Recent News
01/13/2026 — Company commentary focused on “Semiconductor Manufacturing In The AI Era,” highlighting AI-driven collaboration across fabs. 02/04/2026 — Published “Manufacturing Is Strategy: Leadership Lessons,” emphasizing operational alignment and manufacturing-led differentiation. 02/17/2026 — Released “Why PDF Solutions Is Positioning Itself at the Center of the Semiconductor Ecosystem,” outlining platform positioning and cross-industry integration efforts.
Technical Analysis
ADX and Directional Indicators: ADX registers 15.8, signaling no strong trend in force; the directional indicators nevertheless bias price upward — DI+ recorded a dip-and-reversal (DI+ = 23.78), a bullish development, while DI- registered a peak-and-reversal (DI- = 21.12), also read as bullish. Taken together, these suggest bullish directional pressure but limited trend strength, implying potential range expansion rather than a sustained breakout.
MACD: MACD sits at 1.24 and the MACD line trades above the signal line (signal = 0.64) with an increasing MACD_trend, which constitutes a bullish momentum signal supporting near-term upside continuation toward the valuation target area.
MRO (Momentum/Regression Oscillator): MRO reads 32.69 and shows a peak-and-reversal, which indicates the price sits above the model target with the oscillator’s recent reversal pointing to mean-reversion risk; this raises the probability of a pullback toward valuation-aligned levels despite positive momentum elsewhere.
RSI and Momentum: RSI at 57.85 with an increasing trend shows constructive momentum that remains below overbought levels, supporting additional upside room while not yet signaling exhaustion.
Price Structure & Moving Averages: The last close at $40.66 sits above the 12-day and 26-day EMAs ($36.19 and $34.75), the 20-day average ($35.13), the 50-day average ($33.07) and the 200-day average ($27.58). That stacked structure indicates bullish price placement versus moving averages and a higher-probability path of retesting recent highs if momentum holds.
Bollinger Bands & Volatility: Price exceeded the 1× upper band ($38.04) and approaches the 2× upper band ($40.95), marking a stretched position relative to short-term volatility and increasing the chance of a consolidation or pullback toward the 20-day mean. Volume slightly exceeds short- and medium-term averages (10/50/200-day averages), lending conviction to the recent move.
Fundamental Analysis
Revenue and Growth: Total revenue reached $62,403,000 with YoY revenue growth of 16.89% and a QoQ decline of 11.09%. Top-line expansion year-over-year remains a positive anchor for valuation, while the quarterly deceleration warrants monitoring for seasonality or timing effects.
Profitability: Gross margin stands at 72.85%, up 6.74% YoY and up 0.81% QoQ, signaling strong product-level economics. Operating margin equals 5.541% and EBIT margin equals 6.094%; EBIT margin contracted QoQ by 26.34% but expanded YoY by 496.28% relative to the prior-year period. Compared with the industry peer mean (EBIT margin mean ~34.87% and median ~35.31%), PDF Solutions’ EBIT margin remains well below the peer mean and median.
Earnings and Cash Flow: Reported EPS equaled $0.30 versus an estimate of $0.24, a $0.06 beat and a 25% surprise. Net income totaled negative $48,000 while operating cash flow generated $17,341,000 and free cash flow reached $7,550,000 (free cash flow yield ~0.64%). The company held $42,220,000 of cash and short-term investments at period end, and net debt measured $24,779,000, supporting liquidity through near-term operating cycles.
Balance Sheet and Leverage: Current ratio sits at 2.28, marginally above the industry peer mean (≈2.16) and peer median (≈2.26). Debt-to-assets equals 17.39%, slightly above the industry peer mean (≈16.45%). Interest coverage runs about 3.27x, indicating earnings cover interest but with less cushion than higher-coverage peers.
Valuation Multiples: Trailing PE near 100.21 and forward PE near 79.62 sit below the industry peer mean for PE but remain elevated in absolute terms; price-to-book at 4.39 compares below the industry peer mean and median (peer mean ≈18.24, median ≈22.16). Price-to-sales at 19.05 registers below the industry peer mean (≈41.09) and median (≈45.35). WMDST values the stock as under-valued, noting the combination of premium earnings multiples, strong gross margins, positive cash flow, and a manageable net debt position as the basis for that assessment.
