PDFSHIGH SIGNALFINANCIAL10-K

PDF Solutions shows a dramatic deterioration in profitability despite revenue growth, with net income swinging from $4.1M profit to -$640K loss while total liabilities more than doubled to $147.7M.

The company's financial profile has fundamentally shifted with concerning leverage increases and cash burn despite improved operational efficiency. The massive 113% increase in liabilities combined with a 53% drop in cash reserves suggests potential liquidity concerns or significant new debt obligations that warrant immediate investor scrutiny.

Comparing 2026-02-24 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

PDF Solutions experienced mixed financial performance with gross profit growing 26.4% to $158.4M and operating cash flow surging 147.9% to $24.1M, indicating strong operational improvements. However, profitability collapsed with net income turning negative despite higher operating income, while the balance sheet deteriorated significantly with liabilities doubling to $147.7M and cash declining 53% to $42.2M. The overall picture suggests a company investing heavily for growth (CapEx up 90%) but facing concerning leverage increases and cash management challenges that offset operational gains.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
+525.3%
$935K→$5.8M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Operating Cash Flow
Cash Flow
+147.9%
$9.7M→$24.1M

Operating cash flow surged 147.9% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
-115.8%
$4.1M→-$640K

Net income declined 115.8% — review whether driven by operations, interest costs, or non-recurring items.

Total Liabilities
Balance Sheet
+113.2%
$69.3M→$147.7M

Liabilities grew 113.2% — significant increase in debt or obligations, assess impact on financial flexibility.

Share Buybacks
Cash Flow
-96.5%
$6.9M→$244K

Buyback activity reduced 96.5% — capital being redeployed elsewhere or cash conservation underway.

Capital Expenditure
Cash Flow
+90.2%
$17.2M→$32.6M

Capital expenditure jumped 90.2% — major investment cycle underway; assess returns on deployment.

Cash & Equivalents
Balance Sheet
-53.4%
$90.6M→$42.2M

Cash declined 53.4% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Assets
Balance Sheet
+32.8%
$315.3M→$418.7M

Asset base grew 32.8% — expansion through organic growth, acquisitions, or capital deployment.

Gross Profit
P&L
+26.4%
$125.3M→$158.4M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

SG&A Expense
P&L
+21.2%
$69.9M→$84.7M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

LANGUAGE CHANGES
NEW — 2026-02-24
PRIOR — 2025-02-27
ADDED
pdfs20251231d_10k.htm 0001120914 PDF SOLUTIONS INC false --12-31 FY 2025 true true true false true Our Audit Committee is regularly involved in reviewing cybersecurity risk management.
At least quarterly, the Vice President of Operations presents and reviews key security metrics with the Audit Committee including a review of cyber-security events, cybersecurity initiatives and new or developing cybersecurity risks relevant to the business.
The Audit Committee, which comprises at least two individuals with experience in cybersecurity and related matters, meets with these members of senior management to review our information technology and data security policies and practices, and to assess current and projected threats, cybersecurity incidents, and related risks.
true 0.00015 0.00015 5,000 5,000 0 0 0 0 0.00015 0.00015 70,000 70,000 51,726 50,717 39,541 38,801 12,185 11,916 2 3 1 0 0 0 0 0 0 1 10 5 4 0 0 0 2 0 0 2 2 24 10 4 0 0 50 50 100 100 4 4 1 1 3.0 false false false false true true The amortized cost of the Company s investments in U.S.
Government securities approximated their fair value due to their short-term maturities, and there have been no events or changes in circumstances that would have had a significant effect on the fair value of these securities in the periods presented.
+7 more — sign up free →
REMOVED
There were 39,113,755 shares of the Registrant s Common Stock outstanding as of February 21, 2025.
We derive revenues from two sources, Analytics and Integrated Yield Ramp.
Our offerings contribute to Analytics revenue through contract fees for on-premise software, hardware systems, software-as-a-service ( SaaS ), and other professional services.
Certain of our Characterization services engagements contribute to Integrated Yield Ramp revenue through contract fees and a value-based, variable fee or royalty, which we call Gainshare.
We are headquartered in Santa Clara, California and also operate worldwide with offices in Canada, China, France, Germany, Italy, Japan, South Korea, and Taiwan.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
PNRGHIGHPNRG achieved exceptional profitability improvement with net income surging 2,21...
2026-04-16
BNAIHIGHBNAI underwent a dramatic reverse stock split that reduced share count by 86% wh...
2026-04-16
LAKEHIGHLAKE's financial performance deteriorated significantly with operating losses wo...
2026-04-16
NXXTHIGHNextNRG experienced massive financial deterioration with operating losses explod...
2026-04-16
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →