PDF Solutions (PDFS) Q3 FY2026 earnings: revenue $68 million, up 19.6% on the year

PDF Solutions Inc. (PDFS) reported revenue of $68 million for Q3 FY2026, the quarter ended 30 September 2026, up 19.6% on the same quarter a year earlier. Net income was $7 million, up 428.7% on the year, and diluted earnings per share $0.16. The figures are the company's own, from the 10-Q it filed with the SEC on 5 November 2026.

Revenue

$68 million

+19.6% on the year · +11.1% on the quarter

Q4 FY2024Q3 FY2026

Operating margin

12.1%

8.5% a year earlier

Q4 FY2024Q3 FY2026

Net income

$7 million

+428.7% on the year · +60.2% on the quarter

Q4 FY2024Q3 FY2026

Diluted EPS

$0.16

+433.3% on the year · +60.0% on the quarter

Q4 FY2024Q3 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 1 kept.

Record revenue, up 20% on year: Total revenues were $68.3 million, up 20% from $57.1 million a year earlier and up from $61.5 million in the second quarter. The company describes this as a record quarterly total.
Non-GAAP diluted EPS reached $0.40: Non-GAAP net income was $17.2 million, or $0.40 per diluted share, against $11.4 million, or $0.27, in the second quarter and $9.8 million, or $0.25, a year earlier.
Gross margin rose to 73%: GAAP gross margin was 73%, up from 69% in the second quarter and 72% a year earlier. Non-GAAP gross margin was 77%, up from 73% in the second quarter and 76% a year earlier.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Revenue	68.3	61.5	57.1	+11.1%	+19.6%
Cost of revenue	18.6	19.1	15.8	-2.7%	+17.4%
Gross profit	49.7	42.4	41.3	+17.3%	+20.5%
Gross margin	72.8%	68.9%	72.3%
Research and development	19.4	17.3	15.4	+12.3%	+26.0%
Selling, general and administrative	21.0	19.0	19.9	+10.5%	+5.1%
Operating income	8.3	5.1	4.8	+63.6%	+71.7%
Operating margin	12.1%	8.2%	8.5%
Interest expense	1.1	1.1	1.2	+1.5%	-9.3%
Pre-tax income	8.4	4.6	3.5	+80.6%	+139.5%
Income tax	1.5	0.4	2.2	+328.0%	-31.1%
Effective tax rate	18.1%	7.6%	62.9%
Net income	6.8	4.3	1.3	+60.2%	+428.7%
Net margin	10.0%	6.9%	2.3%
Diluted EPS	$0.16	$0.10	$0.03	+60.0%	+433.3%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Operating cash flow	13.8	16.4	3.3	-16.1%	+318.6%
Capital expenditure	14.9	14.1	6.2	+5.9%	+140.4%
Free cash flow	-1.1	2.3	-2.9
Free cash flow margin	-1.6%	3.8%	-5.1%
Cash from investing	-15.1	-14.1	-3.3
Cash from financing	-6.6	81.3	-1.2
Depreciation and amortisation	2.2	2.1	1.1	+4.8%	+100.0%
Share-based compensation	8.5	6.0	6.3	+41.2%	+35.2%
Buybacks	n/a	n/a	0.2
Diluted shares, weighted	43m	42m	40m	+2.9%	+8.5%
Shares outstanding at period end	42m	42m	40m	+0.8%	+6.9%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Shareholders' equity	383	372	264	+2.8%	+44.9%
Debt	65.3	66.5	67.6	-1.8%	-3.3%
Operating lease liabilities	6.3	2.9	4.3	+112.9%	+47.5%
Other liabilities	86.3	77.2	70.2	+11.8%	+23.0%
Total liabilities and equity	541	519	406	+4.2%	+33.1%
Fixed assets	104	94.5	71.9	+10.4%	+45.1%
Goodwill	95.0	95.0	96.8	+0.0%	-1.8%
Intangible assets	46.1	48.1	54.2	-4.2%	-15.1%
Investments	n/a	n/a	0.0
Cash and equivalents	107	115	35.9	-6.7%	+198.6%
Receivables	96.9	90.6	74.9	+6.9%	+29.2%
Other assets	91.6	76.2	72.6	+20.2%	+26.1%
Total assets	541	519	406	+4.2%	+33.1%

Questions

What was PDF Solutions' revenue in Q3 FY2026?

