PDF Solutions, Inc (NASDAQ:PDFS) Signals Momentum Rebound While Valuation Holds Fair

PDF Solutions shows renewed technical momentum against a backdrop of mixed fundamental trends; near-term price action should track momentum versus mean-reversion forces.

Recent News

On February 12, 2026 the company updated its revenue presentation and highlighted strategic product and partnership activity, noting the integration of secureWISE and expanded licensing for AI and analytics tools, deployment of eProbe into manufacturing, and the launch of Exensio Scalable Analytics. Coverage in mid‑February and late‑February emphasized the company’s positioning as a broader semiconductor execution platform and noted new institutional interest from a small‑cap fund manager.

Technical Analysis

ADX at 20.6 signals an emerging trend in place; strength remains modest, so price follow‑through requires confirmation. This reading frames near‑term price moves as trend‑forming rather than established.

DI+ sits at 27.67 with a peak‑and‑reverse pattern, which reads as a bearish rotation in directional momentum. DI‑ at 19.5 also shows a peak‑and‑reverse pattern but in the opposite sense; that pattern in DI‑ implies a bullish shift. The simultaneous peak‑and‑reverse signatures in both directional indicators point to a transient tug‑of‑war between buyers and sellers rather than a decisive directional breakout.

MACD at 0.57 has dipped and reversed and currently stands above its signal line at 0.39; that cross above the signal line represents a bullish momentum pickup and supports the short‑term upside case tied to the introduction of new platform offerings.

MRO reads 24.17 and has trended higher; the positive MRO indicates price lies above the model target and therefore carries potential downward pressure if momentum fails to sustain. The increasing MRO suggests the magnitude of that divergence has grown and merits attention as a reversion risk.

RSI at 55.67 reversed up from a dip, indicating constructive near‑term momentum without reaching overbought territory. That pattern aligns with the MACD bullish turn and supports a measured continuation of the recent advance.

Price sits at $34.00 above the 20‑day average ($33.00), 50‑day average ($31.72) and 200‑day average ($25.47). Short‑term EMAs (12‑day $33.14 and 26‑day $32.53) show a dip‑and‑reversal, which reinforces the momentum signal while Bollinger band levels ($34.21 upper 1σ, $31.79 lower 1σ) place current price near the upper band but within the 2σ envelope—consistent with controlled upside rather than extreme extension.

 


Fundamental Analysis

Earnings: Reported EPS of $0.30 versus an estimate of $0.24 produced an EPS surprise of +25.0%. Forward EPS sits at $0.3425 and forward PE equals 79.62, which implies lower forward multiple compression relative to the current PE of 100.21.

Earnings growth shows meaningful deterioration: earnings growth YoY at -53.125% and earnings growth QoQ at -122.431%. Those declines contrast with the EPS beat, indicating the beat reflects margin or non‑recurring adjustments rather than a recovering top line.

Revenue metrics in the provided data show revenue growth at 0.0% with QoQ revenue growth at -100.0% and YoY revenue growth at -100.0% (values supplied). Such readings portray material near‑term top‑line weakness in the dataset and warrant reconciliation with company statements on platform expansion when assessing sustainability.

Valuation context: Trailing PE at $100.21 lies below the industry peer mean of 139.60 and below the industry peer median of 144.22; forward PE at $79.62 also sits below the industry peer mean of 90.03 and median of 90.60. PEG (current) at -1.89 compares below the industry peer mean of 0.90 and median of 2.76, reflecting negative or atypical growth adjustments. WMDST values the stock as fair‑valued given this mix of earnings weakness, forward multiple compression, and product/scale catalysts.

Capital structure and cash: cost of debt at 1.323% remains low. Invested capital total reported at $37,904,000 supports ongoing platform investment but cash conversion and cash‑flow metrics require closer monitoring given the reported earnings growth decline and the revenue growth readings above.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-12-31
REPORT DATE: 2026-02-12
NEXT REPORT DATE: 2026-05-14
CASH FLOW  Begin Period Cash Flow
 Operating Cash Flow
 Capital Expenditures
 Change In Working Capital
 Dividends Paid
 Cash Flow Delta
 End Period Cash Flow
 
INCOME STATEMENT REVENUE
 Total Revenue
 Forward Revenue
COSTS
 Cost Of Revenue
 Depreciation
 Depreciation and Amortization
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income
 Interest Expense
 Net Interest Income
 Income Before Tax
 Tax Provision
 Tax Rate
 Net Income
 Net Income From Continuing Operations
EARNINGS
 EPS Estimate 0.24
 EPS Actual 0.30
 EPS Difference 0.06
 EPS Surprise 25.0 %
 Forward EPS 0.34
 
