PDFS
PDF Solutions, Inc.

PDF Solutions, Inc.PDFS

Technology · Software - Application
37.61USD
+8.95%
Nov 08, 2026
PDFS overview ready
Provider of semiconductor manufacturing analytics and process control software
Provider of semiconductor manufacturing analytics, process-control software, test-data systems, and related hardware/services used to improve wafer and device yield during production ramps and ongoing fab operations.
Primary theme is lagging
EDA & Semiconductor IP is lagging (-12.5pp vs SPY over 21 sessions; 0 of 5 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Low free cash flow yield
Free cash flow yield is weak.
Primary risk
Cyclical semiconductor capital expenditure environment.
Market Nov 6Filing Sep 30Price action Nov 7Research Jul 17

Conviction Level

PriceAction5.4BusinessPerformance7.0BusinessQuality5.2Valuation3.2ThemeMomentum1.0Improving — Revenue is growing at a steady pace (+20% year over year). Diluted EPS moved to $0.16 from $0.03; the prior-year base is too small for a meaningful percentage. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−12.5pp
Theme return
−17.4%
Beating SPY
0 of 5
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$1.6B
Avg Volume (60D)
648.5K
60 sessions
Revenue Growth YoY
+22.0%
FY2025 vs FY2024
Gross Margin
+70.0%
Trailing twelve months
Operating Margin
+9.2%
Trailing twelve months
Free Cash Flow Yield
-0.0%
Distance from 200DMA
-15.9%
P/E
100.2x
EV / EBITDA
50.7x
EV / Sales
6.1x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Improving

Revenue is growing at a steady pace (+20% year over year). Diluted EPS moved to $0.16 from $0.03; the prior-year base is too small for a meaningful percentage.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+20%
$68.3M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +25%
  2. +26%
  3. +19%
  4. +20%
Earnings growthGrowing
$0.16
Diluted EPS $0.16 vs $0.03 a year earlier · GAAP
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginExpanding
12.1%
+3.7 pp YoY
The share count is rising

Business Quality

5.2 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says expensive; own history is the dissenting view.
PDF Solutions, Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at 50.7x EBITDA and 6.1x revenue, which require sustained delivery to be justified.

What changed

Company Research

Thesis
Provider of semiconductor manufacturing analytics, process-control software, test-data systems, and related hardware/services used to improve wafer and device yield during production ramps and ongoing fab operations.
Opportunity
Moderate opportunity
New domestic fab and semiconductor supply-chain capital expenditure, including the process-control, data, and yield-improvement capabilities needed to qualify and ramp production efficiently.
Key risk
Cyclical semiconductor capital expenditure environment.

Economic classification

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Business & Markets

Technology · Software - Application
What they do

PDF Solutions, Inc. develops and provides proprietary software, hardware tools, intellectual property, and professional services to semiconductor manufacturers for integrated circuit design and production optimization.

How it earns

The company generates revenue primarily through software licensing, hardware sales, and professional services contracts.

Products & services
Exensio Manufacturing Analytics software
Process Control software
Test Operations data collection and analysis tools
Customers & end markets
Semiconductor manufacturers
Integrated circuit fabs
Semiconductor supply chain participants
Market position

Leader in semiconductor yield analytics and process control software with high switching costs.

Demand drivers
High cyclicality

Semiconductor manufacturing capital expenditures and fab ramp activities are cyclical and tied to industry demand cycles.

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