Penguin Solutions, Inc. · NASDAQ:PENG

Penguin Solutions — Q2 2025 Earnings Presentation

25 slides from Penguin Solutions's earnings presentation, Apr 2, 2025

Slide 1: Q2 FY25 Financial Results
Q2 FY25 Financial Results Nasdaq: PENG April 2, 2025
Slide 2: Disclaimer
Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking Any forward-looking statements that we make in this presentation speak only as of the date of this presentation. Except statements within the meaning of Section 27A of the Sec
Slide 4: Q2 FY25 Financial Highlights
Q2 FY25 Financial Highlights Revenue Gross Margin EPS Balance Sheet Revenue of $366M, up 28% Non-GAAP gross margin Non-GAAP Diluted EPS of Strong balance sheet with vs. Q2 FY24; fifth of 30.8% $0.52; up 97% vs. year-ago cash, cash equivalents, consecutive quarter of quarter and short-term investment
Slide 5: Trusted Advisor for AI Infrastructure
Trusted Advisor for AI Infrastructure Enabling Our Customers to Harness the Power of HPC & AI Exceptional Accelerated Computing Infrastructure Experts Professional Services 25 years of End-to-end With over two decades of experience as experience solutions support trusted advisors, Penguin Solutions
Slide 7: Advanced Computing
Advanced Computing • Strong revenue and pipeline growth – $200M of revenue, up 42% YoY; 55% of total company revenue – Driven by demand for large-scale AI infrastructure deployments – Expanding pipeline with focus on converting into future bookings • AI infrastructure expertise – Custom-built and pr
Slide 8: Integrated Memory
Integrated Memory • Continued improvement in revenue – $105M of revenue, up 26% YoY; 29% of total company revenue • Driven by enterprise demand for high-performance, high-reliability memory solutions – AI workloads accelerating need for advanced memory solutions • CXL (Compute Express Link) market e
Slide 9: Optimized LED
Optimized LED • Stable revenue with improved margins – $60M revenue flat YoY; 16% of total company revenue – Q2 seasonally softer due to US holidays and Chinese New Year holiday • Capital-lite model driving profitability – Outsourced manufacturing model remains a competitive advantage – Contributed
Slide 11: Expanded Software and Services for AI Optimization
Expanded Software and Services for AI Optimization Enhanced ICE ClusterWare Platform • Multi-tenancy support for improved resource management • Streamlined workflows for enhanced controls and efficiency New ICE ClusterWare AIM Service • New AIM service using prediction automation designed to maximiz
Slide 12: Advancing Memory Solutions for AI
Advancing Memory Solutions for AI SMART Modular Developing Optical Memory Appliance (OMA) • Addresses bandwidth and availability challenges for next-gen AI compute • Supports growing AI memory demands with high-performance solutions © 2025 Penguin Solutions, Inc. All rights reserved. | 12
Slide 13: Strategic Collaborations & Go-to-Market Expansion
Strategic Collaborations & Go-to-Market Expansion SK Group • In discussions with SK Telecom regarding potential collaborations related to their AI strategy, including AI data center infrastructure initiatives • Strengthening SMART Modular & SK hynix collaboration to address custom, high-mix memory m
Slide 15: Non-GAAP Q2 FY25 Results
Non-GAAP Q2 FY25 Results Revenue Non-GAAP Non-GAAP Non-GAAP Diluted Gross Margin Operating Margin EPS $366M 30.8% 13.4% $0.52 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: Q2 FY25 Revenue Detail
Q2 FY25 Revenue Detail Revenue Breakdown – Total $366M Integrated Product Revenue Memory 29% $302M Revenue Mix Advanced by Business Computing 55% Optimized LED Services Revenue 16% $64M © 2025 Penguin Solutions, Inc. All rights reserved. | 16
Slide 17: Q2 FY25 Non-GAAP Operating Results
Q2 FY25 Non-GAAP Operating Results 1 ($M) Q2 FY25 Q1 FY25 Q2 FY24 Revenue $366 $341 $285 Advanced Computing $200 $177 $141 Integrated Memory $105 $97 $83 Optimized LED $60 $67 $60 Non-GAAP gross profit2 $112 $105 $90 Non-GAAP operating expenses2 $63 $64 $63 Non-GAAP operating income2 $49 $41 $27 Non
Slide 18: Q2 FY25 Balance Sheet and Cash Flow Highlights
Q2 FY25 Balance Sheet and Cash Flow Highlights ($M) Q2 FY25 Q1 FY25 Q2 FY24 Working Capital Net Accounts Receivable $330 $276 $170 Days Sales Outstanding 50 days 45 days 41 days Inventory $200 $247 $173 Days of Inventory 37 days 49 days 54 days Accounts Payable $238 $244 $148 Days Payable Outstandin
Slide 20: FY 2025 Outlook
FY 2025 Outlook GAAP Outlook Adjustments Non-GAAP Outlook Net Sales 17% YoY Growth +/- 3% — 17% YoY Growth +/- 3% Gross margin 29% +/- 1% 2% (A) 31% +/- 1% Operating expenses $336 million +/- $5 million $(71) million (B)(C)(D) $265 million +/- $5 million Diluted earnings per share $-0.02 +/- $0.10 $

Penguin Solutions — Q2 2025 Earnings Presentation on 6ix

Penguin Solutions — Q2 2025 Earnings Presentation

Slide 1: Q2 FY25 Financial Results

Slide 2: Disclaimer

Slide 3: Speakers

Slide 4: Q2 FY25 Financial Highlights

Slide 5: Trusted Advisor for AI Infrastructure

Slide 6: Business Review

Slide 7: Advanced Computing

Slide 8: Integrated Memory

Slide 9: Optimized LED

Slide 10: Investing in Innovation & Growth

Slide 11: Expanded Software and Services for AI Optimization

Slide 12: Advancing Memory Solutions for AI

Slide 13: Strategic Collaborations & Go-to-Market Expansion

Slide 14: Financial Review

Slide 15: Non-GAAP Q2 FY25 Results

Slide 16: Q2 FY25 Revenue Detail

Slide 17: Q2 FY25 Non-GAAP Operating Results

Slide 18: Q2 FY25 Balance Sheet and Cash Flow Highlights

Slide 19: Our Outlook

Slide 20: FY 2025 Outlook

Slide 21: Solving complexity. Accelerating results.

Slide 22: GAAP to Non-GAAP Reconciliations

Slide 23: GAAP to Non-GAAP Reconciliations

Slide 24: GAAP to Non-GAAP Reconciliations

Slide 25: Convertible Dilution