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DATE

Feb. 12, 2026, 5 p.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — John K. Kibarian
  • Chief Financial Officer — Adnan Raza

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TAKEAWAYS

  • Total Revenue -- $62.4 million for the quarter and $219 million for the year, representing 25% and 22% year-over-year growth, respectively.
  • Platform Revenue -- $52.5 million in the quarter, up 20% year over year, and $181 million for the year, up 15% year over year, primarily from new contracts.
  • Volume-Based Revenue -- $9.9 million for the quarter, up 58% year over year, and $38 million for the year, up 70% year over year, driven by gainshare and SecureWise.
  • Recurring Revenue -- $61.1 million in the quarter (up 62% year over year) and $205.1 million for the year (up 41% year over year), with growth partly due to a 2024 CapEx DirectScan system sale.
  • Gross Margin -- 77% for the quarter and 76% for the year, both surpassing the prior 75% target and aligned with the updated 77% model.
  • Operating Margin -- 24% in the quarter and 21% for the year, both above the previous 20% target, with the new long-term target increased to 27%.
  • Non-GAAP EPS -- $0.30 per share for the quarter and $0.94 per share for the year, marking a 12% annual non-GAAP EPS increase from $0.84 per share.
  • Operating Expenses -- R&D expenses grew 23% mainly from direct hires and subcontractors; SG&A increased by 14% with improved presale cost control.
  • Cash Flow and CapEx -- $24 million positive operating cash flow; $33 million CapEx, mainly for DirectScan systems; $0.2 million share buybacks; $130 million spent on SecureWise acquisition funded by $70 million debt and cash.
  • Balance Sheet -- Ended with $42 million in cash and equivalents/short-term investments, $68 million in debt, and $254 million backlog.
  • System Shipments -- Four DirectScan systems shipped in 2025 for manufacturing use; total in-field machines reached six, with plans to nearly double field count in 2026.
  • Strategic Acquisitions and Contracts -- SecureWise acquisition completed; multi-quarter "8-figure" contracts closed for Sapiens Manufacturing Hub, SecureWise, and Exensio Analytics.
  • Product Innovation -- Exensio enhancements delivered: advanced data model, integrated AI operations platform, and Scalable Analytics demonstrated in 2025; source code for Tiber AI Studio licensed and offered as Exensio Studio AI.
  • 2026 Guidance -- Management expects full-year revenue growth consistent with the 20% long-term target and increased operating cash flow with similar CapEx levels to 2025.

SUMMARY

PDF Solutions (PDFS +2.03%) reported the completion of its largest acquisition—SecureWise—alongside the first full year of record revenue, recurring revenue, volume-based growth, and margin expansion above targets. Management emphasized accelerated AI-driven platform adoption, orchestration, and new cross-enterprise contracts as fundamental to its ongoing strategic shift. Executives documented a significant rise in volume-based revenues and recurring revenues, enabled by both organic platform progress and inorganic expansion. Customers commented on analytics breadth and product relevance at user events, and multiple major "8-figure" contracts were announced with leading global equipment and manufacturing firms.

  • Management noted, "we anticipate 2026 revenues to grow consistent with our 20% long-term growth target" and reiterated new gross margin and operating margin objectives of 77% and 27%, respectively.
  • The company shipped four DirectScan systems, and the CFO confirmed, "total in the field today is six," reflecting increased penetration in both R&D and production.
  • The SecureWise platform is being integrated with Symmetrix SDKs and DEX for wider adoption throughout fabs, OSATs, and across the global supply chain.
  • Executives report no plans for significant new debt repayment until cash reserves are rebuilt, with capital allocation focused on strategic investment and maintaining financial flexibility.
  • Management explained that volume-based revenue contributions in 2025 came not only from SecureWise but also "record runtime license revenues for Symetrics" and meaningful gainshare growth, highlighting broad-based expansion.
  • Exensio Studio AI, derived from Tiber AI Studio (formerly Converge io) licensed from Intel, is now available to customers to build and deploy scalable AI pipelines using Exensio data.
  • The company expects continued high interest in logic and advanced memory sectors, forecasting increased demand for electrical inspection in increasingly complex manufacturing.

