Penguin Solutions, Inc. · NASDAQ:PENG
Penguin Solutions — FY2025 Earnings Presentation
26 slides from Penguin Solutions's earnings presentation, Oct 7, 2025
Slide 1: Fourth Quarter & Full Year FY25 Financial Results
Fourth Quarter & Full Year FY25 Financial Results Nasdaq: PENG October 7, 2025
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking statements within the risk factors contained in Penguin Solutions’ Quarterly Reports on Form 10-Q and in Penguin Solutions' other filings with the U.S. meaning of Section 27A
Slide 3: Speakers
Speakers Mark Adams President and CEO Nate Olmstead SVP and CFO © 2025 Penguin Solutions, Inc. All rights reserved. | 3
Slide 4: FY25 Highlights
FY25 Highlights Delivering profitable growth while advancing strategic priorities Strong Financial Business SK Telecom Investment Strengthening of Performance Progress and Strategic Partnerships Foundation • Net Sales of $1.37B, • Expanded Advanced • Closed $200M SK Telecom • Rebranded to Penguin up
Slide 5: Q4 FY25 Financial Highlights
Q4 FY25 Financial Highlights Solid finish to a year of strong growth Net Sales Gross Margin Operating Income EPS Net sales of $338M, Non-GAAP gross margin of Non-GAAP operating income of Non-GAAP diluted EPS of up 9% YoY 30.9%, flat YoY $39M, up 16% YoY; Non-GAAP $0.43, up 18% YoY operating margin o
Slide 6: Next Phase of AI Adoption Underway
Next Phase of AI Adoption Underway Wave 2: Enterprise AI • Signs of broad AI adoption in financial services, energy, federal, and education • Industry-wide AI pilots from 2023-2024 expected to lay groundwork for production-scale deployments We have entered Wave 2 • Early-stage corporate AI build-out
Slide 7: Solving the Complexity of AI
Solving the 25+ Years of Expertise AI & HPC Solutions Complexity of AI Decades of AI, HPC, and high-availability and fault- Design, build, deploy, and manage AI and tolerant computing success HPC infrastructure At Penguin Solutions we understand the boundless potential of technology and enable our c
Slide 8: Business Review
Business Review © 2025 Penguin Solutions, Inc. All rights reserved. | 8
Slide 9: Advanced Computing
Advanced Computing • Revenue of $138M in Q4, up 4% vs. Q3 FY25 – FY25 revenue of $648M, up 17% YoY – FY25 HPC/AI revenue from non-hyperscale customers up 75% • New Business Momentum – Completed the design, build and deployment of Haien, a key element of South Korea’s Sovereign AI initiative – Launch
Slide 10: Integrated Memory
Integrated Memory • Revenue of $132M in Q4, up 38% YoY – FY25 revenue of $464M, up 30% YoY – Robust demand in computing, networking, and telecom • Positioned for AI Memory Demands – Enterprises require high bandwidth, high reliability memory for AI workloads – Early traction for CXL, sample orders f
Slide 11: Optimized LED
Optimized LED • Revenue of $67M in Q4, up 9% vs. Q3 FY25 – FY25 revenue of $256M, down 1% YoY – FY25 operating profit up 250bp YoY • Positioning for Long-Term Growth – Capturing market share – Maintaining operating efficiency – Protecting our strong IP – Driving profitable growth © 2025 © 2025 Pengu
Slide 12: Our Plans to Sharpen Our Focus and Drive Transformation
Our Plans to Sharpen Our Focus and Drive Transformation Grow enterprise customer base in AI infrastructure deployments Drive innovation across hardware, software, and service portfolio Expand partnerships to strengthen go-to-market efforts Operate with discipline and efficiency to enable long-term s
Slide 13: Financial Review
Financial Review © 2025 Penguin Solutions, Inc. All rights reserved. | 13
Slide 14: Q4 FY25 Results
Q4 FY25 Results Net Sales Non-GAAP Non-GAAP Non-GAAP Diluted Gross Margin Operating Margin EPS $338M 30.9% 11.6% $0.43 Up 9% YoY Flat YoY Up 0.8% percentage points YoY Up 18% YoY Non-GAAP gross margin, Non-GAAP operating margin and Non-GAAP Diluted EPS are non-GAAP measures. For reconciliations to t
Slide 15: FY25 Results
FY25 Results Net Sales Non-GAAP Diluted EPS $1.37B $1.90 Up 17% YoY Up 53% YoY Non-GAAP Diluted EPS is a non-GAAP measure. For reconciliations to the most directly comparable financial measure prepared in accordance with GAAP, please see the appendix. © 2025 Penguin Solutions, Inc. All rights reserv
Slide 16: Net Sales Detail
Net Sales Detail1 Product Net Sales $275M Advanced Computing Q4 FY25 39% Net Sales 41% Optimized LED by Segment Services Net Sales Integrated Memory $63M 20% Product Net Sales $1.11B 34% Advanced Computing Net Sales FY25 47% Optimized LED by Segment Services Net Sales Integrated Memory $264M 19% 1.
