Core Insights - Fiscal year 2025 was transformational for the company, achieving 17% top-line growth, 190 basis points of non-GAAP operating margin expansion, and a 53% increase in non-GAAP diluted EPS [1][6][20] - The company is evolving from a holding company structure into a leading provider of AI infrastructure solutions, with significant progress in customer diversification and partnerships [4][6][9] Financial Performance - Q4 revenue was $338 million, a 9% year-over-year increase, with non-GAAP gross margin at 30.9% and non-GAAP operating income of $39 million, up 16% year over year [5][19] - For the full fiscal year, total net sales reached $1.37 billion, up 17% year over year, with non-GAAP diluted EPS at $1.90, a 53% increase compared to fiscal 2024 [20][26] - Advanced computing revenue for 2025 was $138 million, reflecting a 17% year-over-year growth, with HPC AI revenue from non-hyperscalers increasing by 75% [10][21] Business Segments - Integrated memory segment revenue for Q4 was $132 million, a 38% year-over-year increase, and for the full year, it totaled $464 million, up 30% [13][22] - Optimized LED segment revenue for Q4 was $67 million, a 2% year-over-year increase, with full-year revenue at $256 million, roughly flat year over year [15][22] Strategic Initiatives - The company is focusing on expanding its enterprise customer base and AI infrastructure deployments, while driving innovation across its hardware, software, and services portfolio [17][18] - Key partnerships have been developed with major companies like NVIDIA, CDW, Insight, and Dell, enhancing the company's market reach [4][9] Market Outlook - For fiscal 2026, the company expects net sales to grow by 6% plus or minus 10%, with a focus on diversifying customer sales mix and anticipating zero hardware sales to hyperscale customers [33][35] - The memory segment is projected to grow between 10-20% year over year, while LED sales are expected to change between -5% and +5% [37][39]

Group 1: Penguin Solutions, Inc. - Penguin Solutions reported fourth-quarter earnings of 43 cents per share, exceeding the analyst consensus estimate of 38 cents per share [1] - The company reported quarterly sales of $337.922 million, which fell short of the analyst consensus estimate of $342.112 million [1] - For FY2026, Penguin Solutions projects adjusted earnings between $1.75 to $2.25 per share and sales ranging from $1.314 billion to $1.588 billion [2] - Following the earnings report, shares of Penguin Solutions dipped 17.6% to $22.24 in pre-market trading [2] Group 2: Other Companies - Esperion Therapeutics, Inc. saw a decline of 20.1% to $2.47 after announcing a public offering of common stock [4] - NOVONIX Limited experienced a drop of 12.7% to $1.79 after a previous increase of 14% [4] - NANO Nuclear Energy Inc. fell 9.1% to $51.50 following a $400 million oversubscribed private placement of common stock [4] - Joby Aviation, Inc. decreased by 8.5% to $17.30 after pricing a $513.9 million underwritten offering of common shares [4] - Archer Aviation Inc. declined 4.1% to $11.95 after a previous drop of more than 8% [4] - NextNRG Inc. fell 3.2% to $2.73 after a significant increase of 36% the previous day [4] - NuCana plc decreased by 3% to $6.81 in pre-market trading [4]

Core Viewpoint - Penguin Solutions has provided a soft fiscal-year outlook, indicating that it aims to reflect a broader set of outcomes in its projections [1] Company Summary - The company's fiscal-year outlook suggests a cautious approach, potentially due to market uncertainties or operational challenges [1]

Earnings Expectations - AZZ Inc. is expected to report quarterly earnings of $1.58 per share with revenue of $427.38 million [2] - Richardson Electronics Ltd. is anticipated to post earnings of 1 cent per share on revenue of $51.51 million [2] - Bassett Furniture Industries Inc. is projected to report quarterly earnings of 9 cents per share with revenue of $79.91 million [2] Stock Performance - AZZ shares fell by 1.7% to close at $105.08 [2] - Joby Aviation Inc. announced a public offering of $500 million in common stock, leading to an 8.8% dip in shares to $17.25 [2] - Penguin Solutions Inc. reported better-than-expected earnings but missed sales estimates, resulting in an 11.7% decline in shares to $23.85 [2] - Richardson Electronics shares increased by 2.3% to close at $9.84 [2] - Bassett Furniture shares rose by 4% to close at $15.90 [2] Future Guidance - Penguin Solutions projects FY2026 adjusted earnings between $1.75 to $2.25 per share and sales between $1.314 billion to $1.588 billion [2]

