SANTA CLARA, Calif., Nov. 06, 2025 (GLOBE NEWSWIRE) -- PDF Solutions, Inc. (NASDAQ:PDFS), a leading provider of comprehensive data solutions for the semiconductor and electronics ecosystem, today announced financial results for its third quarter ended September 30, 2025.

Financial Highlights of Third Quarter 2025

	●	Record quarterly total revenues of $57.1 million, up 23% over last year's comparable quarter
	●	GAAP gross margin of 72% and non-GAAP gross margin of 76%
	●	GAAP operating margin of 8% and non-GAAP operating margin of 23%
	●	GAAP diluted earnings per share (EPS) of $0.03 and non-GAAP diluted EPS of $0.25
	●	Ending backlog of $292.0 million

Total revenues for the third quarter of 2025 were $57.1 million, compared to $51.7 million for the second quarter of 2025 and $46.4 million for the third quarter of 2024.

GAAP gross margin for the third quarter of 2025 was 72%, compared to 71% for the second quarter of 2025 and 73% for the third quarter of 2024.

Non-GAAP gross margin for the third quarter of 2025 was 76%, compared to 76% for the second quarter of 2025 and 77% for the third quarter of 2024.

GAAP operating margin for the third quarter of 2025 was 8%, compared to 2% for the second quarter of 2025 and 5% for the third quarter of 2024.

Non-GAAP operating margin for the third quarter of 2025 was 23%, compared to 19% for the second quarter of 2025 and 21% for the third quarter of 2024.

GAAP net income for the third quarter of 2025 was $1.3 million, or $0.03 per diluted share, compared to net income of $1.1 million, or $0.03 per diluted share, for the second quarter of 2025, and net income of $2.2 million, or $0.06 per diluted share, for the third quarter of 2024.

Non-GAAP net income for the third quarter of 2025 was $9.8 million, or $0.25 per diluted share, compared to non-GAAP net income of $7.3 million, or $0.19 per diluted share, for the second quarter of 2025, and non-GAAP net income of $9.9 million, or $0.25 per diluted share, for the third quarter of 2024.

Financial Outlook

"The third quarter of 2025 drove strong customer activity and platform development, propelled by AI-driven digitization. We ended the quarter with solid backlog due primarily to new bookings. The PDF Platform, spanning analytics, AI/Model Ops, enterprise connectivity, and leading edge solutions including the eProbe, empowers customers to ramp and control advanced manufacturing. With a strong portfolio and momentum, we reaffirm our 21-23% annual revenue growth prior guidance range for this year," said John Kibarian, CEO and President.

PDF Solutions® Reports Third Quarter 2025 Financial Results, Announcing Record Third Quarter 2025 Total Revenue

Conference Call

As previously announced, PDF Solutions will discuss these results on a live conference call beginning at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time today. To participate on the live call, please dial (888) 596-4144 within the United States and Canada, or (646) 968-2525 outside of the United States and Canada. You will need to reference Conference ID Number 9440894. We encourage participants to dial into the call ten minutes ahead of the scheduled time. The teleconference will also be webcast simultaneously on the Company's website at https://ir.pdf.com/webcasts. A replay of the conference call webcast will be available after the call on the Company's investor relations website. A copy of this press release, including the disclosure and reconciliation of certain non-GAAP financial measures to the comparable GAAP measures, which non-GAAP measures may be used periodically by PDF Solutions' management when discussing financial results with investors and analysts, will also be available on PDF Solutions' website at http://www.pdf.com/press-releases on and following the date of this release.

Third Quarter 2025 Financial Commentary Available Online

A Management Report reviewing the Company's third quarter 2025 financial results will be furnished to the Securities and Exchange Commission on Form 8-K and published on the Company's website at http://ir.pdf.com/financial-reports. Analysts and investors are encouraged to review this commentary prior to participating in the conference call.

