PENGMEDIUM SIGNALOPERATIONAL10-K

Penguin Solutions completed a corporate domestication from Cayman Islands to Delaware while delivering solid revenue growth and substantially building inventory levels.

The redomestication to Delaware reflects a strategic shift toward U.S. corporate governance standards, which typically enhances investor confidence and regulatory alignment. The substantial inventory build suggests either strong demand expectations or potential supply chain positioning ahead of market opportunities.

Comparing 2025-10-21 vs 2024-10-24View on EDGAR →
FINANCIAL ANALYSIS

Penguin delivered healthy top-line growth with revenue increasing 16.9% to $1.4B and gross profit expanding 15.7% to $394.3M, indicating solid operational execution. The company substantially increased inventory levels by 68.8% to $255.2M while maintaining strong liquidity with cash growing 18.4% to $453.8M and operating cash flow improving 41.3% to $109.1M. Notably, total debt declined 29.7% to $461.8M, demonstrating improved balance sheet health despite higher current liabilities from increased business activity.

FINANCIAL STATEMENT CHANGES
Inventory
Balance Sheet
+68.8%
$151.2M→$255.2M

Inventory surged 68.8% — growing significantly faster than typical sales pace; potential demand softening or supply chain overcorrection.

Capital Expenditure
Cash Flow
-53.6%
$19.4M→$9.0M

Capex reduced 53.6% — investment cycle winding down or capital discipline; may improve near-term free cash flow.

Current Liabilities
Balance Sheet
+44.7%
$327.6M→$473.9M

Current liabilities surged 44.7% — significant near-term obligations; verify ability to meet short-term debt.

Operating Cash Flow
Cash Flow
+41.3%
$77.2M→$109.1M

Operating cash flow surged 41.3% — exceptional cash generation, highest quality earnings signal.

Total Debt
Balance Sheet
-29.7%
$657.3M→$461.8M

Debt reduced 29.7% — deleveraging strengthens balance sheet and reduces financial risk.

Current Assets
Balance Sheet
+22.6%
$867.7M→$1.1B

Current assets grew 22.6% — improving short-term liquidity or inventory/receivables build.

Accounts Receivable
Balance Sheet
+22.3%
$251.7M→$307.9M

Receivables grew 22.3% — monitor days sales outstanding for collection efficiency.

Cash & Equivalents
Balance Sheet
+18.4%
$383.1M→$453.8M

Cash grew 18.4% — improving liquidity position supports investment and shareholder returns.

Revenue
P&L
+16.9%
$1.2B→$1.4B

Revenue growing 16.9% — solid top-line momentum, watch margins for quality of growth.

Gross Profit
P&L
+15.7%
$340.8M→$394.3M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2025-10-21
PRIOR — 2024-10-24
ADDED
(Exact name of registrant as specified in its charter) Delaware 36-5142687 (State or other jurisdiction of incorporation or organization) (I.R.S.
Common stock held by each executive officer and director, and their affiliated holders, have been excluded in that such persons may be deemed to be affiliates.
As o f October 15, 2025, the registrant had 52,859,335 sh ares of common stock outstanding.
Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant s fiscal year ended August 29, 2025.
Domestication (as defined below) and our ability to realize the anticipated benefits thereof, 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 Storm Private Holdings I Ltd.
Such risks, uncertainties and factors as outlined above and in such filings could cause actual results of Penguin Solutions to be materially different from such forward-looking statements.
About This Annual Report On June 30, 2025, we consummated the redomiciliation of the parent company of our corporate group, Penguin Solutions (Cayman), Inc., a Cayman Islands exempted company (formerly known as Penguin Solutions, Inc., Penguin Solutions Cayman ), from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions, Inc., a Delaware corporation ( Penguin Solutions Delaware ), becoming our publicly traded 3 parent company (the U.S.
Domestication was approved by the shareholders of Penguin Solutions Cayman and effected via a court-sanctioned scheme of arrangement under Cayman Islands law, pursuant to which each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share of Penguin Solutions Cayman was exchanged for one share of convertible preferred stock of Penguin Solutions Delaware.
As used herein, unless stated otherwise or the context requires otherwise, the terms Penguin Solutions, Company, Registrant, we, our, us or similar terms (i) for periods prior to the consummation of the U.S.
Domestic ation, refer to Penguin Solutions Cayman and its consolidated subsidiaries and (ii) for periods at or after the consummation of the U.S.
REMOVED
(Exact name of registrant as specified in its charter) Cayman Islands 98-1013909 (State or other jurisdiction of incorporation or organization) (I.R.S.
Ordinary shares held by each executive officer and director, and their affiliated holders, have been excluded in that such persons may be deemed to be affiliates.
As of October 14, 2024, the registrant had 53,289,867 ordinary shares outstanding.
Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant s fiscal year ended August 30, 2024.
Such risks, uncertainties and factors as outlined above and in such filings do not constitute all risks, uncertainties and factors that could cause actual results of Penguin Solutions to be materially different from such forward-looking statements.
About This Annual Report On October 15, 2024, we changed our corporate name from SMART Global Holdings, Inc.
We will refer to our current corporate name throughout this Annual Report.
As such, unless the context indicates otherwise, the terms used herein, Penguin Solutions, Company, Registrant, we, our, us or similar terms refer to Penguin Solutions, Inc.
Fiscal years 2024, 2023 and 2022 contained 53, 52 and 52 weeks, respectively.
Penguin Solutions, Penguin Computing, Penguin Edge, the Penguin Solutions logo, SGH, SMART Global Holdings, SMART Modular Technologies, SMART, Intelligent Platform Solutions, CreeLED, Cree LED, J Series, XLamp, Stratus, Stratus Technologies, Stratus ztC, Stratus ztC Edge, Stratus ztC Endurance, ftServer, everRun, Tundra, SMART Embedded Computing, SMART Wireless Computing, Penguin-On-Demand, Zefr and our other 3 trademarks or service marks appearing in this Annual Report are our trademarks or registered trademarks.
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