INDUSTRY GLOSSARY

  • Platform Revenue: Revenue earned from software, SaaS, or recurring platform products with predictable, multi-year contracts.
  • Volume-Based Revenue: Revenue based on customers’ production volumes, runtime licenses, or gainshare, not tied to fixed backlog contracts.
  • DirectScan: PDF Solutions’ application/tool that enables in-line production control and yield improvement via advanced inspection systems.
  • SecureWise: A connectivity platform connecting semiconductor equipment with fabs, enabling secure remote access and data sharing.
  • Exensio Studio AI: PDF Solutions' AI platform, enabling customers to build and deploy AI pipelines integrated with Exensio data infrastructure.
  • Sapiens Manufacturing Hub: A collaborative orchestration solution developed in partnership with SAP, linking engineering, manufacturing, and finance operations.
  • Gainshare: Revenue sharing based on measurable performance improvements or customer productivity enabled by PDF Solutions’ technologies.
  • OSAT: Outsourced Semiconductor Assembly and Test — third-party providers that handle advanced chip packaging and testing for semiconductor companies.
  • Symmetrix: Product suite enabling equipment manufacturers to embed connectivity software for factory analytics and automation integration.
  • eProbe: Non-contact electron beam inspection system used for characterizing advanced 3D integrated circuits and memory.
  • R&D Expenses: Research and development spending, including direct hiring and contractor costs for new product development.

Full Conference Call Transcript

Operator: Good day, everyone, and welcome to the PDF Solutions, Inc. Conference Call to discuss its Financial Results for the Fourth Quarter and year end 2025 ending Wednesday, 12/01/2025. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. As a reminder, this conference is being recorded. If you have not yet received a copy of the corresponding press release, it has been posted to PDF Solutions, Inc.’s website at www.pdf.com.

Some of the statements that will be made in the course of this conference are forward-looking, including statements regarding PDF Solutions, Inc.’s future financial results and performance, growth rates, and demand for its solutions. PDF Solutions, Inc.’s actual results could differ materially. You should refer to the section entitled Risk Factors on pages 16 through 30 of PDF Solutions, Inc.’s Annual Report on Form 10-K for the fiscal year ended 12/31/2024, and similar disclosures in subsequent SEC filings. The forward-looking statements and risks stated in this conference call are based on the information available to PDF Solutions, Inc. today. PDF Solutions, Inc. assumes no obligation to update them. Now I would like to introduce John K.

Kibarian, PDF Solutions, Inc.’s President and Chief Executive Officer, and Adnan Raza, PDF Solutions, Inc.’s Chief Financial Officer. Mr. Kibarian, please go ahead. Thank you for joining us on today’s call. If you have not already seen our earnings press release and management report from

John K. Kibarian: the fourth quarter and full year, please go to the Investors section of our website where each has been posted. 2025 was a transformative year for PDF Solutions, Inc. In my prepared remarks, I will summarize our current positioning, key achievements in the year, and our major goals. I will also comment on the near-term business climate and our expectations for 2026.

Operator: After Adnan’s remarks on our financial results, we will take your questions.

John K. Kibarian: As we discussed last December in our users conference, there are semiconductor industry trends that have established PDF Solutions, Inc.’s opportunity today and in the future. I see manufacturing processes both in the wafer fab and assembly are creating more complex 3D structures. IC companies have moved from providing components to systems. The complexity of system manufacturing, particularly of 3D components, is driving the customers to look for new ways to characterize, analyze, and control production. Production. As the industry rapidly scales to over $1,000,000,000,000 in revenue, it is building manufacturing operations around the world. To operate effectively, these facilities need the collaboration of engineers and systems from the entire ecosystem of suppliers, factory operators, and customers.

