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Press Release
FOR IMMEDIATE RELEASE


PENGUIN SOLUTIONS REPORTS Q2 FISCAL 2025 FINANCIAL RESULTS
Revenue up 28% compared with year-ago quarter
Company raises midpoint of annual revenue outlook


Milpitas, Calif. – April 2, 2025 – Penguin Solutions, Inc. (“Penguin Solutions,” “we,” “us,” or the “Company”) (NASDAQ: PENG) today reported financial results for the second quarter of fiscal 2025 and announced the planned retirement of Chief Operating Officer (“COO”) and President of Integrated Memory Jack Pacheco.
Second Quarter Fiscal 2025 Highlights
•Net sales of $366 million, up 28.3% versus the year-ago quarter
•GAAP gross margin of 28.6%, down 20 basis points versus the year-ago quarter
•Non-GAAP gross margin of 30.8%, down 70 basis points versus the year-ago quarter
•GAAP diluted EPS of $0.09 versus $(0.26) in the year-ago quarter
•Non-GAAP diluted EPS of $0.52 versus $0.27 in the year-ago quarter

“We are pleased with the progress we are making in fiscal year 2025,” said Mark Adams, Chief Executive Officer (“CEO”) of Penguin Solutions. “Our results reinforce our capabilities in managing the complexity of AI for our valued customers. Given our strong start to the fiscal year, we are raising the midpoint of our revenue outlook for the full year.”
Quarterly Financial Results
 
GAAP (1)
 
Non-GAAP (2)
(in thousands, except per share amounts)Q2-25Q1-25Q2-24Q2-25Q1-25Q2-24
Net sales:
Advanced Computing$200,157 $177,426 $141,405 $200,157 $177,426 $141,405 
Integrated Memory105,260 96,706 83,297 105,260 96,706 83,297 
Optimized LED60,102 66,970 60,119 60,102 66,970 60,119 
Total net sales$365,519 $341,102 $284,821 $365,519 $341,102 $284,821 
Gross profit$104,648 $97,812 $81,934 $112,408 $105,122 $89,735 
Operating income (loss)18,488 17,356 (3,312)49,090 40,918 26,514 
Net income (loss) attributable to Penguin Solutions8,082 5,217 (13,620)33,836 26,518 14,141 
Diluted earnings (loss) per share$0.09 $0.10 $(0.26)$0.52 $0.49 $0.27 
(1)GAAP represents U.S. Generally Accepted Accounting Principles.
(2)Non-GAAP represents GAAP excluding the impact of certain activities. Further information regarding the Company’s use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release.




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Business Outlook
As of April 2, 2025, Penguin Solutions is providing the following financial outlook for fiscal year 2025:
New Outlook
GAAP
Outlook
Adjustments
Non-GAAP
Outlook
Net sales17% YoY Growth +/- 3%—17% YoY Growth +/- 3%
Gross margin29% +/- 1%2%(A)31% +/- 1%
Operating expenses$336 million +/- $5 million($71) million(B)(C)(D)$265 million +/- $5 million
Diluted earnings per share$-0.02 +/- $0.10$1.62(A)(B)(C)(D)(E)$1.60 +/- $0.10
Diluted shares54 million1 million55 million
Non-GAAP adjustments (in millions)
(A) Share-based compensation and amortization of acquisition-related intangibles included in cost of sales$31 
(B) Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A48 
(C) Goodwill impairment
16 
(D) Other adjustments7 
(E) Estimated income tax effects(13)
$89 
Prior OutlookGAAP
Outlook		AdjustmentsNon-GAAP
Outlook
Net sales15% YoY Growth +/- 5%—15% YoY Growth +/- 5%
Gross margin30% +/- 1%2%(A)32% +/- 1%
Operating expenses$335 million +/- $15 million($60) million(B)(C)$275 million +/- $15 million
Diluted earnings per share$0.10 +/- $0.20$1.40(A)(B)(C)(D)$1.50 +/- $0.20
Diluted shares56.3 million—56.3 million
Non-GAAP adjustments (in millions)
(A) Share-based compensation and amortization of acquisition-related intangibles included in cost of sales$31 
(B) Share-based compensation and amortization of acquisition-related intangibles included in R&D and SG&A48 
(C) Other adjustments
12 
(D) Estimated income tax effects
(12)
$79 
Second Quarter Fiscal 2025 Earnings Conference Call and Webcast Details
Penguin Solutions will hold a conference call and webcast to discuss the second quarter of fiscal 2025 results and related matters today, April 2, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). Interested parties may access the call by dialing +1-833-470-1428 in the United States or +1-404-975-4839 from international locations, using the access code 858614. The earnings presentation and a live webcast of the conference call can be accessed from the Company’s investor relations website (https://ir.penguinsolutions.com/investors/default.aspx) where they will remain available for approximately one year.
Jack Pacheco to Retire as Chief Operating Officer and President of Integrated Memory

