Cash generation remains volatile, with a significant $14.2 million working capital outflow in 2026Q1 and capital expenditures consuming 17.4% of quarterly revenue.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Cash from Operations | 17.09M | 24.05M | 9.7M | 14.6M | 32.3M | 4.24M | 21.78M | 24.59M | 13.34M | 10.54M | 2M | 28.53M | 27.09M | 25.36M | 14.76M | 8.21M | 2.73M | -4.6M | 7.56M | 1.37M | 2.63M | 9.78M | 6.2M | -6.83M | 984K | 2.81M | 1.9M |
| Operating CF Margin % | - | 10.98% | 5.41% | 8.8% | 21.74% | 3.82% | 24.74% | 28.73% | 15.55% | 10.35% | 1.86% | 29.12% | 27.04% | 25% | 16.48% | 12.31% | 4.42% | -9.5% | 10.22% | 1.45% | 3.45% | 13.22% | 9.95% | -16.07% | 2.25% | 7.93% | 9.44% |
| Operating CF Growth % | -27.85% | 147.89% | -33.54% | -54.8% | 661.21% | -80.52% | -11.42% | 84.36% | 26.49% | 427.25% | -92.99% | 5.3% | 6.81% | 71.88% | 79.67% | 201.39% | 159.2% | -160.85% | 452.12% | -47.85% | -73.13% | 57.64% | 190.75% | -794.41% | -65.01% | 47.92% | - |
| Net Income | 7.18M | -640K | 4.06M | 3.1M | -3.43M | -21.49M | -40.36M | -5.42M | -7.72M | -1.34M | 9.1M | 12.41M | 18.46M | 20.93M | 37.21M | 1.88M | 227K | -17.49M | -95.73M | -2.93M | -439K | 6.52M | -614K | -4.52M | 524K | -3.87M | -9.1M |
| Depreciation & Amortization | 13.21M | 11.34M | 6.86M | 8.54M | 9.01M | 9.55M | 8.17M | 7.21M | 5.98M | 5.66M | 4.39M | 3.02M | 2.04M | 1.46M | 949K | 1.29M | 2.41M | 3.21M | 5.34M | 10.71M | 8.83M | 8.24M | 9.12M | 4.85M | 1.72M | 1.41M | 833K |
| Stock-Based Compensation | 25.73M | 25.93M | 25.05M | 21.48M | 19.65M | 12.93M | 12.46M | 11.42M | 10.29M | 11.81M | 11M | 9.76M | 8.55M | 6.69M | 4.89M | 4.79M | 5.23M | 4.27M | 7.23M | 8.23M | 7.35M | 0 | 742K | 1.75M | 0 | 7.37M | 0 |
| Deferred Taxes | 1.47M | 895K | -74K | -108K | -4K | 1.37M | 21.01M | -4.53M | -4.17M | -504K | 216K | 848K | 4.63M | 5.9M | -19.91M | 21K | -527K | 16.94M | 2.57M | -5.49M | -6.86M | -1.9M | -2.42M | -3.46M | -727K | -2.4M | 0 |
| Other Non-Cash Items | 2.47M | 2.13M | 4.1M | 770K | 1.36M | 4M | 1.02M | 614K | 369K | 153K | -39K | -602K | -1.49M | -1.64M | -458K | -652K | -583K | -17.49M | 70.8M | 164K | 1.54M | 106K | 0 | 800K | 2.94M | 919K | 8.82M |
| Working Capital Changes | -32.98M | -15.6M | -30.29M | -19.19M | 5.71M | -2.13M | 19.48M | 15.29M | 8.58M | -5.24M | -22.67M | 3.1M | -5.11M | -7.98M | -7.93M | 884K | -4.04M | 5.96M | 17.35M | -9.31M | -7.79M | -3.19M | -628K | -6.26M | -3.48M | -615K | 1.34M |
| Change in Receivables | -32.36M | -6.34M | -28.8M | -2.75M | -2.14M | -5.98M | 8.1M | 10.92M | 6.83M | -9.58M | -14.62M | 4.37M | -2.89M | -636K | -12.15M | 1.27M | -3.63M | 5.18M | 13.59M | -10.95M | -3.65M | 0 | -4.11M | -3.4M | 0 | -1.6M | 0 |
| Change in Inventory | 0 | 0 | 0 | -11.47M | 0 | 0 | 0 | -588K | 1.69M | 2.55M | -12.91M | -915K | -650K | -1.97M | -1.24M | -1.06M | -1.45M | 3.34M | 6.61M | -210K | -71.12M | 0 | -48.02M | -45.51M | 0 | -69.24M | 0 |
| Change in Payables | 2.95M | 4.88M | 2.79M | -2.15M | -1.42M | -86K | -918K | 807K | -1.41M | 1.96M | 85K | -684K | -1.52M | -566K | 722K | -367K | 20K | -392K | -2.11M | 59K | 391K | 0 | 188K | 37K | 0 | 224K | 0 |
| Cash from Investing | -24M | -137.36M | -5.94M | -28.99M | 84.6M | -4.67M | -150.5M | -13.21M | -13.12M | -14.1M | -11.28M | -10.34M | -3.67M | -4.63M | -1.36M | -405K | -121K | 8.48M | -2.87M | 203K | -35.21M | -2.32M | -1.71M | -29.34M | -2.93M | -1.54M | -1.43M |
| Capital Expenditures | -35.13M | -32.63M | -17.16M | -11.32M | -8.58M | -4.05M | -6.97M | -10.55M | -13.12M | -10.26M | -11.28M | -5.18M | -3.96M | -4.63M | -2.33M | -405K | -121K | -569K | -1.11M | -2.23M | -2.43M | -2.32M | -1.71M | -2.4M | -2.93M | -1.55M | -1.2M |
