Revenue growth has accelerated to 25.9% in 2026Q1, though operating margins remain constrained in the low single digits at 10.5% due to elevated R&D and SG&A spending.
| 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 |
|---|
| Sales/Revenue | 231.38M | 219.02M | 179.47M | 165.84M | 148.55M | 111.06M | 88.05M | 85.58M | 85.79M | 101.87M | 107.46M | 97.98M | 100.16M | 101.45M | 89.54M | 66.71M | 61.65M | 48.44M | 74.04M | 94.46M | 76.18M | 73.93M | 62.35M | 42.53M | 43.72M | 35.47M | 20.14M |
| Revenue Growth % | 24.44% | 22.04% | 8.22% | 11.64% | 33.76% | 26.14% | 2.88% | -0.24% | -15.78% | -5.2% | 9.68% | -2.18% | -1.27% | 13.3% | 34.22% | 8.21% | 27.28% | -34.58% | -21.62% | 23.99% | 3.05% | 18.58% | 46.61% | -2.74% | 23.26% | 76.17% | - |
| Cost of Goods Sold | 64.67M | 56.95M | 54.14M | 51.75M | 47.91M | 44.19M | 36.77M | 33.47M | 42.8M | 47.52M | 44.45M | 39.02M | 39.71M | 39.47M | 36.5M | 30.04M | 25.67M | 24.22M | 35.12M | 37.62M | 32.9M | 24.61M | 21.86M | 14.41M | 14.99M | 11.84M | 6.92M |
| COGS % of Revenue | - | 26% | 30.17% | 31.21% | 32.25% | 39.79% | 41.76% | 39.11% | 49.89% | 46.65% | 41.36% | 39.83% | 39.65% | 38.9% | 40.76% | 45.03% | 41.64% | 50% | 47.44% | 39.82% | 43.18% | 33.29% | 35.05% | 33.89% | 34.27% | 33.39% | 34.34% |
| Gross Profit | 166.71M | 162.07M | 125.32M | 114.09M | 100.64M | 66.87M | 51.28M | 52.11M | 42.99M | 54.35M | 63.01M | 58.95M | 60.45M | 61.98M | 53.04M | 36.67M | 35.98M | 24.22M | 38.91M | 56.84M | 43.29M | 49.32M | 40.49M | 28.11M | 28.74M | 23.63M | 13.22M |
| Gross Margin % | 72.05% | 74% | 69.83% | 68.79% | 67.75% | 60.21% | 58.24% | 60.89% | 50.11% | 53.35% | 58.64% | 60.17% | 60.35% | 61.1% | 59.24% | 54.97% | 58.36% | 50% | 52.56% | 60.18% | 56.82% | 66.71% | 64.95% | 66.11% | 65.73% | 66.61% | 65.66% |
| Gross Profit Growth % | - | 29.33% | 9.85% | 13.36% | 50.51% | 30.39% | -1.59% | 21.21% | -20.9% | -13.75% | 6.88% | -2.47% | -2.47% | 16.85% | 44.65% | 1.93% | 48.54% | -37.76% | -31.54% | 31.32% | -12.23% | 21.8% | 44.02% | -2.17% | 21.62% | 78.74% | - |
| Operating Expenses | 150.99M | 156.23M | 125.83M | 115.22M | 103.68M | 83.51M | 68.04M | 59.66M | 52.37M | 54.16M | 50.05M | 39.71M | 32.55M | 30.41M | 32.02M | 32.53M | 33.47M | 36.68M | 56.66M | 64.39M | 49.69M | 44.35M | 42.9M | 35.37M | 28.31M | 30.57M | 22.3M |
| OpEx % of Revenue | - | 71.33% | 70.11% | 69.48% | 69.79% | 75.19% | 77.27% | 69.7% | 61.04% | 53.17% | 46.57% | 40.53% | 32.5% | 29.98% | 35.77% | 48.77% | 54.29% | 75.73% | 76.54% | 68.16% | 65.22% | 60% | 68.8% | 83.17% | 64.75% | 86.19% | 110.76% |
| Selling, General & Admin | 59.11M | 84.74M | 0 | 0 | 0 | 0 | 0 | 26.3M | 23.93M | 23.68M | 22.06M | 20.42M | 18.46M | 17.02M | 18.6M | 18.36M | 15.99M | 16.56M | 21.78M | 24.89M | 19.81M | 16.24M | 15.95M | 14.63M | 10.35M | 18.38M | 7.33M |
| SG&A % of Revenue | - | 38.69% | - | - | - | - | - | 30.73% | 27.9% | 23.25% | 20.52% | 20.84% | 18.43% | 16.78% | 20.77% | 27.52% | 25.94% | 34.19% | 29.42% | 26.35% | 26.01% | 21.97% | 25.58% | 34.4% | 23.68% | 51.81% | 36.41% |
| Research & Development | 69.93M | 64.23M | 55.9M | 53M | 58.34M | 45.86M | 35.36M | 32.75M | 28M | 30.08M | 27.56M | 19.1M | 14.06M | 13.31M | 13.25M | 13.97M | 17.19M | 19.77M | 33.99M | 36.07M | 27.61M | 22.11M | 20.33M | 18.44M | 15.25M | 12.2M | 6.42M |
