Core Insights - PDF Solutions, Inc. reported record total revenues of $57.1 million for the third quarter of 2025, representing a 23% increase compared to the same quarter last year [3][9] - The company achieved a GAAP gross margin of 72% and a non-GAAP gross margin of 76% for the third quarter of 2025 [3][9] - The CEO highlighted strong customer activity and platform development driven by AI-driven digitization, reaffirming the annual revenue growth guidance of 21-23% for the year [7] Financial Performance - Total revenues for Q3 2025 were $57.1 million, up from $51.7 million in Q2 2025 and $46.4 million in Q3 2024 [3] - GAAP gross margin was 72%, compared to 71% in Q2 2025 and 73% in Q3 2024; non-GAAP gross margin remained stable at 76% [3] - GAAP operating margin improved to 8% from 2% in Q2 2025 and 5% in Q3 2024; non-GAAP operating margin increased to 23% from 19% in Q2 2025 and 21% in Q3 2024 [4] - GAAP net income for Q3 2025 was $1.3 million, or $0.03 per diluted share, compared to $1.1 million in Q2 2025 and $2.2 million in Q3 2024 [5] - Non-GAAP net income was $9.8 million, or $0.25 per diluted share, compared to $7.3 million in Q2 2025 and $9.9 million in Q3 2024 [6] Operational Highlights - The ending backlog for the company was reported at $292.0 million, indicating strong future revenue potential [9] - The analytics segment generated $54.7 million in revenue, contributing significantly to the overall revenue growth [19] - The company continues to focus on enhancing its PDF Platform, which includes analytics, AI/Model Ops, and advanced manufacturing solutions [7][13]

Core Viewpoint - PDF Solutions, Inc. reported strong financial results for the second quarter of 2025, with total revenues reaching $51.7 million, marking a 24% increase year-over-year, driven by robust analytics revenue growth and a positive outlook for future performance [2][9]. Financial Performance - Total revenues for Q2 2025 were $51.7 million, up from $47.8 million in Q1 2025 and $41.7 million in Q2 2024 [2]. - Analytics revenue was $48.8 million, compared to $42.5 million in Q1 2025 and $38.1 million in Q2 2024, reflecting a 28% year-over-year increase [2][9]. - Integrated Yield Ramp revenue was $2.9 million, down from $5.3 million in Q1 2025 but slightly up from $3.5 million in Q2 2024 [2]. Profitability Metrics - GAAP gross margin for Q2 2025 was 71%, compared to 73% in Q1 2025 and 71% in Q2 2024 [3]. - Non-GAAP gross margin was 76%, down from 77% in Q1 2025 but up from 75% in Q2 2024 [3]. - Net income on a GAAP basis was $1.1 million, or $0.03 per diluted share, a recovery from a net loss of $3.0 million in Q1 2025 [4]. - Non-GAAP net income was $7.3 million, or $0.19 per diluted share, compared to $8.1 million, or $0.21 per diluted share in Q1 2025 [5]. Future Outlook - The company anticipates continued growth, reaffirming its annual revenue growth guidance of 21-23% for 2025, driven by strong customer activity and advancements in AI-driven digitization [6]. - Backlog increased to $232.6 million as of June 30, 2025, indicating strong future revenue potential [9]. Company Overview - PDF Solutions provides comprehensive data solutions aimed at enhancing operational efficiency and profitability within the semiconductor and electronics industries [12]. - The company has a strong portfolio that includes the Sapience™ Manufacturing Hub and the newly acquired secureWISE® offering, which are designed to meet complex manufacturing and testing requirements [6].

Financial Performance - Total revenues for Q1 2025 were $47.8 million, a decrease from $50.1 million in Q4 2024 but an increase from $41.3 million in Q1 2024 [3] - Analytics revenue for Q1 2025 was $42.5 million, down from $47.9 million in Q4 2024 but up from $38.5 million in Q1 2024 [3] - Integrated Yield Ramp revenue for Q1 2025 was $5.3 million, compared to $2.2 million in Q4 2024 and $2.8 million in Q1 2024 [3] Profitability Metrics - GAAP gross margin for Q1 2025 was 73%, up from 68% in Q4 2024 and 67% in Q1 2024 [4] - Non-GAAP gross margin for Q1 2025 was 77%, compared to 72% in both Q4 2024 and Q1 2024 [4] - GAAP net loss for Q1 2025 was $3.0 million, or ($0.08) per diluted share, compared to net income of $0.5 million, or $0.01 per diluted share in Q4 2024 [5] - Non-GAAP net income for Q1 2025 was $8.1 million, or $0.21 per diluted share, down from $9.9 million, or $0.25 per diluted share in Q4 2024 [6] Strategic Developments - The company experienced strong customer activity and platform development, driven by AI-driven digitization [7] - The acquisition of SecureWise was completed to enhance supply chain collaboration [10] - The company reaffirmed its annual revenue growth guidance of 21-23% for 2025 [7] Backlog and Financial Position - The backlog as of March 31, 2025, was $226.7 million [10] - Total assets increased to $389.972 million as of March 31, 2025, from $315.289 million at the end of 2024 [17][18]