In our industry, this means moving from a people-centric approach to an AI-driven collaboration. Finally, the chip industry is a critical driver for AI and increasingly needs to benefit from AI to keep up with the demand. These drivers—3D manufacturing, supply chain complexity, and AI—present a significant opportunity for PDF Solutions, Inc. to reinvent itself again. In the first half of this decade, PDF Solutions, Inc.’s growth stemmed from our transition to an analytics platform provider. Since 2020, the company grew at approximately a 20% compound annual growth rate and expanded its gross margins from the mid-60s to the mid-70s and its operating margins from basically breakeven to 20%.

As we enter 2025, we believe the trends that enabled our growth as an analytics platform were accelerating greatly because of the impact AI is having on the IC industry. This acceleration meant that our customers needed us to evolve from providing an analytics platform primarily used by each of our customers independently to increasingly becoming a platform for AI-driven collaboration both across the enterprise and across the supply chain. Our actions in 2025 spoke to our conviction of this vision. For our customers to leverage AI to drive collaboration within their organization and across the industry, they needed orchestration systems to enable aligning operational processes, sharing data, and driving coordinated actions.

In 2025, we signed multiple contracts with our customers to deploy our Sapiens Manufacturing Hub, including a contract in the fourth quarter. Sapiens Manufacturing Hub, initiated from our partnership with SAP, enables collaborations between engineering, manufacturing operations, and finance. As our customers drive AI collaboration to their suppliers and customers, they need a secure connectivity layer. And in 2025, we acquired SecureWise, the leading connectivity platform that connects equipment vendors to the fabs. Under our stewardship, we recommitted to the core SecureWise customers. For example, closing an 8-figure contract with one of the leading equipment suppliers.

We also began to begin expanding applications with foundry customers, closing an 8-figure contract with a multinational IC manufacturing company to enable collaboration across their enterprise. As we further integrate SecureWise with our DEX network at OSATs, we are expanding collaboration to include the fabless. While orchestration enables larger data sets and the need to operate near real time, we realized it was important to also reinvent analytics. Our customers’ challenges include aligning, storing, and leveraging data to make decisions often driven by AI. We undertook reinventing three critical components of Exensio. First, we are enhancing our data model to support new use cases where the Exensio database would be used for applications beyond the native analytics it provides.

Second, we are integrating an AI operations platform for data science within Exensio, so customers can use the PDF Solutions, Inc. platform to build and deploy their AI pipeline. Third, we are releasing Exensio Scalable Analytics, which is designed to enable engineers to interact with datasets that previously could only be processed in batch. Progress on all three of these initiatives was demonstrated in 2025. In the third quarter, we announced a large 8-figure contract for Exensio Enterprise that included Enanta’s database AI operation capabilities and scalable analytics.

Also in the third quarter, we announced that we licensed the source code for Tiber AI Studio, which was previously known as Converge io, from Intel, and began selling it as Exensia Studio AI. Exensio Studio AI is designed to enable AI scientists to use the data in Exensio as they develop and deploy pipelines at scale, and across the SecureWise network to their suppliers. This is particularly valuable for our customers that have multiple test insertions, as is the case with advanced packaging. In Q4 at our users conference, we announced Exensio Scalable Analytics. We demonstrated the ability for engineers and algorithms to interact with datasets that were previously only possible to process in batch.

Intel spoke about the advantages of Exensio Enterprise and Exensio Scalable Analytics at the same conference.

Operator: Finally,

John K. Kibarian: to collaborate and populate an analytics system and AI models, our customers need data. In that regard, in 2025, we expanded our Symmetrix connectivity business, achieving record runtime license revenues. Also, in the second half of the year, we shipped two eProbe inspection machines to a manufacturing site for one of our customers. In conjunction with our Fire and Exensio software, this enables customers to ramp and control production of advanced 3D products through an application we call DirectScan. This customer is now able to improve production control and yields by identifying new production issues in-line using the DirectScan system.

So while we started the decade as a provider of an analytics platform that benefited from the unique data generated from our characterization vehicle test chips, we ended 2025 having greatly expanded our platform to include our orchestration layer and our manufacturing solutions, while reinventing the core analytics platform.