Core Insights - Penguin Solutions, Inc. reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and showing an increase from $0.37 per share a year ago, resulting in an earnings surprise of +16.22% [1] - The company achieved revenues of $337.92 million for the quarter ended August 2025, which was slightly below the Zacks Consensus Estimate by 0.61%, but an increase from $311.15 million year-over-year [2] - The stock has appreciated approximately 52.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.43, with projected revenues of $352.83 million, and for the current fiscal year, the EPS estimate is $1.95 on revenues of $1.48 billion [7] - The estimate revisions trend for Penguin Solutions was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Penguin Solutions belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - For Q4 2025, total revenue was $338 million, a 9% year-over-year increase, with non-GAAP gross margin at 30.9% [6][21] - Non-GAAP operating income for Q4 was $39 million, a 16% increase year-over-year, with non-GAAP operating margin at 11.6%, up 80 basis points [7][27] - For the full fiscal year 2025, total revenue grew 17% year-over-year to $1.37 billion, with non-GAAP diluted EPS at $1.90, a 53% increase compared to the prior year [9][22] Business Segment Data and Key Metrics Changes - Advanced computing revenue for Q4 was $138 million, down 7% year-over-year, but full year revenue reached $648 million, reflecting 17% year-over-year growth [23][12] - Integrated memory segment revenue for Q4 was $132 million, a 30% increase year-over-year, with full year revenue totaling $464 million, also up 30% year-over-year [15][24] - Optimized LED segment revenue for Q4 was $67 million, a 2% increase year-over-year, with full year revenue at $256 million, down 1% year-over-year [18][25] Market Data and Key Metrics Changes - The company noted strong demand for AI infrastructure solutions across various sectors, including financial services, energy, federal, and education [9][10] - The HPC AI revenue from non-hyperscalers increased by 75% year-over-year, indicating successful customer diversification [12][23] Company Strategy and Development Direction - The company is transitioning from a holding company structure to a leading provider of AI infrastructure solutions, focusing on customer diversification and strategic partnerships [6][19] - Key partnerships have been developed with NVIDIA, CDW, Insight, and Dell, enhancing the company's market reach [6][11] - The company aims to grow its enterprise customer base, drive innovation, and strengthen its balance sheet for long-term success [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing AI adoption and the potential for broader production scale rollouts in the coming years [9][10] - The outlook for fiscal year 2026 anticipates net sales growth of 6% plus or minus 10%, with expectations of a stronger second half compared to the first half [33][39] - The company expects to face challenges due to the winding down of the Penguin Edge business and has assumed zero hardware sales to hyperscale customers for FY 2026 [33][34] Other Important Information - The company completed a $200 million investment from SK Telecom and refinanced its debt to strengthen its balance sheet [6][19] - Non-GAAP operating expenses for the full fiscal year were $257 million, up 1% year-over-year, reflecting disciplined expense management [26][27] Q&A Session Summary Question: Is the project with the hyperscale customer over? - Management clarified that while they do not anticipate hardware revenue from hyperscalers in FY 