| CapEx % of Revenue | 15.19% | 14.9% | 9.56% | 6.83% | 5.78% | 3.65% | 7.91% | 12.33% | 15.29% | 10.07% | 10.5% | 5.29% | 3.95% | 4.56% | 2.61% | 0.61% | 0.2% | 1.17% | 1.51% | 2.36% | 3.19% | 3.14% | 2.75% | 5.65% | 6.7% | 4.36% | 5.97% |
| Acquisitions | 1.28M | -129.72M | 0 | -1.82M | 171K | -3.05M | -28.58M | -2.66M | 0 | -3.84M | 0 | -5.15M | 0 | 0 | 0 | 0 | 0 | 0 | -1.6M | -4.59M | -18.66M | 0 | 0 | -26.94M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -648K | 427K | -2.58M | -45K | -171K | 0 | 0 | 0 | 0 | 0 | 0 | -400K | 285K | 0 | 975K | 0 | 0 | 0 | 0 | -4.59M | -18.66M | 0 | 0 | -26.94M | 1K | 7K | -225K |
| Cash from Financing | -5.54M | 64.56M | -11.23M | -5.89M | -24.31M | -5.53M | 64.8M | -9.84M | -5.2M | -12.22M | 30K | -7.42M | 2.73M | 7.01M | 2.25M | 108K | 726K | 303K | -6.63M | -3.74M | 8.21M | 7.49M | 2.03M | 3.78M | 2.54M | 61.95M | 5.23M |
| Debt Issued (Net) | -3M | 66.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -347K | 0 | 0 | 0 | -112K | -107K | -267K | -409K | -740K | -23K | 0 | 2.4M | -17K | -23K | -1.02M | -30K |
| Equity Issued (Net) | 4.06M | 4M | -6.9M | -743K | -22.47M | -4.52M | 65.08M | -9.64M | -5.25M | -13.42M | -4.5M | -14.53M | -5.14M | 0 | -4.37M | -2.95M | 0 | 570K | -6.29M | -4.49M | 7.77M | 7.54M | -361K | 1.83M | 1.58M | 62.92M | 5.25M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.62M | 0 |
| Share Repurchases | -244K | -244K | -6.9M | -743K | -22.47M | -4.52M | 0 | -9.64M | -5.25M | -13.42M | -2.18M | -14.53M | -3.57M | -1.28M | -4.37M | -2.95M | 0 | 0 | -6.88M | -5.97M | 0 | 0 | -4.81M | 0 | 0 | 0 | 0 |
| Other Financing | -6.6M | -6.21M | -4.33M | -5.15M | -1.84M | -1M | -280K | -196K | 46K | 1.19M | 4.53M | 7.45M | 7.87M | 7.01M | 6.62M | 3.17M | 833K | 0 | 63K | 1.49M | 463K | -55K | 0 | 1.96M | 981K | 1.67M | 9K |
| Net Change in Cash | -12.58M | -48.37M | -8.38M | -20.65M | 91.94M | -6.13M | -63.79M | 1.52M | -5.18M | -15.52M | -9.37M | 10.69M | 26.09M | 27.73M | 15.6M | 7.89M | 3.25M | 3.21M | -3.63M | -1.14M | -24.05M | 14.85M | 6.55M | -32.38M | 655K | 63.21M | 5.69M |
| Free Cash Flow | -18.05M | -8.58M | -7.45M | 3.13M | 23.72M | 190K | 14.81M | 14.04M | 222K | 290K | -9.28M | 23.34M | 23.13M | 20.73M | 12.42M | 7.81M | 2.6M | -5.17M | 6.45M | -856K | 194K | 7.46M | 4.49M | -9.23M | -1.95M | 1.26M | 698K |
| FCF Margin % | -7.8% | -3.92% | -4.15% | 1.88% | 15.97% | 0.17% | 16.83% | 16.4% | 0.26% | 0.28% | -8.64% | 23.82% | 23.09% | 20.44% | 13.87% | 11.7% | 4.22% | -10.68% | 8.71% | -0.91% | 0.25% | 10.08% | 7.2% | -21.72% | -4.45% | 3.57% | 3.47% |
| FCF Growth % | -380% | -15.11% | -338.46% | -86.82% | 12383.16% | -98.72% | 5.54% | 6223.42% | -23.45% | 103.12% | -139.77% | 0.91% | 11.56% | 66.92% | 59.09% | 199.85% | 150.35% | -180.2% | 853.39% | -541.24% | -97.4% | 66.11% | 148.6% | -374.56% | -253.83% | 81.23% | - |
| FCF per Share | -0.45 | -0.22 | -0.19 | 0.08 | 0.64 | 0.01 | 0.43 | 0.43 | 0.01 | 0.01 | -0.29 | 0.73 | 0.72 | 0.66 | 0.42 | 0.27 | 0.09 | -0.20 | 0.23 | -0.03 | 0.01 | 0.27 | 0.18 | -0.40 | -0.08 | 0.09 | 0.09 |
| FCF Conversion (FCF/Net Income) | -2.51x | -37.58x | 2.39x | 4.70x | -9.42x | -0.20x | -0.54x | -4.54x | -1.73x | -7.89x | 0.22x | 2.30x | 1.47x | 1.21x | 0.85x | 4.37x | 12.00x | 0.26x | -0.08x | -0.47x | -5.98x | 1.50x | -10.10x | 1.51x | 1.88x | -0.73x | -0.21x |
| Interest Paid | 2.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16K | 0 | 0 | 0 | 7K | 9K | 19K | 39K | 48K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.92M | 0 | 2.56M | 3.78M | 2.85M | 1.87M | 2.71M | 2.69M | 2.58M | 2.24M | 3.63M | 4.98M | 4.22M | 4.75M | 1.67M | 2.06M | 2.11M | 1.6M | 2.42M | 634K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Geopolitical export control exposure
