PDF Solutions Reports 24% Revenue Growth in Q2 2025, Acquires SecureWise for $130 Million

PDF Solutions, Inc. reported its financial results for the second quarter of 2025, revealing total revenues of $51.7 million, a 24% increase from $41.7 million in the same period last year. The growth was primarily driven by a 28% rise in Analytics revenue, which reached $48.8 million, attributed to increased sales from Characterization Vehicle (CV) systems and the addition of SecureWise products and services. However, Integrated Yield Ramp revenue decreased by 18% to $2.9 million, mainly due to reduced hours worked on fixed-fee engagements, despite higher Gainshare from increased customer wafer shipments.

The company's net income for the quarter was $1.1 million, down from $1.7 million in the prior year, reflecting higher costs associated with the acquisition of SecureWise and increased operational expenses. For the first half of 2025, total revenues were $99.5 million, a 20% increase compared to $82.9 million in the same period of 2024. However, the company reported a net loss of $1.9 million for the six months, contrasting with a net income of $1.3 million in the previous year, primarily due to increased sales and marketing expenses and costs related to the acquisition.

In terms of strategic developments, PDF Solutions completed the acquisition of SecureWise LLC on March 7, 2025, for $130 million, financed through cash and borrowings under a new credit agreement. This acquisition is expected to enhance the company's analytics capabilities and expand its secure data exchange network. The company also reported a significant increase in its goodwill and intangible assets, reflecting the value of the acquired business.

Operationally, PDF Solutions saw a decrease in cash and cash equivalents, which fell to $37.4 million from $90.6 million at the end of 2024. The company’s total assets increased to $391.1 million, up from $315.3 million, driven by the acquisition. The total liabilities also rose significantly to $133.6 million, primarily due to the new debt incurred for the acquisition. The company’s employee headcount increased, reflecting its growth strategy and investment in talent to support its expanding operations.

Looking ahead, PDF Solutions anticipates continued growth in its Analytics segment, driven by industry trends favoring cloud-based analytics and data management solutions. However, the company also acknowledges potential challenges, including macroeconomic conditions and evolving trade regulations that could impact its operations and customer demand. The management remains focused on leveraging its recent acquisition to enhance its product offerings and drive future revenue growth.