PDF Solutions (PDFS) reported revenue of $68 million for Q3 FY2026, the quarter ended 30 September 2026, up 19.6% on the same quarter a year earlier.

How much did PDF Solutions earn in Q3 FY2026?

Net income for Q3 FY2026 was $7 million, up 428.7% on the year, and diluted earnings per share $0.16.

When did PDF Solutions report Q3 FY2026 results?

PDF Solutions filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 5 November 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	29.9	33.5	34.7	39.9	40.5	40.8	41.6	42.4	41.1	41.3	41.7	46.4	50.1	47.8	51.7	57.1	62.4	60.1	61.5	68.3
Cost of revenue	11.7	11.5	12.0	12.5	11.8	11.9	12.4	14.3	13.2	13.5	12.2	12.5	15.9	13.0	14.9	15.8	16.9	16.9	19.1	18.6
Gross profit	18.2	22.0	22.6	27.3	28.7	28.9	29.2	28.1	27.9	27.8	29.4	33.9	34.2	34.8	36.8	41.3	45.5	43.2	42.4	49.7
Gross margin	61%	66%	65%	69%	71%	71%	70%	66%	68%	67%	71%	73%	68%	73%	71%	72%	73%	72%	69%	73%
R&D	11.2	14.1	13.4	14.3	14.4	13.1	12.3	13.1	12.3	13.0	12.6	13.5	14.4	14.6	14.9	15.4	19.3	18.3	17.3	19.4
SG&A	9.2	10.8	9.8	12.0	12.7	15.6	14.8	15.6	16.2	16.5	16.3	18.1	19.1	23.4	19.7	19.9	21.7	17.5	19.0	21.0
Operating income	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	-2.0	0.3	2.1	0.5	-3.6	1.1	4.8	3.5	6.3	5.1	8.3
Operating margin	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	-5%	1%	5%	1%	-7%	2%	8%	6%	10%	8%	12%
Interest expense	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	0.0	0.0	n/a	0.3	1.2	1.2	1.2	1.1	1.1	1.1
Pre-tax income	-5.4	-3.0	0.2	2.2	1.1	0.7	2.9	1.0	0.1	-0.3	1.7	3.6	1.5	-3.0	0.1	3.5	2.6	5.8	4.6	8.4
Tax rate	n/a	n/a	821%	37%	55%	52%	-132%	581%	-520%	n/a	2%	39%	63%	n/a	-1514%	63%	102%	18%	8%	18%
Net income	-7.0	-4.2	-1.1	1.4	0.5	0.4	6.8	-5.0	0.9	-0.4	1.7	2.2	0.5	-3.0	1.1	1.3	-0.0	4.8	4.3	6.8
Net margin	-23%	-12%	-3%	3%	1%	1%	16%	-12%	2%	-1%	4%	5%	1%	-6%	2%	2%	-0%	8%	7%	10%
Diluted EPS	-$0.19	-$0.11	-$0.03	$0.04	$0.01	$0.01	$0.17	-$0.13	$0.02	-$0.01	$0.04	$0.06	$0.01	-$0.08	$0.03	$0.03	$0.00	$0.12	$0.10	$0.16
Operating cash flow	0.4	3.0	3.6	1.4	24.3	-1.0	-5.6	19.2	2.0	-1.9	0.7	9.3	1.6	8.6	-5.2	3.3	17.3	1.7	16.4	13.8
Capital expenditure	1.0	1.8	2.7	2.2	1.8	2.9	2.8	2.9	2.7	2.0	5.3	4.2	5.6	8.1	8.5	6.2	9.8	10.5	14.1	14.9
Free cash flow	-0.5	1.2	0.9	-0.8	22.5	-3.9	-8.4	16.3	-0.6	-3.9	-4.6	5.0	-4.0	0.5	-13.8	-2.9	7.5	-8.8	2.3	-1.1
Buybacks	0.0	5.8	16.7	0.0	0.0	n/a	n/a	n/a	n/a	6.9	0.0	0.0	0.0	n/a	n/a	0.2	n/a	n/a	n/a	n/a
Shares outstanding	37m	38m	37m	37m	37m	38m	38m	38m	38m	38m	38m	39m	39m	39m	39m	40m	40m	40m	42m	42m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 30 September 2026, filed 5 November 2026: the filing.