PDF SOLUTIONS INC Leases Disclosure
6. LEASES
Lease expense was comprised of the following (in thousands):
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Operating lease expense | $ | 1,790 | $ | 1,577 | $ | 1,534 | ||||||
| Short-term lease and variable lease expense (1) | 730 | 1,049 | 923 | |||||||||
| Total lease expense | $ | 2,520 | $ | 2,626 | $ | 2,457 | ||||||
| (1) | Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets, and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease expense for the periods presented primarily included common area maintenance charges. |
Supplemental information related to operating leases were as follows:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Weighted average remaining lease term under operating leases (in years) | 3.2 | 3.3 | ||||||
| Weighted average discount rate for operating lease liabilities | 6.2 | % | 6.0 | % | ||||
Maturity of operating lease liabilities as of December 31, 2025 were as follows (in thousands):
| Year Ending December 31, | Amount | |||
| 2026 | $ | 2,218 | ||
| 2027 | 2,126 | |||
| 2028 | 1,357 | |||
| 2029 | 357 | |||
| 2030 | 283 | |||
| 2031 and thereafter | 95 | |||
| Total future minimum lease payments | 6,436 | |||
| Less: Interest (1) | (616 | ) | ||
| Present value of future minimum lease payments under operating lease liabilities | $ | 5,820 | ||
| Reported as of December 31, 2025: | ||||
| Operating lease liabilities – current | $ | 1,982 | ||
| Operating lease liabilities – non-current | 3,838 | |||
| Total operating lease liabilities | $ | 5,820 | ||
| (1) | Calculated using incremental borrowing interest rate for each lease. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 11, 2021 | |
| 2019 | Mar 10, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.