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Pdf Solutions Inc. (PDFS) Stock Fundamental Analysis & AI Rating 2026

PDFS Nasdaq Services-Prepackaged Software DE CIK: 0001120914
Recently Updated • Analysis: Apr 14, 2026 • SEC Data: 2025-12-31
SELL
78% Conf
Pending
Analysis scheduled

📊 PDFS Key Takeaways

Revenue: $219.0M
Net Margin: -0.3%
Free Cash Flow: $-8.6M
Current Ratio: 2.28x
Debt/Equity: 0.25x
EPS: $-0.02
AI Rating: SELL with 78% confidence
Pdf Solutions Inc. (PDFS) receives a SELL rating with 78% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $219.0M, net profit margin of -0.3%, and return on equity (ROE) of -0.2%, Pdf Solutions Inc. demonstrates mixed fundamentals in the Technology sector. Below is our complete PDFS stock analysis for 2026.

Is Pdf Solutions Inc. (PDFS) a Good Investment?

Claude

Despite 22% revenue growth and exceptional 72% gross margins, PDFS is unprofitable (negative net income of $640K) with deteriorating profitability YoY (-115.8%) and negative free cash flow (-$8.6M). High capital expenditures ($32.6M) exceed operating cash flow, suggesting unsustainable growth investments that are not translating to profitability.

Why Buy Pdf Solutions Inc. Stock? PDFS Key Strengths

Claude
  • + Strong topline growth of 22% year-over-year revenue expansion
  • + Excellent gross margins of 72.3%, indicating strong underlying business economics
  • + Solid balance sheet with 2.28x current ratio and conservative 0.25x debt-to-equity leverage

PDFS Stock Risks: Pdf Solutions Inc. Investment Risks

Claude
  • ! Operating unprofitable despite $219M revenue with negative net income and profitability deteriorating -115.8% YoY
  • ! Negative free cash flow of -$8.6M as capex ($32.6M) exceeds operating cash flow ($24.1M)
  • ! Extremely thin operating margin of 2.7% despite high gross margins indicates poor cost management and operational inefficiency

Key Metrics to Watch

Claude
  • * Free cash flow trend and achievement of positive FCF with reduced capital intensity
  • * Operating margin expansion and realistic path to net profitability
  • * Capital expenditure returns and revenue per dollar of invested capital

Pdf Solutions Inc. (PDFS) Financial Metrics & Key Ratios

Revenue
$219.0M
Net Income
$-640.0K
EPS (Diluted)
$-0.02
Free Cash Flow
$-8.6M
Total Assets
$418.7M
Cash Position
$42.2M

💡 AI Analyst Insight

Strong liquidity with a 2.28x current ratio provides a solid financial cushion.

PDFS Profit Margin, ROE & Profitability Analysis

Gross Margin 72.3%
Operating Margin 2.7%
Net Margin -0.3%
ROE -0.2%
ROA -0.2%
FCF Margin -3.9%

PDFS vs Technology Sector: How Pdf Solutions Inc. Compares

How Pdf Solutions Inc. compares to Technology sector averages

Net Margin
PDFS -0.3%
vs
Sector Avg 18.0%
PDFS Sector
ROE
PDFS -0.2%
vs
Sector Avg 22.0%
PDFS Sector
Current Ratio
PDFS 2.3x
vs
Sector Avg 2.5x
PDFS Sector
Debt/Equity
PDFS 0.2x
vs
Sector Avg 0.5x
PDFS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Pdf Solutions Inc. Stock Overvalued? PDFS Valuation Analysis 2026

Based on fundamental analysis, Pdf Solutions Inc. has mixed fundamental signals relative to the Technology sector in 2026.