Jack Pacheco, Executive Vice President (“EVP”), COO and President of Integrated Memory, is expected to retire from the Company on December 31, 2025. The Company has initiated a succession planning process. Mr. Pacheco is expected to transition into a special advisor role if his successor is appointed before his retirement,



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and to provide consulting services following his retirement to ensure continuity and a smooth transition of his responsibilities.

Mr. Pacheco first joined the Company in 1994 and has served in various leadership roles during his tenure. He remained with the Company from 1994 until 2001, and then returned in 2004 as Chief Financial Officer (“CFO”), a position he held until 2008. In 2011, Mr. Pacheco returned to the Company and served as Senior Vice President, COO and CFO until becoming EVP, COO and President of Integrated Memory in September 2020.

“On behalf of the entire company, I want to thank Jack for his nearly 25 years of leadership and dedication,” said Mark Adams, CEO of Penguin Solutions. “Jack played a key role in scaling our memory business and strengthening our global operations. We’re grateful for his many contributions and his support through this transition.”
Use of Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements concerning or regarding future events and the future financial and operating performance of Penguin Solutions; statements regarding the extent and timing of and expectations regarding Penguin Solutions’ future revenues and expenses; statements regarding Penguin Solutions’ strategic transformation and priorities; statements regarding long-term effective tax rates; statements regarding the business and financial outlook for fiscal year 2025 described under “Business Outlook” above; and statements regarding the expected retirement of Mr. Pacheco and related succession planning activities.
These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” “could,” and other words of similar meaning. Forward-looking statements provide our current expectations or forecasts of future events, circumstances, results or aspirations and are subject to a number of significant risks, uncertainties and other factors, many of which are outside of our control, including but not limited to: global business and economic conditions and growth trends in technology industries (including trends and markets related to artificial intelligence), our customer markets and various geographic regions; uncertainties in the geopolitical environment; the ability to manage our cost structure; disruptions in our operations or supply chain as a result of global pandemics or otherwise; changes in trade regulations or adverse developments in international trade relations and agreements; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including our proposed redomiciliation to the United States (which remains subject to shareholder and court approval), our rebranding and related strategy, any existing or potential collaborations and additional investments in new products and additional capacity; acquisitions of companies or technologies and the failure to successfully integrate and operate them or customers’ negative reactions to them; issues, delays or complications in integrating the operations of Stratus Technologies; failure to achieve the intended benefits of the sale of SMART Brazil and its business; limitations on or changes in the availability of supply of materials and components; fluctuations in material costs; the temporary or volatile nature of pricing trends in memory or elsewhere; deterioration in customer relationships; our dependence on a select number of customers and the timing and volume of customer orders; production or manufacturing difficulties; competitive factors; technological changes; difficulties with, or delays in, the introduction of new products; slowing or contraction of growth in the memory market, LED market or other markets in which we participate; changes to applicable tax regimes or rates; changes to the valuation allowance for our deferred tax assets, including any potential inability to realize these assets in the future; prices for the end products of our customers; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors; the inability to maintain or expand government business; and the continuing availability of borrowings under term loans and revolving lines of credit and our ability to raise capital through debt or equity financings.
These and other risks, uncertainties and factors are described in greater detail under the sections titled “Risk Factors,” “Critical Accounting Estimates,” “Results of Operations,” “Quantitative and Qualitative Disclosures About



