$PENG

Penguin Solutions, Inc.

CIK:0001616533|SEC Filings

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 29, 2026	May 30, 2025	May 29, 2026	May 30, 2025
Total net sales	$ 478,713	$ 324,251	$ 1,164,783	$ 1,030,872
Total cost of sales	345,499	229,168	841,758	733,329
Gross profit	133,214	95,083	323,025	297,543
Operating expenses:
Research and development	21,984	20,222	59,653	59,940
Selling, general and administrative	59,404	59,724	160,485	179,575
Impairment of goodwill	0	5,294	0	11,373
Other operating expense	963	0	6,753	968
Total operating expenses	82,351	85,240	226,891	251,856
Operating income	50,863	9,843	96,134	45,687
Non-operating (income) expense:
Interest expense, net	650	573	1,418	7,152
Other non-operating income	(3,485)	(1,439)	(19,793)	(1,012)
Total non-operating (income) expense	(2,835)	(866)	(18,375)	6,140
Income before taxes	53,698	10,709	114,509	39,547
Income tax provision	7,515	7,259	23,730	21,262
Net income	46,183	3,450	90,779	18,285
Net income attributable to noncontrolling interest	1,494	789	3,368	2,325
Net income attributable to Penguin Solutions	44,689	2,661	87,411	15,960
Preferred stock dividends	3,033	3,033	9,099	5,633
Income available for distribution	41,656	(372)	78,312	10,327
Income allocated to participating securities	4,448	0	8,210	678
Net income (loss) available to common stockholders, basic	37,208	(372)	70,102	9,649
Net income (loss) available to common stockholders, diluted	$ 37,208	$ (372)	$ 70,102	$ 9,649
Earnings (loss) per common share
Basic (in usd per share)	$ 0.73	$ (0.01)	$ 1.35	$ 0.18
Diluted (in usd per share)	$ 0.68	$ (0.01)	$ 1.29	$ 0.18
Common stock used in per share calculations:
Basic (in shares)	50,998	53,130	52,051	53,355
Diluted (in shares)	55,063	53,738	54,565	54,336
Related Party
Total net sales	$ 832	$ 0	$ 33,935	$ 0
Products
Total cost of sales	313,041	200,081	751,337	648,828
Products \| Nonrelated Party
Total net sales	414,166	258,735	938,199	830,474
Services
Total cost of sales	32,458	29,087	90,421	84,501
Services \| Nonrelated Party
Total net sales	$ 63,715	$ 65,516	$ 192,649	$ 200,398

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 29, 2026	May 30, 2025
Cash flows from operating activities
Net income	$ 90,779	$ 18,285
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities:
Depreciation expense and amortization of intangible assets	37,877	43,010
Amortization of debt issuance costs	1,892	2,819
Stock-based compensation expense	25,195	33,362
Impairment of goodwill	0	11,373
Loss on impairment of non-marketable equity investment	10,000	0
Gain on disposition of equity investment	(30,928)	0
Deferred income taxes, net	321	1,122
Other	526	(2,468)
Changes in operating assets and liabilities:
Accounts receivable	(396,365)	(40,760)
Inventories	(243,136)	(30,776)
Other assets	9,899	13,741
Accounts payable and accrued expenses and other liabilities	505,162	133,908
Net cash provided by operating activities from continuing operations	11,222	183,616
Net cash used for operating activities from discontinued operations	0	(4,099)
Net cash provided by operating activities	11,222	179,517
Cash flows from investing activities
Capital expenditures and deposits on equipment	(7,297)	(6,087)
Proceeds from sales and maturities of investment securities	0	27,485
Purchases of held-to-maturity investment securities	0	(46,127)
Proceeds from disposition of equity investments	71,738	0
Other	(1,332)	(1,015)
Net cash provided by (used for) investing activities from continuing operations	63,109	(25,744)
Net cash provided by investing activities from discontinued operations	0	28,350
Net cash provided by investing activities	63,109	2,606
Cash flows from financing activities
Proceeds from issuance of preferred shares, net of $8,818 paid issuance costs	0	191,182
Repayments of debt	(20,000)	0
Payments to acquire common stock	(68,886)	(49,240)
Proceeds from restricted cash advances	38,000	0
Payment of preferred stock cash dividends	(9,100)	(5,100)
Proceeds from issuance of common stock	10,202	7,745
Net cash (used for) provided by financing activities	(49,784)	144,587
Net increase in cash, cash equivalents and restricted cash	24,547	326,710
Cash, cash equivalents and restricted cash at beginning of period	454,070	383,477
Cash, cash equivalents and restricted cash at end of period	$ 478,617	$ 710,187

Consolidated Balance Sheets - USD ($) $ in Thousands	May 29, 2026	Aug. 29, 2025
Assets
Cash and cash equivalents	$ 440,301	$ 453,754
Inventories	498,318	255,182
Other current assets	85,866	47,387
Total current assets	1,728,754	1,064,227
Property and equipment, net	85,209	92,603
Operating lease right-of-use assets	55,515	58,847
Intangible assets, net	66,536	87,754
Goodwill	145,895	145,895
Deferred tax assets	98,789	99,107
Other noncurrent assets	10,336	68,767
Total assets	2,191,034	1,617,200
Liabilities, Temporary Equity and Stockholders' Equity
Accounts payable and accrued expenses	802,639	318,761
Current debt	148,401	19,945
Deferred revenue	90,406	73,893
Other current liabilities	78,291	61,300
Total current liabilities	1,119,737	473,899
Long-term debt	294,763	441,893
Noncurrent operating lease liabilities	59,345	62,736
Other noncurrent liabilities	60,779	30,445
Total liabilities	1,534,624	1,008,973
Commitments and contingencies
Temporary equity
Preferred stock, $0.03 par value; authorized 30,000 shares; 200 shares of convertible preferred stock issued and outstanding as of May 29, 2026 and August 29, 2025. Redemption amount of $200,500 as of May 29, 2026 and August 29, 2025	202,710	202,710
Penguin Solutions stockholders’ equity:
Common stock, $0.03 par value; authorized 200,000 shares; 64,804 shares issued and 51,240 outstanding as of May 29, 2026; 62,756 shares issued and 52,738 outstanding as of August 29, 2025	1,944	1,883
Additional paid-in capital	587,047	551,712
Retained earnings	125,021	46,709
Treasury stock, 13,564 and 10,018 shares held as of May 29, 2026 and August 29, 2025, respectively	(274,962)	(206,076)
Accumulated other comprehensive income	11	18
Total Penguin Solutions stockholders’ equity	439,061	394,246
Noncontrolling interest in subsidiary	14,639	11,271
Total stockholders' equity	453,700	405,517
Total liabilities, temporary equity and stockholders' equity	2,191,034	1,617,200
Nonrelated Party
Assets
Accounts receivable, net	702,981	307,904
Related Party
Assets
Accounts receivable, net	$ 1,288	$ 0