Is the business good?
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.
4.8%
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 8.2% · 12 months to Q2 2026
- Cash conversion
- −0.17×
Cash conversion · some of the reported profit has not turned into cash yet
- 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 from the cash flow statement.
Software - Application
Ranks #66 of 90 by Smart Score