# **PENG NASDAQ Q3 Financial Report Summary**
**Release Date: July 8, 2025**
Penguin Solutions, Inc. (NASDAQ: PENG) recently disclosed its financial results for the third quarter of fiscal 2025. Here are the key highlights and details from the report:
### **Financial Highlights:**
– **Net Sales:**
– Total net sales for Q3-25 were reported at $324 million, showing an increase of 7.9% compared to the same quarter last year.
– **Gross Margins:**
– GAAP gross margin was 29.3%, declining by 30 basis points year-over-year.
– Non-GAAP gross margin stood at 31.7%, down by 60 basis points from the year-ago quarter.
– **Earnings per Share:**
– GAAP diluted EPS was $(0.01) versus $0.10 in the same quarter last year.
– Non-GAAP diluted EPS improved to $0.47 from $0.37 in the year-ago quarter.
### **Business Strategy and Outlook:**
– The company raised the midpoint of its full-year GAAP and Non-GAAP diluted EPS outlook.
– Strategic objectives include the development of AI software and services capabilities and expanding go-to-market resources to enhance shareholder value.
– As of July 8, 2025, Penguin Solutions provided a financial outlook for fiscal year 2025, showing expected growth in net sales and gross margins.
### **Business Performance Metrics:**
– **Net Sales by Segment:**
– Advanced Computing: $132,498
– Integrated Memory: $130,124
– Optimized LED: $61,629
– **Operating Income (Loss):**
– Operating income was $9,843.
– **Net Income (Loss) Attributable to Penguin Solutions:**
– Net income was $2,661.
– **Non-GAAP Adjustments:**
– For the quarter, non-GAAP adjustments totaled $95 million.
### **Dividends and Share Repurchase:**
– The provided text does not mention any declarations of a quarterly dividend or share repurchase by Penguin Solutions.
### **Outlook and Forecast:**
– Penguin Solutions expects 17% year-over-year growth in net sales.
– Gross margin is forecasted to be around 31%.
– In the updated outlook, diluted earnings per share are estimated at $0.04 +/- $0.05.
### **Forward-Looking Statements:**
– The press release contains forward-looking statements regarding the future financial and operating performance of Penguin Solutions, strategic objectives, and business outlook for fiscal year 2025.
### **Use of Non-GAAP Measures:**
– Penguin Solutions utilizes non-GAAP financial measures in its reporting to analyze operations and make informed decisions.
– Adjusted EBITDA for the quarter was $44,697 million.
### **Balance Sheet and Cash Flows:**
– **Balance Sheet:**
– Total assets as of May 30, 2025, amounted to $1,802,782.
– **Cash Flows:**
– Net cash provided by operating activities was significant at $92,821 for the quarter.
– Financing activities resulted in a net cash used of $30,509.
This summary provides a comprehensive overview of Penguin Solutions’ financial performance in Q3-25 with key metrics, outlook, and strategic direction. Investors can refer to the full press release for more detailed information.
### Balance Sheet table (Amounts in thousands)
| May 30, 2025 | August 30, 2024 | |
|---|---|---|
| Cash and cash equivalents | $709,871 | $383,147 |
| Short-term investments | $25,676 | $6,337 |
| Accounts receivable, net | $292,504 | $251,743 |
| Inventories | $184,348 | $151,213 |
| Other current assets | $37,497 | $75,264 |
| Total current assets | $1,249,896 | $867,704 |
| Property and equipment, net | $93,882 | $106,548 |
| Operating lease right-of-use assets | $61,850 | $60,349 |
| Intangible assets, net | $95,130 | $121,454 |
| Goodwill | $150,585 | $161,958 |
| Deferred tax assets | $83,872 | $85,078 |
| Other noncurrent assets | $67,567 | $71,415 |
| Total assets | $1,802,782 | $1,474,506 |
| Accounts payable and accrued expenses | $310,572 | $219,090 |
| Current debt | $19,916 | $0 |
| Deferred revenue | $101,374 | $63,954 |
| Other current liabilities | $44,882 | $44,552 |
| Total current liabilities | $476,744 | $327,596 |
| Long-term debt | $639,562 | $657,347 |
| Noncurrent operating lease liabilities | $63,650 | $60,542 |
| Other noncurrent liabilities | $27,903 | $29,813 |
| Total liabilities | $1,207,859 | $1,075,298 |
| Total Penguin Solutions shareholders’ equity | $584,771 | $391,381 |
| Noncontrolling interest in subsidiary | $10,152 | $7,827 |
| Total equity | $594,923 | $399,208 |
| Total liabilities and equity | $1,802,782 | $1,474,506 |
### Income Statement table (Amounts in thousands)
| GAAP(1) | Non-GAAP(2) | |
|---|---|---|
| Advanced Computing | $132,498 | $132,498 |
| Integrated Memory | $130,124 | $130,124 |
| Optimized LED | $61,629 | $61,629 |
| Total net sales | $324,251 | $324,251 |
| Gross profit | $95,083 | $102,753 |
| Operating income (loss) | $9,843 | $38,474 |
| Net income (loss) | $2,661 | $31,128 |
| Diluted earnings (loss) per share | $-0.01 | $0.47 |
(1) GAAP represents U.S. Generally Accepted Accounting Principles.
(2) Non-GAAP represents GAAP excluding the impact of certain activities.
