PDFSPDF Solutions, Inc.
Is the business good?
The checks split: earnings fully cash-backed (3.2×) and margins widening, but 3 of 9 health tests passed.
Weak, deteriorating fundamentals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 1% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PDFS?
PDF Solutions, Inc. earns 4.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.2 points below what the capital costs: growth destroys value
- Operating margin
- 8.2%
Operating margin · Software - Application median 6.4% · 12 months to Q2 2026
- Cash conversion
- 3.16×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +6.4%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2023 | −0.09% |
| FY2024 | 0.52% |
| FY2025 | 2.7% |
Details›
- Gross margin12 months to Q2 2026
- 71%
- Operating margin12 months to Q2 2026
- 8.2%
- Net margin12 months to Q2 2026
- 4.3%
- Free cash flow margin
- −0.75%
- R&D as % of revenue
- 29%
- Revenue, trailing twelve months
- $241M
- Free cash flow, trailing twelve months
- −$1.8M
- Net income, trailing twelve months
- $10M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.