PDF Solutions(PDFS) - 2025 Q3 - Quarterly Results

Revenue Performance - Q3 2025 total revenues reached $57.1 million, representing a 10% increase from Q2 2025 and a 23% increase from Q3 2024[5] - Q3 2025 analytics revenue was $54.7 million, up 12% from Q2 2025 and up 22% from Q3 2024[5] - Year-to-date revenues for the nine months ended September 2025 totaled $156.6 million, up 21% from $129.4 million in the same period of 2024[12] - Revenue from the United States accounted for 53% of total revenues in Q3 2025, significantly up from 39% in Q2 2025[15] Profitability Metrics - GAAP gross margin for Q3 2025 was 72%, while non-GAAP gross margin was 76%[7] - GAAP operating margin improved to 8% in Q3 2025, compared to 2% in Q2 2025 and a loss of 7% in Q1 2025[9] - Non-GAAP net income for Q3 2025 was $9.8 million, with non-GAAP diluted EPS at $0.25[22] Cash Flow and Share Repurchase - Operating cash flow for Q3 2025 was $3.3 million, a recovery from a negative cash flow of $5.2 million in Q2 2025[9] - The company repurchased $244,000 worth of shares in Q3 2025, marking the first repurchase in the year[9] Debt and Expenses - The company reported outstanding debt of $67.6 million as of Q3 2025, a slight decrease from $68.1 million in Q2 2025[9] - GAAP Cost of Revenue for Q3'25 was $15,840, an increase from $14,886 in Q2'25, representing a growth of 6.4%[30] - Non-GAAP Cost of Revenue for Q3'25 was $13,568, up from $12,631 in Q2'25, indicating a 7.4% increase[30] - GAAP Research & Development expenses for Q3'25 totaled $15,435, compared to $14,913 in Q2'25, reflecting a 3.5% rise[30] - Non-GAAP Research & Development expenses for Q3'25 were $13,231, an increase from $12,662 in Q2'25, showing a growth of 4.5%[30] - GAAP Selling, General, & Administrative expenses for Q3'25 were $19,944, slightly up from $19,744 in Q2'25, a 1% increase[30] - Non-GAAP Selling, General, & Administrative expenses for Q3'25 were $16,966, compared to $16,782 in Q2'25, marking an increase of 1.1%[30] Year-to-Date Expense Trends - Year-to-date GAAP Cost of Revenue for 2025 was $43,681, up from $38,243 in 2024, a growth of 14.4%[33] - Year-to-date Non-GAAP Cost of Revenue for 2025 was $37,134, compared to $32,740 in 2024, indicating a 13.4% increase[33] - Year-to-date GAAP Research & Development expenses for 2025 were $44,976, up from $39,149 in 2024, reflecting a 14.4% rise[33] - Year-to-date Non-GAAP Selling, General, & Administrative expenses for 2025 were $49,825, compared to $42,702 in 2024, showing a 16.6% increase[33]