Information Regarding Use of Non-GAAP Financial Measures

In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"), PDF Solutions also provides certain non-GAAP financial measures. Non-GAAP gross profit and margin exclude stock-based compensation expense and the amortization of acquired technology under costs of revenues. Non-GAAP net income excludes stock-based compensation expense, amortization of acquired technology under costs of revenues, amortization of other acquired intangible assets, amortization of debt issuance costs and the effects of certain non-recurring items, such as expenses for certain legal proceedings, acquisition-related and integration costs, recovery from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items. These non-GAAP financial measures are used by management internally to measure the Company's profitability and performance. PDF Solutions' management believes that these non-GAAP measures provide useful supplemental information to investors regarding the Company's ongoing operations in light of the fact that none of these categories of expense and income has a current effect on the future uses of cash (with the exception of expenses related to certain legal proceedings and acquisition-related and integration costs) nor do they impact the generation of current or future revenues. These non-GAAP results should not be considered an alternative to, or a substitute for, GAAP financial information, and may differ from similarly titled non-GAAP measures used by other companies. In particular, these non-GAAP financial measures are not a substitute for GAAP measures of income or loss as a measure of performance, or to cash flows from operating, investing and financing activities as a measure of liquidity. Since management uses these non-GAAP financial measures internally to measure profitability and performance, PDF Solutions has included these non-GAAP measures to give investors an opportunity to see the Company's financial results as viewed by management. A reconciliation of the comparable GAAP financial measures to the non-GAAP financial measures is provided at the end of the Company's unaudited condensed consolidated financial statements presented below.

PDF Solutions® Reports Third Quarter 2025 Financial Results, Announcing Record Third Quarter 2025 Total Revenue

About PDF Solutions

PDF Solutions (NASDAQ:PDFS) provides comprehensive data solutions designed to empower organizations across the semiconductor and electronics industry ecosystems to improve the yield and quality of their products and operational efficiency for increased profitability. The Company's products and services are used by Fortune 500 companies across the semiconductor ecosystem to achieve smart manufacturing goals by connecting and controlling equipment, collecting data generated during manufacturing and test operations, and performing advanced analytics and machine learning to enable profitable, high-volume manufacturing.

Founded in 1991, PDF Solutions is headquartered in Santa Clara, California, with operations across North America, Europe, and Asia. The Company (directly or through one or more subsidiaries) is an active member of SEMI, INEMI, TPCA, IPC, the OPC Foundation, and DMDII. For the latest news and information about PDF Solutions or to find office locations, visit https://www.pdf.com/.

PDF Solutions and the PDF Solutions logo are trademarks or registered trademarks of PDF Solutions, Inc. or its subsidiaries.

Forward-Looking Statements

This press release and the planned conference call include forward-looking statements regarding the Company's future expected business performance and financial results, including expectations about total revenue growth for 2025, portfolio strength and momentum and other statements identified by words such as "could," "expects," "intends," "may," "plans," "potential," "should," "will," "would," or similar expressions and the negatives of those terms, that are subject to future events and circumstances. Other than statements of historical fact, all statements contained in this press release and the planned conference call are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: the effectiveness of the Company's business and technology strategies; current semiconductor industry trends and competition; rates of adoption of the Company's solutions by new and existing customers; project milestones or delays and performance criteria achieved; cost and schedule of new product development and investments in research and development; the continuing impact of macroeconomic conditions, including inflation, changing interest rates and tariffs, the evolving trade regulatory environment and geopolitical tensions, government shutdowns, and other trends impacting the semiconductor industry, the Company's customers, operations, and supply and demand for its products; supply chain disruptions; changes in laws and regulations, including recent tax and data privacy laws and regulations, or the interpretation or enforcement thereof; the success of the Company's strategic growth opportunities and partnerships; recent and future acquisitions, strategic alliances and relationships and the Company's ability to successfully integrate acquired businesses and technologies; whether the Company can successfully convert backlog into revenue; customers' production volumes under contracts that provide Gainshare; the sufficiency of the Company's cash resources and anticipated funds from operations; the Company's ability to obtain additional financing if needed and its ability to use support and updates for certain open-source software; and other risks and uncertainties discussed in PDF Solutions' periodic public filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and any amendments to such reports. All forward-looking statements made in this press release and the conference call are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

PDF Solutions® Reports Third Quarter 2025 Financial Results, Announcing Record Third Quarter 2025 Total Revenue

PDF SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands)

