Penguin Solutions (PENG) investor relations material

Executive summary

• Fiscal 2025 net sales reached $1.37 billion, up 17% year-over-year, reflecting a transformation to an AI infrastructure provider and rebranding to Penguin Solutions.

• Non-GAAP diluted EPS rose 53% to $1.90, with non-GAAP operating margin expanding by 190 basis points to 12.2%.

• Completed a $200 million investment from SK Telecom, expanded partnerships, and strengthened leadership.

• Redomiciled to the U.S. and refinanced debt, reducing gross debt by $200 million.

• Q4 net sales were $338 million, up 9% year-over-year.

Financial highlights

• FY25 non-GAAP gross margin was 31.0%; Q4 non-GAAP gross margin was 30.9%.

• FY25 non-GAAP operating income was $167.7 million, up from FY24; Q4 non-GAAP operating income was $39 million, up 16%.

• Adjusted EBITDA for FY25 was $187 million, up from $146 million in FY24.

• Product net sales for FY25 were $1.11 billion; services net sales were $264 million.

• Net income attributable to the company was $25.4 million (GAAP) and $120.3 million (non-GAAP) for FY25.

Outlook and guidance

• FY26 net sales expected to grow 6% year-over-year, with non-GAAP gross margin at 29.5% ±1 percentage point.

• Non-GAAP diluted EPS expected at $2.00 ±$0.25; non-GAAP tax rate lowered to 22%.

• Advanced Computing net sales expected to change between -15% and +15%; Memory to grow 10%-20%; LED to change between -5% and +5%.

• Non-GAAP operating expenses projected at $255 million ±$10 million.

• FY26 outlook assumes no hardware sales to hyperscale customers and wind-down of Penguin Edge, resulting in a 14% headwind to net sales growth.