65% | -39% | 60% | 21% | 65% | 80% | 484% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 100% |
Monthly Win Rates [3] | |||||||
| PDFS Win Rate | 58% | 33% | 67% | 42% | 50% | 80% | |
| Peers Win Rate | 68% | 38% | 63% | 53% | 60% | 80% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| PDFS Max Drawdown | -28% | -39% | -45% | -32% | -44% | -25% | |
| Peers Max Drawdown | -22% | -54% | -22% | -35% | -41% | -21% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: LRCX, AMAT, KLAC, MRVL, TER.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/15/2026 (YTD)
How Low Can It Go
| Event | PDFS | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.4% | -18.8% |
| % Gain to Breakeven | 34.1% | 23.1% |
| Time to Breakeven | 85 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -22.9% | -7.8% |
| % Gain to Breakeven | 29.6% | 8.5% |
| Time to Breakeven | 609 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -40.2% | -9.5% |
| % Gain to Breakeven | 67.3% | 10.5% |
| Time to Breakeven | 907 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -39.3% | -24.5% |
| % Gain to Breakeven | 64.8% | 32.4% |
| Time to Breakeven | 216 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -45.0% | -33.7% |
| % Gain to Breakeven | 81.7% | 50.9% |
| Time to Breakeven | 35 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -12.8% | -19.2% |
| % Gain to Breakeven | 14.6% | 23.8% |
| Time to Breakeven | 16 days | 105 days |
In The Past
PDF Solutions's stock fell -25.4% during the 2025 US Tariff Shock. Such a loss loss requires a 34.1% gain to breakeven.
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| Event | PDFS | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.4% | -18.8% |
| % Gain to Breakeven | 34.1% | 23.1% |
| Time to Breakeven | 85 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -22.9% | -7.8% |
| % Gain to Breakeven | 29.6% | 8.5% |
| Time to Breakeven | 609 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -40.2% | -9.5% |
| % Gain to Breakeven | 67.3% | 10.5% |
| Time to Breakeven | 907 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -39.3% | -24.5% |
| % Gain to Breakeven | 64.8% | 32.4% |
| Time to Breakeven | 216 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -45.0% | -33.7% |
| % Gain to Breakeven | 81.7% | 50.9% |
| Time to Breakeven | 35 days | 140 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -32.3% | -12.2% |
| % Gain to Breakeven | 47.7% | 13.9% |
| Time to Breakeven | 64 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -55.0% | -6.8% |
| % Gain to Breakeven | 122.1% | 7.3% |
| Time to Breakeven | 301 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -42.6% | -17.9% |
| % Gain to Breakeven | 74.3% | 21.8% |
| Time to Breakeven | 72 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -90.1% | -53.4% |
| % Gain to Breakeven | 910.3% | 114.4% |
| Time to Breakeven | 1158 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -23.9% | -8.6% |
| % Gain to Breakeven | 31.4% | 9.5% |
| Time to Breakeven | 1827 days | 47 days |
In The Past
PDF Solutions's stock fell -25.4% during the 2025 US Tariff Shock. Such a loss loss requires a 34.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About PDF Solutions (PDFS)
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, Taiwan, and internationally. The company offers Exensio software products, such as Manufacturing Analytics that stores collected data in a common environment with a consistent view for enabling product engineers to identify and analyze production yield, performance, reliability, and other issues; Process Control that provides failure detection and classification capabilities for monitoring, alarming, and controlling manufacturing tool sets; Test Operations that offers data collection and analysis capabilities; and Assembly Operations that provides device manufacturers with the capability to link assembly and packaging data, including fabrication and characterization data over the product life cycle. It also provides design-for-inspection (DFI) Systems, such as DFI on-chip instruments; eProbe non-contactless E-beam tool; and Characterization Vehicle (CV) system, which includes CV test chips and pdFasTest electrical testers, as well as Exensio characterization software, designed to analyze the measurements collected from DFI on-chip instruments using the eProbe tool. In addition, the company offers Cimetrix software products that enables equipment manufacturers to provide industry standard interfaces on their products; and software-as-a-service, software related services, and characterization services. It sells its technologies and services through direct sales force, service teams, and strategic alliances to integrated device manufacturers, fabless semiconductor companies, foundries, equipment manufacturers, electronics manufacturing suppliers, original device manufacturers, out-sourced semiconductor assembly and test, and system houses. The company was founded in 1991 and is headquartered in Santa Clara, California.
