Financial Performance - Total net sales for Q2 fiscal 2025 reached $365.5 million, representing a 28.3% increase compared to the same quarter last year[5] - GAAP gross margin was 28.6%, a decrease of 20 basis points from the year-ago quarter, while non-GAAP gross margin was 30.8%, down 70 basis points[5] - GAAP diluted earnings per share (EPS) improved to $0.09 from a loss of $(0.26) in the year-ago quarter, while non-GAAP diluted EPS increased to $0.52 from $0.27[5] - Total net sales for the three months ended February 28, 2025, reached $365,519 thousand, a 7.5% increase from $341,102 thousand in the previous quarter[21] - Advanced Computing segment sales increased to $200,157 thousand, up 12.8% from $177,426 thousand in the prior quarter[21] - Gross profit for the three months ended February 28, 2025, was $104,648 thousand, representing a gross margin of 28.6%[22] - Operating income for the three months ended February 28, 2025, was $18,488 thousand, compared to $17,356 thousand in the previous quarter[21] - Net income attributable to Penguin Solutions for the three months ended February 28, 2025, was $8,082 thousand, an increase from $5,217 thousand in the prior quarter[21] - Non-GAAP gross profit for the three months ended February 28, 2025, was $112,408 thousand, with a non-GAAP gross margin of 30.8%[22] - GAAP net income for the three months ended February 28, 2025, was $8,082,000, compared to $5,217,000 for the same period in 2024, representing a 55.5% increase[23] - Non-GAAP net income attributable to Penguin Solutions for the six months ended February 28, 2025, was $60,354,000, up from $26,679,000 in the prior year, reflecting a 126.3% increase[23] Financial Outlook - The company raised its revenue outlook for fiscal year 2025 to a growth of 17% year-over-year, with a margin of +/- 3%[6] - Projected gross margin for fiscal year 2025 is set at 29% +/- 1% for GAAP and 31% +/- 1% for non-GAAP[6] - Operating expenses are expected to be approximately $336 million +/- $5 million for GAAP and $265 million +/- $5 million for non-GAAP[6] - The company anticipates a diluted EPS of $-0.02 +/- $0.10 for GAAP and $1.60 +/- $0.10 for non-GAAP in fiscal year 2025[6] Cash and Assets - Total current assets increased to $1,244,765,000 as of February 28, 2025, from $867,704,000 as of August 30, 2024, marking a 43.4% growth[24] - Cash and cash equivalents rose to $621,682,000 as of February 28, 2025, compared to $383,147,000 a year earlier, indicating a 62.2% increase[24] - Total assets reached $1,811,344,000 as of February 28, 2025, up from $1,474,506,000 as of August 30, 2024, representing a 22.8% increase[24] - Cash, cash equivalents, and restricted cash at the end of the period on February 28, 2025, totaled $621,998,000, up from $370,611,000 at the end of the previous period[26] Expenses and Liabilities - Research and development expenses for the three months ended February 28, 2025, totaled $19,907 thousand, slightly up from $19,811 thousand in the previous quarter[21] - Total operating expenses for the three months ended February 28, 2025, were $86,160 thousand, compared to $80,456 thousand in the prior quarter[21] - Interest expense for the three months ended February 28, 2025, was $2,183 thousand, down from $4,396 thousand in the previous quarter[21] - Long-term debt decreased to $638,900,000 as of February 28, 2025, from $657,347,000 as of August 30, 2024, a reduction of 2.1%[24] - Total liabilities increased to $1,199,453,000 as of February 28, 2025, from $1,075,298,000 as of August 30, 2024, indicating an 11.5% rise[24] Cash Flow - The company reported a net cash provided by operating activities from continuing operations of $72,877,000 for the three months ended February 28, 2025, significantly up from $13,819,000 in the prior year[25] - The net cash used for investing activities from continuing operations was $(4,349,000) for the three months ended February 28, 2025, compared to $(18,922,000) in the same period of 2024[26] - The company experienced a net cash used for financing activities from continuing operations of $182,859,000 for the three months ended February 28, 2025, compared to $(7,763,000) in the prior year[26] Special Events and Changes - The company plans to transition Jack Pacheco to a special advisor role following his retirement on December 31, 2025[10] - Non-GAAP adjustments for fiscal year 2025 include $31 million for share-based compensation and $48 million for amortization of acquisition-related intangibles[7] - The company incurred an impairment of goodwill amounting to $6,079,000 during the three months ended February 28, 2025[25] - The company raised $191,182,000 from the issuance of convertible preferred shares during the three months ended February 28, 2025[26] - Preferred shares increased to 6 as of February 28, 2025, from none as of August 30, 2024, reflecting a new issuance[24] Strategic Importance of Non-GAAP Measures - Penguin Solutions emphasizes the importance of non-GAAP measures for assessing operational performance and making strategic decisions[17]

