Revenue growth accelerated to 18.9% year-over-year in 2026Q2 to $61.5M, yet operating margin remains thin at 8.2% as combined R&D and SG&A consume 59% of revenue, with SBC averaging $6.3M per quarter exceeding net income in most periods.
PDF Solutions, Inc. (PDFS) annual income statement — 26-year revenue, gross profit & net income history
| 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 | 252.4M | 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 % | 22.1% | 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 | 71.58M | 60.62M | 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 | - | 27.68% | 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 | 180.82M | 158.4M | 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 % | 71.64% | 72.32% | 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 % | - | 26.4% | 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 | 157.69M | 152.55M | 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 | - | 69.65% | 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 | 79.12M | 80.24M | 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 | - | 36.63% | - | - | - | - | - | 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 | 75.34M | 67.91M | 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 | - | 31% | 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 | 3.07M | 4.41M | 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 | 23.12M | 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 % | 9.16% | 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 | 38.67M | 17.19M | 6.36M | 7.41M | 5.97M | -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 % | 15.32% | 7.85% | 3.54% | 4.47% | 4.02% | -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 % | 227.03% | 170.45% | -14.18% | 23.95% | 184.27% | 17.42% | -3476.67% | 93.96% | -167.97% | -66.3% | -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) | 15.55M | 11.34M | 6.86M | 8.54M | 9.01M | 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 | 25.91M | 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 | -2.36M | -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 | 2.13M | 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 | 4.48M | 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 | -1.69M | -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 | 21.43M | 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 % | 8.49% | 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 | 5.58M | 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 % | 26.02% | 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 | 15.86M | -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 % | 6.28% | -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 % | 30015.09% | -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) | 15.86M | -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) | 0.37 | -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 % | 20036.84% | -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 | 42.98M | 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 | 42.19M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
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 $158.4M in gross profit for the year, representing a gross profit margin of 72.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin pressure from OpEx
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on SaaS Shift
Revenue grew 18.9% year-over-year in 2026Q2 to $61.5M, accelerating from 24.2% in 2025Q2, driven by subscription adoption and Cimetrix integration, per recent financial statements.
The 10-quarter trend shows a clear acceleration from 0.1% growth in 2024Q2 to 18.9% in 2026Q2, with the most recent two quarters exceeding 18%. This suggests the shift from gain-share to SaaS is gaining traction, as recurring revenue becomes a larger component. The sequential growth from 2026Q1 to 2026Q2 (2.3%) is modest, but the year-over-year figures indicate a durable expansion, likely supported by new node ramps and increased Exensio adoption.
Gross Margin Stability Masks Mix Shift
Gross margin held near 69-73% over the past year, with 2026Q2 at 68.9%, slightly below the 71.2% reported in 2025Q2, reflecting a higher mix of hardware and services, as per SEC filings.
Despite revenue growth, gross margin has remained range-bound, suggesting that the software mix is not yet dominant enough to push margins higher. The 2026Q2 gross margin of 68.9% is the lowest in the last four quarters, which may indicate increased hardware sales or one-time costs. Investors should monitor whether the eProbe tool rollout is diluting margins, as a sustained decline would offset the benefits of subscription revenue.
Operating Leverage Elusive as OpEx Scales
Operating margin improved to 8.2% in 2026Q2 from 2.2% a year earlier, but remains thin, with R&D and SG&A consuming 59% of revenue, based on reported figures.
While operating income grew from $1.1M in 2025Q2 to $5.1M in 2026Q2, the absolute margin is still low, indicating that the company has not achieved significant operating leverage. R&D and SG&A expenses have grown roughly in line with revenue, suggesting management is reinvesting heavily to maintain its technological edge. The recent EPS miss in 2026Q2 (actual $0.10 vs. estimated $0.12) underscores that cost discipline is not yet evident.
SBC Dilutes Reported Earnings Quality
Stock-based compensation averaged $6.3M per quarter over the last year, exceeding net income in most periods, implying reported EPS understates cash generation, as disclosed in financial statements.
In 2026Q2, SBC of $6.0M was 140% of net income, meaning the company is barely profitable on a GAAP basis after accounting for non-cash compensation. This suggests that the true cash earnings power is higher, but it also highlights the dilutive impact on shareholders. The negative net income in 2025Q4 and 2025Q1, despite positive gross profits, further indicates that operating expenses are the primary drag on profitability.
R&D and SG&A Outpace Revenue Growth
Combined R&D and SG&A rose to $36.3M in 2026Q2 from $35.4M in 2025Q2, a 2.5% increase, while revenue grew 18.9%, indicating expense discipline is improving, per income statement data.
Although the absolute dollar increase is modest, the ratio of OpEx to revenue has declined from 68.5% in 2025Q2 to 59.0% in 2026Q2, suggesting some operating leverage is emerging. However, the 2026Q2 SG&A of $19.0M is the highest in the last five quarters, possibly due to sales investments for the eProbe rollout. The company's ability to control these costs while scaling will be critical to achieving sustainable profitability.
2025Q1 Marks Turning Point to Profitability
After a loss of $3.0M in 2025Q1, PDFS returned to profitability in 2025Q2 and has remained positive, with net income reaching $4.3M in 2026Q2, as reported in quarterly filings.
The inflection appears driven by a combination of revenue acceleration and a stabilization of operating expenses, particularly SG&A which dropped from $23.4M in 2025Q1 to $19.5M in 2025Q2. This suggests management took corrective actions to align costs with revenue growth. The subsequent quarters show a clear upward trend in net income, indicating that the business model is gaining traction, though the sustainability depends on maintaining revenue growth without proportional cost increases.
What Could Invalidate the Base Case
Despite revenue growth, operating margin remains thin at 8.2% in 2026Q2, and the recent EPS miss suggests cost pressures may persist, as per income statement data.
Short-sellers could argue that the company's reliance on a few large customers in Asia and the lumpy nature of hardware sales make revenue growth unsustainable. The 2026Q2 EPS miss of $0.10 vs. $0.31 estimate, despite 22% revenue growth, indicates that operating expenses are absorbing top-line gains, potentially signaling a structural profitability issue. If the transition to 2nm and GAA architectures requires even higher R&D spending, margins could remain compressed, undermining the investment thesis.