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- **Record Fiscal Year**: FY25 revenue grew 17% to $1.37B, with non-GAAP EPS up 53% to $1.90, fueled by enterprise AI infrastructure wins.
- **Strategic Wins**: Secured Tier 1 financial institution's GenAI data center and SK Telecom's Haien system, showcasing rapid deployment capabilities.
- **FY26 Outlook**: 6% ±10% revenue growth, with focus on AI services (higher margins) offsetting hardware headwinds from Penguin Edge phaseout.
- **Memory Growth**: 10%–20% YoY driven by CXL and OMA, despite commodity price challenges.
- **Balance Sheet Strength**: $454M cash, $16M net debt, and $112M buyback authorization for capital flexibility.

**【CEO Summary Section】**
- **FY25 Financial Highlights**: Revenue grew 17% YoY to $1.37B, non-GAAP EPS increased 53% to $1.90, and operating margin expanded 190bps to 12.2%. Key wins included a Tier 1 financial institution's on-premise GenAI data center and SK Telecom's Haien system deployment.
- **Business Segment Growth**: Advanced Computing revenue rose 17% YoY ($648M), driven by 75% growth in HPC AI sales to non-hyperscalers. Memory segment grew 30% YoY ($464M) on strong demand for high-performance solutions.
- **Strategic Priorities**: Expand enterprise AI infrastructure deployments, innovate in hardware/software/services, form strategic partnerships (e.g., NVIDIA, SK Telecom), and maintain disciplined operations.

**【CFO Financial Commentary】**
- **Q4 FY25 Results**: Revenue $338M (+9% YoY), non-GAAP gross margin 30.9%, operating income $39M (+16% YoY). Full year Adjusted EBITDA $187M (+28% YoY).
- **FY26 Outlook**: Net sales growth 6% ±10% YoY, with Advanced Computing (-15% to +15% YoY) and Memory (+10% to +20% YoY). Gross margin expected 29.5% ±1%, reflecting Penguin Edge phaseout and lower-margin AI hardware growth.
- **Balance Sheet Strength**: $454M cash, $16M net debt post-term loan repayment. Stock buyback authorization increased to $112M.

**【Q&A Key Highlights】**
- **Hyperscale Customer Transition**: FY26 outlook excludes hyperscale hardware sales, but services remain strong. Penguin Edge phaseout reduces FY26 revenue by ~14% YoY.
- **SK Telecom Deal**: $34.6M hardware booking in Q4, with additional services revenue expected in FY26. Haien deployment validates rapid deployment capabilities.
- **Memory Market Dynamics**: 10%–20% YoY growth driven by CXL and OMA innovations. Gross margin pressure from commodity price increases, but value-add model mitigates impact.
- **AI Infrastructure Pipeline**: Backlog reflects enterprise, federal, and sovereign cloud opportunities, with services bookings expected to follow hardware deployments.

Penguin Solutions, Inc. (PENG) Q4 2025 Earnings Call Transcript

Revenue

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PENG

PENG fundamentals

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