| R&D % of Revenue | - | 29.33% | 31.15% | 31.96% | 39.27% | 41.29% | 40.16% | 38.26% | 32.63% | 29.53% | 25.65% | 19.49% | 14.04% | 13.12% | 14.8% | 20.94% | 27.88% | 40.82% | 45.91% | 38.19% | 36.25% | 29.9% | 32.61% | 43.36% | 34.87% | 34.38% | 31.87% |
| Other Operating Expenses | 2.07M | 7.26M | 69.92M | 62.22M | 45.34M | 37.65M | 32.68M | 609K | 435K | 398K | 432K | 196K | 31K | 74K | 174K | 204K | 295K | 349K | 893K | 3.42M | 2.26M | 6M | 6.62M | 2.3M | 2.71M | 0 | 15.88M |
| Operating Income | 15.71M | 5.85M | -504K | -1.13M | -3.04M | -16.64M | -16.75M | -7.45M | -9.95M | 190K | 12.97M | 19.24M | 27.84M | 31.37M | 19.13M | 4.25M | 1.62M | -16.98M | -87.98M | -7.54M | -6.4M | 4.96M | -2.4M | -8.06M | 428K | -6.94M | -9.08M |
| Operating Margin % | 6.79% | 2.67% | -0.28% | -0.68% | -2.04% | -14.98% | -19.03% | -8.71% | -11.6% | 0.19% | 12.07% | 19.64% | 27.79% | 30.92% | 21.36% | 6.36% | 2.63% | -35.04% | -118.84% | -7.98% | -8.4% | 6.71% | -3.86% | -18.94% | 0.98% | -19.58% | -45.1% |
| Operating Income Growth % | - | 1260.12% | 55.48% | 62.71% | 81.76% | 0.68% | -124.84% | 25.12% | -5337.89% | -98.53% | -32.61% | -30.89% | -11.26% | 64% | 350.54% | 162.1% | 109.54% | 80.71% | -1066.56% | -17.86% | -228.96% | 306.32% | 70.15% | -1982.24% | 106.16% | 23.53% | - |
| EBITDA | 26.93M | 17.19M | 4.02M | 5.14M | 3.76M | -7.09M | -8.58M | -240K | -3.98M | 5.85M | 17.36M | 19.44M | 27.87M | 31.45M | 19.3M | 5.54M | 4.03M | -13.77M | -82.64M | 3.17M | 2.43M | 13.2M | 6.71M | -3.2M | 2.15M | -5.54M | -8.25M |
| EBITDA Margin % | 11.64% | 7.85% | 2.24% | 3.1% | 2.53% | -6.38% | -9.75% | -0.28% | -4.63% | 5.74% | 16.15% | 19.84% | 27.83% | 31% | 21.56% | 8.3% | 6.54% | -28.42% | -111.62% | 3.35% | 3.19% | 17.86% | 10.77% | -7.53% | 4.92% | -15.61% | -40.96% |
| EBITDA Growth % | 594% | 327.54% | -21.77% | 36.68% | 153.04% | 17.42% | -3476.67% | 93.96% | -167.97% | -66.31% | -10.71% | -30.26% | -11.37% | 62.9% | 248.76% | 37.21% | 129.3% | 83.34% | -2711.03% | 30.09% | -81.57% | 96.65% | 309.58% | -248.98% | 138.82% | 32.86% | - |
| D&A (Non-Cash Add-back) | 11.22M | 11.34M | 4.52M | 6.27M | 6.8M | 9.55M | 8.17M | 7.21M | 5.98M | 5.66M | 4.39M | 196K | 31K | 74K | 174K | 1.29M | 2.41M | 3.21M | 5.34M | 10.71M | 8.83M | 8.24M | 9.12M | 4.85M | 1.72M | 1.41M | 833K |
| EBIT | 16.16M | 7.16M | 935K | -151K | -2.09M | -15.82M | -16.79M | -7.54M | -9.38M | 190K | 12.96M | 19.24M | 27.9M | 31.57M | 21.02M | 4.14M | 2.21M | -12.46M | -17.75M | -7.54M | -6.4M | 4.96M | -2.4M | -7.26M | 428K | -6.94M | -9.08M |
| Net Interest Income | -2.21M | -2.65M | 5.64M | 5.02M | 2.56M | 683K | -1.27M | 0 | 493K | 0 | -10K | 181K | 119K | -64K | -248K | 73K | 20K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 345K | 1.31M | 0 | 5.02M | 2.56M | 683K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 73K | 20K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.56M | 3.96M | -5.64M | 0 | 0 | 0 | 1.27M | 0 | 493K | 0 | 10K | 181K | 119K | 64K | 248K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -3.7M | -2.65M | 7.08M | 6M | 3.51M | -1.68M | -1.3M | 0 | 493K | -264K | -10K | 181K | 119K | -64K | -248K | 73K | -593K | 237K | 353K | 1.89M | 2.83M | 1.66M | 675K | 1.2M | 1.55M | 1.23M | 347K |
| Pretax Income | 12.01M | 3.2M | 6.58M | 4.87M | 470K | -18.32M | -18.06M | -7.36M | -9.46M | -74K | 12.96M | 19.42M | 27.96M | 31.31M | 18.88M | 4.32M | 1.62M | -16.74M | -87.63M | -5.65M | -3.57M | 6.62M | -1.73M | -6.86M | 1.98M | -5.71M | -8.73M |