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Market Risk” and “Liquidity and Capital Resources” contained in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and our other filings with the U.S. Securities and Exchange Commission. In addition, such risks, uncertainties and factors as outlined above and in such filings do not constitute all risks, uncertainties and factors that could cause our actual results to be materially different from such forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we do not undertake to update the forward-looking statements contained in this press release to reflect the impact of circumstances or events that may arise after the date that the forward-looking statements were made.
Statement Regarding Use of Non-GAAP Financial Measures
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP effective tax rate, non-GAAP net income, non-GAAP weighted-average shares outstanding, non-GAAP diluted earnings per share and adjusted EBITDA. Penguin Solutions’ management uses these non-GAAP measures to supplement Penguin Solutions’ financial results under GAAP. Management uses these measures to analyze its operations and make decisions as to future operational plans and believes that this supplemental non-GAAP information is useful to investors in analyzing and assessing the Company’s past and future operating performance. These non-GAAP measures exclude certain items, such as share-based compensation expense; amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships and trademarks/trade names acquired in connection with business combinations); cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; restructuring charges; impairment of goodwill; changes in the fair value of contingent consideration; gains (losses) from changes in foreign currency exchange rates; amortization of debt issuance costs; gain (loss) on extinguishment or prepayment of debt; other infrequent or unusual items and related tax effects and other tax adjustments. While amortization of acquisition-related intangible assets is excluded, the revenues from acquired companies are reflected in the Company’s non-GAAP measures and these intangible assets contribute to revenue generation. Management believes the presentation of operating results that exclude certain items provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. Management also uses adjusted EBITDA, which represents GAAP net income (loss), adjusted for net interest expense; income tax provision (benefit); depreciation expense and amortization of intangible assets; share-based compensation expense; cost of sales-related restructuring; diligence, acquisition and integration expense; redomiciliation costs; impairment of goodwill; restructuring charges; loss on extinguishment of debt and other infrequent or unusual items.
In fiscal 2024, for our non-GAAP reporting, we began to utilize a long-term projected non-GAAP effective tax rate of 28%, which includes the tax impact of pre-tax non-GAAP adjustments and reflects currently available information as well as other factors and assumptions. While we expect to use this normalized non-GAAP effective tax rate through fiscal 2025, this long-term non-GAAP effective tax rate may be subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Our GAAP effective tax rate can vary significantly from quarter to quarter based on a variety of factors, including, but not limited to, discrete items which are recorded in the period they occur, the tax effects of certain items of income or expense, significant changes in our geographic earnings mix or changes to our strategy or business operations. We are unable to predict the timing and amounts of these items, which could significantly impact our GAAP effective tax rate, and therefore we are unable to reconcile our forward-looking non-GAAP effective tax rate measure to our GAAP effective tax rate.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP, as they exclude important information about Penguin Solutions’ financial results, as noted above. The presentation of these adjusted amounts varies from amounts presented in accordance with GAAP and therefore may not be comparable to amounts reported by other companies. In addition, adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity. Investors are encouraged to review the “Reconciliation of GAAP to Non-GAAP Measures” tables below.



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About Penguin Solutions
The most exciting technological advancements are also the most challenging for companies to adopt. At Penguin Solutions, we support our customers in achieving their ambitions across our computing, memory, and LED lines of business. With our expert skills, experience, and partnerships, we turn our customers’ most complex challenges into compelling opportunities.
For more information, visit www.penguinsolutions.com.


