Recent News
On July 16, 2025 the company announced an inaugural Connected Equipment Summit for October 9, 2025 in Chandler, Arizona to showcase equipment connectivity, secure remote access, and AI/digital-twin applications following the secureWISE acquisition. The announcement highlighted planned product and integration briefings tied to secureWISE capabilities.
Technical Analysis
Directional indicators show ADX at 35.43, signaling a strong trend environment; DI+ recorded a peak-and-reverse while DI‑ displayed a dip-and-reverse, both indicating net directional pressure to the downside and increasing short-run selling bias relative to recent strength.
MACD reads 1.39 with the MACD line above the signal line (0.89) and an increasing MACD trend; that crossover provides a bullish momentum signal that supports continuation of the recent advance in the near term unless DI readings reassert dominance.
MRO stands at 19.96 and trends higher, indicating price sits above the model target and carries potential for a corrective move toward the target level; that pressure could blunt momentum despite the positive MACD crossover.
RSI registers 58.23 and increases, showing constructive momentum without overbought extremes; combined with price trading above the 12‑day EMA (24.60), 20‑day average (23.81), 50‑day average (21.58), and 200‑day average (22.21), the short-to-intermediate technical picture favors continuation with vulnerability to pullbacks.
Price sits near the upper Bollinger band (upper 1x at $26.78) and above the super trend lower support at $24.05, implying support on pullbacks around the mid-$24 area while upside faces resistance near the band. Volume today (277,331) trails the 10‑day average (433,223) but exceeds the 200‑day average (259,214), suggesting current moves lack strong short-term conviction versus recent trading sessions.
Fundamental Analysis
Q2 2025 financial results showed record quarterly total revenues of $51.7 million and analytics revenue of $48.8 million; GAAP gross margin measured 71% and non‑GAAP gross margin reached 76%, with GAAP diluted EPS of $0.03 and non‑GAAP diluted EPS of $0.19. Management reported backlog of $232.6 million as of June 30, 2025.
The company completed the secureWISE acquisition earlier in 2025, a transaction expected to broaden equipment connectivity and monetize equipment-level analytics through the Exensio platform; PDF Solutions funded the deal with cash plus $70 million of new bank debt.
Profitability and margin profile show contrasts: gross margin stands at 71.223%, above the industry peer mean of 52.71% and industry peer median of 52.572%, reflecting software/analytics leverage, while EBIT margin sits at 2.538%, below the industry peer mean of 37.52% and industry peer median of 42.567%, pointing to operating-leverage pressure after R&D and integration costs.
Top-line growth shows YoY revenue growth of 8.73% and revenue growth QoQ down 2.79%, consistent with accelerating annual momentum but some sequential moderation. EPS matched estimates at $0.19 with an EPS surprise ratio of 1.33% (no deviation from consensus), and forward EPS of $0.25 produces a forward P/E of 80.08 versus a trailing P/E of 114.72.
Cash flow and balance-sheet metrics warrant attention: cash and short‑term investments total $40,402,000 while free cash flow stands at -$13,741,000 and operating cash flow at -$5,215,000, producing a negative cash flow margin of -8.53%. The company carries total debt of $74,045,000 and net debt of $30,702,000; debt to EBITDA reads 17.70 and interest coverage sits near 1.06, reflecting thin coverage after the acquisition financing and contributing to leverage sensitivity.
Liquidity metrics show a current ratio of 2.37, above the industry peer mean of 2.18, and a cash conversion ratio of 0.66465. Returns remain modest: return on equity at 0.445% and return on assets at 0.293%, while earnings growth shows negative YoY trajectories (earnings growth -9.52%).
