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• Cloud Infrastructure Services: Provides scalable, secure cloud computing resources, including virtual servers, storage, and networking solutions for businesses.
• Enterprise Software Solutions: Develops and customizes proprietary software platforms for business process automation, customer relationship management (CRM), and resource planning.
• Cybersecurity Consulting: Offers expert advisory and implementation services to help organizations protect their digital assets, ensure data privacy, and maintain regulatory compliance.
• AI and Data Analytics Platforms: Delivers tools and services for advanced data processing, machine learning model development, and comprehensive business intelligence reporting.
• Managed IT Services: Provides outsourced IT support, monitoring, and maintenance, ensuring the reliable operation of client infrastructure and applications.

Based on the company name "Penguin Solutions" (symbol: PENG), which typically implies a business-to-business (B2B) model focused on providing various services, software, or strategic advice to other organizations, it is assumed that Penguin Solutions primarily sells to other companies.

Its major customers would likely include large enterprises across different sectors that require specialized software, consulting, or operational solutions to enhance their efficiency, innovation, or market reach. Potential major customers could include:

• JPMorgan Chase & Co. (NYSE: JPM) - As one of the world's leading financial institutions, JPMorgan Chase & Co. frequently invests in external technology and operational solutions for banking, asset management, and corporate services to maintain its competitive edge and manage complex global operations.
• Microsoft Corporation (NASDAQ: MSFT) - A global technology leader, Microsoft often partners with or acquires specialized solutions from other firms to enhance its own product ecosystem, improve internal processes, or expand its cloud services offerings.
• Amazon.com, Inc. (NASDAQ: AMZN) - This global e-commerce and cloud computing giant consistently seeks advanced solutions for its vast retail operations, complex logistics, supply chain management, and to further develop the infrastructure of Amazon Web Services (AWS).

Mark Adams, President and Chief Executive Officer

Mark Adams joined SGH (Smart Global Holdings, Inc.) in 2020 and spearheaded its transformation into the unified brand, Penguin Solutions. He has extensive experience leading innovative technology companies, having previously served as CEO of Lumileds and President of Micron, and held leadership roles at Creative Labs and NCR Corp. He currently serves on the board for Cadence Design Systems. Mr. Adams holds a B.A. in Economics from Boston College and an M.B.A. focused in Finance and International Marketing from Harvard University.

Nate Olmstead, Senior Vice President and Chief Financial Officer

Nate Olmstead joined Penguin Solutions in June 2024, bringing over 20 years of experience in building and leading finance teams for globally scaled technology companies. In his role as CFO, he is responsible for the company's worldwide finance organization, including accounting, internal audit, investor relations, financial planning and reporting, tax, and treasury. Prior to joining Penguin Solutions, Mr. Olmstead served as Chief Financial Officer for Logitech, a multinational technology company.

Jack Pacheco, Chief Operating Officer and President of Integrated Memory

Jack Pacheco has served as Executive Vice President, Chief Operating Officer, and President of Integrated Memory since September 2020. He possesses extensive executive experience in corporate planning, capital structure, systems functions, as well as merger, acquisition integration, and IPOs. Mr. Pacheco previously held positions within the company as CFO from 2004 to 2008, and SVP, COO, and CFO from October 2011 to September 2020. Before his current tenure with Penguin Solutions, he served as CFO for Mirion Technologies and held executive positions at Ignis Optics, Force Computers, and Solectron. He holds an MBA from Golden Gate University and a B.S. in Business Administration from Washington State University.

Tony Frey, Senior Vice President and Chief Revenue Officer

Tony Frey joined Penguin Solutions as Senior Vice President and Chief Revenue Officer, effective August 25. In this role, he oversees global sales for the company's Advanced Computing and Integrated Memory segments. Mr. Frey brings over 25 years of global leadership experience in enterprise technology, having previously served as vice president of global strategic accounts at NetApp and held multiple VP enterprise sales roles at Informatica.