Operator: As a result, we achieved

John K. Kibarian: record total revenue in 2025, 22% growth over the previous year, and grew our gross and net margins as we benefited from scale. Our goals for the next phase of PDF Solutions, Inc.’s growth are to establish orchestration, analytics, and the data component of our platform across the industry. As we discussed at our Analyst Day, we believe this will enable us to continue to grow at 20% CAGR while expanding our margins. As we begin 2026, we see a market whose need for AI-driven collaboration is accelerating. Activity with customers has been at an elevated level across our fabless, fab, and equipment customers.

We see opportunities in lodging and advanced memory for our characterization vehicle and DirectScan systems, including both in R&D and manufacturing. We expect to nearly double the number of eProbe machines in the field this year. From an IDM and fabless perspective, we anticipate increased customer activity, particularly in the second half of the year as we release more capabilities building on and expanding Exensio Scalable Analytics and Studio AI. Given our strong portfolio of SecureWise and Symmetrix products for equipment control, connectivity, and remote access, we anticipate continued growth within our equipment customers.

As a result, and even without the benefit from inorganic growth we experienced in 2025, we anticipate 2026 revenues to grow consistent with our 20% long-term growth target. I want to thank customers, employees, contractors, and stockholders that helped the company achieve its success in 2025. I look forward to working with all of you to make 2026 even better. Now I will turn the call over to Adnan for more detailed comments on our results. Adnan, thank you, John. Good afternoon, everyone. Good to speak with you again today.

Adnan Raza: We are pleased to review the financial results of the full year and the 2025. As John said, we posted our earnings release and a management report in the investor relations section of our website. We expect to file our annual report on Form 10-Q Form 10-K with the SEC by the February, after our 2025 audit is complete. As a result, all financial results described in this call should be considered preliminary and are subject to change to reflect any necessary adjustments or changes in accounting estimates that are identified prior to the time we file our 10-K.

Please note that all the financial results we discuss in today’s call will be on a non-GAAP basis, and a reconciliation to GAAP financials is provided in the materials on our website. We are pleased to again report record quarterly and annual total revenues. We finished the year strong with Q4 total revenues of $62,400,000 versus $50,100,000 in the same quarter a year prior. We are pleased that our total revenues for the quarter grew 25% year-over-year, ahead of our long-term growth rate target model. For the full year 2025, we generated record total revenues of $219,000,000 versus $179,500,000 in 2024, a 22% year-over-year increase and consistent with our guidance for the full year.

As you will recall, at our Analyst Day in December 2025, we previewed plans for a new presentation of revenues, breaking the total into platform and volume-based. For a different insight, we also disaggregate total revenue into two different categories of recurring and upfront. Further description of these categories is provided in our 8-K filed today. Platform revenue for the fourth quarter was $52,500,000 and up 20% versus platform revenue a year prior, driven primarily by contributions from bookings, booking the new contract that John spoke about. Volume-based revenue for the quarter was $9,900,000, up 58% versus volume-based revenue a year prior, driven primarily by gainshare and SecureWise.

On an annual basis, our platform revenue was $181,000,000, up 15% on a year-over-year basis, while volume-based revenue of $38,000,000 was up 70% year-over-year, driven by pattern similar to what we saw during the last quarter of the year. Recurring revenue for the fourth quarter was $61,100,000, up 62% versus the same period prior year, and for the year was $205,100,000, up 41% year-over-year, driven primarily by 2024, we had completed a CapEx DirectScan system sale. 2025 was an important year for PDF Solutions, Inc. on many fronts.

We completed our largest acquisition ever, of SecureWise, finalized the licensing of Tibber AI Studio to combine with our recently announced product, Exensio Studio AI, and shared our product progress and road map during users group and Analyst Day conference. We are thankful to the many customers who spoke about PDF Solutions, Inc.’s breadth of product lines and the strategic relevance to their organization. On the booking side, we also are pleased that during the year, we were able to book new deals for Sapiens Manufacturing Hub, a large deal for Exensio Analytics, and a SecureWise deal with a new customer.