As reported in recent financial filings, PDFS exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio frequently fluctuating into negative territory, suggesting that reported earnings are not currently being converted into tangible cash at a rate consistent with operational health.
The frequent divergence between net income and operating cash flow suggests that accounting profits are heavily influenced by non-cash items or timing differences in revenue recognition. Investors should monitor whether this volatility is a structural feature of the transition to subscription models or a sign of underlying earnings quality issues.
Based on the company's quarterly cash flow statements, free cash flow has demonstrated significant instability, with negative FCF margins reaching as low as -26.4% in 2025Q2, indicating that the business is currently struggling to generate consistent surplus cash after accounting for necessary capital expenditures.
The erratic FCF trajectory appears to be driven by the lumpy nature of hardware-related integrated solutions and the ongoing investment required to maintain technological parity. This inconsistency suggests that the company's cash-generating engine is not yet mature enough to provide a reliable buffer against operational or market-driven downturns.
According to the provided data, PDFS has seen its capital expenditure as a percentage of revenue climb to 17.4% in 2026Q1, reflecting a high-intensity investment phase that appears to be prioritizing the deployment of DFI hardware over the immediate preservation of free cash flow.
The rising capital intensity suggests that the company is in a heavy growth phase, likely necessitated by the technical demands of next-generation node transitions. This level of spending may indicate that the company is prioritizing market share and technological dominance at the expense of short-term cash flow stability.
As evidenced by the quarterly cash flow data, working capital changes have been a consistent drag on cash, with a notable $14.2 million outflow in 2026Q1, suggesting that the company is currently experiencing significant friction in its cash conversion cycle and inventory management processes.
The recurring negative working capital adjustments may imply that the company is extending more favorable payment terms to its foundry customers or is building up inventory in anticipation of future tool deployments. This trend warrants further investigation to determine if these outflows are temporary or indicative of a structural shift in customer payment behavior.
Analysis of the cash flow statements reveals that stock-based compensation consistently exceeds $6 million per quarter, which frequently offsets or exceeds the reported net income, suggesting that the company's cash-generating capacity is significantly lower than headline figures might imply to an unadjusted observer.
The reliance on stock-based compensation as a primary tool for talent retention effectively shifts the cost of operations away from cash-based expenses, potentially masking the true economic cost of the company's engineering-heavy business model. Investors should consider this a critical adjustment when evaluating the company's ability to self-fund its long-term growth.
Quick answers to the most common questions about buying PDFS stock.
PDF Solutions, Inc. (PDFS) generated $24.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
PDF Solutions, Inc. (PDFS) reported negative free cash flow of $8.6M in 2025, indicating capital requirements exceeded cash from operations.
PDF Solutions, Inc. (PDFS) spent $32.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, PDF Solutions, Inc. (PDFS) spent $0.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.