Valuation context: the enterprise multiple registers at 212.11 and the price-to-sales ratio at 16.50, producing stretched valuation multiples versus intrinsic cash-flow performance. The current valuation as determined by WMDST: over‑valued.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-07 |
| NEXT REPORT DATE: | 2025-11-06 |
| CASH FLOW | Begin Period Cash Flow | $ 43.7 M |
| Operating Cash Flow | $ -5.21 M | |
| Capital Expenditures | $ -8.53 M | |
| Change In Working Capital | $ -14.28 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -6.32 M | |
| End Period Cash Flow | $ 37.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 51.7 M | |
| Forward Revenue | $ 110.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 14.9 M | |
| Depreciation | $ 804.0 K | |
| Depreciation and Amortization | $ 2.9 M | |
| Research and Development | $ 14.9 M | |
| Total Operating Expenses | $ 50.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 36.8 M | |
| EBITDA | $ 4.2 M | |
| EBIT | $ 1.3 M | |
| Operating Income | $ 1.1 M | |
| Interest Income | $ 196.0 K | |
| Interest Expense | $ 1.2 M | |
| Net Interest Income | $ -1.05 M | |
| Income Before Tax | $ 71.0 K | |
| Tax Provision | $ -1.07 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 1.1 M | |
| Net Income From Continuing Operations | $ 1.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.19 | |
| EPS Actual | $ 0.19 | |
| EPS Difference | $ 0.00 | |
| EPS Surprise | 1.33 % | |
| Forward EPS | $ 0.25 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 391.1 M | |
| Intangible Assets | $ 153.1 M | |
| Net Tangible Assets | $ 104.4 M | |
| Total Current Assets | $ 134.8 M | |
| Cash and Short-Term Investments | $ 40.4 M | |
| Cash | $ 37.4 M | |
| Net Receivables | $ 69.3 M | |
| Inventory | — | |
| Long-Term Investments | $ 4.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 6.6 M | |
| Short-Term Debt | $ 2.2 M | |
| Total Current Liabilities | $ 57.0 M | |
| Net Debt | $ 30.7 M | |
| Total Debt | $ 74.0 M | |
| Total Liabilities | $ 133.6 M | |
| EQUITY | ||
| Total Equity | $ 257.5 M | |
| Retained Earnings | $ -95.87 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.58 | |
| Shares Outstanding | 39.163 M | |
| Revenue Per-Share | $ 1.32 | |
| VALUATION | Market Capitalization | $ 853.6 M |
| Enterprise Value | $ 887.2 M | |
| Enterprise Multiple | 212.108 | |
| Enterprise Multiple QoQ | -124.259 % | |
| Enterprise Multiple YoY | -61.772 % | |
| Enterprise Multiple IPRWA | high: 246.222 PDFS: 212.108 median: 77.751 mean: 71.563 low: -86.607 |
|
| EV/R | 17.152 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.519 | |
| Asset To Liability | 2.927 | |
| Debt To Capital | 0.223 | |
| Debt To Assets | 0.189 | |
| Debt To Assets QoQ | 0.579 % | |
| Debt To Assets YoY | 1652.87 % | |
| Debt To Assets IPRWA | high: 0.594 median: 0.198 PDFS: 0.189 mean: 0.177 low: 0.006 |
|
| Debt To Equity | 0.288 | |
| Debt To Equity QoQ | -2.469 % | |
| Debt To Equity YoY | 1974.531 % | |
| Debt To Equity IPRWA | high: 1.065 mean: 0.298 PDFS: 0.288 median: 0.21 low: -0.023 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.315 | |
| Price To Book QoQ | 2.377 % | |
| Price To Book YoY | -41.694 % | |
| Price To Book IPRWA | high: 12.365 mean: 8.215 median: 6.565 PDFS: 3.315 low: -3.361 |
|
| Price To Earnings (P/E) | 114.717 | |
| Price To Earnings QoQ | 15.953 % | |
| Price To Earnings YoY | -39.872 % | |
| Price To Earnings IPRWA | high: 442.069 PDFS: 114.717 mean: 99.652 median: 90.651 low: -85.349 |
|
| PE/G Ratio | -12.045 | |
| Price To Sales (P/S) | 16.502 | |
| Price To Sales QoQ | -2.197 % | |
| Price To Sales YoY | -47.91 % | |
| Price To Sales IPRWA | high: 73.382 median: 36.189 mean: 30.212 PDFS: 16.502 low: 2.027 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 80.081 | |
| Forward PE/G | -8.408 | |
| Forward P/S | 7.726 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -18.011 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.132 | |
