PDF Solutions® Reports First Quarter 2026 Financial Results
Rhea-AI Summary
PDF Solutions (Nasdaq: PDFS) reported Q1 2026 results with revenues of $60.1M (up 26% YoY) and an ending backlog of $246.4M. GAAP gross margin was 72% and GAAP diluted EPS was $0.12; non-GAAP diluted EPS was $0.31.
The company reaffirmed its 20% annual revenue growth guidance and reiterated long-term margin targets of 77% gross and 27% operating.
Positive
- Revenue +26% YoY to $60.1M
- Ending backlog of $246.4M
- Non-GAAP diluted EPS of $0.31
- Reaffirmed 20% annual revenue growth guidance
Negative
- Revenue down 3.6% QoQ from $62.4M to $60.1M
- GAAP gross margin slipped to 72% from 73%
Key Figures
Market Reality Check
Peers on Argus
PDFS gained 3.75% while several close software peers (PRO, DCBO, RSKD, SPT, VTEX) were modestly negative except VTEX. Momentum scanner shows VTEX and RBBN up 1–2%, suggesting PDFS’s move is primarily stock-specific around earnings rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Q4 2025 earnings | Positive | +4.9% | Record Q4 and full‑year 2025 revenues and improved full‑year margins and income. |
| Nov 06 | Q3 2025 earnings | Positive | -3.8% | Record Q3 2025 revenues, strong margins, reaffirmed 21–23% annual growth guidance. |
| Aug 07 | Q2 2025 earnings | Positive | -11.1% | Record Q2 2025 revenues, strong analytics growth, solid margins and backlog increase. |
| May 08 | Q1 2025 earnings | Positive | -6.1% | Q1 2025 revenue growth, strong gross margins, non‑GAAP profitability despite GAAP loss. |
| Nov 07 | Q3 2024 earnings | Positive | +3.2% | Record Q3 2024 revenues and analytics revenues with high GAAP and non‑GAAP margins. |
Earnings reports have generally been positive fundamentally but produced mixed to often negative next-day moves, with more divergences than alignments.
Over recent quarters, PDF Solutions has consistently reported growing revenues and high gross margins, often describing results as record or strong. Prior earnings releases highlighted rising backlog, reaffirmed double‑digit revenue growth targets, and expanding non‑GAAP profitability. Market reactions have been uneven, with some positive moves (e.g., after the Feb 12, 2026 and Nov 7, 2024 reports) but several notable selloffs following solid earnings, framing today’s first‑quarter 2026 results within a history of volatile responses.
Historical Comparison
In the last five earnings releases, average next‑day move was -2.55%, showing that even strong results have often been followed by choppy trading.
Earnings releases since 2024 show a progression of record quarterly revenues, resilient GAAP and non‑GAAP gross margins around the low‑to‑mid‑70s, and expanding non‑GAAP earnings. Backlog has repeatedly been highlighted as sizeable, while management has consistently reaffirmed low‑20% annual revenue growth targets. The current Q1 2026 report continues this pattern of growth, profitability, and reiterated long‑term margin goals.
Market Pulse Summary
This announcement delivers Q1 2026 revenue of $60.1M, up 26% year‑over‑year, with GAAP EPS of $0.12 and non‑GAAP EPS of $0.31. Margins remained strong, and backlog reached $246.4M, while management reaffirmed its 20% annual revenue growth guidance and long‑term margin targets of 77% gross and 27% operating. Investors may watch upcoming quarters for consistency of growth, backlog trends, and execution toward those margin objectives, alongside credit facility usage and broader sector conditions.
Key Terms
gaap financial
non-gaap financial
form 8-k regulatory
securities and exchange commission regulatory
stock-based compensation financial
amortization of acquired intangible assets financial
valuation allowance for deferred tax assets financial
AI-generated analysis. Not financial advice.
SANTA CLARA, Calif., May 07, 2026 (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, 2026.
Financial Highlights of First Quarter 2026
| ● | Quarterly total revenues of | |
| ● | GAAP gross margin of | |
| ● | GAAP operating margin of | |
| ● | GAAP diluted earnings per share (EPS) of | |
| ● | Ending backlog of | |
Total revenues for the first quarter of 2026 were
GAAP gross margin for the first quarter of 2026 was
Non-GAAP gross margin for the first quarter of 2026 was
GAAP operating margin for the first quarter of 2026 was
Non-GAAP operating margin for the first quarter of 2026 was
GAAP net income for the first quarter of 2026 was
Non-GAAP net income for the first quarter of 2026 was
Financial Outlook
“We are proud to report another strong quarter,” said John Kibarian, PDF Solutions’ President and CEO. He continued, “In December 2025, at the latest PDF Solutions Analyst Day, we stated that PDF Solutions is instrumental in addressing research and development and manufacturing challenges of today’s semiconductor industry. This quarter’s results demonstrate the value of this strategy with a large fabless customer renewing its commitment to Exensio, a large semiconductor IDM developing its next generation test solution with us, and another eProbe tool shipped to an existing customer that is a leading-edge semiconductor company. We believe this continued market adoption reflects the market’s perception of the value our existing and new applications. With a strong product portfolio and momentum, we reaffirm our
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/BI1d55d4e14ae24f1194fc1069723cc6a1. 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.