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 | $ 35.9 M |
| Operating Cash Flow | $ 17.3 M | |
| Capital Expenditures | $ -9.79 M | |
| Change In Working Capital | $ 5.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 6.3 M | |
| End Period Cash Flow | $ 42.2 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 62.4 M | |
| Forward Revenue | $ -4.40 B | |
| COSTS | ||
| Cost Of Revenue | $ 16.9 M | |
| Depreciation | $ 1.4 M | |
| Depreciation and Amortization | $ 3.5 M | |
| Research and Development | $ 19.3 M | |
| Total Operating Expenses | $ 58.9 M | |
| PROFITABILITY | ||
| Gross Profit | $ 45.5 M | |
| EBITDA | $ 7.3 M | |
| EBIT | $ 3.8 M | |
| Operating Income | $ 3.5 M | |
| Interest Income | $ 1.3 M | |
| Interest Expense | $ 1.2 M | |
| Net Interest Income | $ 145.0 K | |
| Income Before Tax | $ 2.6 M | |
| Tax Provision | $ 2.7 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ -48.00 K | |
| Net Income From Continuing Operations | $ -48.00 K | |
| 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 | $ 418.7 M | |
| Intangible Assets | $ 147.2 M | |
| Net Tangible Assets | $ 123.8 M | |
| Total Current Assets | $ 163.9 M | |
| Cash and Short-Term Investments | $ 42.2 M | |
| Cash | $ 42.2 M | |
| Net Receivables | $ 82.9 M | |
| Inventory | — | |
| Long-Term Investments | $ 1.4 M | |
| LIABILITIES | ||
| Accounts Payable | $ 17.1 M | |
| Short-Term Debt | $ 2.2 M | |
| Total Current Liabilities | $ 71.9 M | |
| Net Debt | $ 24.8 M | |
| Total Debt | $ 72.8 M | |
| Total Liabilities | $ 147.7 M | |
| EQUITY | ||
| Total Equity | $ 271.0 M | |
| Retained Earnings | $ -94.63 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 6.85 | |
| Shares Outstanding | 39.541 M | |
| Revenue Per-Share | $ 1.58 | |
| VALUATION | Market Capitalization | $ 1.2 B |
| Enterprise Value | $ 1.2 B | |
| Enterprise Multiple | 166.642 | |
| Enterprise Multiple QoQ | 29.913 % | |
| Enterprise Multiple YoY | -66.521 % | |
| Enterprise Multiple IPRWA | high: 244.045 PDFS: 166.642 median: 114.544 mean: 107.314 low: -216.655 |
|
| EV/R | 19.539 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.545 | |
| Asset To Liability | 2.835 | |
| Debt To Capital | 0.212 | |
| Debt To Assets | 0.174 | |
| Debt To Assets QoQ | -4.208 % | |
| Debt To Assets YoY | 958.551 % | |
| Debt To Assets IPRWA | high: 0.455 median: 0.194 PDFS: 0.174 mean: 0.164 low: 0.003 |
|
| Debt To Equity | 0.269 | |
| Debt To Equity QoQ | -3.727 % | |
| Debt To Equity YoY | 1176.39 % | |
| Debt To Equity IPRWA | high: 0.96 PDFS: 0.269 mean: 0.265 median: 0.138 low: -0.408 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.386 | |
| Price To Book QoQ | 18.256 % | |
| Price To Book YoY | -2.797 % | |
| Price To Book IPRWA | high: 22.471 median: 22.16 mean: 18.237 PDFS: 4.386 low: 1.081 |
|
| 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: 146.908 mean: 139.514 PDFS: 100.21 low: -305.594 |
|
| PE/G Ratio | -1.886 | |
| Price To Sales (P/S) | 19.049 | |
| Price To Sales QoQ | 10.954 % | |
| Price To Sales YoY | -14.062 % | |
| Price To Sales IPRWA | high: 71.828 median: 45.349 mean: 41.085 PDFS: 19.049 low: 3.414 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 79.625 | |
| Forward PE/G | -1.499 | |
| Forward P/S | -0.27 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -2.108 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.151 | |
| Asset Turnover Ratio QoQ | 5.606 % | |
| Asset Turnover Ratio YoY | -5.98 % | |
| Asset Turnover Ratio IPRWA | high: 0.471 mean: 0.207 median: 0.203 PDFS: 0.151 low: 0.002 |
|
| Receivables Turnover | 0.79 | |
| Receivables Turnover Ratio QoQ | -0.203 % | |
| Receivables Turnover Ratio YoY | -5.053 % | |