We also shipped four DirectScan systems during the year to our customers, expanding their use of these tools into manufacturing. We are pleased that we ended the year with $254,000,000 of backlog, while delivering on strong revenue growth of 22% for the full year. For the fourth quarter, our gross margin came in at 77%, operating margin was 24%, and we reported EPS of $0.30 per share. On a full-year basis, our gross margin came in at 76%, operating margin was 21%, and we reported EPS of $0.94.

It is worth noting that we exceeded our prior long-term target model of 75% gross margin and 20% operating margin for 2025 on a full-year basis, with the reported 76% gross margin and 21% operating margin. As you will recall, we recently revised upwards both of our target margin targets to 77% for gross margin and 27% for operating margin at our Analyst Day in December 2025. Turning to operating expenses, we managed to grow our operating expenses at a slower pace than our revenue growth for both the last quarter and full-year basis, which allowed us to expand our operating leverage.

On a full-year basis, we grew our R&D expenses by 23%, primarily from direct hires and subcontractor spend, while managing SG&A spend growth to 14% with better focus on presale spending. We continue to believe we can grow the needed R&D investments and manage SG&A spend such that with revenue scale, we continue to expand our operating margins towards our target model. For the full year 2025, we reported EPS of $0.94 a share and EPS growth of 12% versus prior year EPS of $0.84 per share. During the year, we generated positive operating cash flow of approximately $24,000,000 and spent approximately $33,000,000 on CapEx, primarily related to our DirectScan systems, and $0.2,000,000 on share buybacks.

We also spent approximately $130,000,000 on the acquisition of SecureWise, funded with a combination of $70,000,000 debt and balance sheet cash. We expect to spend an approximately similar amount on CapEx during 2026 compared to 2025 and expect to generate increased levels of operating cash flows during 2026 compared to 2025 as we grow our revenues and expand our margins. Turning to the balance sheet, we ended 2025 with cash and equivalents and short-term investments of approximately $42,000,000. Our ending debt balance is approximately $68,000,000, reflecting the amortization payments during the year.

We are pleased with another year of positive operating cash flow generation consistent with our history, paying down our debt, and funding the CapEx, while growing our quarter-over-quarter cash balance. In summary, we are proud of our performance in 2025 and over the long term remain committed to our target long-term model we set at our Analyst Day in December of 20% year-over-year total company revenue growth rate, 77% gross margin, and 27% operating margin. Now turning to our financial outlook, for 2026, we look forward to another year of growth.

To reiterate John’s comments in our press release, for the full year 2026, we expect the annual growth rate of our total revenue to be consistent with our 20% target model. With that, I will turn the call over to the operator to commence the question and answer session. Operator?

Operator: Thank you, Mr. Raza. Ladies and gentlemen, if you have a question at this time, please press 11 on your telephone. If you are using a speakerphone, please lift the handset before asking a question. Our first question comes from Blair Harold Abernethy with Rosenblatt Securities. Your line is open.

Blair Harold Abernethy: Hi, gentlemen. Nice quarter. Thank you, bud. Thank you.

Adnan Raza: I just wanted to maybe we could just start with the DFI. Sure. So just to level set, Advan, you said four DirectScan systems were shipped in the year 2025. Was that correct? Yeah. Correct. Consistent with what we have spoken throughout the year. You are absolutely right. Four were shipped during 2025.

Operator: Okay. And so what so and then in John’s comments about you know, two you know, have two times as many in the field this coming year. Is that so is that eight, or is or what is the total field count? Today, I guess, is the question?

Adnan Raza: Yeah. Remember, we had also done a CapEx sale. So total in the field today is six. So when we think about next year, you should, you know, contextualize John’s comment with that. And, you know, John said nearly that many. So that is the way I would think about it. Got it.

Operator: Got it. Okay. And then on the CapEx spend, so it looks like in your in your supplemental, you said it is around 32.8, just under $33,000,000. In 2025. So you know, is that is how is that come in over 26? Is it front-end loaded? You just kinda some sense of and what do you what are you what are you using it for?