Slide 17: Operating Results
Operating Results 1 ($M except per share amounts) Q4 FY25 Q3 FY25 Q4 FY24 FY25 FY24 Net sales $338 $324 $311 $1,369 $1,171 Advanced Computing $138 $132 $149 $648 $555 Integrated Memory $132 $130 $96 $464 $356 Optimized LED $67 $62 $66 $256 $260 Non-GAAP gross profit2 $104 $103 $96 $425 $374 Non-GAAP
Slide 18: Q4 FY25 Balance Sheet and Cash Flow Highlights
Q4 FY25 Balance Sheet and Cash Flow Highlights ($M) Q4 FY25 Q3 FY25 Q4 FY24 Working Capital Net Accounts Receivable $308 $293 $252 Days Sales Outstanding 51 days 47 days 49 days Inventory $255 $184 $151 Days of Inventory 51 days 36 days 36 days Accounts Payable $267 $272 $182 Days Payable Outstandin
Slide 19: Capital Allocation and Debt Reduction
Capital Allocation and Debt Reduction Stock Repurchases Debt Refinancing • Repurchased 16K shares for $296K in Q4 FY25 • Repaid $300M term loan with $200M cash + $100M drawdown from new revolver • Since April 2022, we have repurchased 6.6M shares for $113M • Reduced total gross debt by $200M • Audit
Slide 20: Our Outlook
Our Outlook © 2025 Penguin Solutions, Inc. All rights reserved. | 20
Slide 21: FY 2026 Outlook
FY 2026 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net sales 6% YoY Growth +/- 10% — 6% YoY Growth +/- 10% Gross margin 27.5% +/- 1% 2% (A) 29.5% +/- 1% Operating expenses $312 million +/- $10 million $(57) million (B)(C) $255 million +/- $10 million Diluted earnings per share $0.89 +/- $0.25
Slide 22: Solving complexity. Accelerating results.
Solving complexity. Accelerating results. • Contact information goes here © 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 Three Months Ended Year Ended August 29, May 30, August 30, August 29, August 30, (dollars in thousands, except per share data) 2025 2025 2024 2025 2024 GAAP net income (loss) attributable to Penguin Solutions $ 9,431 $ 2,661 $ (24,547) $ 25,391 $ (44,324) Stock-base
Slide 25: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three Months Ended Year Ended August 29, May 30, August 30, August 29, August 30, (dollars in thousands) 2025 2025 2024 2025 2024 Net income (loss) attributable to Penguin Solutions $ 9,431 $ 2,661 $ (24,547) $ 25,391 $ (44,324) Interest expense, net 153 573 5,403 7,
Slide 26: Convertible Dilution
Convertible Dilution Note: Dilution in thousands of shares © 2025 Penguin Solutions, Inc. All rights reserved. | 26