2026, they continue to have ongoing services and discussions for future opportunities [42][43] Question: What is the impact of the Penguin Edge business on revenue growth? - Management indicated that the Penguin Edge business and hardware from hyperscalers would result in a 14 percentage point headwind to total company revenue growth, primarily affecting advanced computing [50][53] Question: What are the key areas of momentum for advanced computing? - Management highlighted customer diversification, particularly in financial services, federal, and education sectors, as key areas driving momentum for advanced computing [76][79] Question: How is the company differentiating its memory offerings? - The company differentiates its memory solutions through value-added services, design, and performance reliability, allowing it to charge more than the industry average for memory products [95][96]

Financial Performance - Penguin Solutions' FY25 net sales reached $1.37 billion, a 17% increase compared to FY24[14] - The company's non-GAAP operating margin for FY25 was 12.2%, up by 190 basis points from FY24[14] - Non-GAAP diluted EPS for FY25 stood at $1.90, marking a 53% increase year-over-year[14] - In Q4 FY25, net sales were $338 million, a 9% increase YoY, with a non-GAAP gross margin of 30.9%[15,34] - Q4 FY25 non-GAAP diluted EPS was $0.43, up 18% YoY, and non-GAAP operating income was $39 million, up 16% YoY[15] Business Segment Highlights - Advanced Computing revenue in Q4 FY25 was $138 million, up 4% compared to Q3 FY25, with FY25 revenue at $648 million, up 17% YoY[24] - Integrated Memory revenue in Q4 FY25 was $132 million, a 38% increase YoY, with FY25 revenue at $464 million, up 30% YoY[26] - Optimized LED revenue in Q4 FY25 was $67 million, up 9% compared to Q3 FY25, with FY25 revenue at $256 million, down 1% YoY, but FY25 operating profit up 250 basis points YoY[29] Strategic Initiatives and Outlook - Penguin Solutions closed a $200 million strategic investment from SK Telecom[14] - The company anticipates FY26 net sales to grow by 6% YoY +/- 10%, with a non-GAAP gross margin of 29.5% +/- 1% and non-GAAP diluted earnings per share of $2.00 +/- $0.25[48]

[Company Overview and Fiscal Highlights](index=1&type=section&id=Company%20Overview%20and%20Fiscal%20Highlights) Penguin Solutions reported strong fiscal 2025 performance, achieving growth, GAAP profitability, and a new stock repurchase authorization [Fiscal 2025 & Q4 2025 Performance Highlights](index=1&type=section&id=Fiscal%202025%20Highlights) Penguin Solutions reported strong financial results for fiscal year 2025 and the fourth quarter, with significant growth in net sales and a turnaround from GAAP loss to profit, alongside a substantial increase in Non-GAAP EPS Fiscal Year 2025 Key Financial Highlights | Metric (FY25) | FY25 Value | FY24 Value | Change | | :------------ | :--------- | :--------- | :----- | | Net Sales | $1.37 billion | $1.17 billion | +17% | | GAAP EPS | $0.28 | ($0.85) | Up | | Non-GAAP EPS | $1.90 | $1.25 | +53% | Fourth Quarter Fiscal 2025 Key Financial Highlights | Metric (Q4 FY25) | Q4 FY25 Value | Q4 FY24 Value | Change | | :--------------- | :------------ | :------------ | :----- | | Net Sales | $338 million | $311 million | +9% | | GAAP Gross Margin | 28.6% | 28.0% | +60 bps | | Non-GAAP Gross Margin | 30.9% | 30.9% | Flat | | GAAP Diluted EPS | $0.11 | ($0.46) | Up | | Non-GAAP Diluted EPS | $0.43 | $0.37 | +16.2% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Mark Adams highlighted fiscal 2025 as a year of strong execution and significant progress in the company's transformation into an enterprise AI infrastructure solutions provider, emphasizing momentum in core businesses and emerging leadership in AI implementations - CEO Mark Adams stated that **Fiscal 2025** was a year of strong execution and meaningful progress in the company's transformation from a holding company structure to an enterprise AI infrastructure solutions company[3](index=3&type=chunk) - The results highlight momentum in core businesses and Penguin Solutions' position as an **emerging