Company: PENG
Filing Date: 2025-10-21
Form Type: 10-K
Source: 0001616533-25-000061
Chunk: 108

Company: Penguin Solutions, Inc.
Filing Date: 2025-10-21
Form: 10-K
Item: Item 7
Chunk 108
---
income) expense:  Interest expense, net7,305 0.5 %28,378 2.4 %36,421 2.5 %Other non-operating expense1,929 0.1 %21,084 1.8 %11,837 0.8 %Total non-operating expense9,234 0.7 %49,462 4.2 %48,258 3.3 %Income (loss) before taxes48,901 3.6 %(31,167)(2.7)%(39,513)(2.7)%   Income tax provision (benefit)20,066 1.5 %10,618 0.9 %(49,203)(3.4)%Net income (loss) from continuing operations28,835 2.1 %(41,785)(3.6)%9,690 0.7 %Net loss from discontinued operations— — %(8,148)(0.7)%(195,384)(13.6)%Net income (loss)28,835 2.1 %(49,933)(4.3)%(185,694)(12.9)%Net income attributable to noncontrolling interest3,444 0.3 %2,539 0.2 %1,832 0.1 %Net income (loss) attributable to Penguin Solutions$25,391 1.9 %$(52,472)(4.5)%$(187,526)(13.0)%

(1)Summations of percentages may not compute precisely due to rounding.

Net Sales, Cost of Sales and Gross Profit

Net sales increased by $198.0 million, or 16.9%, in 2025 compared to the prior year, primarily due to higher sales from our Advanced Computing and Integrated Memory business segment. Advanced Computing net sales increased by $93.9 million, or 16.9%, compared to the same period in the prior year, primarily due to higher hardware sales driven by increased demand for AI solutions and HPC. Integrated Memory net sales increased by $107.8 million, or 30.3%, compared to the same period in the prior year, primarily due to higher sales volumes of flash and DRAM products stemming from improved market demand. Optimized LED net sales decreased by $3.7 million, or 1.4%, compared to