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- They're like a highly specialized version of **Siemens Digital Industries** or **PTC**, providing software and tools to optimize semiconductor chip manufacturing processes and yield.
- They provide advanced diagnostic software and hardware for chip manufacturing, similar to how **Keysight Technologies** provides test equipment, but specifically to improve semiconductor yield and performance.
- Imagine a company like **Aveva (OSIsoft)**, which provides industrial operational data management, but specialized for semiconductor fabrication plants to optimize chip production efficiency and quality.
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- Exensio Software Products: A suite of software tools designed to analyze and optimize semiconductor production yield, performance, and reliability across the manufacturing lifecycle.
- Design-for-Inspection (DFI) Systems and Tools: A collection of hardware and software, including DFI on-chip instruments, eProbe E-beam tools, and Characterization Vehicle (CV) systems, used for detailed electrical characterization.
- Cimetrix Software Products: Software that enables equipment manufacturers to provide industry-standard interfaces for their products, facilitating integration in manufacturing environments.
- Software-as-a-Service (SaaS): A service model for delivering their software products, allowing customers to access tools over the internet.
- Software Related Services: Professional services that support the implementation, customization, and ongoing use of their proprietary software solutions.
- Characterization Services: Professional services offering detailed electrical characterization for customers using their specialized DFI systems and expertise.
AI Analysis | Feedback
For the public company PDF Solutions (symbol: PDFS), the company primarily sells its technologies and services to other companies within the semiconductor and electronics manufacturing industries. The provided background description does not name specific major customer companies. Instead, it describes the categories of companies that PDF Solutions serves. PDF Solutions' major customer categories include:- Integrated device manufacturers (IDMs)
- Fabless semiconductor companies
- Foundries
- Equipment manufacturers
- Electronics manufacturing suppliers
- Original device manufacturers (ODMs)
- Out-sourced semiconductor assembly and test (OSAT) companies
- System houses
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John K. Kibarian, Ph.D., President, Chief Executive Officer, Director, and Co-Founder
John K. Kibarian co-founded PDF Solutions in 1991, serving as President since November 1991 and Chief Executive Officer since July 2000. Prior to PDF Solutions, he worked as a researcher at Carnegie Mellon University's SEMATECH Center for Rapid Yield Learning, where he developed algorithms for diagnosing process variations based on electrical test data. He holds a B.S. in Electrical Engineering, and M.S. and Ph.D. degrees in Electrical and Computer Engineering from Carnegie Mellon University.
Adnan Raza, Executive VP, Finance and Chief Financial Officer
Adnan Raza joined PDF Solutions in January 2020 as Executive Vice President of Finance. Before his tenure at PDF Solutions, he was Senior Vice President of Corporate Development at Synaptics from 2013 to 2019. His background also includes experience in investment banking at Goldman Sachs and UBS Investment Bank.
Kimon Michaels, Ph.D., Executive VP, Products and Solutions, Director, and Co-Founder
Kimon Michaels co-founded PDF Solutions in 1991. He has served as Executive Vice President of Products and Solutions since July 2010 and as a Director since November 1995. He previously held roles within the company as Vice President of Design for Manufacturability (June 2007 to June 2010) and Vice President of Field Operations for Manufacturing Process Solutions (January 2006 to May 2007). Additionally, Dr. Michaels served as Chief Financial Officer for PDF Solutions from November 1995 to July 1998.