leader** in designing, building, deploying, and managing enterprise AI implementations[3](index=3&type=chunk) [Common Stock Repurchase Authorization](index=1&type=section&id=Common%20Stock%20Repurchase%20Authorization) The Audit Committee approved a new $75 million common stock repurchase authorization, bringing the total over four years to $225 million, allowing for flexible repurchases without an expiration date - On October 6, 2025, the Audit Committee of the Board of Directors approved a **$75 million** common stock repurchase authorization[3](index=3&type=chunk) - This new authorization brings total stock repurchase authorizations over the last four years to **$225 million**[3](index=3&type=chunk) - The stock repurchase authorization has no expiration date, may be suspended or terminated by the Audit Committee at any time, and does not obligate the Company to acquire any amount of common stock[3](index=3&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) Penguin Solutions' annual and quarterly financial results detail net sales, profitability, and EPS across GAAP and Non-GAAP measures [Annual Financial Results (GAAP & Non-GAAP)](index=2&type=section&id=Annual%20Financial%20Results) Penguin Solutions reported significant annual growth in net sales and profitability for fiscal year 2025, driven by strong performance in Advanced Computing and Integrated Memory segments, with a notable shift from GAAP net loss to net income Annual Financial Results (in thousands, except per share amounts) | Metric | FY25 GAAP | FY24 GAAP | FY25 Non-GAAP | FY24 Non-GAAP | | :-------------------------------- | :-------- | :-------- | :------------ | :------------ | | **Net Sales:** | | | | | | Advanced Computing | $648,417 | $554,552 | $648,417 | $554,552 | | Integrated Memory | $464,249 | $356,426 | $464,249 | $356,426 | | Optimized LED | $256,128 | $259,818 | $256,128 | $259,818 | | Total net sales | $1,368,794| $1,170,796| $1,368,794 | $1,170,796 | | Gross profit | $394,274 | $340,776 | $424,600 | $373,981 | | Operating income | $58,135 | $18,295 | $167,652 | $120,257 | | Net income (loss) attributable to Penguin Solutions | $25,391 | ($44,324) | $120,325 | $66,907 | | Diluted earnings (loss) per share | $0.28 | ($0.85) | $1.90 | $1.25 | [Quarterly Financial Results (GAAP & Non-GAAP)](index=2&type=section&id=Quarterly%20Financial%20Results) In Q4 FY25, Penguin Solutions demonstrated sequential and year-over-year growth in net sales and improved profitability, particularly in the Integrated Memory segment, with both GAAP and Non-GAAP EPS showing positive trends Quarterly Financial Results (in thousands, except per share amounts) | Metric | Q4-25 GAAP | Q3-25 GAAP | Q4-24 GAAP | Q4-25 Non-GAAP | Q3-25 Non-GAAP | Q4-24 Non-GAAP | | :-------------------------------- | :--------- | :--------- | :--------- | :------------- | :------------- | :------------- | | **Net Sales:** | | | | | | | | Advanced Computing | $138,336 | $132,498 | $149,355 | $138,336 | $132,498 | $149,355 | | Integrated Memory | $132,159 | $130,124 | $95,832 | $132,159 | $130,124 | $95,832 | | Optimized LED | $67,427 | $61,629 | $65,961 | $67,427 | $61,629 | $65,961 | | Total net sales | $337,922 | $324,251 | $311,148 | $337,922 | $324,251 | $311,148 | | Gross profit | $96,731 | $95,083 | $87,086 | $104,317 | $102,753 | $96,007 | | Operating income (loss) | $12,448 | $9,843 | $8,791 | $39,170 | $38,474 | $33,739 | | Net income (loss) attributable to Penguin Solutions | $9,431 | $2,661 | ($24,547) | $28,843 | $31,128 | $20,007 | | Diluted earnings (loss) per share | $0.11 | ($0.01) | ($0.46) | $0.43 | $0.47 | $0.37 | [Business Outlook](index=3&type=section&id=Business%20Outlook) Penguin Solutions projects fiscal year 2026 financial performance, detailing net sales, gross margin, operating expenses, and diluted EPS, alongside Non-GAAP adjustments [Fiscal Year 2026 Business Outlook](index=3&type=section&id=Business%20Outlook) Penguin Solutions projects continued growth for fiscal year 2026, with anticipated net sales growth of 6% YoY and improved GAAP and Non-GAAP diluted EPS, alongside