Ted Gillick, Senior Vice President of Strategy and Corporate Development

Ted Gillick assumed the role of Senior Vice President of Strategy and Corporate Development, effective August 4. He has over 20 years of experience in corporate development, investment banking, and strategic planning across the technology sector. Before joining Penguin Solutions, Mr. Gillick led global M&A efforts as SVP of Corporate Development at Dell Technologies. He was also a senior member of the corporate development team at Avid Technology and served as an M&A investment banker at Lehman Brothers and Barclays Capital. He holds an M.B.A. from the MIT Sloan School of Management and a B.B.A. in finance from the College of William and Mary.

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1. Growth in High-Performance Computing (HPC) and Artificial Intelligence (AI) Infrastructure for Non-Hyperscale Customers: Penguin Solutions is strategically shifting its focus towards providing HPC and AI infrastructure to a broader range of customers beyond hyperscalers. The company reported a 75% year-over-year increase in HPC AI revenue from non-hyperscalers in fiscal year 2025. Management anticipates stronger sales in the second half of fiscal year 2026 as enterprise and government AI projects progress, indicating a robust pipeline and opportunities in this area. This suggests continued expansion in this high-growth segment will be a significant revenue driver.
2. Expansion in Integrated Memory Solutions: Penguin Solutions' Integrated Memory segment has demonstrated strong growth, with net sales totaling $464 million in fiscal year 2025, representing a 30% year-over-year increase. The company expects memory net sales to grow between 25% and 30% year-over-year. Ongoing investments in memory technology are a strategic priority for sustaining long-term growth.
3. International AI Implementation and Global Expansion: Penguin Solutions completed its first international AI implementation in fiscal year 2025, deploying one of South Korea's largest GPU-as-a-service systems for SK Telecom, supporting the country's sovereign AI initiative. This milestone, coupled with a $200 million investment from SK Telecom, signifies a global expansion strategy that is expected to contribute to future revenue growth as the company replicates its AI solutions in new international markets.
4. Strategic Shift and Investment in New Verticals: While the wind-down of the Penguin Edge business and the absence of hyperscale hardware sales are near-term headwinds, this strategic repositioning allows Penguin Solutions to focus on higher-margin areas and new verticals. Management has highlighted ongoing investments in new verticals as strategic priorities for sustaining long-term growth. This indicates a deliberate effort to diversify its customer base and solution offerings, which will be a key driver for revenue in the medium term.

Share Repurchases

• Penguin Solutions authorized a $75 million common stock repurchase on October 6, 2025, increasing the total authorizations over the last four years to $225 million.
• As of Q3 fiscal year 2025, the company had repurchased 6.6 million shares for a total of $113 million since its initial authorization in April 2022, with $37 million remaining in that authorization.
• In recent months around October 2025, Penguin Solutions completed the repurchase of 2,310,949 shares for approximately $38.49 million.

Share Issuance

• Penguin Solutions issued $200 million in convertible preferred stock to SK Telecom Co., Ltd.
• The company issued $200 million in 2030 Convertible Senior Notes.
• On August 25, 2025, inducement equity awards were granted, including 51,858 time-based restricted stock units (RSUs) and 51,858 performance-based restricted stock units (PSUs) at target level, to a new Senior Vice President and Chief Revenue Officer.

Inbound Investments

• SK Telecom Co., Ltd. made a $200 million strategic investment in Penguin Solutions by acquiring convertible preferred shares, with the transaction closing in December 2024.
• This investment is intended to enhance Penguin Solutions' capabilities and provide financial flexibility to expand its AI factory offerings.

Outbound Investments

• Penguin Solutions divested an 81% interest in SMART Brazil, which resulted in a net cash inflow of $143.0 million.
• The company continues to pursue acquisitions to drive growth, expand features and functionality within existing segments, and explore new business opportunities.
• The acquisition of Stratus Technologies has strengthened Penguin Solutions' Advanced Computing segment and addresses the demand for AI infrastructure.

Capital Expenditures

• Capital expenditures and deposits on equipment were approximately $9.0 million for fiscal year 2025, $5.8 million for fiscal year 2024, and $1.9 million for fiscal year 2023.
• Research and development expenses for 2025 were $79.8 million, supporting product roadmaps and differentiated technology in computing, memory, and software.
• The company is investing in the development of Penguin ICE ClusterWare software and SMART's optical memory appliance (OMA), with OMA product shipments targeted for late 2026, early 2027.