📊 PDFS Key Takeaways
Is Pdf Solutions Inc. (PDFS) a Good Investment?
PDF Solutions demonstrates solid revenue growth (22% YoY) and excellent gross margins (71.8%), indicating a viable software business model. However, the company is severely constrained by negative free cash flow (-$8.8M) despite reporting positive net income, revealing critical earnings quality issues and unsustainable capital burn relative to revenue generation.
Pdf Solutions Inc. Key Strengths (PDFS)
- Strong top-line growth at 22% YoY ($60.1M revenue) showing market demand
- Excellent gross margins at 71.8% typical of scalable software business
- Conservative balance sheet with low leverage (0.24x Debt/Equity) and strong liquidity (2.34x current ratio)
PDFS Stock Risks: Pdf Solutions Inc. Investment Risks
- Severe cash flow deterioration: negative FCF of -$8.8M despite $4.8M net income indicates major earnings quality problems
- Extremely poor capital efficiency with ROE of 1.7% and ROA of 1.1%, suggesting $430.6M asset base is not productively deployed
- Dramatic EPS collapse (-120% YoY) combined with high capex ($10.5M) and weak operating cash flow ($1.7M) suggests unsustainable capital burn and potential shareholder dilution
Key Metrics to Watch
- Free Cash Flow trend - must turn positive; current -$8.8M burn rate is critical
- Return on Assets and Equity - improvement needed from current 1.1% and 1.7% levels
- Operating Cash Flow to Net Income ratio - the 35% conversion ratio reveals earnings quality concerns requiring investigation
Pdf Solutions Inc. (PDFS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.34x current ratio provides a solid financial cushion.
PDFS Profit Margin, ROE & Profitability Analysis
PDFS vs Technology Sector: How Pdf Solutions Inc. Compares
How Pdf Solutions Inc. compares to Technology sector averages
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.
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
PDFS Revenue & Earnings Growth: 5-Year Financial Trend
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
PDFS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $47.8M | -$3.0M | $-0.08 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Pdf Solutions Inc. Dividends, Buybacks & Capital Allocation
PDFS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Pdf Solutions Inc. (CIK: 0001120914)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PDFS
What is the AI rating for PDFS?
Pdf Solutions Inc. (PDFS) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PDFS's key strengths?
Claude: Strong top-line growth at 22% YoY ($60.1M revenue) showing market demand. Excellent gross margins at 71.8% typical of scalable software business.
What are the risks of investing in PDFS?
Claude: Severe cash flow deterioration: negative FCF of -$8.8M despite $4.8M net income indicates major earnings quality problems. Extremely poor capital efficiency with ROE of 1.7% and ROA of 1.1%, suggesting $430.6M asset base is not productively deployed.
What is PDFS's revenue and growth?
Pdf Solutions Inc. reported revenue of $60.1M.
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 $0.12.
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 grade reflects both perspectives for balanced insights.
What is PDFS's fundamental grade?
Based on our AI fundamental analysis in May 2026, Pdf Solutions Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PDFS stock overvalued or undervalued?
Valuation metrics for PDFS: ROE of 1.7% (sector avg: 22%), net margin of 8.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is PDFS's AI grade for 2026?
Our dual AI analysis gives Pdf Solutions Inc. a combined C grade 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 $1.7M, with capital expenditures of $10.5M. FCF margin is -14.6%.
How does PDFS compare to other Technology stocks?
Vs Technology sector averages: Net margin 8.0% (avg: 18%), ROE 1.7% (avg: 22%), current ratio 2.34 (avg: 2.5).