stable diluted shares Fiscal Year 2026 Financial Outlook | Metric (FY26 Outlook) | GAAP Outlook | Non-GAAP Outlook | | :-------------------- | :---------------- | :---------------- | | Net Sales | 6% YoY Growth +/-10% | 6% YoY Growth +/-10% | | Gross Margin | 27.5% +/- 1% | 29.5% +/- 1% | | Operating Expenses | $312 million +/- $10 million | $255 million +/- $10 million | | Diluted earnings per share | $0.89 +/- $0.25 | $2.00 +/- $0.25 | | Diluted shares | 55 million | 55 million | [Non-GAAP Adjustments for Outlook](index=3&type=section&id=Non-GAAP%20adjustments%20(in%20millions)) The fiscal year 2026 Non-GAAP outlook incorporates specific adjustments for stock-based compensation, amortization of acquisition-related intangibles, other adjustments, estimated income tax effects, and allocation of earnings to participating securities Non-GAAP Adjustments for FY26 Outlook (in millions) | Non-GAAP Adjustment | Amount | | :---------------------------------------------------------------- | :----- | | Stock-based compensation and amortization of acquisition-related intangibles included in cost of sales | $30 | | Stock-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A | $49 | | Other adjustments | $8 | | Estimated income tax effects | ($19) | | Estimated effect of allocation of earnings to participating securities | ($7) | | Total | $61 | [Corporate Information and Disclosures](index=3&type=section&id=Corporate%20Information%20and%20Disclosures) This section details earnings call information, forward-looking statements, non-GAAP financial measures, U.S. domestication, and company overview [Earnings Conference Call and Webcast Details](index=3&type=section&id=Earnings%20Conference%20Call%20and%20Webcast%20Details) Penguin Solutions scheduled a conference call and webcast for October 7, 2025, to discuss Q4 and full year fiscal 2025 results, accessible via phone and the company's investor relations website - A conference call and webcast to discuss the fourth quarter and full year fiscal 2025 results was scheduled for **October 7, 2025**, at **1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)**[10](index=10&type=chunk) - Interested parties could access the call by dialing **+1-833-470-1428** (United States) or **+1-404-975-4839** (international) using access code **561265**[10](index=10&type=chunk) - The earnings presentation and a live webcast were accessible from the Company's investor relations website (https://ir.penguinsolutions.com/investors/default.aspx) and would remain available for approximately one year[10](index=10&type=chunk) [Use of Forward-Looking Statements](index=3&type=section&id=Use%20of%20Forward-Looking%20Statements) This section outlines that the press release contains forward-looking statements, which are predictive and subject to significant risks and uncertainties, including global economic conditions, industry trends, and operational factors, cautioning investors against undue reliance - This press release contains forward-looking statements concerning future events, financial and operating performance, strategic transformation, business momentum, and the business and financial outlook for fiscal year 2026[11](index=11&type=chunk) - These statements are subject to a number of significant risks, uncertainties, and other factors, many of which are outside of the company's control, including global business and economic conditions, growth trends in technology industries (e.g., AI), geopolitical environment, and supply chain disruptions[12](index=12&type=chunk)[13](index=13&type=chunk) - Investors are cautioned not to place undue reliance on any forward-looking statements, and the company does not undertake to update them except as required by law[14](index=14&type=chunk) [Statement Regarding Use of Non-GAAP Financial Measures](index=4&type=section&id=Statement%20Regarding%20Use%20of%20Non-GAAP%20Financial%20Measures) Penguin Solutions uses non-GAAP financial measures to supplement GAAP results, excluding items like stock-based compensation and acquisition-related amortization, to provide investors with a clearer view of