PDF Solutions® Announces First Quarter 2025 Financial Results
- Revenue growth of 16% year-over-year to $47.8 million
- Analytics revenue increased 10% year-over-year to $42.5 million
- Improved GAAP gross margin to 73% from 67% year-over-year
- Strong backlog of $226.7 million
- Record bookings for Sapience Manufacturing Hub
- Strategic acquisition of SecureWise LLC to enhance supply chain collaboration
- GAAP net loss of $3.0 million, compared to $0.4 million loss in Q1 2024
- Sequential revenue decline from $50.1 million in Q4 2024 to $47.8 million
- Took on $70.0 million in new bank debt for acquisition
- Non-GAAP net income decreased from $9.9 million in Q4 2024 to $8.1 million
Insights
PDF Solutions reports 16% YoY revenue growth, improves margins, and reaffirms 21-23% annual growth guidance despite Q1 sequential decline.
PDF Solutions delivered mixed Q1 2025 results with notable year-over-year improvements but sequential declines from Q4 2024. Total revenue reached
The margin story is particularly impressive - GAAP gross margin improved to
The bottom line shows a GAAP net loss of
A key development was the acquisition of SecureWise LLC, a secure connectivity solution provider for semiconductor manufacturing equipment. This strategic move enhances their supply chain collaboration capabilities but adds financial leverage through
The company's backlog of
The significant growth in Integrated Yield Ramp revenue (
SANTA CLARA, Calif., May 08, 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 first quarter ended March 31, 2025.
Financial Highlights of First Quarter 2025
- Quarterly total revenues of
$47.8 million , up16% over last year’s comparable quarter - Quarterly analytics revenue of
$42.5 million , up10% over last year’s comparable quarter - GAAP gross margin of
73% and non-GAAP gross margin of77% - GAAP diluted loss per share of (
$0.08) and non-GAAP diluted earnings per share of$0.21 - Backlog of
$226.7 million as of March 31, 2025 - Completed acquisition of SecureWise LLC, a widely-used, secure, remote connectivity solution in the semiconductor manufacturing equipment industry, during the first quarter of 2025, financed using a combination of new bank debt of
$70.0 million and cash on hand
Total revenues for the first quarter of 2025 were
GAAP gross margin for the first quarter of 2025 was
Non-GAAP gross margin for the first quarter of 2025 was
On a GAAP basis, net loss for the first quarter of 2025 was
Non-GAAP net income for the first quarter of 2025 was
Financial Outlook
“The first quarter of 2025 saw strong customer activity and platform development, driven by AI-driven digitization. Sapience Manufacturing Hub saw record bookings, and we acquired secureWISE to enhance supply chain collaboration. Our platform - spanning analytics, AI/Model Ops, enterprise connectivity, and supply chain tools - empowers customers to handle today’s complex manufacturing and testing environments and data requirements. With a strong portfolio and momentum, we reaffirm our 21
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, analysts and investors should pre-register at: https://register-conf.media-server.com/register/BI6d53831ac55c4a1ab7f4514ab0ec41ca. Registrants will receive dial-in information and a unique passcode to access the call. 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 following the date of this release.
First Quarter 2025 Financial Commentary Available Online
A Management Report reviewing the Company’s first 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, non-recurring legal, finance, integration and other costs, loss on damaged equipment in-transit, 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 non-recurring legal, finance, integration and other 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 condensed consolidated financial statements presented below.
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 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, and other trends impacting the semiconductor industry, the Company’s customers, operations, and supply and demand for its products; supply chain disruptions; 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, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 43,734 | $ | 90,594 | ||||
| Short-term investments | 10,415 | 24,291 | ||||||
| Accounts receivable, net | 63,676 | 73,649 | ||||||
| Prepaid expenses and other current assets | 22,800 | 17,445 | ||||||
| Total current assets | 140,625 | 205,979 | ||||||
| Property and equipment, net | 56,564 | 48,465 | ||||||
| Operating lease right-of-use assets, net | 3,661 | 4,029 | ||||||
| Goodwill | 96,645 | 14,953 | ||||||
| Intangible assets, net | 58,357 | 12,307 | ||||||
| Deferred tax assets, net | 215 | 43 | ||||||
| Other non-current assets | 33,905 | 29,513 | ||||||
| Total assets | $ | 389,972 | $ | 315,289 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 9,394 | $ | 8,255 | ||||
| Accrued compensation and related benefits | 10,902 | 16,855 | ||||||
| Accrued and other current liabilities | 13,037 | 8,752 | ||||||
| Operating lease liabilities ‒ current portion | 1,591 | 1,675 | ||||||
| Deferred revenues ‒ current portion | 27,131 | 25,005 | ||||||