| Receivables Turnover Ratio IPRWA | high: 2.887 mean: 1.79 median: 1.515 PDFS: 0.79 low: 0.498 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 115.437 | |
| 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 | 0.678 | |
| CapEx To Revenue | -0.157 | |
| CapEx To Depreciation | -6.762 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 335.8 M | |
| Net Invested Capital | $ 338.0 M | |
| Invested Capital | $ 338.0 M | |
| Net Tangible Assets | $ 123.8 M | |
| Net Working Capital | $ 92.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.587 | |
| Current Ratio | 2.28 | |
| Current Ratio QoQ | 3.096 % | |
| Current Ratio YoY | -32.993 % | |
| Current Ratio IPRWA | high: 10.619 PDFS: 2.28 median: 2.256 mean: 2.161 low: 1.126 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 9.952 | |
| Cost Of Debt | 1.323 % | |
| Interest Coverage Ratio | 3.267 | |
| Interest Coverage Ratio QoQ | -14.396 % | |
| Interest Coverage Ratio YoY | 864.197 % | |
| Interest Coverage Ratio IPRWA | high: 99.429 mean: 34.406 median: 32.93 PDFS: 3.267 low: -143.241 |
|
| Operating Cash Flow Ratio | -0.029 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 91.391 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.026 % | |
| Revenue Growth | 9.259 % | |
| Revenue Growth QoQ | -11.091 % | |
| Revenue Growth YoY | 16.892 % | |
| Revenue Growth IPRWA | high: 40.838 % mean: 12.78 % PDFS: 9.259 % median: 2.725 % low: -9.892 % |
|
| Earnings Growth | -53.125 % | |
| Earnings Growth QoQ | -122.431 % | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | high: 266.667 % mean: 17.454 % median: 0.794 % PDFS: -53.125 % low: -85.714 % |
|
| MARGINS | ||
| Gross Margin | 72.851 % | |
| Gross Margin QoQ | 0.81 % | |
| Gross Margin YoY | 6.738 % | |
| Gross Margin IPRWA | high: 90.758 % PDFS: 72.851 % mean: 52.43 % median: 52.156 % low: 9.383 % |
|
| EBIT Margin | 6.094 % | |
| EBIT Margin QoQ | -26.339 % | |
| EBIT Margin YoY | 496.282 % | |
| EBIT Margin IPRWA | high: 46.775 % median: 35.306 % mean: 34.872 % PDFS: 6.094 % low: -49.18 % |
|
| Return On Sales (ROS) | 5.541 % | |
| Return On Sales QoQ | -34.434 % | |
| Return On Sales YoY | 442.172 % | |
| Return On Sales IPRWA | high: 69.122 % median: 35.306 % mean: 34.225 % PDFS: 5.541 % low: -49.18 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 7.5 M | |
| Free Cash Flow Yield | 0.635 % | |
| Free Cash Flow Yield QoQ | -304.839 % | |
| Free Cash Flow Yield YoY | -266.23 % | |
| Free Cash Flow Yield IPRWA | high: 2.925 % mean: 1.466 % median: 1.229 % PDFS: 0.635 % low: -1.389 % |
|
| Free Cash Growth | -348.519 % | |
| Free Cash Growth QoQ | 347.445 % | |
| Free Cash Growth YoY | 82.834 % | |
| Free Cash Growth IPRWA | high: 182.087 % median: -0.341 % mean: -8.314 % PDFS: -348.519 % low: -360.935 % |
|
| Free Cash To Net Income | -157.292 | |
| Cash Flow Margin | -3.365 % | |
| Cash Flow To Earnings | 43.75 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -0.012 % | |
| Return On Assets QoQ | -103.692 % | |
| Return On Assets YoY | -106.936 % | |
| Return On Assets IPRWA | high: 12.607 % mean: 6.046 % median: 5.937 % PDFS: -0.012 % low: -7.635 % |
|
| Return On Capital Employed (ROCE) | 1.097 % | |
| Return On Equity (ROE) | -0.0 | |
| Return On Equity QoQ | -103.681 % | |
| Return On Equity YoY | -108.219 % | |
| Return On Equity IPRWA | high: 0.21 median: 0.145 mean: 0.141 PDFS: -0.0 low: -0.241 |
|
| DuPont ROE | -0.018 % | |
| Return On Invested Capital (ROIC) | 0.889 % | |
| Return On Invested Capital QoQ | -20.978 % | |
| Return On Invested Capital YoY | -340.921 % | |
| Return On Invested Capital IPRWA | high: 11.139 % median: 10.618 % mean: 9.014 % PDFS: 0.889 % low: -2.702 % |
|