SANTA CLARA, Calif., Nov. 05, 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 third quarter ended September 30, 2026.

Financial Highlights of Third Quarter 2026

  • Record quarterly total revenues of $68.3 million, up 20% over last year’s comparable quarter
  • GAAP gross margin of 73% and non-GAAP gross margin of 77%
  • GAAP operating margin of 12% and non-GAAP operating margin of 28%
  • GAAP diluted earnings per share (EPS) of $0.16 and non-GAAP diluted EPS of $0.40
  • Ending backlog of $247.2 million

Total revenues for the third quarter of 2026 were $68.3 million, compared to $61.5 million for the second quarter of 2026 and $57.1 million for the third quarter of 2025.

GAAP gross margin for the third quarter of 2026 was 73%, compared to 69% for the second quarter of 2026 and 72% for the third quarter of 2025. Non-GAAP gross margin for the third quarter of 2026 was 77%, compared to 73% for the second quarter of 2026 and 76% for the third quarter of 2025.

GAAP operating margin for the third quarter of 2026 was 12%, compared to 8% for the second quarter of 2026 and 8% for the third quarter of 2025. Non-GAAP operating margin for the third quarter of 2026 was 28%, compared to 22% for the second quarter of 2026 and 23% for the third quarter of 2025.

GAAP net income for the third quarter of 2026 was $6.8 million, or $0.16 per diluted share, compared to net income of $4.3 million, or $0.10 per diluted share, for the second quarter of 2026, and net income of $1.3 million, or $0.03 per diluted share, for the third quarter of 2025. Non-GAAP net income for the third quarter of 2026 was $17.2 million, or $0.40 per diluted share, compared to non-GAAP net income of $11.4 million, or $0.27 per diluted share, for the second quarter of 2026, and non-GAAP net income of $9.8 million, or $0.25 per diluted share, for the third quarter of 2025.

Ending backlog for the third quarter of 2026 was $247.2 million, compared to $270.7 million for the second quarter of 2026 and $292.0 million for the third quarter of 2025.

Financial Outlook

“In the third quarter of 2026, PDF Solutions continued its growth trajectory with total revenues 20% higher compared to the third quarter of 2025,” said John Kibarian, CEO and President of the Company. He continued, “On September 9, 2026, we announced Exensio Aurora, the new, highly-scalable Exensio analytics architecture. Exensio Aurora is purpose-built to handle semiconductor manufacturing data at petabyte scale and to securely deploy agentic AI across manufacturing operations and the supply chain. We believe this new architecture will help semiconductor companies address the challenges associated with the fast growth and transformation of the industry. Based on actual results through the third quarter and the pipeline for the fourth quarter, we reaffirm our 20% annual revenue growth target for 2026.”

PDF Solutions® Reports Third Quarter 2026 Financial Results

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://edge.media-server.com/mmc/p/j2asc9y9/. 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.

Third Quarter 2026 Financial Commentary Available Online

A Management Report reviewing the Company’s third 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 income from operations and operating margin exclude stock-based compensation expense, amortization of acquired intangible assets, and the effects of certain non-recurring items, such as expenses for certain legal proceedings, and acquisition-related and integration costs. 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, recovery from previously written-off property and equipment, and their related income tax effects, as applicable, as well as adjustments for the valuation allowance for deferred tax assets and reconciling items. PDF Solutions management uses non-GAAP financial measures to evaluate the Company’s operating performance and make strategic decisions because these measures exclude items that management believes are not indicative of ongoing operating results and that can vary significantly between periods. 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. 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.