Adnan Raza: Yeah. We will try to manage it evenly during the year. This year, as you saw, there was a little bit of an uplift towards the end of the year. But next year, we think it is probably even. In between a quarter, is there a little bit of variation, maybe the middle of the year? That is possible as we look to place some orders in advance. But even with give us some room towards the middle of the year.

Operator: Okay. And is does that I mean, is that positioning you for ’27? Is that is that what this is doing? And I guess, you know, I know you do not do wanna give guidance for ’27 at all, but, you know, do we should we think of it as this is gonna be the level for a while, or just give us some sense of how much is gonna be required

John K. Kibarian: Yeah. I will take that one, Blair. So, yeah, we obviously, the a lot of the capital that we spent in the second half of last year was from machines we expect to ship in the first half of this year. You know, the machines are disproportionately now on subscriptions, and we hope to maintain that again this year. So, you know, as we modeled out our long-term targets we provided in December, we thought, okay. Even if we stay at this level but keep machines on, you get this install base of machines over time that all contribute. So we kind of built out assuming we stayed at this capital level and could sustain our growth.

We obviously will look to increase our penetration in the market. But it, you know, because of the subscription model, it becomes a workable model over time with this approach.

Operator: Got it.

Clark Joseph Wright: Got it. Great. Okay. And then just if I could just over on the SAP relationship. I think you mentioned there is another, deal. There. Just how is that going and just sort of what are your expectations for next year from that partnership?

Operator: Yeah.

John K. Kibarian: So, you know, we continue when we meet with customers. We see increased needs for orchestration. As I said in my prepared remarks. For folks to be able to truly apply more automation, more AI to their operations, you really need those connections between the major systems. No one is going to build the perfect database that has all information from their financial systems, their operations systems, their engineering. And then that whole purpose of Sapiens is the world you want a consistent way when you, let us say, do costing from a finance perspective that how you look at machine time on the equipment.

So you need to be able to define these orchestrations in the way you take very complex data in the operation side and summarize it for finance and vice versa. So, you know, we continue to work with SAP, and increasingly, we are talking with the system integrators as well. And you probably saw, you know, some of them present at our user conference around ways we can jointly market that solution. What why we like it is it, you know, it gives another reason why folks want to keep, you know, engaged with us on the Exensio side.

You know, if you listen to one of the speakers at our user conference, they talked about, well, if, you know, one part of the organization is using Exensio, then it makes sense to use Sapiens because one third of the data, you know, if you say engineering data is in Exensio, the operations data in their MES system, and the finance data in ERP, then you kinda have a kind of one third of it already kind of taken care of for free, quote unquote. So, you know, through our partnership with SAP and the SIs, we expect to kind of build on our base and engineering to get to the other parts of our customer organization.

If you look at the contracts for Sapiens, they typically are part of the finance team’s spend. And the contracts for Exensio are typically the engineering team or operations team spend. So it allows us to kind of touch tap into another part of the organization. Got it. That is really good. Selling throughout this year, just to summarize.

Clark Joseph Wright: Okay. Okay. Great. Maybe just one quick one for you, Adnan. Just so how should we be thinking about your balance sheet, your debt levels over the next couple of years? Are should we are you know, comfortable with the debt where it is? Are you looking at sort of paying it down again? And what does of what should we be modeling there for capital?

Adnan Raza: Allocation? Good question. Yeah. So, look, I mean, the debt is structured at good rates. B, with the interest rate cuts, that is helping. C, we are a cash-generating history entity on the operating cash flow side, and we have been, you know, careful about where we needed to make the I mean, Q3 to Q4, you saw us build the cash. So, naturally, we will pay off the required amortization levels of the debt. But beyond that, I think we are going to carefully balance, of course, the spend on the CapEx and also try to build back the cash balance and the balance sheet before we, you know, start to think about any massive payback on the debt.

