NASDAQ: PENG
Penguin Solutions, Inc.CIK 0001616533 · SIC 3674 · Semiconductors
On June 30, 2025, we completed the U.S. Domestication of the parent company of our corporate group, Penguin Solutions Cayman, from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions Delaware becoming our publicly traded parent company and the successor… About this business →
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Penguin Solutions prices $750M convertible notes, refinances $295.5M existing debt at 0% coupon
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Penguin Solutions reports record Q3 revenue up 48%, raises full-year guidance on AI demand
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Penguin Solutions Q3 revenue +47.6% YoY; $478.7M Celestial AI gain offsets impairment
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Penguin Solutions CFO Olmstead resigns; Johnson named interim CFO, FY2026 guidance raised
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Penguin Solutions expands board to 8, appoints Nokia Network Infrastructure President
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Latest financial statements
From 10-Q filed Jul 7, 2026 (period ending May 29, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
| Description | Three months ended May 29, 2026 | Three months ended May 30, 2025 | Nine months ended May 29, 2026 | Nine months ended May 30, 2025 |
|---|---|---|---|---|
| Net sales: | ||||
| Products | 414,166 | 258,735 | 938,199 | 830,474 |
| Services | 63,715 | 65,516 | 192,649 | 200,398 |
| Related party | 832 | — | 33,935 | — |
| Total net sales | 478,713 | 324,251 | 1,164,783 | 1,030,872 |
| Cost of sales: | ||||
| Products | 313,041 | 200,081 | 751,337 | 648,828 |
| Services | 32,458 | 29,087 | 90,421 | 84,501 |
| Total cost of sales | 345,499 | 229,168 | 841,758 | 733,329 |
| Gross profit | 133,214 | 95,083 | 323,025 | 297,543 |
| Operating expenses: | ||||
| Research and development | 21,984 | 20,222 | 59,653 | 59,940 |
| Selling, general and administrative | 59,404 | 59,724 | 160,485 | 179,575 |
| Impairment of goodwill | — | 5,294 | — | 11,373 |
| Other operating expense | 963 | — | 6,753 | 968 |
| Total operating expenses | 82,351 | 85,240 | 226,891 | 251,856 |
| Operating income | 50,863 | 9,843 | 96,134 | 45,687 |
| Non-operating (income) expense: | ||||
| Interest expense, net | 650 | 573 | 1,418 | 7,152 |
| Other non-operating income | (3,485) | (1,439) | (19,793) | (1,012) |
| Total non-operating (income) expense | (2,835) | (866) | (18,375) | 6,140 |
| Income before taxes | 53,698 | 10,709 | 114,509 | 39,547 |
| Income tax provision | 7,515 | 7,259 | 23,730 | 21,262 |
| Net income | 46,183 | 3,450 | 90,779 | 18,285 |
| Net income attributable to noncontrolling interest | 1,494 | 789 | 3,368 | 2,325 |
| Net income attributable to Penguin Solutions | 44,689 | 2,661 | 87,411 | 15,960 |
| Preferred stock dividends | 3,033 | 3,033 | 9,099 | 5,633 |
| Income available for distribution | 41,656 | (372) | 78,312 | 10,327 |
| Income allocated to participating securities | 4,448 | — | 8,210 | 678 |
| Net income (loss) available to common stockholders | 37,208 | (372) | 70,102 | 9,649 |
| Earnings (loss) per common share | ||||
| Basic | 0.73 | (0.01) | 1.35 | 0.18 |
| Diluted | 0.68 | (0.01) | 1.29 | 0.18 |
| Common stock used in per share calculations: | ||||
| Basic | 50,998 | 53,130 | 52,051 | 53,355 |
| Diluted | 55,063 | 53,738 | 54,565 | 54,336 |
Consolidated Balance Sheets (Unaudited)
(In thousands, except par value amounts)
| Description | May 29, 2026 | August 29, 2025 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | 440,301 | 453,754 |
| Accounts receivable, net | 702,981 | 307,904 |
| Accounts receivable, net related party | 1,288 | — |
| Inventories | 498,318 | 255,182 |
| Other current assets | 85,866 | 47,387 |
| Total current assets | 1,728,754 | 1,064,227 |
| Property and equipment, net | 85,209 | 92,603 |
| Operating lease right-of-use assets | 55,515 | 58,847 |
| Intangible assets, net | 66,536 | 87,754 |
| Goodwill | 145,895 | 145,895 |
| Deferred tax assets | 98,789 | 99,107 |
| Other noncurrent assets | 10,336 | 68,767 |
| Total assets | 2,191,034 | 1,617,200 |
| Liabilities, Temporary Equity and Stockholders' Equity | ||
| Accounts payable and accrued expenses | 802,639 | 318,761 |
| Current debt | 148,401 | 19,945 |
| Deferred revenue | 90,406 | 73,893 |
| Other current liabilities | 78,291 | 61,300 |
| Total current liabilities | 1,119,737 | 473,899 |
| Long-term debt | 294,763 | 441,893 |
| Noncurrent operating lease liabilities | 59,345 | 62,736 |
| Other noncurrent liabilities | 60,779 | 30,445 |
| Total liabilities | 1,534,624 | 1,008,973 |
| Commitments and contingencies | ||
| Temporary equity | ||
| Preferred stock, $0.03 par value; authorized 30,000 shares; 200 shares of convertible preferred stock issued and outstanding as of May 29, 2026 and August 29, 2025. Redemption amount of $200,500 as of May 29, 2026 and August 29, 2025 | 202,710 | 202,710 |
| Penguin Solutions stockholders’ equity: | ||
| Common stock, $0.03 par value; authorized 200,000 shares; 64,804 shares issued and 51,240 outstanding as of May 29, 2026; 62,756 shares issued and 52,738 outstanding as of August 29, 2025 | 1,944 | 1,883 |
