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May 30
Penguin Solutions Q3 2025 Earnings Report
Penguin Solutions reported its Q3 2025 earnings with strong non-GAAP profitability and continued expansion in its AI capabilities.
Key Takeaways
Penguin Solutions posted $324.25M in revenue and a non-GAAP EPS of $0.47, reflecting solid execution on strategic initiatives. While GAAP EPS turned slightly negative, the company showed strong operating income and raised its full-year earnings outlook.
Revenue reached $324.25M, up from $300.58M YoY.
Non-GAAP EPS grew to $0.47, up from $0.37 last year.
GAAP EPS declined to $(0.01), impacted by goodwill impairment and redomiciliation costs.
The company strengthened its balance sheet post-quarter and is focused on AI software growth.
Penguin Solutions
Penguin Solutions
Penguin Solutions Revenue by Segment
Revenue by Segment
Advanced Computing Revenue
CapyFin.comIntegrated Memory Revenue
CapyFin.comOptimized LED Revenue
CapyFin.com Forward Guidance
Penguin Solutions raised its full-year GAAP and Non-GAAP EPS midpoint guidance while maintaining expected net sales growth.
Positive Outlook
- Raised full-year GAAP and Non-GAAP EPS outlook.
- Maintained 17% YoY revenue growth outlook.
- Non-GAAP gross margin expected to remain stable at ~31%.
- Operating expenses projected to decline under Non-GAAP.
- Diluted share count remains steady at 54 million.
Challenges Ahead
- GAAP EPS outlook remains low despite improvement.
- Gross margin slightly compressed YoY.
- Continued goodwill impairment charges impacting GAAP results.
- Restructuring and redomiciliation costs continue to weigh.
- Operating income on GAAP basis remains constrained by adjustments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income