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# PDF Solutions Keeps 20% Growth Target After Record $68.3 Million Quarter
- URL: https://www.bullished.co/pdf-solutions-keeps-20-growth-target-after-record-68-3-million-quarter-d9ee26fd/
- Published: 2026-11-06T13:06:41.000Z
- Updated: 2026-11-06T13:06:41.000Z
- Description: Profit and margins improved, but contracted business awaiting revenue recognition fell to $247.2 million.
- Author: Matteo Parrino
- Tags: SEC Filings, PDFS, Industry: Technology

[PDF Solutions](https://www.bullished.co/tag/pdfs/), which supplies software and hardware to help semiconductor and electronics companies improve manufacturing quality and efficiency, reported record third-quarter sales of [$68.3 million](https://www.globenewswire.com/news-release/2026/11/05/3396998/0/en/pdf-solutions-reports-third-quarter-2026-financial-results.html?ref=bullished.co) Thursday and reaffirmed its 20% revenue growth target for 2026\. The earnings release accompanying its [SEC filing](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/pdfs20260810%5F8k.htm?ref=bullished.co) also showed a smaller backlog despite higher profit.

## Record Sales, Less Contracted Business

Revenue grew 20% from the third quarter of 2025, when sales were [$57.1 million](https://www.globenewswire.com/news-release/2026/11/05/3396998/0/en/pdf-solutions-reports-third-quarter-2026-financial-results.html?ref=bullished.co). The latest total also exceeded the second quarter’s $61.5 million, with management reporting an 11% increase from that quarter.

Backlog — contracted business still awaiting recognition as revenue — stood at [$247.2 million](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/ex%5F1002246.htm?ref=bullished.co). That compares with $292.0 million a year earlier and $270.7 million in the second quarter.

The revenue mix changed, too. Recurring business supplied [88% of sales](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/ex%5F1002247.htm?ref=bullished.co), below the year-earlier 95% but above the second quarter’s 80%. Upfront revenue accounted for the remaining 12%, versus 5% a year earlier and 20% in the second quarter.

## More Sales Reached The Bottom Line

Net income reached $6.8 million, with diluted earnings of $0.16 a share. The year-earlier quarter produced $1.3 million and $0.03 a share; the second quarter generated $4.3 million and $0.10 a share.

Adjusted net income was $17.2 million, or $0.40 a diluted share, against $9.8 million and $0.25 a year earlier. The second-quarter adjusted figures were $11.4 million and $0.27 a share. Those adjusted results exclude stock-based pay, amortization of acquired assets and certain other expenses, with tax adjustments also affecting the comparison.

Operating margin — the share of revenue left after operating expenses — reached 12%, versus 8% in both comparison quarters. On an adjusted basis, the margin was 28%, above 23% a year earlier and 22% in the second quarter.

Gross margin, which measures revenue remaining after direct costs but before operating expenses, was 73%. The year-earlier figure was 72%, and the second-quarter figure was 69%. Adjusted gross margin reached 77%, compared with 76% and 73%, respectively.

Cash generation did not cover capital spending during the quarter: operations provided [$13.8 million](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/ex%5F1002247.htm?ref=bullished.co), while capital spending totaled $15.1 million.

## Platform Growth And Aurora’s AI Push

Platform revenue reached $58.3 million, growing 22% from a year earlier and 19% from the second quarter. That category includes software licenses, cloud subscriptions, engineering work and fixed system fees. Volume-based fees totaled $10.0 million, up 10% from a year earlier but down 19% from the second quarter.

The Santa Clara, California-based company serves foundries, chip designers without their own factories, equipment manufacturers, and chip assembly and testing businesses. Its products include Exensio analytics, Characterization Vehicle test-chip systems, DirectScan inspection tools, Cimetrix equipment-connectivity software and the secureWISE remote-connectivity network.

PDF Solutions announced Exensio Aurora on September 9, 2026\. The company says the analytics architecture is built to process large quantities of semiconductor-manufacturing data and allow secure use of AI agents in manufacturing and supply-chain operations.

John Kibarian, PDF Solutions’ CEO and president, cited results through the third quarter and the fourth-quarter pipeline in maintaining the outlook: “we reaffirm our [20% annual revenue](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/ex%5F1002246.htm?ref=bullished.co) growth target for 2026.”

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — PDF SOLUTIONS INC (PDFS)](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/pdfs20260810%5F8k.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex\_1002246.htm — PDF SOLUTIONS INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/ex%5F1002246.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit ex\_1002247.htm — PDF SOLUTIONS INC 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001120914/000143774926035288/ex%5F1002247.htm?ref=bullished.co) — SEC EDGAR
- [PDF Solutions® Reports Third Quarter 2026 Financial](https://www.globenewswire.com/news-release/2026/11/05/3396998/0/en/pdf-solutions-reports-third-quarter-2026-financial-results.html?ref=bullished.co) — globenewswire.com

### More on PDF Solutions

- [PDF Solutions CEO Scrambles To Get An eProbe Into China After Rethinking Trailing-Edge Chips](https://www.bullished.co/pdf-solutions-ceo-scrambles-to-get-an-eprobe-into-china-after-rethinking-trailing-edge-4875151f/)
- [Wasatch Advisors Reports 6.3% Passive Stake In PDF Solutions, 2.65 Million Shares](https://www.bullished.co/wasatch-advisors-reports-6-3-passive-stake-in-pdf-solutions-2-65-million-shares-8ddc424c/)

[All PDF Solutions (PDFS) coverage →](https://www.bullished.co/tag/pdfs/)