First Quarter 2026 Financial Commentary Available Online
A Management Report reviewing the Company’s first quarter 2026 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 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, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items. 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.
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/.
Characterization Vehicle, Cimetrix, CV, DirectScan, eProbe, PDF Solutions, Sapience, secureWISE, and logos therefor 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 2026, progress towards long-term model target margins, 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, armed conflicts, 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, 2025, 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, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 31,153 | $ | 42,220 | ||||
| Accounts receivable, net | 96,016 | 82,938 | ||||||
| Prepaid expenses and other current assets | 48,475 | 38,735 | ||||||
| Total current assets | 175,644 | 163,893 | ||||||
| Property and equipment, net | 90,477 | 81,609 | ||||||
| Operating lease right-of-use assets, net | 4,592 | 4,778 | ||||||
| Goodwill | 95,006 | 95,005 | ||||||
| Intangible assets, net | 50,127 | 52,194 | ||||||
| Deferred tax assets, net | 44 | 69 | ||||||
| Other non-current assets | 14,674 | 21,149 | ||||||
| Total assets | $ | 430,564 | $ | 418,697 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 16,703 | $ | 17,076 | ||||
| Accrued compensation and related benefits | 23,874 | 22,437 | ||||||
| Accrued and other current liabilities | 6,977 | 8,719 | ||||||
| Operating lease liabilities ‒ current portion | 2,073 | 1,982 | ||||||
| Deferred revenues ‒ current portion | 23,102 | 19,441 | ||||||
| Current portion of long-term debt, net | 2,238 | 2,236 | ||||||
| Total current liabilities | 74,967 | 71,891 | ||||||
| Long-term income taxes | 4,580 | 4,273 | ||||||
| Operating lease liabilities – non-current portion | 3,475 | 3,838 | ||||||
| Long-term debt, net | 64,214 | 64,763 | ||||||
| Other non-current liabilities | 2,863 | 2,910 | ||||||
| Total liabilities | 150,099 | 147,675 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock and additional paid-in capital | 542,182 | 533,509 | ||||||
| Treasury stock, at cost | (169,518 | ) | (165,808 | ) | ||||
| Accumulated deficit | (89,837 | ) | (94,628 | ) | ||||
| Accumulated other comprehensive loss | (2,362 | ) | (2,051 | ) | ||||
| Total stockholders’ equity | 280,465 | 271,022 | ||||||
| Total liabilities and stockholders’ equity | $ | 430,564 | $ | 418,697 | ||||
PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Revenues (1): | ||||||||||||
| Platform | $ | 50,936 | $ | 52,503 | $ | 37,321 | ||||||
| Volume-based | 9,194 | 9,900 | 10,457 | |||||||||
| Total revenues | 60,130 | 62,403 | 47,778 | |||||||||
| Costs and Expenses: | ||||||||||||
| Costs of revenues | 16,938 | 16,942 | 12,955 | |||||||||
| Research and development | 18,328 | 19,258 | 14,628 | |||||||||
| Selling, general, and administrative | 17,492 | 21,676 | 23,372 | |||||||||
| Amortization of acquired intangible assets | 1,059 | 1,069 | 378 | |||||||||
| Income (loss) from operations | 6,313 | 3,458 | (3,555 | ) | ||||||||
| Interest expense | (1,089 | ) | (1,164 | ) | (311 | ) | ||||||
| Interest income and other, net | 592 | 345 | 870 | |||||||||
| Income (loss) before income tax expense | 5,816 | 2,639 | (2,996 | ) | ||||||||
| Income tax expense | (1,025 | ) | (2,687 | ) | (36 | ) | ||||||
| Net income (loss) | $ | 4,791 | $ | (48 | ) | $ | (3,032 | ) | ||||
| Net income (loss) per share: | ||||||||||||
| Basic | $ | 0.12 | $ | (0.00 | ) | $ | (0.08 | ) | ||||
| Diluted | $ | 0.12 | $ | (0.00 | ) | $ | (0.08 | ) | ||||
| Weighted average common shares used to calculate net income (loss) per share: | ||||||||||||
| Basic | 39,857 | 39,524 | 39,088 | |||||||||
| Diluted | 40,377 | 39,524 | 39,088 | |||||||||
