Core Viewpoint - PDF Solutions, Inc. is identified as a promising AI stock, with a price target increase from $38 to $40 by D.A. Davidson, reflecting confidence in the company's evolving business model and its expanding role in the semiconductor ecosystem [1][2]. Financial Performance - For the fourth quarter of 2025, PDF Solutions reported revenue of $62.4 million, representing a 25% year-over-year increase. Diluted earnings per share were $0.30, surpassing consensus expectations [2]. - The non-GAAP gross margin improved to 77%, up from 72% a year earlier, indicating enhanced operational efficiency [2]. - The company anticipates revenue growth for 2026 to align with its long-term target of 20% [2]. Business Model and Industry Position - PDF Solutions provides data, analytics, and software solutions aimed at improving manufacturing yield, quality, and operational efficiency for semiconductor companies [3]. - The company is becoming an industry standard in networking and scaled analytics within the semiconductor ecosystem, highlighting its growing influence [1].

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) 000-31311 (Commission file number) PDF SOLUTIONS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Employer Incorporation or organization) Identification No.) 2858 De La Cruz Blvd. 95050 Santa Clara, California (Zip Code) (Address of Registrant's principal executive of ices) (408) 280-7900 (Registrant's telephone number, including area code) Securi ...

分组1 - Brown Capital Management's Small Company Fund experienced a decline of 1.50% in Q4 2025, underperforming the Russell 2000® Growth index, which gained 1.22% [1] - The Fund's performance for the entire year of 2025 was down 11.46%, significantly lagging behind the Index's return of 13.01% [1] - The Fund's investment strategy is focused on company fundamentals, with holdings showing strong revenue and earnings growth in 2025 [1] 分组2 - PDF Solutions, Inc. (NASDAQ:PDFS) is highlighted as a key investment, specializing in advanced analytics and data management for the semiconductor supply chain [2][3] - As of February 20, 2026, PDF Solutions, Inc. had a stock price of $32.43, with a one-month return of -4.56% and a 52-week gain of 44.39% [2] - The company is expected to achieve over 20% revenue growth and continued operating margin expansion in the next three to five years, driven by its role in AI infrastructure [3] 分组3 - The Fund added PDF Solutions, Inc. along with three other companies in Q4 2025, indicating a strategic investment in the semiconductor sector [3] - PDF Solutions is recognized for its ability to convert large volumes of manufacturing data into actionable insights, enhancing productivity in the semiconductor industry [3] - Despite its potential, PDF Solutions is not among the top 30 most popular stocks among hedge funds, with a decrease in hedge fund interest from 20 to 15 portfolios [4]

分组1 - PDF Solutions (PDFS) concluded FY2025 with the release of its Q4 FY2025 report on February 12, showcasing strong financial performance [1] - The company is a provider of data solutions specifically tailored for the semiconductor industry, indicating its niche market focus [1]

