Penguin Solutions (PENG) Q4 2025 Financial Results Summary
On October 7, 2025, Penguin Solutions, Inc. (NASDAQ: PENG) announced its financial results for the fourth quarter and full year of fiscal 2025.
Fiscal 2025 Highlights
- Net Sales:
- $1.37 billion for FY2025, a 17% increase compared to $1.17 billion in FY2024.
- Gross Margin:
- GAAP: 28.8%, a 30 basis point decrease from FY2024.
- Non-GAAP: 31.0%, a 90 basis point decrease from FY2024.
- Earnings Per Share (EPS):
- GAAP EPS: $0.28, up from ($0.85) in FY2024.
- Non-GAAP EPS: $1.90, an increase of 53% from $1.25 in FY2024.
Fourth Quarter Fiscal 2025 Highlights
- Net Sales:
- $338 million, representing a 9% increase from $311 million in the same quarter last year.
- Gross Margin:
- GAAP: 28.6%, an improvement of 60 basis points from the year-ago quarter.
- Non-GAAP: 30.9%, unchanged from the year-ago quarter.
- Earnings Per Share (EPS):
- GAAP EPS: $0.11, compared to ($0.46) in the year-ago quarter.
- Non-GAAP EPS: $0.43, up 16% from $0.37 in the year-ago quarter.
Common Stock Repurchase Authorization
- On October 6, 2025, the Audit Committee authorized a $75 million share repurchase program, bringing the total share repurchase authorizations to $225 million over the past four years.
Annual Financial Results (Selected Metrics)
| Aspect | FY25 | FY24 |
|---|---|---|
| Total Net Sales | $1,368,794 | $1,170,796 |
| GAAP Gross Profit | $394,274 | $340,776 |
| Non-GAAP Gross Profit | $424,600 | $373,981 |
| GAAP Operating Income | $58,135 | $18,295 |
| Non-GAAP Operating Income | $167,652 | $120,257 |
| Net Income Attributable to | $25,391 | ($44,324) |
| GAAP Diluted EPS | $0.28 | ($0.85) |
| Non-GAAP Diluted EPS | $1.90 | $1.25 |
Quarterly Financial Results (Selected Metrics)
| Aspect | Q4-25 | Q4-24 |
|---|---|---|
| Total Net Sales | $337,922 | $311,148 |
| GAAP Gross Profit | $96,731 | $87,086 |
| Non-GAAP Gross Profit | $104,317 | $96,007 |
| GAAP Operating Income | $12,448 | $8,791 |
| Non-GAAP Operating Income | $39,170 | $33,739 |
| Net Income Attributable to | $9,431 | ($24,547) |
| GAAP Diluted EPS | $0.11 | ($0.46) |
| Non-GAAP Diluted EPS | $0.43 | $0.37 |
Business Outlook for Fiscal 2026 (Guidance as of October 7, 2025)
- Expected net sales growth of 6% YoY, with a variance of +/- 10%.
- Projected GAAP gross margin of 27.5% +/- 1%.
- Projected Non-GAAP gross margin of 29.5% +/- 1%.
- Estimated GAAP diluted EPS of $0.89 +/- $0.25.
- Estimated Non-GAAP diluted EPS of $2.00 +/- $0.25.
- Diluted shares expected to be 55 million.
Additional Information
- Penguin Solutions experienced a significant financial turnaround in FY2025, showcasing growth in both sales and profitability metrics versus the previous year.
- They will conduct a conference call and webcast to discuss the results further on October 7, 2025, at 1:30 PM Pacific Time (4:30 PM Eastern Time).
For more information about Penguin Solutions, visit their official website.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended | August 29, 2025 | May 30, 2025 | August 30, 2024 | August 29, 2025 | August 30, 2024 |
|---|---|---|---|---|---|
| Net sales: | $138,336 | $132,498 | $149,355 | $648,417 | $554,552 |
| Advanced Computing | $138,336 | $132,498 | $149,355 | $648,417 | $554,552 |
| Integrated Memory | $132,159 | $130,124 | $95,832 | $464,249 | $356,426 |
| Optimized LED | $67,427 | $61,629 | $65,961 | $256,128 | $259,818 |
| Total net sales | $337,922 | $324,251 | $311,148 | $1,368,794 | $1,170,796 |
| Cost of sales | $241,191 | $229,168 | $224,062 | $974,520 | $830,020 |
| Gross profit | $96,731 | $95,083 | $87,086 | $394,274 | $340,776 |
| Operating expenses: | $19,861 | $20,222 | $19,941 | $79,801 | $81,537 |
| Research and development | $19,861 | $20,222 | $19,941 | $79,801 | $81,537 |
| Selling, general and | $58,602 | $59,724 | $58,029 | $238,177 | $233,880 |
| administrative | $58,602 | $59,724 | $58,029 | $238,177 | $233,880 |
| Impairment of goodwill | $4,690 | $5,294 | $0 | $16,063 | $0 |
| Other operating expense | $1,130 | $0 | $325 | $2,098 | $7,064 |
| 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 |
| Non-operating (income) | $153 | $573 | $5,403 | $7,305 | $28,378 |
| expense: | $153 | $573 | $5,403 | $7,305 | $28,378 |
| Interest expense, net | $153 | $573 | $5,403 | $7,305 | $28,378 |
| Other non-operating | $2,941 | -$1,439 | $20,971 | $1,929 | $21,084 |
| (income) expense | $2,941 | -$1,439 | $20,971 | $1,929 | $21,084 |
| Total non-operating | $3,094 | -$866 | $26,374 | $9,234 | $49,462 |
| (income) expense | $3,094 | -$866 | $26,374 | $9,234 | $49,462 |
| Income (loss) before taxes | $9,354 | $10,709 | -$17,583 | $48,901 | -$31,167 |
| Income tax provision | -$1,196 | $7,259 | $6,209 | $20,066 | $10,618 |
| (benefit) | -$1,196 | $7,259 | $6,209 | $20,066 | $10,618 |
| Net income (loss) from | $10,550 | $3,450 | -$23,792 | $28,835 | -$41,785 |
| continuing | $10,550 | $3,450 | -$23,792 | $28,835 | -$41,785 |
| operations | $10,550 | $3,450 | -$23,792 | $28,835 | -$41,785 |
| Net loss from discontinued | $0 | $0 | $0 | $0 | -$8,148 |
| operations | $0 | $0 | $0 | $0 | -$8,148 |
| Net income (loss) | $10,550 | $3,450 | -$23,792 | $28,835 | -$49,933 |
| Net income attributable to | $1,119 | $789 | $755 | $3,444 | $2,539 |
| noncontrolling interest | $1,119 | $789 | $755 | $3,444 | $2,539 |
| Net income (loss) | $9,431 | $2,661 | -$24,547 | $25,391 | -$52,472 |
| attributable to | $9,431 | $2,661 | -$24,547 | $25,391 | -$52,472 |
| Penguin Solutions | $9,431 | $2,661 | -$24,547 | $25,391 | -$52,472 |
| Preferred stock dividends | $3,034 | $3,033 | $0 | $8,667 | $0 |
| Income available for | $6,397 | -$372 | -$24,547 | $16,724 | -$52,472 |
| distribution | $6,397 | -$372 | -$24,547 | $16,724 | -$52,472 |
| Income allocated to | $666 | $0 | $0 | $1,263 | $0 |
| participating | $666 | $0 | $0 | $1,263 | $0 |
| securities | $666 | $0 | $0 | $1,263 | $0 |
| Net income (loss) | $5,731 |