Andrzej Strojwas, Ph.D., Chief Technology Officer
Andrzej Strojwas has been a technical advisor to PDF Solutions since its founding and served as chief technologist from 1997 to 2021. In December 2021, he was named Chief Technology Officer.
AI Analysis | Feedback
The key risks to PDF Solutions (PDFS) include:- Cyclicality of the Semiconductor Industry: PDF Solutions' business is highly dependent on the overall health and investment cycles of the semiconductor industry. Fluctuations in demand for semiconductors, capital expenditure by integrated device manufacturers, foundries, and fabless companies, or broader economic downturns can significantly impact the demand for PDF Solutions' software products, hardware tools, methodologies, and professional services.
- Rapid Technological Change and Competition: The semiconductor industry is characterized by rapid technological advancements and intense competition. PDF Solutions must continuously innovate and update its proprietary software, physical intellectual property products, and electrical measurement hardware tools to remain relevant and competitive. Failure to keep pace with evolving industry standards, new design and manufacturing processes, or the introduction of superior competing solutions could negatively affect its market position and financial performance.
- Geopolitical and Supply Chain Risks: Operating internationally, particularly in key semiconductor hubs such as China, Japan, and Taiwan, exposes PDF Solutions to geopolitical tensions, trade disputes, and supply chain disruptions. Events impacting global semiconductor manufacturing, such as export controls, tariffs, or regional conflicts, could adversely affect its customers' operations and, consequently, the demand for PDF Solutions' technologies and services.
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PDF Solutions, Inc. operates in several key areas within the semiconductor industry, with addressable markets as follows:
- Semiconductor Manufacturing Analytics and Yield Solutions (for Exensio software products including Manufacturing Analytics, Process Control, Test Operations, and Assembly Operations): The global semiconductor yield analytics tools market was valued at approximately USD 1.04 billion in 2025 and is projected to reach USD 2.29 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.19% from 2026 to 2034. Yield management software, particularly defect analysis software, accounted for about 40% of the revenue share in 2024 within this market. The semiconductor fabrication software market, which includes defect detection algorithms, yield optimization, data analytics platforms, and factory automation software, was estimated at USD 8.5 billion globally in 2024, with projections to reach USD 13.2 billion by 2029, exhibiting a CAGR of 9.2%.
- Semiconductor Process Control Software: The process control software segment within the broader semiconductor process control equipment market is expected to be the fastest-growing segment from 2025 to 2032, with a CAGR of 9.91%. The overall semiconductor process control equipment market was valued at USD 7.58 billion globally in 2024 and is projected to reach USD 13.05 billion by 2032.
- Semiconductor Design-for-Inspection (DFI) Systems and Characterization (for DFI on-chip instruments, eProbe non-contactless E-beam tool, and Characterization Vehicle system): The global semiconductor metrology and inspection market, which includes e-beam technology, was valued at USD 9.8 billion in 2024 and is estimated to grow at a CAGR of 6.9% to reach USD 18.7 billion by 2034. E-beam technology alone accounted for 28.6% of this market in 2023. Specifically, the global E-Beam Wafer Inspection System market was valued at USD 1.24 billion in 2024 and is expected to reach USD 2.31 billion by 2030, growing at a CAGR of 9.2%. Another report indicates the Electron Beam Wafer Defect Inspection System market was valued at USD 641 million globally in 2024 and is projected to reach USD 1.439 billion by 2032, exhibiting a CAGR of 12.7%. The global semiconductor defect inspection equipment market was estimated at USD 5.60 billion in 2024 and is projected to reach USD 12.15 billion by 2033, with a CAGR of 9.0% from 2025 to 2033.
- Semiconductor Test Operations and Electrical Testers (for pdFasTest electrical testers): The global semiconductor test software market was valued at approximately USD 2.4 billion in 2023 and is expected to reach an estimated USD 5.1 billion by 2032, growing at a CAGR of 8.6%. The global semiconductor test equipment market was valued at USD 7.65 billion in 2025 and is projected to grow to USD 14.38 billion by 2034, exhibiting a CAGR of 7.35%. The Semiconductor Automated Test Equipment (ATE) segment held a 32.89% market share in 2026.
