PDF Solutions, Inc.

Worth knowing

• Profitable, but burning cash. Reports a profit, but free cash flow is negative.

  PDF Solutions reports a profit but its free cash flow is negative: it spent more on investment and running the business than it brought in. That's common for companies building capacity, but it means the profit isn't yet turning into cash.

• Paying shareholders without free cash flow. Paid out $8M over the 3 fiscal years to 2025 with -$13M of free cash flow.

  PDF Solutions returned $8M in buybacks and dividends over three fiscal years while its free cash flow totalled -$13M. The money came from its cash pile or from borrowing.

• Shareholders being diluted. Shares outstanding up 13% from December 2022 to August 2026.

  PDF Solutions had 13% more shares at August 2026 than at December 2022, mostly from issuing stock (for pay, acquisitions or fundraising). Each existing share now owns a smaller slice of the business.PDF Solutions had 13% more shares at August 2026 than at December 2022, mostly from issuing stock. Each existing share now owns a smaller slice of the business.

• Stock pay outran buybacks. Stock-based pay expense $72M vs $8M spent repurchasing shares over the 3 fiscal years to 2025.

  Over three fiscal years PDF Solutions recorded $72M of stock-based pay expense and spent $8M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years PDF Solutions recorded $72M of stock-based pay expense and spent $8M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.