Penguin Solutions: Fiscal 4Q25 and FY25 Financial Results

Summary:

Fiscal 2025 Net Sales up 17% compared to the prior year
GAAP EPS of $0.28, up from ($0.85)
Non-GAAP EPS of $1.90, up 53%

Penguin Solutions, Inc. reported financial results for the 4th quarter and full year fiscal 2025.

Fiscal 2025 Highlights

Net sales of $1.37 billion versus $1.17 billion in fiscal year 2024
GAAP gross margin of 28.8%, down 30 basis points versus fiscal year 2024
Non-GAAP gross margin of 31.0%, down 90 basis points versus fiscal year 2024
GAAP diluted EPS of $0.28 versus $(0.85) in fiscal year 2024
Non-GAAP diluted EPS of $1.90 versus $1.25 in fiscal year 2024

Fourth Quarter Fiscal 2025 Highlights

Net sales of $338 million, up 9% versus the year-ago quarter
GAAP gross margin of 28.6%, up 60 basis points versus the year-ago quarter
Non-GAAP gross margin of 30.9%, for the current and year-ago quarters
GAAP diluted EPS of $0.11 versus $(0.46) in the year-ago quarter
Non-GAAP diluted EPS of $0.43 versus $0.37 in the year-ago quarter

“Fiscal 2025 was a year of strong execution and meaningful progress in our transformation from a holding company structure to an enterprise AI infrastructure solutions company,” said Mark Adams, CEO, Penguin Solutions. “Our results highlight the momentum in our core businesses and our position as an emerging leader in designing, building, deploying and managing enterprise AI implementations.”

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Comments

The company touches new levels with $338 million for the quarter and $1.37 billion for the fiscal year, it means a growth of 17% YoY but also up 9% from 4Q24. Sequentially it is up 4%. The ARR established after 3Q25 was $1.34 billion and finally it reaches $1.37 billion.

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The $200 million deal with SK Telecom is also a good sign for the firm plus the partnership with Nvidia and Dell among others.

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The Advanced Computing activity generated $138 million in Q4 and globally $638 million exactly up 17% like the global revenue. The interesting aspect is that Penguin confirms that the key or main driver is HPC/AI related business that clearly dominates. On the Integrated Memory, CXL shows some interesting interests. These 2 domains generated more than a billion, exactly $1.112 billion or 81% of the total revenue.

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