- Cimetrix Software Products (for equipment manufacturers to provide industry-standard interfaces): The global semiconductor manufacturing automation market is anticipated to expand from USD 527.6 million in 2024 to USD 766.1 million by 2034, growing at a CAGR of approximately 3.8%. The broader global factory automation market was estimated at USD 36.01 billion in 2024 and is expected to grow at a CAGR of 11.1% from 2025 to 2030, with the software segment anticipated to witness the fastest CAGR of over 14%. The global Software Defined Automation (SDA) market, relevant for centralized orchestration and management of automation workloads, was valued at USD 46.63 billion in 2025 and is expected to reach USD 112.5 billion by 2036, registering a strong CAGR of 16.0%. The manufacturing sector accounts for 46% of global SDA adoption.
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Here are 3-5 expected drivers of future revenue growth for PDF Solutions (PDFS) over the next 2-3 years:
- Accelerated Adoption of Exensio Platform and AI-Driven Analytics: PDF Solutions anticipates continued revenue growth from the accelerated adoption of its Exensio platform and AI-driven analytics. The company's strategic focus includes establishing orchestration, analytics, and data components of its platform across the industry. The introduction of Exensio Studio AI, which allows customers to build and deploy scalable AI pipelines using Exensio data, is a key enabler.
- Expansion of eProbe Machines and Increased Customer Activity: The company plans to nearly double the number of its eProbe machines in the field. This expansion, coupled with anticipated increased customer activity in the second half of the year, is expected to drive revenue growth.
- Growth in Volume-Based Revenue from Acquisitions and Solutions: PDF Solutions has experienced a significant rise in volume-based revenues, which management expects to continue. This growth is attributed to organic platform advancements and inorganic expansion, including contributions from the SecureWise acquisition, record runtime license revenues for Symetrics, and meaningful gainshare growth.
- Increasing Complexity in Semiconductor Manufacturing and Demand for AI: The expanding semiconductor industry, characterized by increasing manufacturing complexity and a growing need for AI-driven solutions, positions PDF Solutions for future growth. The company's data solutions are designed to help semiconductor and electronics companies improve yield and quality and achieve smart manufacturing objectives.
- New Fabs and Process Nodes Entering Production: Expected improvements in In-Year Revenue (IYR) are linked to new fabs (fabrication plants) and advanced process nodes entering production. This indicates that the overall expansion and technological advancements within semiconductor manufacturing will contribute to PDF Solutions' revenue.
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Capital Allocation Decisions (Last 3-5 Years)
Share Repurchases
- From 2020 through the second quarter of 2022, PDF Solutions executed share repurchases totaling $27.0 million.
Share Issuance
- As of December 31, 2024, 638,481 shares were available for future issuance under the 2021 Purchase Plan.
- The company utilizes its 2011 Stock Incentive Plan to award stock options and stock appreciation rights.
- In August 2025, restricted stock units (RSUs) were granted to the CTO and CFO, and shares were acquired under an employee stock-purchase plan.
Inbound Investments
- PDF Solutions received a strategic investment, as noted in an August 2022 investor presentation.
- Samjo Management, LLC significantly increased its stake in PDF Solutions during Q3 2025, acquiring 184,925 additional shares, bringing their total holding to 551,250 shares with a reported market value of $14,233,275 as of September 30, 2025.
- GSA Capital Partners LLP acquired a new stake of 67,131 shares in Q3 2025, valued at approximately $1,733,000.
Outbound Investments
- In 2025, PDF Solutions acquired secureWISE LLC for $130 million, financed through a combination of cash and new bank debt. This acquisition is intended to enhance the company's analytics software and expand its secure DEX OSAT network.
- The company engaged in M&A activities, with investments totaling $31.2 million from 2020 through the second quarter of 2022.