| Additional paid-in capital | 587,047 | 551,712 |
| Retained earnings | 125,021 | 46,709 |
| Treasury stock, 13,564 and 10,018 shares held as of May 29, 2026 and August 29, 2025, respectively | (274,962) | (206,076) |
| Accumulated other comprehensive income | 11 | 18 |
| Total Penguin Solutions stockholders’ equity | 439,061 | 394,246 |
| Noncontrolling interest in subsidiary | 14,639 | 11,271 |
| Total stockholders' equity | 453,700 | 405,517 |
| Total liabilities, temporary equity and stockholders' equity | 2,191,034 | 1,617,200 |
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
| Description | Nine months ended May 29, 2026 | Nine months ended May 30, 2025 |
|---|---|---|
| Cash flows from operating activities | ||
| Net income | 90,779 | 18,285 |
| Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
| Depreciation expense and amortization of intangible assets | 37,877 | 43,010 |
| Amortization of debt issuance costs | 1,892 | 2,819 |
| Stock-based compensation expense | 25,195 | 33,362 |
| Impairment of goodwill | — | 11,373 |
| Loss on impairment of non-marketable equity investment | 10,000 | — |
| Gain on disposition of equity investment | (30,928) | — |
| Deferred income taxes, net | 321 | 1,122 |
| Other | 526 | (2,468) |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (396,365) | (40,760) |
| Inventories | (243,136) | (30,776) |
| Other assets | 9,899 | 13,741 |
| Accounts payable and accrued expenses and other liabilities | 505,162 | 133,908 |
| Net cash provided by operating activities from continuing operations | 11,222 | 183,616 |
| Net cash used for operating activities from discontinued operations | — | (4,099) |
| Net cash provided by operating activities | 11,222 | 179,517 |
| Cash flows from investing activities | ||
| Capital expenditures and deposits on equipment | (7,297) | (6,087) |
| Proceeds from sales and maturities of investment securities | — | 27,485 |
| Purchases of held-to-maturity investment securities | — | (46,127) |
| Proceeds from disposition of equity investments | 71,738 | — |
| Other | (1,332) | (1,015) |
| Net cash provided by (used for) investing activities from continuing operations | 63,109 | (25,744) |
| Net cash provided by investing activities from discontinued operations | — | 28,350 |
| Net cash provided by investing activities | 63,109 | 2,606 |
| Cash flows from financing activities | ||
| Proceeds from issuance of preferred shares, net of $8,818 paid issuance costs | — | 191,182 |
| Repayments of debt | (20,000) | — |
| Payments to acquire common stock | (68,886) | (49,240) |
| Proceeds from restricted cash advances | 38,000 | — |
| Payment of preferred stock cash dividends | (9,100) | (5,100) |
| Proceeds from issuance of common stock | 10,202 | 7,745 |
| Net cash (used for) provided by financing activities | (49,784) | 144,587 |
| Net increase in cash, cash equivalents and restricted cash | 24,547 | 326,710 |
| Cash, cash equivalents and restricted cash at beginning of period | 454,070 | 383,477 |
| Cash, cash equivalents and restricted cash at end of period | 478,617 | 710,187 |
Amounts as printed on the EDGAR/iXBRL face — (In thousands, except per share amounts); (In thousands, except par value amounts); (In thousands). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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About Penguin Solutions, Inc.
Source: Item 1 (Business) from the 10-K filed October 21, 2025. Description as filed by the company with the SEC.
Item 1. Business.”
On June 30, 2025, we completed the U.S. Domestication of the parent company of our corporate group, Penguin Solutions Cayman, from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions Delaware becoming our publicly traded parent company and the successor issuer to Penguin Solutions Cayman. The financial information in this Annual Report for periods prior to the completion of the U.S. Domestication relates to Penguin Solutions Cayman. Unless stated otherwise or the context requires otherwise, the terms “Penguin Solutions,” “Company,” “we,” “our,” “us” or similar terms (i) for periods prior to the effectiveness of the U.S. Domestication, refer to Penguin Solutions Cayman and its consolidated subsidiaries and (ii) for periods at or after the completion of the U.S. Domestication, refer to Penguin Solutions Delaware and its consolidated subsidiaries. See “About this Annual Report,” above.
Divestiture of SMART Brazil
On November 29, 2023, we completed the divestiture of an 81% interest in SMART Brazil to Lexar Europe B.V., an affiliate of Shenzhen Longsys Electronics Co. Ltd.
Presentation of SMART Brazil as Discontinued Operations: In accordance with authoritative guidance under U.S. GAAP, we have presented the balance sheets, results of operations and cash flows of SMART Brazil operations in this Annual Report, including in the accompanying consolidated financial statements and notes, as discontinued operations for all periods presented. The SMART Brazil operations were previously reported as part of our Integrated Memory segment. Unless otherwise noted, discussion within this Annual Report relates solely to our continuing operations and excludes the SMART Brazil operations.
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See “PART II –