BALANCE SHEET ASSETS
 Total Assets
 Intangible Assets
 Net Tangible Assets
 Total Current Assets
 Cash and Short-Term Investments
 Cash
 Net Receivables
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt
 Total Current Liabilities
 Net Debt
 Total Debt
 Total Liabilities
EQUITY
 Total Equity
 Retained Earnings
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share
 Shares Outstanding
 Revenue Per-Share
VALUATION
 Market Capitalization
 Enterprise Value
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R
CAPITAL STRUCTURE
 Asset To Equity
 Asset To Liability
 Debt To Capital
 Debt To Assets
Debt To Assets QoQ
Debt To Assets YoY
Debt To Assets IPRWA
 Debt To Equity
Debt To Equity QoQ
Debt To Equity YoY
Debt To Equity IPRWA
PRICE-BASED VALUATION
 Price To Book (P/B)
Price To Book QoQ
Price To Book YoY
Price To Book IPRWA
 Price To Earnings (P/E) 100.21
Price To Earnings QoQ 156.144 %
Price To Earnings YoY -12.527 %
Price To Earnings IPRWA high: 422.129
median: 144.216
mean: 139.599
PDFS: 100.21
low: -305.594
 PE/G Ratio -1.886
 Price To Sales (P/S)
Price To Sales QoQ
Price To Sales YoY
Price To Sales IPRWA
FORWARD MULTIPLES
Forward P/E 79.625
Forward PE/G -1.499
Forward P/S
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio
Asset Turnover Ratio QoQ
Asset Turnover Ratio YoY
Asset Turnover Ratio IPRWA
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA high: 596.302
median: 270.338
mean: 255.66
low: 62.399
PDFS: 0
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue
 CapEx To Depreciation
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital
 Net Invested Capital
 Invested Capital 37.9 M
 Net Tangible Assets
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 1.323 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio
 Dividend Payout Ratio
 Dividend Rate
 Dividend Yield
PERFORMANCE GROWTH
 Asset Growth Rate
 Revenue Growth 0.0 %
Revenue Growth QoQ -100.0 %
Revenue Growth YoY -100.0 %
Revenue Growth IPRWA high: 40.838 %
mean: 12.876 %
median: 2.725 %
PDFS: 0.0 %
low: -9.892 %
 Earnings Growth -53.125 %
Earnings Growth QoQ -122.431 %
Earnings Growth YoY
Earnings Growth IPRWA high: 266.667 %
mean: 17.687 %
median: 0.454 %
PDFS: -53.125 %
low: -85.714 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF)
 Free Cash Flow Yield
Free Cash Flow Yield QoQ
Free Cash Flow Yield YoY
Free Cash Flow Yield IPRWA
 Free Cash Growth
Free Cash Growth QoQ
Free Cash Growth YoY
Free Cash Growth IPRWA
 Free Cash To Net Income
 Cash Flow Margin 0.0 %
 Cash Flow To Earnings 0.0
VALUE & RETURNS
 Economic Value Added
 Return On Assets (ROA)
Return On Assets QoQ
Return On Assets YoY
Return On Assets IPRWA
 Return On Capital Employed (ROCE)
 Return On Equity (ROE)
Return On Equity QoQ
Return On Equity YoY
Return On Equity IPRWA
 DuPont ROE
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Expect elevated volatility over the next six weeks as momentum indicators (MACD cross, RSI rebound) favor measured upside while MRO’s positive divergence warns of mean reversion risk. The ADX‑framed emerging trend suggests price action will depend on follow‑through volume; 42‑day beta at 2.51 implies outsized intraperiod swings relative to the market. Monitor whether momentum sustains above short‑term EMAs; failure to do so would likely increase reversion pressure given the MRO signal and the mixed fundamental backdrop.

About PDF Solutions, Inc.

PDF Solutions, Inc. (NASDAQ:PDFS) develops proprietary software and intellectual property products tailored for integrated circuit design and electrical measurement. The company delivers a suite of tools and methodologies, including Exensio software products, which enhance manufacturing analytics by storing data in a unified environment. This facilitates engineers in identifying and analyzing production yield, performance, and reliability issues. PDF Solutions also provides systems for process control, test operations, and assembly operations, enabling device manufacturers to manage data throughout the product lifecycle. In addition, the company offers Design-For-Inspection (DFI) systems, including on-chip instruments and non-contact e-beam tools, as well as the Characterization Vehicle (CV) system, which comprises test chips and electrical testers. Their Cimetrix software products empower equipment manufacturers with industry-standard interfaces. PDF Solutions extends its offerings through software-as-a-service, software-related services, and characterization services. The company markets its technologies and services through direct sales, service teams, and strategic partnerships to a diverse clientele, including integrated device manufacturers, fabless semiconductor companies, and electronics manufacturing suppliers. Founded in 1991, PDF Solutions is headquartered in Santa Clara, California.



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