Download PDF

1. Company Snapshot

1.a. 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, 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.

Show Full description

1.b. Last Insights on PDFS

The recent performance of PDF Solutions, Inc. has been marred by a series of negative developments. A flurry of investigations and potential securities law violations have been launched by Levi & Korsinsky, a shareholder rights advocacy firm, citing possible misrepresentation of financial information. Specifically, the firm has raised concerns about the accuracy of the company's fourth-quarter and full-year total revenues for 2024, which were announced on February 13, 2025. This has led to a cloud of uncertainty surrounding the company's financial reporting and potentially misled investors.

1.c. Company Highlights

2. PDF Solutions' Q3 Earnings: A Strong Quarter with Robust Backlog and Growth Prospects

PDF Solutions reported a strong financial performance in Q3, with revenue reaching a record $57.1 million, up 10% from the previous quarter and 23% year-over-year. The company's analytics revenue was $54.7 million, up 12% from the prior quarter and 22% year-over-year. Gross margins were 76%, ahead of the company's long-term target of 75%. EPS was $0.25 per share, the strongest quarter of the year, and in line with analyst estimates. The company generated positive operating cash flow of $3.3 million and ended the quarter with cash, cash equivalents, and short-term investments of approximately $35.9 million.

Publication Date: Nov -19

📋 Highlights

Bookings and Backlog

The company's bookings in Q3 totaled over $100 million, with multiple large deals signed across its product portfolio. Bookings for the first 3 quarters of 2025 were 49% higher than the comparable period last year, and backlog ended at $292 million, up 25% from the previous quarter and 22% from the same period last year. This robust backlog is expected to drive growth in the coming quarters.

Growth Prospects and New Developments

PDF Solutions is integrating Tiber AI Studio into Exensio, enabling engineers to build, manage, and deploy AI models. The company expects its Exensio Analytics business to drive growth, with increasing demand for scalable AI-first analytics capabilities. It also expects growth in its Sapience business, with plans to announce additional customer business in Q4. The company's partners in the test space, such as Advantest and Teradyne, have posted strong results and outlooks, which is expected to drive growth for PDF Solutions.

Valuation and Outlook

With a P/E Ratio of 218.51 and an EV/EBITDA of 91.28, the company's valuation suggests that investors have high expectations for its future growth. Analysts estimate next year's revenue growth at 18.8%. The company's reaffirmation of its guidance for 2025 and its robust backlog provide a positive outlook for the coming year. As the company continues to integrate Tiber AI Studio into Exensio and drive growth in its various businesses, investors will be watching closely to see if the company can meet its growth prospects.

3. NewsRoom

Card image cap

PDF Solutions, Inc. (PDFS) Analyst/Investor Day Transcript

Dec -04

Source: seekingalpha.com

Card image cap

PDF Solutions, Inc. $PDFS Stock Holdings Raised by Creative Planning

Dec -02

Source: defenseworld.net

Card image cap

PDF Solutions® to Make Its Analyst Day Webcast and Presentation Available

Dec -02

Source: globenewswire.com

Card image cap

Intech Investment Management LLC Lowers Stock Position in PDF Solutions, Inc. $PDFS

Dec -01

Source: defenseworld.net

Card image cap

PDF Solutions Announces Speakers and Agenda for its Users Conference and Analyst Day

Nov -18

Source: globenewswire.com

Card image cap

Campbell & CO Investment Adviser LLC Invests $328,000 in PDF Solutions, Inc. $PDFS

Nov -17

Source: defenseworld.net

Card image cap

Acadian Asset Management LLC Raises Stock Position in PDF Solutions, Inc. $PDFS

Nov -14

Source: defenseworld.net

Card image cap

PDF Solutions, Inc. (PDFS) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.92%)

6. Segments

Analytics

Expected Growth: 7.92%

PDF Solutions' 7.92% growth is driven by increasing demand for its yield management and analytics solutions, particularly in the semiconductor industry. The company's expanding customer base, strategic partnerships, and continuous innovation in AI-powered analytics also contribute to its growth. Additionally, the rising need for process optimization and cost reduction in the electronics manufacturing industry further fuels PDF Solutions' growth momentum.

Integrated Yield Ramp

Expected Growth: 7.92%

The 7.92% growth of Integrated Yield Ramp from PDF Solutions, Inc. is driven by increasing demand for semiconductor manufacturing efficiency, rising adoption of artificial intelligence and machine learning in chip design, and growing need for yield optimization in the IoT and 5G markets.

7. Detailed Products

Exensio

A comprehensive yield management and analytics platform that provides real-time data and insights to improve semiconductor manufacturing efficiency and productivity.

Exensio-Yield

A yield management and analytics platform that provides real-time data and insights to improve semiconductor manufacturing efficiency and productivity.

Exensio-Test

A test data management and analytics platform that provides real-time data and insights to improve semiconductor test efficiency and productivity.

Characterization Vehicle (CV)

A test chip designed to characterize semiconductor manufacturing processes and identify potential yield-limiting defects.

Design-for-Inspection (DFI)

A design methodology that enables the creation of test structures and patterns to facilitate the detection of defects and faults in semiconductor devices.

Tempus

A machine learning-based analytics platform that provides real-time insights and predictions to improve semiconductor manufacturing efficiency and productivity.

8. PDF Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for PDF Solutions, Inc. is medium due to the availability of alternative solutions in the market.

Bargaining Power Of Customers

The bargaining power of customers for PDF Solutions, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for PDF Solutions, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for PDF Solutions, Inc. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for PDF Solutions, Inc. is high due to the presence of several established players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.63%
Debt Cost 3.95%
Equity Weight 97.37%
Equity Cost 11.31%
WACC 11.11%
Leverage 2.70%

11. Quality Control: PDF Solutions, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Brightcove

A-Score: 4.3/10

Value: 4.4

Growth: 2.3

Quality: 5.5

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Waldencast

A-Score: 3.5/10

Value: 7.4

Growth: 2.7

Quality: 3.9

Yield: 0.0

Momentum: 5.5

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Future FinTech

A-Score: 3.4/10

Value: 9.8

Growth: 2.7

Quality: 7.0

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
PDF Solutions

A-Score: 3.4/10

Value: 2.8

Growth: 5.4

Quality: 5.5

Yield: 0.0

Momentum: 3.0

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Paltalk

A-Score: 3.1/10

Value: 8.2

Growth: 1.9

Quality: 3.9

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
SeaChange International

A-Score: 2.9/10

Value: 9.3

Growth: 2.3

Quality: 3.8

Yield: 0.0

Momentum: 1.5

Volatility: 0.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.75$

Current Price

29.75$

Potential

-0.00%

Expected Cash-Flows