PDF Solutions, Inc. Q4 FY2025 earnings call

• Semiconductor industry trends such as 3D manufacturing, supply chain complexity, and AI are creating opportunities for PDF Solutions to reinvent itself.
• In 2025, PDF signed contracts for Sapience Manufacturing Hub, acquired secureWISE, reinvented Exensio analytics (enhanced data model, integrated AI ops platform, released Scalable Analytics), expanded Cimetrix Connectivity, and shipped DirectScan machines.
• Achieved record total revenue in 2025, with gross margin at 77% in Q4 and 76% for the full year, and operating margin at 24% in Q4 and 21% for the full year, exceeding prior margin targets.

In the fourth quarter of 2025, total revenues were $62.4 million, up 25% year-over-year. Platform revenue was $52.5 million, up 20% year-over-year, and Volume-based revenue was $9.9 million, up 58% year-over-year. Recurring revenue for the quarter was $61.1 million, up 62% year-over-year. For the full year 2025, record total revenues of $219.0 million were achieved, a 22% year-over-year increase. Platform revenue was $181.0 million (up 15% YOY), Volume-based revenue was $38 million (up 70% YOY), and Recurring revenue was $205.1 million (up 41% YOY). Upfront revenue was down annually due to a CapEx DirectScan system sale in the fourth quarter of 2024.

• Anticipate 2026 revenues to grow consistent with the 20% long-term growth target.
• Expect to nearly double the number of eProbe machines in the field in 2026.
• See increased customer activity, particularly in the second half of 2026, building on Exensio Scalable Analytics and Studio AI.
• Anticipate continued growth within equipment customers due to strong portfolio of secureWISE and Cimetrix products.

Q: Blair Abernethy asked about DirectScan systems shipped in 2025, field count, CapEx spend, and SAP partnership.

A: Adnan Raza confirmed 4 DirectScan systems were shipped in 2025, total field count is 6, CapEx spend will be managed evenly in 2026, and PDF continues to work with SAP on orchestration solutions for customers.

Q: Clark Wright inquired about revenue methodology, secureWISE cross-selling, and value proposition for logic and memory clients.

A: Adnan Raza explained revenue breakdown into Platform vs Volume-based and Recurring vs Upfront, John Kibarian discussed secureWISE cross-selling opportunities (integrating with Cimetrix, working with fabs, integrating with OSATs), and John Kibarian highlighted PDF's value proposition in logic and memory segments with pilots and growing opportunities in 3D manufacturing