PDF Solutions® Reports Third Quarter 2026 Financial Results

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 statements regarding backlog, the Company’s growth trajectory, capabilities of the Exensio Aurora architecture, fourth quarter 2026 pipeline, annual growth target for 2026, 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, energy prices, 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 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® Reports Third Quarter 2026 Financial Results

PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)

    September 30,     December 31,  
    2026     2025  
ASSETS                
Current assets:                
Cash and cash equivalents   $ 107,131     $ 42,220  
Accounts receivable, net     96,869       82,938  
Prepaid expenses and other current assets     53,185       38,735  
Total current assets     257,185       163,893  
Property and equipment, net     104,333       81,609  
Operating lease right-of-use assets, net     7,439       4,778  
Goodwill     94,990       95,005  
Intangible assets, net     46,060       52,194  
Deferred tax assets, net     541       69  
Other non-current assets     30,408       21,149  
Total assets   $ 540,956     $ 418,697  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 12,639     $ 17,076  
Accrued compensation and related benefits     20,154       22,437  
Accrued and other current liabilities     8,275       8,719  
Operating lease liabilities ‒ current portion     2,025       1,982  
Deferred revenues ‒ current portion     32,776       19,441  
Current portion of long-term debt, net     2,237       2,236  
Total current liabilities     78,106       71,891  
Long-term income taxes     5,331       4,273  
Operating lease liabilities – non-current portion     6,278       3,838  
Long-term debt, net     63,096       64,763  
Other non-current liabilities     5,137       2,910  
Total liabilities     157,948       147,675  
                 
Stockholders’ equity:                
Common stock and additional paid-in capital     641,287       533,509  
Treasury stock, at cost     (177,433 )     (165,808 )
Accumulated deficit     (78,725 )     (94,628 )
Accumulated other comprehensive loss     (2,121 )     (2,051 )
Total stockholders’ equity     383,008       271,022  
Total liabilities and stockholders’ equity   $ 540,956     $ 418,697  


PDF Solutions® Reports Third Quarter 2026 Financial Results

PDF SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)

    Three Months Ended     Nine Months Ended  
    September 30,     June 30,     September 30,     September 30,     September 30,  
    2026     2026     2025     2026     2025  
                                         
Revenues (1):                                        
Platform   $ 58,331     $ 49,130     $ 48,001     $ 158,397     $ 128,522  
Volume-based     10,003       12,399       9,114       31,596       28,099  
Total revenues     68,334       61,529       57,115       189,993       156,621  
                                         
Costs and Expenses:                                        
Costs of revenues     18,593       19,107       15,840       54,638       43,681  
Research and development     19,446       17,316       15,435       55,090       44,976  
Selling, general, and administrative     20,969       18,984       19,944       57,445       63,060  
Amortization of acquired intangible assets     1,040       1,058       1,069       3,157       2,515  
Income from operations     8,286       5,064       4,827       19,663       2,389  
Interest expense     (1,123 )     (1,106 )     (1,238 )     (3,318 )     (2,791 )
Interest income and other, net     1,189       666       (102 )     2,447       964  
Income before income tax expense     8,352       4,624       3,487       18,792       562  
Income tax expense     (1,511 )     (353 )     (2,193 )     (2,889 )     (1,154 )
Net income (loss)   $ 6,841     $ 4,271     $ 1,294     $ 15,903     $ (592 )
                                         
Net income (loss) per share:                                        
Basic   $ 0.16     $ 0.10     $ 0.03     $ 0.39     $ (0.02 )
Diluted   $ 0.16     $ 0.10     $ 0.03     $ 0.38     $ (0.02 )
                                         
Weighted average common shares used to calculate net income (loss) per share:                                        
Basic     42,193       40,932       39,500       41,003       39,247  
Diluted     42,976       41,776       39,619       41,718       39,247  


(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® Reports Third Quarter 2026 Financial Results

PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP GROSS PROFIT AND MARGIN TO NON-GAAP GROSS PROFIT AND MARGIN (UNAUDITED)
(Dollars in thousands)

    Three Months Ended     Nine Months Ended  
    September 30,     June 30,     September 30,     September 30,     September 30,  
    2026     2026     2025     2026     2025  
                                         