Capital Expenditures
- Capital expenditures in the fourth quarter of 2025 were approximately $9.79 million.
- Capex investments from 2020 through Q2 2022 amounted to $16.7 million, focusing on DFI, CVi, IP, DEX network, and infrastructure.
- The company's investments in its platform include new product deployments and the deployment of eProbe into manufacturing in 2025, contributing to positive results.
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| 04302026 | PLTR | Palantir Technologies | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.0% | 0.0% | 0.0% |
| 04102026 | ADSK | Autodesk | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 8.5% | 8.5% | 0.0% |
| 04102026 | BSY | Bentley Systems | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 4.2% | 4.2% | 0.0% |
| 04102026 | ENPH | Enphase Energy | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 5.7% | 5.7% | 0.0% |
| 04102026 | BL | BlackLine | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 3.2% | 3.2% | -3.0% |
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Peer Comparisons
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Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 311.30 |
| Mkt Cap | 194.2 |
| Rev LTM | 10,646 |
| Op Inc LTM | 3,398 |
| FCF LTM | 2,701 |
| FCF 3Y Avg | 2,401 |
| CFO LTM | 3,076 |
| CFO 3Y Avg | 2,731 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 25.5% |
| Rev Chg 3Y Avg | 8.6% |
| Rev Chg Q | 22.9% |
| QoQ Delta Rev Chg LTM | 5.3% |
| Op Inc Chg LTM | 55.3% |
| Op Inc Chg 3Y Avg | 16.4% |
| Op Mgn LTM | 28.5% |
| Op Mgn 3Y Avg | 25.8% |
| QoQ Delta Op Mgn LTM | 1.1% |
| CFO/Rev LTM | 26.1% |
| CFO/Rev 3Y Avg | 27.6% |
| FCF/Rev LTM | 19.5% |
| FCF/Rev 3Y Avg | 22.0% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 194.2 |
| P/S | 15.2 |
| P/Op Inc | 49.6 |
| P/EBIT | 46.6 |
| P/E | 55.0 |
| P/CFO | 60.8 |
| Total Yield | 2.1% |
| Dividend Yield | 0.2% |
| FCF Yield 3Y Avg | 2.9% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 8.0% |
| 3M Rtn | 23.3% |
| 6M Rtn | 93.2% |
| 12M Rtn | 172.1% |
| 3Y Rtn | 285.1% |
| 1M Excs Rtn | 2.8% |
| 3M Excs Rtn | 14.9% |
| 6M Excs Rtn | 74.7% |
| 12M Excs Rtn | 135.3% |
| 3Y Excs Rtn | 236.0% |
Price Behavior
Price Behavior
| Market Price | $44.70 | |
| Market Cap ($ Bil) | 1.8 | |
| First Trading Date | 07/31/2001 | |
| Distance from 52W High | -18.9% | |
| 50 Days | 200 Days | |
| DMA Price | $39.44 | $30.24 |
| DMA Trend | up | up |
| Distance from DMA | 13.3% | 47.8% |
| 3M | 1YR | |
| Volatility | 63.6% | 53.8% |
| Downside Capture | 237.85 | 194.77 |
| Upside Capture | 271.50 | 240.81 |
| Correlation (SPY) | 55.0% | 50.3% |
PDFS Betas & Captures as of 4/30/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.26 | 2.22 | 2.48 | 2.32 | 2.13 | 1.76 |
| Up Beta | 3.01 | 2.95 | 2.90 | 2.77 | 2.55 | 1.66 |
| Down Beta | 2.28 | 1.96 | 1.76 | 2.00 | 1.88 | 1.52 |
| Up Capture | 215% | 260% | 337% | 369% | 417% | 836% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 16 | 28 | 35 | 66 | 135 | 398 |