core operating performance, while emphasizing that these measures are not substitutes for GAAP - Penguin Solutions' management uses non-GAAP measures (e.g., non-GAAP gross profit, operating income, diluted earnings per share) to supplement GAAP financial results, believing this supplemental information is useful to investors in analyzing and assessing the Company's past and future operating performance[15](index=15&type=chunk) - These non-GAAP measures exclude certain items such as stock-based compensation expense, amortization of acquisition-related intangible assets, cost of sales-related restructuring, diligence, acquisition and integration expense, redomiciliation costs, and impairment of goodwill[15](index=15&type=chunk) - The long-term projected non-GAAP effective tax rate was reduced from **28% to 25%** in Q3 FY25 due to changes in geographic earnings mix, and further to **22%** for fiscal 2026 as a result of the U.S. Domestication[17](index=17&type=chunk) [Explanatory Note on U.S. Domestication](index=5&type=section&id=Explanatory%20Note) The company completed its redomiciliation from the Cayman Islands to Delaware on June 30, 2025, making Penguin Solutions, Inc., a Delaware corporation, the new publicly traded parent company, with shareholders exchanging Cayman shares for Delaware stock - On **June 30, 2025**, Penguin Solutions completed the redomiciliation of its parent company, Penguin Solutions (Cayman), Inc., from the Cayman Islands to the State of Delaware in the United States[19](index=19&type=chunk) - Penguin Solutions, Inc., a Delaware corporation, became the publicly traded parent company (the 'U.S. Domestication'), succeeding Penguin Solutions Cayman[19](index=19&type=chunk) - Each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share for one share of convertible preferred stock[19](index=19&type=chunk) [About Penguin Solutions](index=6&type=section&id=About%20Penguin%20Solutions) Penguin Solutions assists customers in adopting advanced technological advancements across its core business lines: Advanced Computing, Integrated Memory, and Optimized LED, leveraging expertise and partnerships to address complex challenges - Penguin Solutions supports customers in achieving their ambitions across its Advanced Computing, Integrated Memory, and Optimized LED lines of business[21](index=21&type=chunk) - The company utilizes its expert skills, experience, and partnerships to transform customers' most complex challenges into compelling opportunities[21](index=21&type=chunk) [Unaudited Consolidated Financial Statements](index=7&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) Penguin Solutions' unaudited consolidated financial statements include operations, balance sheets, cash flows, and GAAP to Non-GAAP reconciliations [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations show Penguin Solutions' revenue, cost of sales, operating expenses, and net income (loss) for the three months and year ended August 29, 2025, and August 30, 2024, highlighting the shift from a net loss to net income year-over-year Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Q4 FY25 | Q3 FY25 | Q4 FY24 | FY25 | FY24 | | :------------------------------------- | :------ | :------ | :------ | :--- | :--- | | Total net sales | $337,922| $324,251| $311,148| $1,368,794| $1,170,796| | Gross profit | $96,731 | $95,083 | $87,086 | $394,274| $340,776| | Total operating expenses | $84,283 | $85,240 | $78,295 | $336,139| $322,481| | Operating income | $12,448 | $9,843 | $8,791 | $58,135 | $18,295 | | Net income (loss) attributable to Penguin Solutions | $9,431 | $2,661 | ($24,547)| $25,391 | ($52,472)| | Diluted earnings (loss) per share | $0.11 | ($0.01) | ($0.46) | $0.28 | ($1.00) | [Reconciliation of GAAP to Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations between GAAP and Non-GAAP financial measures for gross profit, operating expenses, operating income, net income, diluted EPS, and Adjusted EBITDA, highlighting the impact of various adjustments such as stock-based compensation and acquisition-related intangibles Reconciliation of GAAP to