PDF Solutions (PDFS) Q2 Sales Up 24%
Key Points
Record GAAP revenue of $51.7 million in Q2 2025, up 24% from the prior year and slightly above estimates (non-GAAP EPS and GAAP revenue).
Analytics segment delivered 28% year-over-year growth, now making up 94.4% of company revenue.
Management reaffirmed full-year revenue growth guidance of 21–23% for FY2025.
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PDF Solutions (NASDAQ:PDFS), a provider of data analytics software and services to the semiconductor industry, reported its second-quarter 2025 financial results on August 7, 2025. The company announced record quarterly GAAP revenue of $51.7 million in Q2 2025, just beating analyst expectations of $51.58 million (GAAP), while posting non-GAAP earnings per share of $0.19, slightly above the $0.19 non-GAAP consensus estimate. Year-over-year GAAP revenue climbed 24.0%, driven by growth in its Analytics business following the recent SecureWise acquisition. Reaffirmed annual revenue growth guidance for FY2025 of 21–23%.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.19 | $0.19 | $0.18 | 5.6% |
| Revenue (GAAP) | $51.7 million | N/A | $41.7 million | 24.0% |
| Gross Margin (Non-GAAP) | 76% | 75% | 1.0 pp | |
| Net Income (Non-GAAP) | $7.3 million | $7.1 million | 2.8% | |
| Backlog | $232.6 million | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
About PDF Solutions: Business Overview and Recent Focus
PDF Solutions delivers software and cloud-based analytics platforms for semiconductor companies. Its products help clients manage and analyze manufacturing and supply chain data to improve quality, yield, and operational efficiency. The company's core offering is its Analytics platform, anchored by the Exensio software suite, which uses Artificial Intelligence and Machine Learning to process large volumes of production and test data.
Recently, the company has concentrated on expanding its analytics-driven product suite. It focuses on integrating acquired solutions and forming strategic partnerships with industry leaders such as Siemens and SAP. Success depends on continued innovation and maintaining its position as a leading independent platform for data analytics in the semiconductor manufacturing ecosystem.
Quarter Highlights: Performance, Product, and Strategic Moves
The period saw record GAAP revenue, marking a 24.0% increase compared to the prior year. The Analytics segment drove much of this growth. Analytics revenue reached $48.8 million, which was up 28% year over year and made up 94.4% of total company revenue. This segment benefited from strong customer demand for the Exensio analytics software, as well as contributions from SecureWise following its acquisition in March. Management highlighted customer adoption of solutions across artificial intelligence, data integration, and manufacturing digitization. Bookings remained strong in the Sapience Manufacturing Hub (a data integration and enterprise applications suite) and the SecureWise product families.
Integrated Yield Ramp, which consists of specialized solutions for tracking and improving production yield, brought in $2.9 million. This was a decline from prior periods and comprised less than 6% of company revenue. Management had previously expected this area to grow meaningfully in 2025, but the sequential drop this quarter (Q2 2025 vs. Q1 2025) signals some project timing issues or temporary delays. The overall contribution from Integrated Yield Ramp remains small relative to the company's main analytics business.
Management attributed elevated expenses to higher sales and marketing activities and integration costs for SecureWise. The company's integration of SecureWise is progressing, adding recurring license and data usage revenue. SecureWise is viewed as positive for gross margin long-term, though the initial period included added costs tied to integration and legal fees.
The company reported a backlog of $232.6 million, an increase from $226.7 million in Q1 2025. Customer concentration remains a risk factor, with two customers accounting for 31% of revenues in 2024, although the company did not update this figure for the current quarter.
Financial Outlook and Investor Considerations
Management reaffirmed its outlook for fiscal 2025, expecting revenue to rise by 21–23%. This guidance was unchanged from previous quarters. No specific quarterly revenue or earnings targets were offered. During the earnings call, leadership pointed to continued demand for analytics and enterprise-wide solutions, especially as the semiconductor industry expands its use of artificial intelligence and data-driven process improvement.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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