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Penguin Solutions, Inc.

Penguin Solutions, Inc.

NASDAQ•PENG
CEO: Mr. Mark W. Adams
Sector: Technology
Industry: Hardware, Equipment & Parts
Listing Date: 2017-05-24
Penguin Solutions, Inc. engages in the designing and development of enterprise solutions worldwide. It operates through three segments: Advanced Computing, Integrated Memory, and Optimized LED. It offers dynamic random access memory modules, solid-state and flash storage, and other advanced integrated memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services. The company also provides Penguin Computing that focus on technical computing for core and cloud environments through high-performance computing and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications, such as high-performance products for government, health care, manufacturing, and telecommunications applications. In addition, it offers Stratus, which provides simplified, protected, and autonomous fault tolerant computing solutions in the data center and at the Edge through hardware and software services; and solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, the company provides LED chip products comprising blue and green LED chips based on gallium nitride, and related materials under Cree LED brand; and surface mount devices under the Cree LED XLamp and J Series brands. It sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, e-commerce, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. The company was formerly known as SMART Global Holdings, Inc. and changed its name to Penguin Solutions, Inc. in October 2024. Penguin Solutions, Inc. was founded in 1988 and is based in Grand Cayman, Cayman Islands.
Contact Information
190 Elgin Avenue, George Town, Grand Cayman, KY1-9008, Cayman Islands
510-623-1231
www.penguinsolutions.com
Market Cap
$1.03B
P/E (TTM)
40.5
65.8
Dividend Yield
--
52W High
$29.80
52W Low
$14.20
52W Range
34%
Rank63Top 84.3%
2.2
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Weak • 2.2 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2015-2024

Financial Dashboard

Q4 2025 Data

Revenue

$337.92M+8.61%
4-Quarter Trend

EPS

$0.11-123.91%
4-Quarter Trend

FCF

-$70.30M+291.65%
4-Quarter Trend

2025 Annual Earnings Highlights

Key Highlights

Total Net Sales Growth Total net sales reached $1.37B in 2025, marking a 16.9% increase driven by Advanced Computing and Integrated Memory segments.
Return to Profitability Net income attributable to stockholders was $25.4M in 2025, reversing the $52.5M net loss reported in the prior fiscal year.
Memory Segment Sales Surge Integrated Memory net sales grew substantially by 30.3% to $464.2M in 2025, fueled by strong demand for DRAM and flash products.
Gross Profit Improvement Gross profit improved to $394.3M in 2025, with gross margin holding steady at 28.8% despite shifts in product mix.

Risk Factors

Customer Concentration Risk Sales to ten largest end customers accounted for 66% of total net sales in 2025, posing significant concentration risk.
Macroeconomic Demand Headwinds Worldwide economic conditions, inflation, and interest rates pose risks across all three segments concurrently, impacting demand forecasts.
Supply Chain Disruption Exposure Reliance on third-party manufacturers exposes results to supply chain disruptions, prolonged lead times, and potential cost increases.
AI Technology Regulatory Uncertainty Investments in complex AI technologies face uncertain regulatory environments and potential intellectual property risks regarding output.

Outlook

U.S. Domestication Completed Parent company redomiciliation to Delaware finalized on June 30, 2025, impacting capital structure and future tax considerations.
Penguin Edge Discontinuation Plan The obsolete Penguin Edge product portfolio is expected to be fully discontinued by approximately the end of calendar 2025.
Continued R&D Investment R&D expenses were $79.8M in 2025, focusing on innovation in AI infrastructure, next-gen memory, and differentiated LED products.
Capital Structure Management The company intends to retain future earnings to repay indebtedness and fund growth, with no current cash dividend plans.

Peer Comparison

Revenue (TTM)

Benchmark Electronics, Inc.BHE
$2.61B
-2.9%
Penguin Solutions, Inc.PENG
$1.37B
+16.9%
TaskUs, Inc.TASK
$1.14B
+19.9%

Gross Margin (Latest Quarter)

TaskUs, Inc.TASK
129.8%
+90.0pp
Radware Ltd.RDWR
80.7%
-0.1pp
Rapid7, Inc.RPD
70.2%
-0.5pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
BHE$1.58B42.33.4%15.4%
CTS$1.31B22.110.9%16.8%
HLIT$1.17B23.111.0%17.5%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
-0.3%
Flat Growth
4Q Net Income CAGR
21.8%
Profitability Improved
Cash Flow Stability
75%
Volatile Cash Flow

Research & Insights

Next earnings:Jan 14, 2026
|
EPS:$0.41
|
Revenue:-
Reports
All Years
  • Form 10-K - FY 2025

    Period End: Aug 29, 2025|Filed: Oct 21, 2025|
    Revenue: $1.37B+16.9%
    |
    EPS: $0.29+129.0%
    Miss
  • Form 10-Q - Q3 2025

    Period End: May 30, 2025|Filed: Jul 8, 2025|
    Revenue: $324.25M+7.9%
    |
    EPS: $-0.01-106.4%
    Miss
  • Form 10-Q - Q2 2025

    Period End: Feb 28, 2025|Filed: Apr 2, 2025|
    Revenue: $365.52M+28.3%
    |
    EPS: $0.09-136.0%
    Miss
  • Form 10-Q - Q1 2025

    Period End: Nov 29, 2024|Filed: Jan 8, 2025|
    Revenue: $341.10M+24.4%
    |
    EPS: $0.10-125.7%
    Miss
  • Form 10-K - FY 2024

    Period End: Aug 30, 2024|Filed: Oct 24, 2024|
    Revenue: $1.17B-18.8%
    |
    EPS: $-1.00+73.5%
    Miss
  • Form 10-Q - Q3 2024

    Period End: May 31, 2024|Filed: Jul 9, 2024|
    Revenue: $300.58M-12.7%
    |
    EPS: $0.11-122.0%
    Miss
  • Form 10-Q - Q2 2024

    Period End: Mar 1, 2024|Filed: Apr 9, 2024|
    Revenue: $284.82M-26.7%
    |
    EPS: $-0.26-52.7%
    Miss
  • Form 10-Q - Q1 2024

    Period End: Dec 1, 2023|Filed: Jan 9, 2024|
    Revenue: $274.25M-30.0%
    |
    EPS: $-0.38-480.0%
    Miss