| Current portion of long-term debt, net | 2,240 | — | ||||||
| Total current liabilities | 64,295 | 60,542 | ||||||
| Long-term income taxes | 2,932 | 2,915 | ||||||
| Non-current operating lease liabilities | 3,154 | 3,504 | ||||||
| Long-term debt, net | 66,416 | — | ||||||
| Other non-current liabilities | 4,195 | 2,291 | ||||||
| Total liabilities | 140,992 | 69,252 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock and additional paid-in capital | 511,751 | 502,908 | ||||||
| Treasury stock, at cost | (162,672 | ) | (159,352 | ) | ||||
| Accumulated deficit | (97,020 | ) | (93,988 | ) | ||||
| Accumulated other comprehensive loss | (3,079 | ) | (3,531 | ) | ||||
| Total stockholders’ equity | 248,980 | 246,037 | ||||||
| Total liabilities and stockholders’ equity | $ | 389,972 | $ | 315,289 | ||||
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
| Three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2025 (1) | 2024 | 2024 | ||||||||||
| Revenues: | ||||||||||||
| Analytics | $ | 42,471 | $ | 47,926 | $ | 38,463 | ||||||
| Integrated yield ramp | 5,307 | 2,159 | 2,847 | |||||||||
| Total revenues | 47,778 | 50,085 | 41,310 | |||||||||
| Costs and Expenses: | ||||||||||||
| Costs of revenues | 12,955 | 15,901 | 13,529 | |||||||||
| Research and development | 14,628 | 14,417 | 12,984 | |||||||||
| Selling, general, and administrative | 23,372 | 19,073 | 16,498 | |||||||||
| Amortization of acquired intangible assets | 378 | 182 | 259 | |||||||||
| Income (loss) from operations | (3,555 | ) | 512 | (1,960 | ) | |||||||
| Interest expense | (311 | ) | — | — | ||||||||
| Other income (expense), net | 870 | 962 | 1,692 | |||||||||
| Income before income tax expense | (2,996 | ) | 1,474 | (268 | ) | |||||||
| Income tax expense | (36 | ) | (935 | ) | (125 | ) | ||||||
| Net income (loss) | $ | (3,032 | ) | $ | 539 | $ | (393 | ) | ||||
| Net income (loss) per share: | ||||||||||||
| Basic | $ | (0.08 | ) | $ | 0.01 | $ | (0.01 | ) | ||||
| Diluted | $ | (0.08 | ) | $ | 0.01 | $ | (0.01 | ) | ||||
| Weighted average common shares used to calculate net income (loss) per share: | ||||||||||||
| Basic | 39,088 | 38,783 | 38,500 | |||||||||
| Diluted | 39,088 | 39,104 | 38,500 | |||||||||
(1) Analytics Revenue includes revenue from SecureWise LLC, a wholly owned subsidiary we acquired in March 2025.
PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN (UNAUDITED)
(In thousands)
| Three months ended | ||||||||||
| March 31, | December 31, | March 31, | ||||||||
| 2025 | 2024 | 2024 | ||||||||
| GAAP | ||||||||||
| Total revenues | $ | 47,778 | $ | 50,085 | $ | 41,310 | ||||
| Costs of revenues | 12,955 | 15,901 | 13,529 | |||||||
| GAAP gross profit | $ | 34,823 | $ | 34,184 | $ | 27,781 | ||||
| GAAP gross margin | 73 | % | 68 | % | 67 | % | ||||
| Non-GAAP | ||||||||||
| GAAP gross profit | $ | 34,823 | $ | 34,184 | $ | 27,781 | ||||
| Adjustments to reconcile GAAP to non-GAAP gross margin: | ||||||||||
| Stock-based compensation expense | 1,342 | 1,336 | 1,200 | |||||||
| Amortization of acquired technology | 678 | 583 | 584 | |||||||
| Non-GAAP gross profit | $ | 36,843 | $ | 36,103 | $ | 29,565 | ||||
| Non-GAAP gross margin | 77 | % | 72 | % | 72 | % | ||||
PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)
(In thousands, except per share amounts)
| Three months ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2025 | 2024 | 2024 | |||||||||
| GAAP net income (loss) | $ | (3,032 | ) | $ | 539 | $ | (393 | ) | |||
| Adjustments to reconcile GAAP net income (loss) to non-GAAP net income: | |||||||||||
| Stock-based compensation expense | 6,596 | 6,507 | 6,110 | ||||||||
| Amortization of acquired technology under costs of revenues | 678 | 583 | 584 | ||||||||
| Amortization of other acquired intangible assets | 378 | 182 | 259 | ||||||||
| Expenses for certain legal proceedings (1) | 115 | 69 | — | ||||||||
| Non-recurring legal, finance, integration and other costs | 4,345 | 940 | — | ||||||||
| Loss on damaged equipment in-transit | — | 663 | — | ||||||||
| Amortization of debt issuance costs | 5 | — | — | ||||||||
| Tax impact of valuation allowance for deferred tax assets and reconciling items (2) | (970 | ) | 375 | (813 | ) | ||||||
| Non-GAAP net income | $ | 8,115 | $ | 9,858 | $ | 5,747 | |||||
| GAAP net income (loss) per diluted share | $ | (0.08 | ) | $ | 0.01 | $ | (0.01 | ) | |||
| Non-GAAP net income per diluted share | $ | 0.21 | $ | 0.25 | $ | 0.15 | |||||
| Weighted average common shares used in GAAP net income (loss) per diluted share calculation | 39,088 | 39,104 | 38,500 | ||||||||
| Weighted average common shares used in non-GAAP net income per diluted share calculation | 39,285 | 39,104 | 39,053 | ||||||||
(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) 516-0237 | Tel: (408) 938-6491 | |
| Email: adnan.raza@pdf.com | Email: sonia.segovia@pdf.com | |
FAQ
What were PDF Solutions (PDFS) Q1 2025 earnings per share?
How much revenue did PDF Solutions (PDFS) generate in Q1 2025?
What was PDF Solutions' (PDFS) gross margin in Q1 2025?
What company did PDF Solutions (PDFS) acquire in Q1 2025?
What is PDF Solutions' (PDFS) revenue growth guidance for 2025?
