# PDF Solutions, Inc. (PDFS)

> Source: Nexqual · https://nexqual.com/PDFS · data as of 2026-10-28 20:00 UTC · cite as "Nexqual, PDF Solutions, Inc. (PDFS), nexqual.com/PDFS" · informational, not investment advice.

**Price:** USD 45.49 (+2.85% on the day) · last close of Oct 28, 2026; US market closed, not a live price. Prev close 44.23 · day 44.3–46.09 · 52w 23.55–71.69 · market cap $1.92B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $241M, net income $10.3M (4.3% margin), free cash flow -$1.8M (SEC filings).
- Valuation: P/E 186.4x (avg 331.8x at the last 2 fiscal year-ends).
- Insider open-market sales, last ~7 months: 2 Form 4 filings, $228K; 2 not under a Rule 10b5-1 plan ($228K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 1.88 on a 1–5 scale) (8 analysts), mean target USD 60.75 (range 50–68).
- Total return with dividends: 1Y +51.4% vs S&P 500 +13.2%; 5Y +93.3% vs S&P 500 +79.8%.
- Next earnings: 2026-11-05, EPS estimate USD 0.33, revenue estimate $67.5M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $111M | $149M | $166M | $179M | $219M | $241M |
| Gross profit | $66.9M | $101M | $114M | $125M | $158M | — |
| Operating income | — | — | -$151K | $935K | $5.8M | $19.7M |
| Net income | -$21.5M | -$3.4M | $3.1M | $4.1M | -$640K | $10.3M |
| EPS (diluted) | -$0.58 | -$0.09 | $0.08 | $0.10 | -$0.02 | — |
| Free cash flow | $571K | $23.9M | $3.4M | -$7.5M | -$8.6M | -$1.8M |
| Gross margin | 60.2% | 67.8% | 68.8% | 69.8% | 72.3% | — |
| Operating margin | — | — | -0.1% | 0.5% | 2.7% | 8.2% |
| Net margin | -19.3% | -2.3% | 1.9% | 2.3% | -0.3% | 4.3% |
| Revenue growth | +26.1% | +33.8% | +11.6% | +8.2% | +22.0% | — |
| Cash + short-term investments | $140M | $139M | $136M | $115M | $42.2M | — |
| Total debt | — | — | — | $0K | $67.0M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 186.4x · P/S 8.0x · P/B 5.2x · FCF yield -0.09% · Earnings yield 0.54%
P/E at fiscal year-ends: Dec 2024 260.6x, Dec 2023 403.0x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 2 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-31 | Strojwas Andrzej | Chief Technology Officer | 3,394 | $151K | 3.6% | No | Too little history (no open-market trades in 2025) |
| 2026-08-12 | Zhang Shuo | Director | 1,501 | $77K | 6% | No | Too little history (no open-market trades in 2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 1.88 on a 1–5 scale), 8 analysts; mean target USD 60.75 (low 50, high 68).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-19 | DA Davidson | Target lowered | Buy | $74 → $68 |
| 2026-09-25 | Needham | Initiated | Buy | $60 |
| 2026-09-21 | DA Davidson | Maintained | Buy | $74 |
| 2026-09-08 | Morgan Stanley | Initiated | Overweight | $62 |
| 2026-08-11 | Bernstein | Initiated | Outperform | $65 |
| 2026-08-07 | Rosenblatt | Maintained | Buy | $63 |
| 2026-08-04 | Wells Fargo | Initiated | Equal-Weight | $50 |
| 2026-07-10 | Rosenblatt | Target raised | Buy | $52 → $63 |
| 2026-07-09 | DA Davidson | Target raised | Buy | $56 → $74 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-29) | 5Y (from 2021-10-25) |
|---|---|---|
| Total return | +51.4% | +93.3% |
| S&P 500 (SPY) | +13.2% | +79.8% |
| Per year | +51.8% | +14.1% |
| Volatility (annualized) | 69.5% | 50.4% |
| Max drawdown | -44.6% (Jun 2026→Oct 2026) | -63.4% (Jul 2023→Mar 2025) |

## Peers (Software - Application)
APPF (AppFolio, Inc.) USD 205 +1.76% · TTAN (ServiceTitan, Inc.) USD 80.86 -0.93% · DSGX (The Descartes Systems Group Inc) USD 92.36 +0.20% · IDCC (InterDigital, Inc.) USD 320.56 -2.51% · YMM (Full Truck Alliance Co. Ltd.) USD 8.08 -4.04% · PCTY (Paylocity Holding Corporation) USD 168.5 -0.92%

## More
Full page: https://nexqual.com/PDFS · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in PDFS's own 10-K filed 2026-02-24 (https://www.sec.gov/Archives/edgar/data/1120914/000143774926005366/pdfs20251231d_10k.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Related party | ADVANTEST CORP (ATEYY) | "See Note 15, "Strategic Partnership Agreement with Advantest and Related Party Transactions" of the Notes to Consolidated Financial Statements (Item 8 of Part II of this Annual Report on Form 10‑K) for a discussion on re…" |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.33 | $0.31 | +5.1% | $67.5M | 7 |
| Next quarter (ends 2026-12-31) | $0.38 | $0.35 | +6.2% | $74.4M | 7 |
| Current fiscal year (ends 2026-12-31) | $1.29 | $1.25 | +3.7% | $263.8M | 8 |
| Next fiscal year (ends 2027-12-31) | $1.65 | $1.57 | +5.4% | $318.3M | 8 |

## Earnings history and stock reaction
| Results filed | Quarter | EPS | Consensus | Surprise | Stock reaction |
|---|---|---|---|---|---|
| — | Quarter ended Jun 30, 2026 | $0.27 | $0.27 | In line | — |
| — | Quarter ended Mar 31, 2026 | $0.31 | $0.23 | Beat +34.8% | — |
| — | Quarter ended Dec 31, 2025 | $0.30 | $0.24 | Beat +25.0% | — |
| — | Quarter ended Sep 30, 2025 | $0.64 | $0.22 | Beat +190.9% | — |
EPS as reported against the analyst consensus before the release; surprise uses the cent-rounded figures shown (in dollars when EPS and consensus have opposite signs). Stock reaction = close before the results to close after (the first close following a release after the bell or before the open).

## Recent SEC filings (last 120 days)
| Filed | Form | What it says | Filing |
|---|---|---|---|
| 2026-10-09 | Schedule 13G | Wasatch Advisors LP: 6.3% of shares, passive 5%+ holder | https://www.sec.gov/Archives/edgar/data/1120914/000081413326000127/0000814133-26-000127-index.htm |
| 2026-08-06 | 10-Q | Quarterly report · period ended Jun 30, 2026 | https://www.sec.gov/Archives/edgar/data/1120914/000143774926026294/0001437749-26-026294-index.htm |
| 2026-08-06 | 8-K | Quarterly results | https://www.sec.gov/Archives/edgar/data/1120914/000143774926026292/0001437749-26-026292-index.htm |
Source: SEC EDGAR. Quotes are the opening words of each item as filed.