PDF Solutions Reaffirms 20% Growth After Backlog Jump

The Tip Desk · August 6, 2026 · 2 min read

Second-quarter revenue was $61.5 million as volume-based sales reached $12.4 million and ending backlog rose to $270.7 million.

PDF Solutions, Inc. (PDFS), a provider of data solutions for the semiconductor and electronics ecosystem, reported second-quarter revenue of $61.5 million, up 19% from $51.7 million a year earlier, after a 26% year-over-year increase in the first quarter.

The Santa Clara company’s sequential lift was concentrated in volume-based sales, which rose 35% from $9.2 million in the first quarter. Platform revenue, the larger of the two reportable lines, was $49.1 million. Recurring revenue fell to 80% of the mix from 89% in the first quarter, while upfront revenue rose to 20% from 11%.

Chief Executive John Kibarian said the company continued on its growth trajectory and cited major customer wins for secureWISE, DirectScan, and Exensio. He said the company significantly increased backlog in the quarter, which it expects to add to revenue for a number of years, and reaffirmed a 20% annual revenue growth target for 2026.

Ending backlog was $270.7 million, up from $246.4 million at the end of the first quarter.

GAAP gross margin compressed to 69% from 72% in the first quarter. Non-GAAP gross margin fell to 73% from 76%. GAAP operating margin declined to 8% from 10%; non-GAAP operating margin declined to 22% from 25%.

GAAP net income was $4.3 million, or $0.10 a share. Non-GAAP net income was $11.4 million, or $0.27 a share.

United States revenue was $34.0 million, or 55% of the total, up from $24.5 million, or 41%, in the first quarter. Japan contributed $6.6 million, China $8.7 million, and the rest of the world $12.2 million.

Operating cash flow was $16.4 million. Cash used for capital expenditures was $14.1 million. In May 2026, the company completed a secondary offering of 1.9 million shares, raising $81.8 million net of $3.9 million in underwriting discounts and commissions. Cash and cash equivalents were $114.9 million at June 30.

The company now presents revenue as Platform and Volume-based, with Platform covering software licenses, SaaS, engineering services, fixed fees on CV systems, and DirectScan licenses, and Volume-based covering Cimetrix runtime licenses, secureWISE data, and Gainshare. Prior periods were reclassified; the change did not alter total revenues or costs of revenues.

Non-GAAP results exclude stock-based compensation, amortization of acquired intangibles, amortization of debt issuance costs, and certain non-recurring items, including $501 thousand of expenses related to an arbitration proceeding expected to continue until fully resolved.