GAAP                                        
Total revenues   $ 68,334     $ 61,529     $ 57,115     $ 189,993     $ 156,621  
Costs of revenues     18,593       19,107       15,840       54,638       43,681  
GAAP gross profit   $ 49,741     $ 42,422     $ 41,275     $ 135,355     $ 112,940  
GAAP gross margin     73 %     69 %     72 %     71 %     72 %
                                         
Non-GAAP                                        
GAAP gross profit   $ 49,741     $ 42,422     $ 41,275     $ 135,355     $ 112,940  
Adjustments to reconcile GAAP to non-GAAP gross profit:                                        
Stock-based compensation expense     1,593       1,258       1,274       4,130       3,873  
Amortization of acquired technology under costs of revenues     958       998       998       2,954       2,674  
Non-GAAP gross profit   $ 52,292     $ 44,678     $ 43,547     $ 142,439     $ 119,487  
Non-GAAP gross margin     77 %     73 %     76 %     75 %     76 %


RECONCILIATION OF GAAP INCOME FROM OPERATIONS AND OPERATING MARGIN TO NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGIN (UNAUDITED)
(Dollars in thousands)

    Three Months Ended     Nine Months Ended  
    September 30,     June 30,     September 30,     September 30,     September 30,  
    2026     2026     2025     2026     2025  
                                         
GAAP income from operations   $ 8,286     $ 5,064     $ 4,827     $ 19,663     $ 2,389  
GAAP operating margin     12 %     8 %     8 %     10 %     2 %
Adjustments to reconcile GAAP to non-GAAP income from operations:                                        
Stock-based compensation expense     8,472       5,998       6,264       20,866       19,059  
Amortization of acquired intangible assets     1,998       2,056       2,067       6,111       5,189  
Expenses for certain legal proceedings (1)     436       501       170       1,147       397  
Acquisition-related and integration costs     30       30       22       68       4,526  
Non-GAAP income from operations   $ 19,222     $ 13,649     $ 13,350     $ 47,855     $ 31,560  
Non-GAAP operating margin     28 %     22 %     23 %     25 %     20 %

(1 ) Represents legal costs and expenses related mainly to a certain arbitration proceeding, which are expected to continue until this matter is fully resolved.


PDF Solutions® Reports Third Quarter 2026 Financial Results

PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)
(In thousands, except per share amounts)

    Three Months Ended     Nine Months Ended  
    September 30,     June 30,     September 30,     September 30,     September 30,  
    2026     2026     2025     2026     2025  
                                         
GAAP net income (loss)   $ 6,841     $ 4,271     $ 1,294     $ 15,903     $ (592 )
Adjustments to reconcile GAAP net income (loss) to non-GAAP net income:                                        
Stock-based compensation expense     8,472       5,998       6,264       20,866       19,059  
Amortization of acquired intangible assets     1,998       2,056       2,067       6,111       5,189  
Expenses for certain legal proceedings (1)     436       501       170       1,147       397  
Acquisition-related and integration costs     30       30       22       68       4,526  
Recovery from previously written-off property and equipment     —       —       —       —       (663 )
Amortization of debt issuance costs     64       60       54       189       130  
Tax impact of valuation allowance for deferred tax assets and reconciling items (2)     (680 )     (1,544 )     (66 )     (3,102 )     (2,825 )
Non-GAAP net income   $ 17,161     $ 11,372     $ 9,805     $ 41,182     $ 25,221  
                                         
GAAP net income (loss) per diluted share   $ 0.16     $ 0.10     $ 0.03     $ 0.38     $ (0.02 )
Non-GAAP net income per diluted share   $ 0.40     $ 0.27     $ 0.25     $ 0.99     $ 0.64  
                                         
Weighted average common shares used in GAAP net income (loss) per diluted share calculation     42,976       41,776       39,619       41,718       39,247  
Weighted average common shares used in non-GAAP net income per diluted share calculation     42,976       41,776       39,619       41,718       39,390  

(1 ) Represents legal costs and expenses related mainly 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


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PDF Solutions, Inc.