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May 30, 2025
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.
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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