| Down Capture | -136% | 151% | 198% | 165% | 148% | 112% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 6 | 15 | 29 | 59 | 115 | 353 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PDFS | |
|---|---|---|---|---|
| PDFS | 128.0% | 53.9% | 1.73 | - |
| Sector ETF (XLK) | 51.7% | 20.5% | 1.93 | 57.7% |
| Equity (SPY) | 27.4% | 12.1% | 1.71 | 50.5% |
| Gold (GLD) | 42.5% | 26.8% | 1.30 | 15.9% |
| Commodities (DBC) | 45.4% | 18.5% | 1.88 | -10.3% |
| Real Estate (VNQ) | 11.5% | 13.5% | 0.56 | 32.8% |
| Bitcoin (BTCUSD) | -23.7% | 41.8% | -0.54 | 29.6% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PDFS | |
|---|---|---|---|---|
| PDFS | 20.0% | 47.3% | 0.55 | - |
| Sector ETF (XLK) | 22.0% | 24.8% | 0.78 | 58.4% |
| Equity (SPY) | 13.6% | 17.1% | 0.63 | 53.6% |
| Gold (GLD) | 19.4% | 17.9% | 0.88 | 14.4% |
| Commodities (DBC) | 10.9% | 19.4% | 0.45 | 6.9% |
| Real Estate (VNQ) | 2.9% | 18.8% | 0.06 | 32.1% |
| Bitcoin (BTCUSD) | 7.2% | 55.9% | 0.34 | 24.8% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PDFS | |
|---|---|---|---|---|
| PDFS | 13.5% | 45.7% | 0.44 | - |
| Sector ETF (XLK) | 25.0% | 24.4% | 0.92 | 53.7% |
| Equity (SPY) | 15.5% | 17.9% | 0.74 | 50.8% |
| Gold (GLD) | 13.0% | 16.0% | 0.67 | 11.2% |
| Commodities (DBC) | 8.3% | 17.9% | 0.38 | 13.7% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.21 | 33.7% |
| Bitcoin (BTCUSD) | 67.4% | 66.9% | 1.06 | 16.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 5/7/2026 | 8.2% | -3.5% | |
| 2/12/2026 | 4.9% | 1.0% | 2.8% |
| 11/6/2025 | -3.8% | -8.5% | 15.0% |
| 8/7/2025 | -11.0% | -13.9% | -10.4% |
| 5/8/2025 | -6.1% | 4.5% | 0.2% |
| 2/13/2025 | -18.2% | -18.1% | -22.3% |
| 11/7/2024 | 3.2% | -3.2% | -4.0% |
| 8/8/2024 | 2.8% | 10.0% | -6.6% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 14 | 12 | 12 |
| # Negative | 11 | 13 | 12 |
| Median Positive | 4.8% | 5.9% | 14.8% |
| Median Negative | -11.0% | -8.5% | -9.8% |
| Max Positive | 26.1% | 31.6% | 23.4% |
| Max Negative | -18.2% | -19.3% | -24.6% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/24/2026 | 10-K |
| 09/30/2025 | 11/06/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/08/2025 | 10-Q |
| 12/31/2024 | 02/27/2025 | 10-K |
| 09/30/2024 | 11/07/2024 | 10-Q |
| 06/30/2024 | 08/08/2024 | 10-Q |
| 03/31/2024 | 05/09/2024 | 10-Q |
| 12/31/2023 | 02/27/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/08/2023 | 10-Q |
| 03/31/2023 | 05/09/2023 | 10-Q |
| 12/31/2022 | 03/01/2023 | 10-K |
| 09/30/2022 | 11/10/2022 | 10-Q |
| 06/30/2022 | 08/11/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 5/7/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue Growth | 20.0% | 0 | Affirmed | Guidance: 20.0% for 2026 | |||
| 2026 Operating Margin | 27.0% | ||||||
Prior: Q4 2025 Earnings Reported 2/12/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Revenue Growth | 20.0% | -9.1% | -2.0% | Lowered | Guidance: 22.0% for 2025 | ||
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gustafson, Michael B | Direct | Buy | 5142025 | 19.45 | 7,500 | 145,875 | 584,939 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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