But, of course, our goal remains that we get out of the debt situation. Never had a history. We have had a history of not having the debt, and we would like to get back there. So prioritizing with the other priorities and getting back to a healthy cash level and then beyond that, start paying debt. I think with the expanding margins positions as well to start heading in that direction.

Clark Joseph Wright: Okay. Great. Thanks for the color. Thanks, guys.

Operator: Thank you. Our next question comes from Clark Joseph Wright with D.A. Davidson. Your line is open.

Clark Joseph Wright: First off, great quarter. Would love to understand a little bit more about the new methodology around describing revenue. Partially around your expectations for growth on the volume-based revenue going forward? And how should we think about the cross-selling opportunity of SecureWise as we think about normalized levels going forward in 2026?

Adnan Raza: Sure. Maybe I will take the beginning part and

John K. Kibarian: know

Adnan Raza: Sure. Have John jump in on the second pieces. So

Adnan Raza: look, many of you have been talking to us about trying to understand the business a little bit more, so that is partly the motivation for breaking it out into versus the upfront. And then secondly, the platform versus volume-based, you think back to over the last five years, the business has evolved. Prior to when we did the Symmetrics acquisition, the business was probably more platform was more platform-based.

So as we acquired Symmetrix and as we now have acquired SecureVise, and over the years, we have also enjoyed and to enjoy the Genshare, it made sense to count those three pieces of Symmetrix, largely the three pieces of, obviously, full definition in the 8-K, verse, largely, the three pieces of Symmetrix, SecureWise, and Gainshare in our volume-based revenue, which is another way to think about it is it is revenue that will inure to our benefit based on customers’ own changes in their business, and, you know, we are happy to get that. So that is a recurring versus upfront and then the platform versus the volume.

John K. Kibarian: Yeah. So I think I just, you know, also kind of helps you think a little bit. You know, the volume revenue is typically not in our back. We do not have a backlog for gainshare or runtime licenses, or the data usage on SecureWise. So, you know, we thought it would give some visibility on the part of the business that is really tied to customer success with our products. So if you think about those three elements,

Operator: and

John K. Kibarian: the other one gives you kind of an understanding about the part of the business that kind of is related to the backlog. Just, you know, we used to break out, you know, IYR and analytics but then IYR became such a small percentage of the business. We felt it was not very instructive for the shareholders, like the stockholders. So that kind of gives you the first answer, Clark, if that is adequate. And I can go on to your question about the cross-sell on SecureWise if you like. Yeah. I mean, that is helpful. Just would love to understand just

Clark Joseph Wright: going forward just given the fact that it grew largely because of the SecureWise piece, is how much of that should we be thinking about the SecureWise versus what the organic growth rate is of that business?

Adnan Raza: Yeah. We are not breaking out within those pieces. Look, I mean, if you go back and do the calculations, you will see plot revenue for us over the last many quarters even that we are sharing in the supplemental has been north of 80%. The recurring revenue is north of 90%. So it is definitely above those levels. Overall, we will continue to make sure that the business performs on an aggregate basis. You know? But it is

John K. Kibarian: a little bit of the growth on the on the volume-based, Clark West. Gainshare was up quite substantially in 2025 over 2024. And, yes, you had the contribution from SecureWise. Actually, as I said in my prepared remarks, we had record runtime license revenues for Symetrics as well. So fundamentally, because the industry is at a relatively elevated level, all three of those things were contributing pretty meaningfully to that growth number. It was not just SecureWise.

Clark Joseph Wright: Got it. You know, I think

John K. Kibarian: is part of it, but not all of it at all. No one here. So then I think to get to your second question on cross-sell,

Clark Joseph Wright: there is

John K. Kibarian: quite a few things we are doing. If you look at our runtime licenses and SDKs for Symmetrix business, we give the equipment company a development kit so they can use our libraries and software embedded in their equipment to control the screens operators see, the communication with the factory execution systems, and the communication with the factory analytics systems, often things like Exensio. So SecureWise also provides an agent that runs on the equipment that allows for remote communication, and full control of what data is shared between the equipment through the factory to the equipment vendor that the factory controls.