Core Insights - PDF Solutions (PDFS) reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing an increase from $0.25 per share a year ago, resulting in an earnings surprise of +25.00% [1] - The company achieved revenues of $62.4 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.47% and increasing from $50.08 million year-over-year [2] - PDF Solutions shares have increased approximately 14% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] Earnings Outlook - The future performance of PDF Solutions' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $61.5 million, and for the current fiscal year, it is $1.08 on revenues of $258 million [7] Industry Context - The Computer - Services industry, to which PDF Solutions belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company reported record total revenues of $62.4 million for Q4 2025, a 25% increase year-over-year from $50.1 million in Q4 2024 [15] - For the full year 2025, total revenues reached $219.0 million, up 22% from $179.5 million in 2024, consistent with guidance [15] - Gross margin for Q4 was 77%, and operating margin was 24%, with full-year gross margin at 76% and operating margin at 21%, exceeding previous long-term targets [19][23] Business Line Data and Key Metrics Changes - Platform revenue for Q4 was $52.5 million, up 20% year-over-year, while volume-based revenue was $9.9 million, up 58% [16] - Annual platform revenue was $181.0 million, a 15% increase, and volume-based revenue was $38 million, up 70% year-over-year [17] - Recurring revenue for Q4 was $61.1 million, up 62% year-over-year, and for the full year, it was $205.1 million, a 41% increase [17] Market Data and Key Metrics Changes - The semiconductor industry is projected to exceed $1 trillion in revenue, with increasing complexity in manufacturing processes driving demand for AI-driven collaboration [4] - The company anticipates continued growth in 2026, consistent with a long-term target of 20% CAGR, driven by increased customer activity and AI collaboration needs [12][23] Company Strategy and Development Direction - The company aims to evolve from an analytics platform provider to an AI-driven collaboration platform, enhancing orchestration systems and integrating AI capabilities [5][6] - The acquisition of secureWISE and the development of Exensio Studio AI are key strategic moves to expand the product offering and enhance customer collaboration [18] - The focus is on establishing orchestration, analytics, and data components across the industry to support growth [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the accelerating need for AI-driven collaboration in the semiconductor industry, with expectations for increased customer activity in 2026 [12][23] - The company is optimistic about launching advanced memory systems and expanding the number of eProbe machines in the field [12] - Management expressed confidence in achieving revenue growth consistent with long-term targets, even without inorganic growth contributions [13] Other Important Information - The company ended 2025 with a backlog of $254 million and positive operating cash flow of approximately $24 million [18][22] - Capital expenditures for 2025 were approximately $33 million, primarily related to DirectScan systems, with expectations for similar spending in 2026 [22] Q&A Session Summary Question: Clarification on DirectScan systems shipped - The company confirmed that four DirectScan systems were shipped in 2025, bringing the total in the field to six [30] Question: CapEx spending outlook - Management indicated that CapEx spending in 2026 is expected to be managed evenly throughout the year, with potential variations [38] Question: SAP relationship and expectations - The company continues to see increased needs for orchestration and expects to build on its installed base through partnerships with SAP and system integrators [42][44] Question: Balance sheet and debt levels - Management expressed comfort with current debt levels, indicating a focus on maintaining cash balance before significant debt repayment [46][49] Question: Revenue methodology and growth expectations - The company explained the new revenue breakdown into recurring and upfront categories, emphasizing the importance of customer success in driving volume-based revenue growth [54][56]

Financial Data and Key Metrics Changes - The company reported record total revenues of $219.0 million for the full year 2025, a 22% increase from $179.5 million in 2024, and Q4 revenues of $62.4 million, up 25% year-over-year from $50.1 million [15][19] - Gross margin for Q4 was 77%, and operating margin was 24%, while for the full year, gross margin was 76% and operating margin was 21%, exceeding previous long-term targets [19][23] - Earnings per share (EPS) for the full year was $0.94, reflecting a 12% growth from $0.84 in the prior year [21] Business Line Data and Key Metrics Changes - Platform revenue for Q4 was $52.5 million, up 20% year-over-year, while volume-based revenue was $9.9 million, up 58% [16] - For the full year, platform revenue was $181.0 million, a 15% increase, and volume-based revenue was $38 million, up 70% year-over-year [17] - Recurring revenue for Q4 was $61.1 million, up 62% year-over-year, and for the full year, it was $205.1 million, a 41% increase [17] Market Data and Key Metrics Changes - The semiconductor industry is projected to exceed $1 trillion in revenue, with increasing complexity in manufacturing processes driving demand for AI-driven collaboration [4][12] - The company anticipates continued growth in 2026, consistent with a long-term target of 20% CAGR, driven by increased customer activity across various segments [12][23] Company Strategy and Development Direction - The company aims to evolve from an analytics platform provider to an AI-driven collaboration platform, enhancing its offerings to meet the needs of customers in the semiconductor industry [5][11] - Strategic acquisitions, such as secureWISE, and partnerships with companies like SAP are integral to expanding the company's capabilities and market reach [7][18] - The focus for the next phase includes establishing orchestration, analytics, and data components across the industry [11][23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the accelerating need for AI-driven collaboration in the semiconductor industry, with expectations for increased customer activity in 2026 [12][23] - The company is optimistic about launching advanced memory solutions and expanding its eProbe machine installations, anticipating nearly doubling the number in the field [12][23] - Management expressed confidence in achieving revenue growth consistent with long-term targets, even without inorganic growth contributions [13][23] Other Important Information - The company ended 2025 with a backlog of $254 million and generated positive operating cash flow of approximately $24 million [18][22] - Capital expenditures for 2025 were approximately $33 million, primarily related to DirectScan systems, with expectations for similar spending in 2026 [22] Q&A Session Summary Question: Clarification on DirectScan systems shipped - The company confirmed that four DirectScan systems were shipped in 2025, with a total of six currently in the field [30] Question: CapEx spending and future expectations - Management indicated that CapEx spending in 2026 is expected to be managed evenly throughout the year, with potential variations [38] Question: SAP relationship and expectations - The company continues to see increased needs for orchestration and expects to build on its partnership with SAP to enhance customer engagement [42][44] Question: Balance sheet and debt levels - Management expressed comfort with current debt levels, indicating a focus on balancing CapEx spending while gradually paying down debt [46][49] Question: Revenue methodology and growth expectations - The company provided insights into its new revenue categorization, emphasizing the importance of volume-based revenue and cross-selling opportunities with secureWISE [52][56]

