Slide 1: Q3 FY25 Financial Results
Q3 FY25 Financial Results Nasdaq: PENG July 8, 2025
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking statements with the U.S. Securities and Exchange Commission. Such risks, uncertainties and factors as outlined above, and in such SEC filings, within the meaning of Section 27
Slide 3: Speakers
Speakers Mark Adams President and CEO Nate Olmstead SVP and CFO © 2025 Penguin Solutions, Inc. All rights reserved. | 3
Slide 4: Q3 FY25 Financial Highlights
Q3 FY25 Financial Highlights Revenue Gross Margin EPS Operating Income Revenue of $324M, up 7.9% Non-GAAP gross margin Non-GAAP Diluted EPS of Non-GAAP operating income vs. year-ago quarter of 31.7% $0.47, up 25% vs. year-ago of $38M, up 15% vs. year-ago quarter quarter; Non-GAAP operating margin of
Slide 5: Enterprise AI Adoption
Enterprise AI Adoption Momentum across financial services, energy, defense, education, and neo-cloud market segments Enterprises progressing from PoCs to full AI deployments 2025-2026 expected to mark acceleration in large-scale build-outs in the market © 2025 Penguin Solutions, Inc. All rights rese
Slide 6: Solving the Complexity of AI
25+ Years of Expertise AI & HPC Solutions Decades of AI, HPC, Design, build, deploy, Solving the Fault Tolerant, and Edge computing success and manage AI and HPC infrastructure Complexity of AI Trusted partner helping our Fault-tolerant Solutions Infrastructure Software customers harness the power o
Slide 7: Business Review
Business Review © 2025 Penguin Solutions, Inc. All rights reserved. | 7
Slide 8: Advanced Computing
Advanced Computing • Quarterly Performance – $132M of revenue, down sequentially due to timing of a large hyperscaler deployment in Q2 • New Business Momentum – Closed five new customer bookings, including in federal, energy, and biotech segments – Continued investment in channel partnerships for lo
Slide 9: Integrated Memory
Integrated Memory • Strong Quarterly Growth – $130M of revenue, up 24% sequentially – Driven by robust demand across computing, networking, and telecom customers – DRAM and NAND pricing stable, with balanced inventory levels at major customers • Positioned for AI Memory Demands – Enterprises increas
Slide 10: Optimized LED
Optimized LED • Quarter Performance – $62M revenue, up slightly vs. prior quarter – Top-line impacted by tariff-related costs and uncertainty related to products from Huizhou, China – Operations remained resilient despite macro uncertainty • Positioning for Long-Term Value – Focused on high-performa
Slide 11: Advancing Our Strategic Priorities
Advancing Our Strategic Priorities © 2025 Penguin Solutions, Inc. All rights reserved. | 11
Slide 12: Partnership Momentum
Partnership Momentum SK Telecom & SK hynix Building Momentum with SK Telecom • Progressing on AI data center infrastructure initiatives • Exploring joint opportunities aligned to SK Telecom’s AI strategy • Partnership could provide strategic commercial value beyond financial investment Expanding Col
Slide 13: Strengthening Corporate Foundation
Strengthening Corporate Foundation Capital Structure Improvements Corporate Realignment • On June 26, announced a refinancing that strengthens • On June 30, completed redomiciliation of Penguin our balance sheet by: Solutions, Inc. to the United States (Delaware): − Reducing gross leverage − Support
Slide 14: Financial Review
Financial Review © 2025 Penguin Solutions, Inc. All rights reserved. | 14
Slide 15: Non-GAAP Q3 FY25 Results
Non-GAAP Q3 FY25 Results Revenue Non-GAAP Non-GAAP Non-GAAP Diluted Gross Margin Operating Margin EPS $324M 31.7% 11.9% $0.47 Non-GAAP Gross Margin, Non-GAAP Operating Margin and Non-GAAP Diluted EPS are non-GAAP measures. For reconciliations to the most directly comparable financial measures prepar
Slide 16: Q3 FY25 Revenue Detail
Q3 FY25 Revenue Detail 1 Revenue Breakdown – Total of $324M Product Revenue Integrated Advanced $259M Memory 40% Computing 41% Revenue by Segment Services Revenue Optimized $66M LED 19% 1. Summations may not compute precisely due to rounding. © 2025 Penguin Solutions, Inc. All rights reserved. | 16
Slide 17: Q3 FY25 Non-GAAP Operating Results
Q3 FY25 Non-GAAP Operating Results 1 ($M except per share amounts) Q3 FY25 Q2 FY25 Q3 FY24 Net sales $324 $365 $301 Advanced Computing $132 $200 $145 Integrated Memory $130 $105 $92 Optimized LED $62 $60 $64 Non-GAAP gross profit2 $103 $112 $97 Non-GAAP operating expenses2 $64 $63 $64 Non-GAAP opera
Slide 18: Q3 FY25 Balance Sheet and Cash Flow Highlights
Q3 FY25 Balance Sheet and Cash Flow Highlights ($M) Q3 FY25 Q2 FY25 Q3 FY24 Working Capital Net Accounts Receivable $293 $330 $212 Days Sales Outstanding 47 days 50 days 42 days Inventory $184 $200 $177 Days of Inventory 36 days 37 days 43 days Accounts Payable $272 $238 $192 Days Payable Outstandin
Slide 19: Our Outlook
Our Outlook © 2025 Penguin Solutions, Inc. All rights reserved. | 19
Slide 20: FY 2025 Outlook
FY 2025 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net Sales 17% YoY Growth +/- 2% — 17% YoY Growth +/- 2% Gross margin 29% +/- 0.5% 2% (A) 31% +/- 0.5% Operating expenses $340 million +/- $5 million $(80) million (B)(C)(E) $260 million +/- $5 million Diluted earnings per share $0.04 +/- $0.0
Slide 21: Solving complexity. Accelerating results.
Solving complexity. Accelerating results. • Contact information goes here © 2025 Penguin Solutions, Inc. All rights reserved. | 21
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2025 Penguin Solutions, Inc. All rights reserved. | 22
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2025 Penguin Solutions, Inc. All rights reserved. | 23
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations © 2025 Penguin Solutions, Inc. All rights reserved. | 24
Slide 25: Convertible Dilution
Convertible Dilution Note: Dilution in thousands of shares © 2025 Penguin Solutions, Inc. All rights reserved. | 25