PDF Solutions (PDFS) Q4 2025 earnings summary

Executive summary

• Achieved record total revenue in 2025, growing 22% year-over-year, with Q4 revenue at $62.4 million, up 25% YoY, and strong margin expansion and operational leverage.

• Platform revenue grew 15% YoY to $181.0 million, while volume-based revenue surged 70% YoY to $38.0 million.

• Major strategic moves included the acquisition of secureWISE, licensing of Tiber AI Studio, and expansion of Sapience Manufacturing Hub and Exensio platforms.

• Growth driven by industry trends in 3D manufacturing, AI-driven collaboration, and global semiconductor expansion.

• Recurring revenue comprised 98% of Q4 and 94% of full year revenues, reflecting a shift from upfront to recurring models.

Financial highlights

• Q4 2025 total revenue was $62.4 million, up 25% YoY; full-year revenue reached $219.0 million, up 22%.

• Platform revenue for Q4 was $52.5 million (up 20% YoY); volume-based revenue was $9.9 million (up 58% YoY).

• Recurring revenue for Q4 was $61.1 million (up 62% YoY); full-year recurring revenue was $205.1 million (up 41% YoY).

• Gross margin for Q4 was 77% (non-GAAP); operating margin 24% (non-GAAP); Q4 EPS was $0.30 (non-GAAP).

• Full-year gross margin was 76% (non-GAAP), operating margin 21% (non-GAAP), and EPS $0.94 (non-GAAP, up 12% YoY).

• Operating cash flow for Q4 2025 was $17.3 million; full year was $24.1 million.

• Cash used for capital expenditures was $9.8 million in Q4 and $32.8 million for the year.

Outlook and guidance

• 2026 revenue expected to grow in line with the 20% long-term target, with continued margin expansion.

• Anticipates nearly doubling the number of eProbe machines in the field and increased customer activity, especially in the second half of 2026.

• CapEx for 2026 expected to be similar to 2025, with even distribution throughout the year.

• Industry trends such as 3D architecture and global production cycles are expected to drive demand for the company’s platform.