The factory decides which engineer is able to see what data, which knobs they are allowed to change on the tool, what data goes to factory at what cadence, the equipment that are at what cadence. So the first obvious thing that we are doing is including the SecureWise agent on in the Symmetrix software development kit. Just to put it in perspective, you know, 2024, I do not remember the numbers. 2025, over 8,000 tools shipped with Symmetrix connectivity. And that is more tools than any single equipment vendor shipped. And it grew in 2025 over 2024. So this means that the SecureWise agent will be available on a lot of equipment.

That is a big value to our fab customers who want to be able to use this stuff, and they are hoping the equipment comes preconfigured. So if you look at the contract we signed in the second or third quarter, second quarter with the 8-figure contract with the fab, one of their things they saw was, hey, you are already working with all these equipment vendors. You can make sure the equipment comes into our factory, at least the new equipment, preinstalled. That will then save us time and effort. So that is the first place.

The second piece that we are seeing is SecureWise is in virtually every 300 millimeter factory in the world with the couple of exceptions in China. So I would say 99.9 something or 99.5 or whatever it is the fabs in the world, 300 millimeter fabs in the world. But a lot of equipment vendors do not have access to it, and a lot of the fab engineers cannot use it. And now because a lot of our customers are building fabs around the world, they also need to have remote connectivity and the audit capabilities that SecureWise provides. So we are going back into making it available to the fabs themselves.

And these are these contracts that we are signing that help the fabs take advantage of the system. It is not a cross-sell opportunity. And then thirdly, as I said in my prepared remarks, a lot of our equipment customers are now starting to sell into the assembly facilities and the OSATs as the advanced packaging becomes more

Operator: sophisticated.

John K. Kibarian: The fabless companies also want to be able to get more data than just their tester logs from the OSATs themselves. And the OSATs are running our operations around the world too, as they are being asked to stand up factories in Arizona and Japan and other places. So now we are starting to connect. We are going through and integrating DEX onto SecureWise, which was our network for the OSATs, because SecureWise has a lot of advanced capabilities that DEX did not have, and making it available to that community as well. And that is the third and the longer pole in the tent because that is involving deploying at OSATs and integrating of our two products.

So that kinda gives you just, you know, what we are doing with the product so far.

Clark Joseph Wright: No. That is that is super helpful. And then the only follow-up I have is just around you made a comment

Clark Joseph Wright: during the prepared remarks around logic and memory. And the role that PDF can continue to play. Where we are seeing significant bottlenecks that look like there is no end to. We would love to understand how PDF is continuing to build its value proposition. Specifically that client base.

John K. Kibarian: Yeah. So I think, you know, we have for a long time been involved in the advanced logic fabs, and we continue on that. We do see a number of activities this year and even some, you know, for test vehicles and DirectScan eProbe, even in some more mature nodes that you consider slightly more mature on the logic side as people are trying to expand capacity. On the memory side, we have been engaged in a couple of

Operator: pilots

John K. Kibarian: with customers on DRAM, and we expect that to ramp up this year with at least one or two of those companies as we see very positive results. And, you know, I think as the DRAM is also becoming more and more 3D, they are also doing, you know, both DRAM and flash bonding of wafers, wafer-to-wafer bonding. The need to be able to do an electrical inspection is increasing. So we do see a number of opportunities there as well.

Operator: Overall,

Adnan Raza: we believe manufacturing in semiconductors is increasingly for countries. So creates the need to put factories

John K. Kibarian: in many countries and around the world, and the demand for semiconductors is quite substantial. You know, the characterization capability, the DirectScan, the SecureWise networking capability, and the analytics will increasingly become important to our customer base. You know, I think we have had a lot of really exciting conversations with customers in this first, you know, month and a week or whatever this year around new opportunities for our application, for our systems.

Clark Joseph Wright: Awesome. Thank you.

Operator: Thank you. As a reminder, to ask a question, please press, and that is star 11 to ask a question. At this time, there are no more questions. Ladies and gentlemen, this concludes the program. You for joining us on today’s call.