Penguin Solutions, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
 Three Months EndedSix Months Ended
 February 28,
2025		November 29,
2024		March 1,
2024		February 28,
2025		March 1,
2024
Net sales:
Advanced Computing$200,157 $177,426 $141,405 $377,583 $260,229 
Integrated Memory105,260 96,706 83,297 201,966 168,965 
Optimized LED 60,102 66,970 60,119 127,072 129,874 
Total net sales365,519 341,102 284,821 706,621 559,068 
Cost of sales260,871 243,290 202,887 504,161 394,284 
Gross profit104,648 97,812 81,934 202,460 164,784 
Operating expenses:
Research and development19,907 19,811 20,526 39,718 41,915 
Selling, general and administrative59,315 60,536 61,385 119,851 118,602 
Impairment of goodwill6,079 — — 6,079 — 
Other operating expense859 109 3,335 968 6,274 
Total operating expenses86,160 80,456 85,246 166,616 166,791 
Operating income (loss)18,488 17,356 (3,312)35,844 (2,007)
Non-operating (income) expense:
Interest expense, net2,183 4,396 7,249 6,579 16,808 
Other non-operating (income) expense(209)636 248 427 (328)
Total non-operating (income) expense1,974 5,032 7,497 7,006 16,480 
Income (loss) before taxes16,514 12,324 (10,809)28,838 (18,487)
Income tax provision7,643 6,360 2,198 14,003 5,732 
Net income (loss) from continuing operations8,871 5,964 (13,007)14,835 (24,219)
Net loss from discontinued operations— — — — (8,148)
Net income (loss)8,871 5,964 (13,007)14,835 (32,367)
Net income attributable to noncontrolling interest789 747 613 1,536 1,174 
Net income (loss) attributable to Penguin Solutions8,082 5,217 (13,620)13,299 (33,541)
Preferred share dividends2,600 — — 2,600 — 
Income available for distribution5,482 5,217 (13,620)10,699 (33,541)
Income allocated to participating securities482 — — 492 — 
Net income available to ordinary shareholders$5,000 $5,217 $(13,620)$10,207 $(33,541)
Basic earnings (loss) per share:
Continuing operations$0.09 $0.10 $(0.26)$0.19 $(0.49)
Discontinued operations— — — — (0.15)
$0.09 $0.10 $(0.26)$0.19 $(0.64)
Diluted earnings (loss) per share:
Continuing operations$0.09 $0.10 $(0.26)$0.19 $(0.49)
Discontinued operations— — — — (0.15)
$0.09 $0.10 $(0.26)$0.19 $(0.64)
Shares used in per share calculations:
Basic53,454 53,482 52,031 53,468 52,050 
Diluted54,384 54,312 52,031 54,484 52,050 


Penguin Solutions, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(In thousands, except percentages)
(Unaudited)

 Three Months EndedSix Months Ended
 February 28,
2025		November 29,
2024		March 1,
2024		February 28,
2025		March 1,
2024
GAAP gross profit$104,648 $97,812 $81,934 $202,460 $164,784 
Share-based compensation expense1,776 1,643 1,691 3,419 3,506 
Amortization of acquisition-related intangibles5,907 5,909 5,894 11,816 11,838 
Cost of sales-related restructuring77 (42)216 35 884 
Other— (200)— (200)— 
Non-GAAP gross profit$112,408 $105,122 $89,735 $217,530 $181,012 
  
GAAP gross margin28.6 %28.7 %28.8 %28.7 %29.5 %
Effect of adjustments2.2 %2.1 %2.7 %2.1 %2.9 %
Non-GAAP gross margin30.8 %30.8 %31.5 %30.8 %32.4 %
GAAP operating expenses$86,160 $80,456 $85,246 $166,616 $166,791 
Share-based compensation expense(9,804)(9,888)(8,948)(19,692)(18,103)
Amortization of acquisition-related intangibles(2,932)(3,846)(3,857)(6,778)(7,921)
Diligence, acquisition and integration expense(567)(833)(5,885)(1,400)(6,674)
Redomiciliation costs (1)
(2,359)(1,243)— (3,602)— 
Impairment of goodwill(6,079)— — (6,079)— 
Restructuring charges(859)(109)(3,335)(968)(6,274)
Other (1)
(242)(333)— (575)— 
Non-GAAP operating expenses$63,318 $64,204 $63,221 $127,522 $127,819 
  
GAAP operating income (loss)$18,488 $17,356 $(3,312)$35,844 $(2,007)
Share-based compensation expense11,580 11,531 10,639 23,111 21,609 
Amortization of acquisition-related intangibles8,839 9,755 9,751 18,594 19,759 
Cost of sales-related restructuring77 (42)216 35 884 
Diligence, acquisition and integration expense567 833 5,885 1,400 6,674 
Redomiciliation costs (1)
2,359 1,243 — 3,602 — 
Impairment of goodwill6,079 — — 6,079 — 
Restructuring charges859 109 3,335 968 6,274 
Other (1)
242 133 — 375 — 
Non-GAAP operating income$49,090 $40,918 $26,514 $90,008 $53,193 
(1) In the second quarter of fiscal 2025 we began breaking out redomiciliation costs from “Other.” All periods presented have been adjusted to reflect this change.