| (1 | ) | In the fourth quarter of 2025, the Company updated its presentation of revenue categories. The Company now presents revenue in the following categories: Platform and Volume-based. Platform revenue is derived from the following primary offerings: licenses for software (other than Cimetrix runtime licenses) and related software maintenance and technical support services; SaaS; engineering services; fixed fees associated with CV systems; and licenses and purchase contracts for DirectScan systems. Volume-based revenue is derived from Cimetrix runtime licenses, secureWISE data, and Gainshare. Prior periods Condensed Consolidated Statements of Operations have been reclassified to conform to the new revenue presentation. The change in presentation of revenue does not change the Company’s total revenues or costs of revenues. |
PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP GROSS PROFIT AND MARGIN TO NON-GAAP GROSS PROFIT AND MARGIN (UNAUDITED)
(In thousands)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| GAAP | ||||||||||||
| Total revenues | $ | 60,130 | $ | 62,403 | $ | 47,778 | ||||||
| Costs of revenues | 16,938 | 16,942 | 12,955 | |||||||||
| GAAP gross profit | $ | 43,192 | $ | 45,461 | $ | 34,823 | ||||||
| GAAP gross margin | 72 | % | 73 | % | 73 | % | ||||||
| Non-GAAP | ||||||||||||
| GAAP gross profit | $ | 43,192 | $ | 45,461 | $ | 34,823 | ||||||
| Adjustments to reconcile GAAP to non-GAAP gross profit: | ||||||||||||
| Stock-based compensation expense | 1,279 | 1,379 | 1,342 | |||||||||
| Amortization of acquired technology under costs of revenues | 998 | 998 | 678 | |||||||||
| Non-GAAP gross profit | $ | 45,469 | $ | 47,838 | $ | 36,843 | ||||||
| Non-GAAP gross margin | 76 | % | 77 | % | 77 | % | ||||||
RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS AND OPERATING MARGIN TO NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGIN (UNAUDITED)
(In thousands)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| GAAP income (loss) from operations | $ | 6,313 | $ | 3,458 | $ | (3,555 | ) | |||||
| GAAP operating margin | 10 | % | 6 | % | (7 | )% | ||||||
| Adjustments to reconcile GAAP to non-GAAP income (loss) from operations: | ||||||||||||
| Stock-based compensation expense | 6,396 | 6,866 | 6,596 | |||||||||
| Amortization of acquired intangible assets | 2,057 | 2,066 | 1,056 | |||||||||
| Expenses for certain legal proceedings (1) | 210 | 2,574 | 115 | |||||||||
| Acquisition-related and integration costs | 8 | 2 | 4,345 | |||||||||
| Non-GAAP income from operations | $ | 14,984 | $ | 14,966 | $ | 8,557 | ||||||
| Non-GAAP operating margin | 25 | % | 24 | % | 18 | % | ||||||
| (1 | ) | Represents legal costs and expenses related to a certain arbitration proceeding, which are expected to continue until this matter is fully resolved. |
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, | ||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| GAAP net income (loss) | $ | 4,791 | $ | (48 | ) | $ | (3,032 | ) | ||||
| Adjustments to reconcile GAAP net income (loss) to non-GAAP net income: | ||||||||||||
| Stock-based compensation expense | 6,396 | 6,866 | 6,596 | |||||||||
| Amortization of acquired intangible assets | 2,057 | 2,066 | 1,056 | |||||||||
| Expenses for certain legal proceedings (1) | 210 | 2,574 | 115 | |||||||||
| Acquisition-related and integration costs | 8 | 2 | 4,345 | |||||||||
| Amortization of debt issuance costs | 65 | 55 | 5 | |||||||||
| Tax impact of valuation allowance for deferred tax assets and reconciling items (2) | (878 | ) | 495 | (970 | ) | |||||||
| Non-GAAP net income | $ | 12,649 | $ | 12,010 | $ | 8,115 | ||||||
| GAAP net income (loss) per diluted share | $ | 0.12 | $ | (0.00 | ) | $ | (0.08 | ) | ||||
| Non-GAAP net income per diluted share | $ | 0.31 | $ | 0.30 | $ | 0.21 | ||||||
| Weighted average common shares used in GAAP net income (loss) per diluted share calculation | 40,377 | 39,524 | 39,088 | |||||||||
| Weighted average common shares used in non-GAAP net income per diluted share calculation | 40,377 | 39,911 | 39,285 | |||||||||
| (1 | ) | Represents legal costs and expenses related to a certain arbitration proceeding, which are expected to continue until this matter is fully 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 |