Financial Data and Key Metrics Changes - The company reported record total revenues of $219.0 million for the full year 2025, a 22% increase from $179.5 million in 2024, and Q4 total revenues of $62.4 million, up 25% year-over-year from $50.1 million [15][18] - Gross margin for Q4 was 77%, and operating margin was 24%, with full-year gross margin at 76% and operating margin at 21%, exceeding prior long-term targets [19][23] - Earnings per share (EPS) for the full year was $0.94, reflecting a 12% growth from $0.84 in the previous year [20] Business Line Data and Key Metrics Changes - Platform revenue for Q4 was $52.5 million, up 20% year-over-year, while volume-based revenue was $9.9 million, up 58% [16] - For the full year, platform revenue was $181.0 million, a 15% increase, and volume-based revenue was $38 million, up 70% [17] - Recurring revenue for Q4 was $61.1 million, up 62% year-over-year, and for the full year, it was $205.1 million, a 41% increase [17] Market Data and Key Metrics Changes - The semiconductor industry is projected to exceed $1 trillion in revenue, with increasing complexity in manufacturing processes driving demand for AI-driven collaboration [4][11] - The company anticipates continued growth in 2026, consistent with a long-term target of 20% CAGR, driven by increased customer activity and demand for AI solutions [12][23] Company Strategy and Development Direction - The company is transitioning from an analytics platform provider to an AI-driven collaboration platform, focusing on orchestration systems that align operational processes and data sharing [5][6] - The acquisition of secureWISE and the development of Exensio Studio AI are key components of the company's strategy to enhance its product offerings and market position [18][21] - The company aims to expand its platform across the industry, leveraging its secureWISE and Symmetrics products for equipment control and connectivity [12][23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the accelerating need for AI-driven collaboration in the semiconductor industry, with expectations for increased customer activity in 2026 [11][12] - The company is optimistic about opportunities in advanced memory and characterization systems, anticipating nearly doubling the number of eProbe machines in the field [11][12] - Management expressed confidence in achieving revenue growth consistent with long-term targets, even without inorganic growth contributions [12][23] Other Important Information - The company ended 2025 with a backlog of $254 million and positive operating cash flow of approximately $24 million [18][21] - Capital expenditures for 2025 were approximately $33 million, primarily related to DirectScan systems, with expectations for similar spending in 2026 [21][23] Q&A Session Summary Question: DirectScan systems shipment and future expectations - The company confirmed that four DirectScan systems were shipped in 2025, with a total of six currently in the field, and plans to nearly double that number in the coming year [30][31] Question: Capital expenditure outlook - The company plans to manage capital expenditures evenly throughout 2026, with a focus on maintaining subscription models for machines [36][38] Question: SAP relationship and expectations - The partnership with SAP is progressing well, with increased needs for orchestration and automation, and the company expects to build on its installed base through this collaboration [40][42] Question: Balance sheet and debt management - The company is comfortable with its current debt levels and plans to prioritize cash generation and balance sheet health before significant debt repayment [45][49] Question: Revenue methodology and growth expectations - The company has broken down revenue into recurring and upfront categories to provide better visibility, with expectations for continued growth in volume-based revenue driven by secureWISE and other products [52][54]

Exhibit 99.2 Q4 2025 and Full Year 2025 Management Report February 12, 2026 1 Contents ■ Q4 2025 and Full Year 2025 Results ■ Q4 2025 and Full Year 2025 Non-GAAP Results ■ Related Information The following commentary is provided by management and should be referenced in conjunction with PDF Solutions' Fourth Quarter and Full Year 2025 financial results press release available on its Investor Relations website at http://www.pdf.com/financial-news. These remarks represent management's current views of the Com ...