| Pretax Margin % | 5.19% | 1.46% | 3.67% | 2.94% | 0.32% | -16.49% | -20.51% | -8.6% | -11.03% | -0.07% | 12.06% | 19.82% | 27.91% | 30.86% | 21.09% | 6.47% | 2.63% | -34.56% | -118.36% | -5.98% | -4.69% | 8.95% | -2.77% | -16.13% | 4.52% | -16.1% | -43.38% |
| Income Tax | 4.83M | 3.84M | 2.52M | 1.76M | 3.9M | 3.17M | 22.3M | -1.94M | -1.74M | 1.26M | 3.85M | 7.01M | 9.5M | 10.38M | 1.53M | 2.44M | 1.39M | 753K | 8.1M | -2.72M | -3.13M | 96K | -1.12M | -2.35M | 1.45M | -1.84M | 363K |
| Effective Tax Rate % | 40.21% | 119.99% | 38.33% | 36.23% | 829.57% | -17.31% | -123.49% | 26.39% | 18.43% | -1706.76% | 29.74% | 36.12% | 33.97% | 33.15% | 8.1% | 56.47% | 85.99% | -4.5% | -9.24% | 48.2% | 87.71% | 1.45% | 64.51% | 34.18% | 73.5% | 32.21% | -4.16% |
| 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 | 17.35M | 1.88M | 227K | -17.49M | -95.73M | -2.93M | -439K | 6.52M | -614K | -4.52M | 524K | -3.87M | -9.1M |
| Net Margin % | 3.1% | -0.29% | 2.26% | 1.87% | -2.31% | -19.35% | -45.84% | -6.33% | -8.99% | -1.31% | 8.47% | 12.66% | 18.43% | 20.63% | 19.38% | 2.82% | 0.37% | -36.11% | -129.3% | -3.1% | -0.58% | 8.82% | -0.98% | -10.62% | 1.2% | -10.92% | -45.18% |
| Net Income Growth % | 406.56% | -115.78% | 30.66% | 190.55% | 84.04% | 46.76% | -644.98% | 29.78% | -477.11% | -114.69% | -26.63% | -32.8% | -11.79% | 20.61% | 822.98% | 728.19% | 101.3% | 81.73% | -3170.52% | -566.74% | -106.73% | 1162.54% | 86.4% | -961.83% | 113.53% | 57.44% | - |
| Net Income (Continuing) | 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 | 22K | -17.49M | -95.73M | -2.93M | -439K | 6.52M | -614K | -4.52M | 524K | -3.87M | -9.1M |
| Discontinued Operations | 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 | 0 | 0 |
| Minority Interest | 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 | 0 | 0 |
| EPS (Diluted) | 0.18 | -0.02 | 0.10 | 0.08 | -0.09 | -0.58 | -1.17 | -0.17 | -0.24 | -0.04 | 0.28 | 0.39 | 0.58 | 0.67 | 1.25 | 0.07 | 0.00 | -0.66 | -3.48 | -0.10 | -0.02 | 0.24 | -0.02 | -0.19 | 0.02 | -0.27 | -1.24 |
| EPS Growth % | 64.57% | -116.3% | 25.47% | 186.72% | 84.16% | 50.43% | -588.24% | 29.17% | -475.54% | -114.89% | -28.21% | -32.76% | -13.43% | -46.4% | 1685.71% | - | 100.12% | 81.03% | -3380% | -513.5% | -106.79% | 1091.74% | 87.26% | -1050% | 107.41% | 78.23% | - |
| EPS (Basic) | - | -0.02 | 0.11 | 0.08 | -0.09 | -0.58 | -1.17 | -0.17 | -0.24 | -0.04 | 0.29 | 0.39 | 0.60 | 0.70 | 1.30 | 0.07 | 0.00 | -0.66 | -3.48 | -0.10 | -0.02 | 0.25 | -0.02 | -0.19 | 0.02 | -0.27 | -1.24 |
| Diluted Shares Outstanding | 40.38M | 39.32M | 39.05M | 38.94M | 37.31M | 37.14M | 34.46M | 32.41M | 32.17M | 32.04M | 32.43M | 32.16M | 31.94M | 31.39M | 29.81M | 28.43M | 27.47M | 26.38M | 27.51M | 28.07M | 26.89M | 27.47M | 25.33M | 23.28M | 23.2M | 14.43M | 7.36M |
| Basic Shares Outstanding | 39.86M | 39.32M | 38.6M | 38.02M | 37.31M | 37.14M | 34.46M | 32.41M | 32.17M | 32.04M | 31.37M | 31.42M | 30.74M | 29.83M | 28.7M | 28.09M | 27.26M | 26.38M | 27.51M | 28.07M | 26.89M | 25.98M | 25.33M | 23.28M | 21.96M | 14.43M | 7.36M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Geopolitical export control exposure
According to the latest quarterly financial data, PDFS has achieved a notable acceleration in top-line growth, reaching 25.9% year-over-year in 2026Q1, which marks a substantial improvement from the low single-digit growth rates observed in early 2024 as the company successfully scales its subscription-based software model.