Return on Equity
-0.2%
Sector avg: 22%
Net Profit Margin
-0.3%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.25x
Sector avg: 0.5x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Pdf Solutions Inc. Balance Sheet: PDFS Debt, Cash & Liquidity

Current Ratio
2.28x
Quick Ratio
2.28x
Debt/Equity
0.25x
Debt/Assets
35.3%
Interest Coverage
18.80x
Long-term Debt
$67.0M

PDFS Revenue & Earnings Growth: 5-Year Financial Trend

PDFS 5-year financial data: Year 2021: Revenue $111.1M, Net Income -$528.0K, EPS $-0.02. Year 2022: Revenue $148.5M, Net Income -$40.4M, EPS $-1.17. Year 2023: Revenue $165.8M, Net Income -$21.5M, EPS $-0.58. Year 2024: Revenue $179.5M, Net Income -$3.4M, EPS $-0.09. Year 2025: Revenue $219.0M, Net Income $3.1M, EPS $0.08.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Pdf Solutions Inc.'s revenue has grown significantly by 97% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.08 reflects profitable operations.

PDFS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-3.9%
Free cash flow / Revenue

PDFS Quarterly Earnings & Performance

Quarterly financial performance data for Pdf Solutions Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $46.4M -$592.0K $-0.02
Q2 2025 $41.7M $1.1M $0.03
Q1 2025 $41.3M -$393.0K $-0.01
Q3 2024 $42.4M $2.2M $0.06
Q2 2024 $41.6M $1.3M $0.03
Q1 2024 $40.8M $355.0K $0.01
Q3 2023 $39.9M $1.4M $0.04
Q2 2023 $34.7M -$1.1M $-0.03

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Pdf Solutions Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$24.1M
Cash generated from operations
Stock Buybacks
$244.0K
Shares repurchased (TTM)
Capital Expenditures
$32.6M
Investment in assets
Dividends
None
No dividend program

PDFS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Pdf Solutions Inc. (CIK: 0001120914)

📋 Recent SEC Filings

Date Form Document Action
Feb 24, 2026 10-K pdfs20251231d_10k.htm View →
Feb 12, 2026 8-K pdfs20251124_8k.htm View →
Jan 5, 2026 4 xslF345X05/rdgdoc.xml View →
Jan 5, 2026 4 xslF345X05/rdgdoc.xml View →
Dec 11, 2025 4 xslF345X05/rdgdoc.xml View →

Frequently Asked Questions about PDFS

What is the AI rating for PDFS?

Pdf Solutions Inc. (PDFS) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.

What are PDFS's key strengths?

Claude: Strong topline growth of 22% year-over-year revenue expansion. Excellent gross margins of 72.3%, indicating strong underlying business economics.

What are the risks of investing in PDFS?

Claude: Operating unprofitable despite $219M revenue with negative net income and profitability deteriorating -115.8% YoY. Negative free cash flow of -$8.6M as capex ($32.6M) exceeds operating cash flow ($24.1M).

What is PDFS's revenue and growth?

Pdf Solutions Inc. reported revenue of $219.0M.

Does PDFS pay dividends?

Pdf Solutions Inc. does not currently pay dividends.

Where can I find PDFS SEC filings?

Official SEC filings for Pdf Solutions Inc. (CIK: 0001120914) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is PDFS's EPS?

Pdf Solutions Inc. has a diluted EPS of $-0.02.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.

Is PDFS a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Pdf Solutions Inc. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.

Is PDFS stock overvalued or undervalued?

Valuation metrics for PDFS: ROE of -0.2% (sector avg: 22%), net margin of -0.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy PDFS stock in 2026?

Our dual AI analysis gives Pdf Solutions Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is PDFS's free cash flow?

Pdf Solutions Inc.'s operating cash flow is $24.1M, with capital expenditures of $32.6M. FCF margin is -3.9%.

How does PDFS compare to other Technology stocks?

Vs Technology sector averages: Net margin -0.3% (avg: 18%), ROE -0.2% (avg: 22%), current ratio 2.28 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 14, 2026 | Data as of: 2025-12-31 | Powered by Claude AI