Penguin Solutions, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(In thousands, except per share amounts)
(Unaudited)
 Three Months EndedSix Months Ended
 February 28,
2025		November 29,
2024		March 1,
2024		February 28,
2025		March 1,
2024
GAAP net income (loss) attributable to Penguin Solutions$8,082 $5,217 $(13,620)$13,299 $(25,393)
Share-based compensation expense11,580 11,531 10,639 23,111 21,609 
Amortization of acquisition-related intangibles8,839 9,755 9,751 18,594 19,759 
Cost of sales-related restructuring77 (42)216 35 884 
Diligence, acquisition and integration expense567 833 5,885 1,400 6,674 
Redomiciliation costs (1)
2,359 1,243 — 3,602 — 
Impairment of goodwill6,079 — — 6,079 — 
Restructuring charges859 109 3,335 968 6,274 
Amortization of debt issuance costs950 953 968 1,903 2,010 
Loss (gain) on extinguishment or prepayment of debt— — 325 — 325 
Foreign currency (gains) losses24 1,028 182 1,052 (364)
Other (1)
242 133 — 375 — 
Income tax effects(5,822)(4,242)(3,540)(10,064)(5,099)
Non-GAAP net income attributable to Penguin Solutions33,836 26,518 14,141 60,354 26,679 
Preferred share dividends2,600 — — 2,600 — 
Non-GAAP income available for distribution31,236 26,518 14,141 57,754 29,887 
Income allocated to participating securities2,706 — — 2,610 — 
Non-GAAP net income available to ordinary shareholders$28,530 $26,518 $14,141 $55,144 $29,887 
Weighted-average shares outstanding - Diluted:
GAAP weighted-average shares outstanding54,384 54,312 52,031 54,484 52,050 
Adjustment for dilutive securities and capped calls— — 1,043 — 1,128 
Non-GAAP weighted-average shares outstanding54,384 54,312 53,074 54,484 53,178 
Diluted earnings (loss) per share from continuing operations:
GAAP diluted earnings (loss) per share$0.09 $0.10 $(0.26)$0.19 $(0.49)
Effect of adjustments0.43 0.39 0.53 0.82 0.99 
Non-GAAP diluted earnings per share$0.52 $0.49 $0.27 $1.01 $0.50 
  
Net income (loss) attributable to Penguin Solutions$8,082 $5,217 $(13,620)$13,299 $(25,393)
Interest expense, net2,183 4,396 7,249 6,579 16,808 
Income tax provision (benefit)7,643 6,360 2,198 14,003 5,732 
Depreciation expense and amortization of intangible assets14,037 14,961 17,156 28,998 34,810 
Share-based compensation expense11,580 11,531 10,639 23,111 21,609 
Cost of sales-related restructuring77 (42)216 35 884 
Diligence, acquisition and integration expense567 833 5,885 1,400 6,674 
Redomiciliation costs (1)
2,359 1,243 — 3,602 — 
Impairment of goodwill6,079 — — 6,079 — 
Restructuring charges859 109 3,335 968 6,274 
Loss on extinguishment of debt— — 325 — 325 
Other (1)
242 133 — 375 — 
Adjusted EBITDA$53,708 $44,741 $33,383 $98,449 $67,723 
(1) In the second quarter of fiscal 2025 we began breaking out redomiciliation costs from “Other.” All periods presented have been adjusted to reflect this change.


Penguin Solutions, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)

As ofFebruary 28,
2025		August 30,
2024
Assets
Cash and cash equivalents$621,682 $383,147 
Short-term investments25,323 6,337 
Accounts receivable, net330,384 251,743 
Inventories199,737 151,213 
Other current assets67,639 75,264 
Total current assets1,244,765 867,704 
Property and equipment, net97,116 106,548 
Operating lease right-of-use assets56,363 60,349 
Intangible assets, net103,280 121,454 
Goodwill155,879 161,958 
Deferred tax assets84,944 85,078 
Other noncurrent assets68,997 71,415 
Total assets$1,811,344 $1,474,506 
Liabilities and Equity
Accounts payable and accrued expenses$278,093 $219,090 
Current debt19,891 — 
Deferred revenue121,646 63,954 
Other current liabilities54,075 44,552 
Total current liabilities473,705 327,596 
Long-term debt638,900 657,347 
Noncurrent operating lease liabilities56,816 60,542 
Other noncurrent liabilities30,032 29,813 
Total liabilities1,199,453 1,075,298 
Commitments and contingencies
Penguin Solutions shareholders’ equity:
Preferred shares6 — 
Ordinary shares1,849 1,807 
Additional paid-in capital731,323 513,335 
Retained earnings40,684 29,985 
Treasury shares(171,351)(153,756)
Accumulated other comprehensive income (loss)17 10 
Total Penguin Solutions shareholders’ equity602,528 391,381 
Noncontrolling interest in subsidiary9,363 7,827 
Total equity611,891 399,208 
Total liabilities and equity$1,811,344 $1,474,506 