| Asset Turnover Ratio QoQ | -2.244 % | |
| Asset Turnover Ratio YoY | -7.033 % | |
| Asset Turnover Ratio IPRWA | high: 0.318 median: 0.203 mean: 0.194 PDFS: 0.132 low: 0.091 |
|
| Receivables Turnover | 0.778 | |
| Receivables Turnover Ratio QoQ | 11.839 % | |
| Receivables Turnover Ratio YoY | -3.167 % | |
| Receivables Turnover Ratio IPRWA | high: 2.444 median: 1.566 mean: 1.476 PDFS: 0.778 low: 0.524 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 117.255 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.665 | |
| CapEx To Revenue | -0.165 | |
| CapEx To Depreciation | -10.604 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 323.4 M | |
| Net Invested Capital | $ 325.6 M | |
| Invested Capital | $ 325.6 M | |
| Net Tangible Assets | $ 104.4 M | |
| Net Working Capital | $ 77.8 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.709 | |
| Current Ratio | 2.366 | |
| Current Ratio QoQ | 8.188 % | |
| Current Ratio YoY | -32.101 % | |
| Current Ratio IPRWA | high: 9.593 PDFS: 2.366 median: 2.21 mean: 2.18 low: 0.842 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 17.701 | |
| Cost Of Debt | 1.331 % | |
| Interest Coverage Ratio | 1.057 | |
| Interest Coverage Ratio QoQ | -112.245 % | |
| Interest Coverage Ratio YoY | 492.252 % | |
| Interest Coverage Ratio IPRWA | high: 120.949 median: 35.147 mean: 33.759 PDFS: 1.057 low: -14.178 |
|
| Operating Cash Flow Ratio | -0.077 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 56.169 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.298 % | |
| Revenue Growth | 8.267 % | |
| Revenue Growth QoQ | -279.483 % | |
| Revenue Growth YoY | 872.588 % | |
| Revenue Growth IPRWA | high: 44.515 % PDFS: 8.267 % mean: 1.931 % median: -0.643 % low: -23.04 % |
|
| Earnings Growth | -9.524 % | |
| Earnings Growth QoQ | -40.475 % | |
| Earnings Growth YoY | -147.62 % | |
| Earnings Growth IPRWA | high: 144.444 % mean: 6.104 % median: 0.42 % PDFS: -9.524 % low: -127.273 % |
|
| MARGINS | ||
| Gross Margin | 71.223 % | |
| Gross Margin QoQ | -2.28 % | |
| Gross Margin YoY | 0.82 % | |
| Gross Margin IPRWA | high: 89.444 % PDFS: 71.223 % mean: 52.71 % median: 52.572 % low: 11.321 % |
|
| EBIT Margin | 2.538 % | |
| EBIT Margin QoQ | -145.16 % | |
| EBIT Margin YoY | 300.315 % | |
| EBIT Margin IPRWA | high: 44.159 % median: 42.567 % mean: 37.52 % PDFS: 2.538 % low: -45.219 % |
|
| Return On Sales (ROS) | 2.159 % | |
| Return On Sales QoQ | -138.416 % | |
| Return On Sales YoY | 240.536 % | |
| Return On Sales IPRWA | high: 42.579 % median: 40.796 % mean: 36.289 % PDFS: 2.159 % low: -49.982 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -13.74 M | |
| Free Cash Flow Yield | -1.61 % | |
| Free Cash Flow Yield QoQ | -3081.481 % | |
| Free Cash Flow Yield YoY | 358.689 % | |
| Free Cash Flow Yield IPRWA | high: 2.8 % median: 0.852 % mean: 0.717 % PDFS: -1.61 % low: -5.198 % |
|
| Free Cash Growth | -3244.394 % | |
| Free Cash Growth QoQ | 2841.32 % | |
| Free Cash Growth YoY | -16883.374 % | |
| Free Cash Growth IPRWA | high: 408.013 % median: 7.629 % mean: -31.561 % low: -301.396 % PDFS: -3244.394 % |
|
| Free Cash To Net Income | -11.99 | |
| Cash Flow Margin | -8.527 % | |
| Cash Flow To Earnings | -3.849 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 0.293 % | |
| Return On Assets QoQ | -134.07 % | |
| Return On Assets YoY | -49.743 % | |
| Return On Assets IPRWA | high: 8.327 % mean: 6.275 % median: 5.926 % PDFS: 0.293 % low: -19.735 % |
|
| Return On Capital Employed (ROCE) | 0.393 % | |
| Return On Equity (ROE) | 0.004 | |
| Return On Equity QoQ | -136.535 % | |
| Return On Equity YoY | -39.373 % | |
| Return On Equity IPRWA | high: 0.256 mean: 0.153 median: 0.152 PDFS: 0.004 low: -0.233 |
|
| DuPont ROE | 0.452 % | |
| Return On Invested Capital (ROIC) | 0.319 % | |
| Return On Invested Capital QoQ | -147.754 % | |
| Return On Invested Capital YoY | -241.778 % | |
| Return On Invested Capital IPRWA | high: 12.291 % median: 11.998 % mean: 9.697 % PDFS: 0.319 % low: -9.445 % |
|