Investment Thesis - Penguin Solution (NASDAQ: PENG) is well positioned to grow its revenue rapidly over the foreseeable future due to solid underlying demand growth momentum and supportive investments [1] - The company is viewed as a quality investment opportunity with long-term growth potential, aligning with value investing principles and a focus on compounding earnings and shareholder returns [1] Analyst's Perspective - The analyst has no stock, option, or derivative positions in Penguin Solution or any related companies, and no plans to initiate such positions within the next 72 hours [2] - The analysis is based on the analyst's independent opinion and is not influenced by compensation or business relationships with the mentioned companies [2]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to improve significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates, weekly webinars for live advice, and support for both new and experienced investors [2] - The Deep Value Returns community is described as active, vibrant, and supportive, with easy access via chat [2]

Financial Data and Key Metrics - No specific financial data or key metrics changes were provided in the content [1][2][3][4] Business Line Data and Key Metrics - No specific business line data or key metrics changes were provided in the content [1][2][3][4] Market Data and Key Metrics - No specific market data or key metrics changes were provided in the content [1][2][3][4] Company Strategy and Industry Competition - The company will make projections and forward-looking statements, including but not limited to statements about the company's growth trajectory, financial outlook, business and strategy, and potential collaborations [3] - Forward-looking statements are based on current beliefs and assumptions, are not guarantees of future performance, and are subject to risks and uncertainties [4] Management Commentary on Operating Environment and Future Outlook - No specific management commentary on the operating environment or future outlook was provided in the content [1][2][3][4] Other Important Information - The company encourages investors to visit the Investor Relations section of their website for the most current information throughout the quarter [2] - A reminder was given to read the note on the use of forward-looking statements included in the press release and earnings call presentation [3] Summary of Q&A Session - No Q&A session content was provided in the content [1][2][3][4]

First Quarter FY25 Financial Results Nasdaq: PENG January 8, 2025 Disclaimer This presentation and the oral communications made during the course of this presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements concerning or regarding future events and future f ...

Core Viewpoint - Penguin Solutions, Inc. reported quarterly earnings of $0.49 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and showing significant growth from $0.24 per share a year ago, indicating a strong performance in the recent quarter [1][2] Financial Performance - The company achieved revenues of $341.1 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 7.60% and increasing from $274.25 million year-over-year [2] - Over the last four quarters, Penguin Solutions has exceeded consensus EPS estimates three times and topped revenue estimates twice [2] Stock Performance - Since the beginning of the year, Penguin Solutions' shares have increased by approximately 3.4%, outperforming the S&P 500, which gained 0.5% [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $0.35 for the upcoming quarter and $1.55 for the current fiscal year [4][7] - The estimate revisions trend for Penguin Solutions is mixed, currently resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] Industry Context - The Internet - Software industry, to which Penguin Solutions belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable environment for stock performance [8]

