PDF Solutions (PDFS) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 revenues of $61.5 million, up 19% year-over-year, with strong bookings and major customer wins across secureWISE, DirectScan, and Exensio, driving increased backlog and multi-year revenue visibility.

• Net income for Q2 2026 was $4.3 million, up from $1.1 million in Q2 2025, with non-GAAP net income at $11.4 million ($0.27 per diluted share), reflecting higher revenues and favorable currency impacts.

• Backlog rose to $271 million, up 10% sequentially and 16% year-over-year, supporting multi-year revenue growth.

• Cimetrix bookings reached record highs, and three new eProbe machines were placed, advancing toward annual shipment goals.

• Completed a secondary equity offering, raising $81.8 million and strengthening liquidity.

Financial highlights

• Q2 2026 total revenues were $61.5 million, up 19% year-over-year; first half revenues reached $121.7 million, up 22% year-over-year.

• Platform revenue for Q2 was $49.1 million, up 14% year-over-year; volume-based revenue was $12.4 million, up 45% year-over-year.

• GAAP gross margin was 69%, down from 71% in Q2 2025; non-GAAP gross margin was 73%.

• GAAP operating margin was 8%, non-GAAP operating margin was 22%; EPS was $0.27, up 42% year-over-year.

• Cash and cash equivalents ended at $114.9 million, with $67.5 million in outstanding debt.

Outlook and guidance

• Reaffirmed 20% annual revenue growth target for 2026, with strong product portfolio and increased backlog expected to support multi-year growth.

• Expect gross margin to increase next quarter, with a long-term target of 77%.

• Management expects backlog to contribute to revenue for several years and current cash to cover operating needs and debt obligations for at least the next twelve months.

• CapEx expected to be incrementally higher in Q3 and Q4, with average quarterly CapEx for the year similar to Q2.

• Continued investment in DirectScan systems and capital expenditures to support growth.