Penguin Solutions, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

 Three Months EndedSix Months Ended
February 28,
2025		November 29,
2024		March 1,
2024		February 28,
2025		March 1,
2024
Cash flows from operating activities
Net income (loss)$8,871 $5,964 $(13,007)$14,835 $(32,367)
Net loss from discontinued operations— — — — (8,148)
Net income (loss) from continuing operations8,871 5,964 (13,007)14,835 (24,219)
Adjustments to reconcile net income (loss) from continuing operations to cash provided by (used for) operating activities
Depreciation expense and amortization of intangible assets14,037 14,961 17,156 28,998 34,810 
Amortization of debt issuance costs950 953 968 1,903 2,010 
Share-based compensation expense11,580 11,531 10,639 23,111 21,609 
Impairment of goodwill6,079 — — 6,079 — 
Loss on extinguishment or prepayment of debt— — 325 — 325 
Deferred income taxes, net(48)211 476 163 194 
Other(716)(712)(208)(1,428)456 
Changes in operating assets and liabilities:
Accounts receivable(54,755)(23,885)872 (78,640)49,530 
Inventories47,215 (93,380)35,678 (46,165)2,214 
Other assets15,015 705 (23,229)15,720 (21,127)
Accounts payable and accrued expenses and other liabilities24,649 97,471 (22,587)122,120 994 
Payment of acquisition-related contingent consideration— — (29,000)— (29,000)
Net cash provided by (used for) operating activities from continuing operations72,877 13,819 (21,917)86,696 37,796 
Net cash used for operating activities from discontinued operations— — — — (28,235)
Net cash provided by (used for) operating activities72,877 13,819 (21,917)86,696 9,561 
Cash flows from investing activities
Capital expenditures and deposits on equipment(2,335)(1,836)(5,204)(4,171)(9,852)
Proceeds from maturities of investment securities11,055 3,780 12,290 14,835 21,955 
Purchases of held-to-maturity investment securities(12,671)(20,723)(11,034)(33,394)(19,503)
Purchases of non-marketable investments— — — — — 
Other(398)(143)(558)(541)(746)
Net cash used for investing activities from continuing operations(4,349)(18,922)(4,506)(23,271)(8,146)
Net cash provided by investing activities from discontinued operations— — — — 118,938 
Net cash provided by (used for) investing activities$(4,349)$(18,922)$(4,506)$(23,271)$110,792 



Penguin Solutions, Inc.
Consolidated Statements of Cash Flows, Continued
(In thousands)
(Unaudited)

 Three Months EndedSix Months Ended
February 28,
2025		November 29,
2024		March 1,
2024		February 28,
2025		March 1,
2024
Cash flows from financing activities
Proceeds from issuance of convertible preferred shares, net of issuance costs$191,182 $— $— $191,182 $— 
Repayments of debt— — (37,211)— (51,634)
Payment of acquisition-related contingent consideration— — (21,000)— (21,000)
Payments to acquire ordinary shares(6,472)(11,123)(2,732)(17,595)(15,862)
Payment of preferred share cash dividends(2,233)— — (2,233)— 
Distribution to noncontrolling interest— — — — (1,470)
Proceeds from issuance of ordinary shares382 3,360 792 3,742 4,247 
Other— — (1)— (583)
Net cash used for financing activities from continuing operations182,859 (7,763)(60,152)175,096 (86,302)
Net cash used for financing activities from discontinued operations— — — — (606)
Net cash used for financing activities182,859 (7,763)(60,152)175,096 (86,908)
Effect of changes in currency exchange rates— — (155)— (1,180)
Net increase (decrease) in cash, cash equivalents and restricted cash251,387 (12,866)(86,730)238,521 32,265 
Cash, cash equivalents and restricted cash at beginning of period370,611 383,477 529,059 383,477 410,064 
Cash, cash equivalents and restricted cash at end of period$621,998 $370,611 $442,329 $621,998 $442,329 


Investor Contact:PR Contact:
Suzanne Schmidt
Maureen O’Leary
Investor Relations
Director Communications
+1-510-360-8596
1-602-330-6846
ir@penguinsolutions.com
pr@penguinsolutions.com