PDF Solutions(PDFS) - 2025 Q2 - Quarterly Results

Q2 2025 Results Overview PDF Solutions reported total revenues of $51.7 million in Q2 2025, marking an 8% sequential and 24% year-over-year increase, primarily driven by strong Analytics revenue growth despite a decline in Integrated yield ramp revenue Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Revenues | $51.7M | | Non-GAAP Gross Margin | 76% | | GAAP Diluted EPS | $0.03 | | Non-GAAP Diluted EPS | $0.19 | | Operating Cash Flow | ($5.2M) | | Cash Used for Capital Expenditures | $8.5M | - Total Revenues: $51.7 million, up 8% over Q1 2025 and up 24% over Q2 2024[7] - Analytics Revenue: $48.8 million, up 15% over Q1 2025 and up 28% over Q2 2024[7] - Integrated Yield Ramp Revenue: $2.9 million, down 45% over Q1 2025 and down 18% over Q2 2024[7] Key Financial & Operating Metrics The company demonstrated consistent quarterly revenue growth to $51.7 million in Q2 2025, though operating cash flow turned negative, while year-to-date revenues increased with positive operating cash flow compared to prior periods Quarterly Quarterly Financial and Operating Metrics (in thousands, except shares) | (in thousands, except shares) | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $51,728 | $47,778 | $50,085 | $46,409 | $41,661 | | GAAP Gross Margin | 71% | 73% | 68% | 73% | 71% | | Non-GAAP Gross Margin | 76% | 77% | 72% | 77% | 75% | | Outstanding Debt | $68,117 | $68,656 | $— | $— | $— | | Operating Cash Flow | ($5,215) | $8,640 | $1,606 | $9,275 | $684 | | Cash Used for CAPEX | $8,526 | $8,203 | $5,847 | $4,595 | $5,320 | Year to Date Year-to-Date Financial and Operating Metrics (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | | Revenues | $99,506 | $82,971 | $82,360 | | GAAP Gross Margin | 72% | 69% | 71% | | Non-GAAP Gross Margin | 76% | 73% | 74% | | Operating Cash Flow | $3,425 | ($1,178) | ($6,615) | | Cash Used for CAPEX | $16,729 | $7,343 | $6,001 | Revenue by Geographic Area The United States remained the largest market at 39% of Q2 2025 revenue, with China showing significant quarterly growth to 23%, and year-to-date revenues from Japan and China increasing substantially Quarterly Quarterly Revenue by Geographic Area (Dollars in thousands) | (Dollars in thousands) | Q2'25 | Q1'25 | Q2'24 | | :--- | :--- | :--- | :--- | | United States | $19,954 (39%) | $18,228 (38%) | $19,223 (46%) | | Japan | $9,304 (18%) | $11,736 (25%) | $7,932 (19%) | | China | $12,190 (23%) | $8,043 (17%) | $7,000 (17%) | | Taiwan | $1,503 (3%) | $1,494 (3%) | $954 (2%) | | Rest of the world | $8,777 (17%) | $8,277 (17%) | $6,552 (16%) | | Total revenues | $51,728 | $47,778 | $41,661 | Year to Date Year-to-Date Revenue by Geographic Area (Dollars in thousands) | (Dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | United States | $38,182 (38%) | $36,956 (45%) | | Japan | $21,040 (21%) | $19,220 (23%) | | China | $20,233 (20%) | $11,853 (14%) | | Taiwan | $2,997 (3%) | $1,834 (2%) | | Rest of the world | $17,054 (18%) | $13,108 (16%) | | Total revenues | $99,506 | $82,971 | Reconciliation of GAAP to Non-GAAP Measures This section reconciles GAAP financial results to non-GAAP measures by excluding items such as stock-based compensation, amortization of acquired technology, and non-recurring costs, providing insights into ongoing operational performance - The company provides non-GAAP financial measures to supplement its GAAP results, excluding items like stock-based compensation, amortization of acquired technology, certain legal expenses, and other non-recurring costs to offer management's view of ongoing operations[20] Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income Quarterly Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in thousands) | (in thousands) | Q2'25 | Q1'25 | Q2'24 | | :--- | :--- | :--- | :--- | | GAAP net income (loss) | $1,146 | ($3,032) | $1,705 | | Stock-based compensation | $6,199 | $6,596 | $5,700 | | Non-recurring costs | $159 | $4,345 | $— | | Other adjustments | ($783) | $1,236 | ($316) | | Non-GAAP net income | $7,301 | $8,115 | $7,089 | Year-to-Date Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP net income (loss) | ($1,886) | $1,312 | | Stock-based compensation | $12,795 | $11,810 | | Non-recurring costs | $4,504 | $— | | Other adjustments | ($1,001) | ($486) | | Non-GAAP net income | $15,416 | $12,836 | Reconciliation of GAAP to Non-GAAP Spending by Function Quarterly Reconciliation of GAAP to Non-GAAP Spending by Function (in thousands) | Quarterly (in thousands) | Q2'25 GAAP | Q2'25 Non-GAAP | Q2'24 GAAP | Q2'24 Non-GAAP | | :--- | :--- | :--- | :--- | :--- | | Cost of Revenue | $14,886 | $12,631 | $12,230 | $10,461 | | Research & Development | $14,913 | $12,662 | $12,649 | $10,586 | | Selling, General, & Admin. | $19,744 | $16,782 | $16,259 | $13,807 | Year-to-Date Reconciliation of GAAP to Non-GAAP Spending by Function (in thousands) | YTD (in thousands) | 2025 GAAP | 2025 Non-GAAP | 2024 GAAP | 2024 Non-GAAP | | :--- | :--- | :--- | :--- | :--- | | Cost of Revenue | $27,841 | $23,566 | $25,759 | $22,206 | | Research & Development | $29,541 | $24,871 | $25,633 | $21,368 | | Selling, General, & Admin. | $43,116 | $32,859 | $32,757 | $27,597 |