Non-GAAP Operating Metrics (in thousands, except percentages) | Metric | Q4 FY25 GAAP | Q4 FY25 Non-GAAP | FY25 GAAP | FY25 Non-GAAP | | :--------------------------------- | :----------- | :--------------- | :-------- | :------------ | | Gross Profit | $96,731 | $104,317 | $394,274 | $424,600 | | Gross Margin | 28.6% | 30.9% | 28.8% | 31.0% | | Operating Expenses | $84,283 | $65,147 | $336,139 | $256,948 | | Operating Income | $12,448 | $39,170 | $58,135 | $167,652 | Reconciliation of GAAP to Non-GAAP Net Income, EPS, and Adjusted EBITDA (in thousands, except per share amounts) | Metric | Q4 FY25 GAAP | Q4 FY25 Non-GAAP | FY25 GAAP | FY25 Non-GAAP | | :--------------------------------------- | :----------- | :--------------- | :-------- | :------------ | | Net income (loss) attributable to Penguin Solutions | $9,431 | $28,843 | $25,391 | $120,325 | | Diluted earnings (loss) per share | $0.11 | $0.43 | $0.28 | $1.90 | | Adjusted EBITDA | $43,419 | N/A | $186,565 | N/A | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present the company's financial position as of August 29, 2025, and August 30, 2024, showing increases in total assets, cash, and accounts receivable, alongside a decrease in long-term debt and the introduction of preferred stock Consolidated Balance Sheet Highlights (in thousands) | Metric | August 29, 2025 | August 30, 2024 | | :------------- | :-------------- | :-------------- | | Total current assets | $1,064,227 | $867,704 | | Total assets | $1,617,200 | $1,474,506 | | Total current liabilities | $473,899 | $327,596 | | Long-term debt | $441,893 | $657,347 | | Total liabilities | $1,008,973 | $1,075,298 | | Preferred stock | $202,710 | — | | Total stockholders' equity | $405,517 | $399,208 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows detail the cash generated from or used in operating, investing, and financing activities for the reported periods, indicating a net increase in cash for FY25 despite a decrease in Q4, with significant debt repayments and stock repurchases Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Q4 FY25 | FY25 | FY24 | | :------------------------------------------------------ | :------ | :--- | :--- | | Net cash provided by (used for) operating activities | ($70,432) | $109,084 | $77,185 | | Net cash provided by (used for) investing activities | $22,367 | $24,973 | $107,585 | | Net cash used for financing activities | ($208,052) | ($63,464) | ($210,101) | | Net increase (decrease) in cash, cash equivalents and restricted cash | ($256,117) | $70,593 | ($26,587) | | Cash, cash equivalents and restricted cash at end of period | $454,070 | $454,070 | $383,477 |

Penguin Solutions, Inc. (NASDAQ:PENG) is one of the AI Stocks Shaping Wall Street’s Next Big Rally. On October 6, Stifel analyst Brian Chin raised the firm’s price target on the stock to $31 from $27 and kept a “Buy” rating on the shares. The firm remains constructive on the stock amid favorable conditions in the memory market. According to the firm, fiscal Q4 results are anticipated to modestly exceed consensus estimates when the company reports earnings on Tuesday. Not only are memory market conditions ...

Market Sentiment - The CNN Money Fear and Greed index improved to a reading of 56.7, indicating a shift to the "Greed" zone from a previous reading of 53.7 [5] - U.S. stocks mostly settled higher, with the Nasdaq Composite gaining over 150 points and both the S&P 500 and Nasdaq Composite reaching record highs [1] Company Performance - Advanced Micro Devices Inc. (NASDAQ:AMD) shares surged approximately 24% following the announcement of a multi-year partnership with OpenAI to deploy 6 Gigawatts of AMD GPUs, along with issuing OpenAI a warrant for up to 160 million shares [2] - Most sectors on the S&P 500 closed positively, with utilities, consumer discretionary, and communication services stocks showing the largest gains, while consumer staples and real estate stocks declined [3] Upcoming Earnings - Investors are anticipating earnings results from McCormick & Company Inc. (NYSE:MKC) and Penguin Solutions Inc. (NASDAQ:PENG) [4]