Abstract
PDF Solutions will report its fourth-quarter 2025 results on February 12, 2026 Post Market; this preview consolidates recent metrics and forecasts to frame expectations around revenue, margins, net profit, and adjusted EPS with year-over-year context.
Market Forecast
Consensus projections for PDF Solutions this quarter anticipate revenue of $61.95 million, an adjusted EPS of $0.24, and EBIT of $12.60 million, with year-over-year growth of 25.76% for revenue and 10.47% for EPS; management’s reported gross profit margin last quarter was 72.27%, while the net profit margin was 2.27%, and current-quarter margin guidance was not disclosed in the latest dataset. The company’s main business centers on analytics tools, which last quarter generated $54.66 million; outlook indicates continued adoption and upsell within large semiconductor manufacturers and fabless ecosystems. The most promising segment appears to be analytics tools, contributing $54.66 million last quarter and benefitting from an estimated revenue increase of $0.62 million quarter-over-quarter, implying healthy YoY momentum driven by software subscriptions and deployment scale-ups.
Last Quarter Review
PDF Solutions delivered revenue of $57.12 million, a gross profit margin of 72.27%, GAAP net profit attributable to the parent company of $1.29 million, a net profit margin of 2.27%, and adjusted EPS of $0.25; year-over-year revenue growth was 23.07% and EPS tracked an above-consensus trajectory. The quarter’s highlight was an EBIT outperformance at $13.35 million versus estimates, reflecting disciplined operating execution and scaling of software-led solutions. Main business highlights centered on analytics tools revenue of $54.66 million, supported by comprehensive yield services of $2.45 million, with the mix favoring higher-margin subscriptions and platform deployments and showing robust year-over-year expansion.
Current Quarter Outlook
Main Business: Analytics Tools Momentum and Margin Mix
The analytics tools franchise is the core earnings engine, with last quarter’s $54.66 million indicating strong installed-base dynamics and ongoing expansion across wafer-fab and design customers. For this quarter, the forecast revenue of $61.95 million suggests a healthy pipeline conversion, where higher-value modules and analytics-driven process optimization could sustain gross margins near the 70.00% area, though no explicit guidance was disclosed. Pricing power in software subscriptions and improved deployment efficiencies may help offset cost inflation and service intensity, supporting EBIT forecasts at $12.60 million. Investors should monitor the balance of recurring subscription growth versus professional services mix, as higher software content tends to support margin resilience and cash generation.
Most Promising Business: Platform Subscriptions and Scale-Ups
The most promising driver appears to be platform subscriptions within analytics tools, which leverage data integration across design, manufacturing, and test to deliver measurable yield and time-to-market improvements. With last quarter’s analytics tools revenue at $54.66 million and an implied step-up to meet the total revenue forecast, subscription attach and expansion within tier-one semiconductor customers could reinforce visibility. Year-over-year growth of 25.76% in total revenue estimates implies increasing adoption of software modules, where incremental seats and enterprise-wide deployments are key. Execution risk centers on deployment timelines and customer budget cycles, but the EBIT and EPS estimates point to manageable operating leverage that could absorb some variability.
Stock Price Drivers: Revenue Mix, Margin Trajectory, and EPS Delivery
The principal stock price drivers this quarter are revenue mix, gross margin trajectory, and EPS delivery against consensus. If the mix skews toward analytics subscriptions and away from lower-margin services, gross margin could remain close to last quarter’s 72.27%, supporting earnings quality. Conversely, a heavier services mix may pressure margins, but robust pipeline conversion could still deliver EBIT near $12.60 million. The $0.24 adjusted EPS estimate sets a benchmark; beats will likely hinge on revenue timing and operating expenses discipline, while misses may be attributed to deferred projects or a more service-heavy revenue profile.
Analyst Opinions
Recent institutional commentary tilts cautiously positive, emphasizing consistent top-line growth and the durability of software-led margins into the quarter. Bullish views focus on the 25.76% revenue growth estimate and the $12.60 million EBIT forecast, arguing that subscription momentum and customer expansions provide support for a modest EPS beat relative to the $0.24 baseline. The majority opinion expects stable-to-improving margins provided analytics tools retain revenue predominance, underscoring potential upside in adjusted EPS if operating expenses remain contained and deployments proceed on schedule. The cautiously positive stance reflects confidence in the company’s recurring revenue profile and expanding footprint across key semiconductor customers, with attention to execution and mix as near-term determinants of performance.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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