The shift toward a recurring revenue model appears to be gaining traction, as evidenced by the consistent double-digit growth observed over the last four quarters. This trajectory suggests that the company is successfully embedding its Exensio platform deeper into the semiconductor manufacturing ecosystem, though investors should monitor whether this growth remains sustainable if node transition cycles experience delays.
As reported in recent income statements, PDFS maintains robust gross margins consistently exceeding 70%, reflecting the high-value software-centric nature of its Exensio analytics platform despite the inherent volatility associated with its integrated hardware solutions and the ongoing transition toward a subscription-based revenue recognition framework.
The ability to sustain gross margins above 70% indicates significant pricing power and a favorable product mix that differentiates the firm from traditional hardware-heavy equipment vendors. However, the stability of these margins remains sensitive to the proportion of service-intensive characterization work versus pure-play software licensing, which warrants further investigation into the long-term cost of revenue.
Based on the provided financial figures, PDFS has struggled to translate its strong gross profit into meaningful operating income, with operating margins hovering in the low single digits, suggesting that heavy R&D and SG&A investments continue to offset the benefits of top-line expansion.
The company appears to be in a persistent investment phase, prioritizing market share and technological parity over immediate GAAP profitability. This lack of operating leverage implies that the current cost structure is highly sensitive to revenue scale, and significant margin expansion may only materialize if the company can decouple its headcount growth from its software deployment velocity.
Analysis of the income statement reveals that stock-based compensation consistently exceeds $6 million per quarter, a figure that frequently dwarfs the reported net income and suggests that the company's GAAP earnings may significantly understate the true economic cost of talent retention in a competitive engineering market.
Investors should be cautious when evaluating the company's bottom-line performance, as the reliance on equity-based incentives creates a persistent drag on GAAP results. This practice warrants further investigation into the long-term dilution impact and whether the underlying business can generate sufficient cash flow to eventually support its operations without such heavy reliance on non-cash compensation.
Quick answers to the most common questions about buying PDFS stock.
For fiscal year 2025, PDF Solutions, Inc. (PDFS) reported total revenue of $219.0M. This represents a 987.8% increase compared to $20.1M in 2000.
PDF Solutions, Inc. (PDFS) reported a net loss of $0.6M for the fiscal year ending 2025.
PDF Solutions, Inc. (PDFS) reported an operating income of $5.8M, resulting in an operating profit margin of 2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
PDF Solutions, Inc. (PDFS) generated $162.1M in gross profit for the year, representing a gross profit margin of 74.0%. This demonstrates the company's core pricing power and production efficiency.