	September 30,			December 31,
	2025			2024
ASSETS
Current assets:
Cash and cash equivalents	$	35,880		$	90,594
Short-term investments		—			24,291
Accounts receivable, net		74,949			73,649
Prepaid expenses and other current assets		35,292			17,445
Total current assets		146,121			205,979
Property and equipment, net		71,921			48,465
Operating lease right-of-use assets, net		5,160			4,029
Goodwill		96,780			14,953
Intangible assets, net		54,246			12,307
Deferred tax assets, net		203			43
Other non-current assets		31,968			29,513
Total assets	$	406,399		$	315,289

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	14,653		$	8,255
Accrued compensation and related benefits		17,311			16,855
Accrued and other current liabilities		8,661			8,752
Operating lease liabilities ‒ current portion		1,970			1,675
Deferred revenues ‒ current portion		21,247			25,005
Current portion of long-term debt, net		2,238			—
Total current liabilities		66,080			60,542
Long-term income taxes		3,301			2,915
Non-current operating lease liabilities		4,256			3,504
Long-term debt, net		65,320			—
Other non-current liabilities		3,060			2,291
Total liabilities		142,017			69,252

Stockholders' equity:
Common stock and additional paid-in capital		526,532			502,908
Treasury stock, at cost		(165,542	)		(159,352	)
Accumulated deficit		(94,580	)		(93,988	)
Accumulated other comprehensive loss		(2,028	)		(3,531	)
Total stockholders' equity		264,382			246,037
Total liabilities and stockholders' equity	$	406,399		$	315,289

PDF Solutions® Reports Third Quarter 2025 Financial Results, Announcing Record Third Quarter 2025 Total Revenue

PDF SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share amounts)

	Three months ended									Nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2025 (1)			2025 (1)			2024			2025 (1)			2024

Revenues:
Analytics	$	54,662		$	48,822		$	44,750		$	145,955		$	121,327
Integrated yield ramp		2,453			2,906			1,659			10,666			8,053
Total revenues		57,115			51,728			46,409			156,621			129,380

Costs and Expenses:
Costs of revenues		15,840			14,886			12,484			43,681			38,243
Research and development		15,435			14,913			13,516			44,976			39,149
Selling, general, and administrative		19,944			19,744			18,094			63,060			50,851
Amortization of acquired intangible assets		1,069			1,068			196			2,515			714
Income from operations		4,827			1,117			2,119			2,389			423
Interest expense		(1,238	)		(1,242	)		—			(2,791	)		—
Other income (expense), net		(102	)		196			1,511			964			4,682
Income before income tax benefit (expense)		3,487			71			3,630			562			5,105
Income tax benefit (expense)		(2,193	)		1,075			(1,424	)		(1,154	)		(1,587	)
Net income (loss)	$	1,294		$	1,146		$	2,206		$	(592	)	$	3,518

Net income (loss) per share:
Basic	$	0.03		$	0.03		$	0.06		$	(0.02	)	$	0.09
Diluted	$	0.03		$	0.03		$	0.06		$	(0.02	)	$	0.09

Weighted average common shares used to calculate net income (loss) per share:
Basic		39,500			39,148			38,710			39,247			38,542
Diluted		39,619			39,260			39,105			39,247			39,028

)

Analytics Revenue includes revenue from SecureWise LLC, a wholly owned subsidiary we acquired in March 2025.

PDF Solutions® Reports Third Quarter 2025 Financial Results, Announcing Record Third Quarter 2025 Total Revenue

PDF SOLUTIONS, INC.

RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN (UNAUDITED)

(In thousands)

	Three months ended									Nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2025			2025			2024			2025			2024

GAAP
Total revenues	$	57,115		$	51,728		$	46,409		$	156,621		$	129,380
Costs of revenues		15,840			14,886			12,484			43,681			38,243
GAAP gross profit	$	41,275		$	36,842		$	33,925		$	112,940		$	91,137
GAAP gross margin		72	%		71	%		73	%		72	%		70	%

Non-GAAP
GAAP gross profit	$	41,275		$	36,842		$	33,925		$	112,940		$	91,137
Adjustments to reconcile GAAP to non-GAAP gross margin:
Stock-based compensation expense		1,274			1,257			1,366			3,873			3,751
Amortization of acquired technology		998			998			584			2,674			1,752
Non-GAAP gross profit	$	43,547		$	39,097		$	35,875		$	119,487		$	96,640
Non-GAAP gross margin		76	%		76	%		77	%		76	%		75	%