Financial Performance - Total net sales for the three months ended November 29, 2024, were $341.1 million, a 24.3% increase from $274.2 million in the same period last year[13]. - Gross profit for the same period was $97.8 million, resulting in a gross margin of 28.7%, compared to $82.9 million and a gross margin of 30.2% in the prior year[13]. - Operating income increased significantly to $17.4 million from $1.3 million year-over-year, reflecting improved operational efficiency[13]. - Net income attributable to Penguin Solutions was $5.2 million, compared to a net loss of $19.9 million in the same quarter last year[13]. - The company reported basic earnings per share of $0.10, compared to a loss of $0.38 per share in the prior year[13]. - Comprehensive income for the quarter was $5.2 million, a significant recovery from a comprehensive loss of $186.3 million in the same period last year[14]. - For the three months ended November 29, 2024, net income was $5,964,000 compared to a net loss of $19,360,000 for the same period in 2023, indicating a significant turnaround in performance[17]. - Total segment operating income for the three months ended November 29, 2024, was $40.9 million, compared to $26.7 million for the same period in 2023, reflecting a 53.4% increase[86]. - The company reported a net income of $5.2 million from continuing operations for the three months ended November 29, 2024, compared to a net loss of $11.8 million for the same period in 2023[83]. Assets and Liabilities - Total current assets rose to $995.6 million, up from $867.7 million, driven by increases in accounts receivable and inventories[12]. - Total liabilities increased to $1.17 billion from $1.08 billion, primarily due to higher accounts payable and accrued expenses[12]. - Total assets as of November 29, 2024, increased to $1,583,015,000 from $1,474,506,000 as of August 30, 2024, marking a 7.4% growth[12]. - Accounts payable increased to $244.3 million as of November 29, 2024, from $182.0 million on August 30, 2024, representing a 34.3% increase[48]. - Long-term debt remained stable at $658.1 million as of November 29, 2024, compared to $657.3 million on August 30, 2024[49]. Cash Flow and Investments - Cash and cash equivalents decreased slightly to $370.3 million from $383.1 million, reflecting ongoing operational investments[12]. - Operating cash flow from continuing operations was $13,819,000 for the three months ended November 29, 2024, down from $59,713,000 in the prior year, primarily due to changes in working capital[17]. - Capital expenditures for the three months ended November 29, 2024, were $1,836,000, a decrease from $4,648,000 in the prior year, indicating a reduction in investment in fixed assets[17]. - The company repurchased shares worth $11,123,000 during the three months ended November 29, 2024, compared to $13,130,000 in the same period of the previous year[17]. - The company repurchased $80.0 million of its 2.25% Convertible Senior Notes due 2026 for $100.6 million, resulting in a loss of $20.4 million recognized in Q4 2024[51]. Research and Development - Research and development expenses decreased to $19.8 million from $21.4 million, indicating a focus on cost management[13]. - The company reported share-based compensation expense of $11,531,000 for the three months ended November 29, 2024, compared to $10,970,000 in the prior year[17]. Divestitures and Impairments - The divestiture of SMART Brazil was completed on November 29, 2023, with the company retaining a 19% interest, which is expected to impact future financial results positively[19][26]. - An impairment charge of $153.0 million was recognized in Q4 2023 for the net assets of SMART Brazil, which were classified as held for sale[32]. - The loss from the divestiture of the 81% interest in SMART Brazil was calculated at $190.5 million, including a pre-tax loss of $163.9 million[35]. - As of November 29, 2024, the carrying value of the remaining 19% interest in SMART Brazil was $37.8 million, classified as a non-marketable equity investment[36]. Future Outlook and Strategic Plans - The company plans to wind down manufacturing and discontinue the sale of legacy products in its Advanced Computing segment by the end of 2025, with potential impairment of $16.1 million in goodwill[47]. - The company continues to focus on expanding its Advanced Computing and Integrated Memory segments to drive future growth and profitability[84].

Exhibit 99.1 Press Release FOR IMMEDIATE RELEASE Business Outlook PENGUIN SOLUTIONS REPORTS Q1 FISCAL 2025 FINANCIAL RESULTS Revenue up by 24% vs. Q1 FY24, highlighted by 49% growth in Advanced Computing Milpitas, Calif. – January 8, 2025 – Penguin Solutions, Inc. ("Penguin Solutions," "we," "us," or the "Company") (NASDAQ: PENG) today reported financial results for the first quarter of fiscal 2025. First Quarter Fiscal 2025 Highlights "Our strong performance this quarter, highlighted by a 49% year-over-yea ...