Penguin Solutions Q3 revenue +47.6% YoY; $27M Celestial AI gain offsets $10M impairment

Filed July 7, 2026 · Period ending May 29, 2026 · Compared to 10-Q Jul 8, 2025 · ~2 min read

Key Changes

• high

  Marvell's acquisition of Celestial AI generated a $27.5M gain on the Company's equity stake, partially offset by a $10M impairment on another non-marketable investment and a $0.5M loss on Marvell share sale. Net non-operating gain: $17M.

  Notes: Celestial AI disposition and impairment verify on EDGAR →
• high

  2029 Notes ($150M principal) reclassified to current debt after conversion trigger; holders may convert through Aug 28, 2026, requiring cash settlement. Management expects low conversion activity based on secondary-market pricing but acknowledges the liquidity risk.

  Notes: 2029 Notes conversion trigger verify on EDGAR →
• high

  Share repurchases slowed 74% YoY to 466K shares ($8.7M) vs 1.8M shares ($29.8M) prior year, despite a new $68.9M authorization in Oct 2025 lifting remaining capacity to $55.8M from $36.8M. All Q3 FY2026 buybacks occurred in the first month; none in the final two months.

  MD&A: Share repurchase activity verify on EDGAR →