RECONCILIATION OF GAAP OPERATING MARGIN TO NON-GAAP OPERATING MARGIN (UNAUDITED)

(In thousands)

	Three months ended									Nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2025			2025			2024			2025			2024

GAAP income from operations	$	4,827		$	1,117		$	2,119		$	2,389		$	423
GAAP operating margin		8	%		2	%		5	%		2	%		<1%
Adjustments to reconcile GAAP to non-GAAP operating margin:
Stock-based compensation expense		6,264			6,199			6,730			19,059			18,540
Amortization of acquired intangible assets		2,067			2,066			780			5,189			2,466
Expenses for certain legal proceedings (1)		170			112			—			397			—
Acquisition-related and integration costs		22			159			—			4,526			—
Non-GAAP income from operations	$	13,350		$	9,653		$	9,629		$	31,560		$	21,429
Non-GAAP operating margin		23	%		19	%		21	%		20	%		17	%

)

Represents legal costs and expenses related to certain litigation and an arbitration proceeding, which are expected to continue until these matters are resolved.

PDF Solutions® Reports Third Quarter 2025 Financial Results, Announcing Record Third Quarter 2025 Total Revenue

PDF SOLUTIONS, INC.

RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)

(In thousands, except per share amounts)

	Three months ended									Nine months ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2025			2025			2024			2025			2024

GAAP net income (loss)	$	1,294		$	1,146		$	2,206		$	(592	)	$	3,518
Adjustments to reconcile GAAP net income (loss) to non-GAAP net income:
Stock-based compensation expense		6,264			6,199			6,730			19,059			18,540
Amortization of acquired intangible assets		2,067			2,066			780			5,189			2,466
Expenses for certain legal proceedings (1)		170			112			—			397			—
Acquisition-related and integration costs		22			159			—			4,526			—
Recovery from previously written-off property and equipment		—			(663	)		(55	)		(663	)		(55	)
Amortization of debt issuance costs		54			71			—			130			—
Tax impact of valuation allowance for deferred tax assets and reconciling items (2)		(66	)		(1,789	)		262			(2,825	)		(1,710	)
Non-GAAP net income	$	9,805		$	7,301		$	9,923		$	25,221		$	22,759

GAAP net income (loss) per diluted share	$	0.03		$	0.03		$	0.06		$	(0.02	)	$	0.09
Non-GAAP net income per diluted share	$	0.25		$	0.19		$	0.25		$	0.64		$	0.58

Weighted average common shares used in GAAP net income (loss) per diluted share calculation		39,619			39,260			39,105			39,247			39,028
Weighted average common shares used in non-GAAP net income per diluted share calculation		39,619			39,260			39,105			39,390			39,028

(1	)	Represents legal costs and expenses related to certain litigation and an arbitration proceeding, which are expected to continue until these matters are resolved.
(2	)	The difference between the GAAP and non-GAAP income tax provisions is primarily due to the valuation allowance on a GAAP basis and non-GAAP adjustments. For example, on a GAAP basis, the Company does not receive a deferred tax benefit for foreign tax credits or research and development credits after the valuation allowance. The Company's non-GAAP tax rate and resulting non-GAAP tax expense is not calculated with a full U.S. federal or state valuation allowance due to the Company's cumulative non-GAAP income and management's conclusion that it is more likely than not to utilize its net deferred tax assets (DTAs). Each reporting period, management evaluates the need for a valuation allowance and may place a valuation allowance against its U.S. net DTAs on a non-GAAP basis if it concludes it is more likely than not that it will not be able to utilize some or all of its U.S. DTAs on a non-GAAP basis.

Company Contacts:
Adnan Raza		Sonia Segovia
Chief Financial Officer		Investor Relations
Tel: (408) 280-7900		Tel: (408) 938-6491
Email: adnan.raza@pdf.com		Email: sonia.segovia@pdf.com

PDF Solutions® Reports Third Quarter 2025 Financial Results, Announcing Record Third Quarter 2025 Total Revenues