Company: PENG
Filing Date: 2025-12-19
Form Type: DEF 14A
Source: 0001616533-25-000073
Chunk: 63

Company: Penguin Solutions, Inc.
Filing Date: 2025-12-19
Form: DEF 14A
Chunk 63
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ulation of Fiscal 2025 Financial Performance Factor . The maximum and target financial performance goals used in calculating the fiscal 2025 Financial Performance Factor, as well as the actual amounts achieved, are set forth below.

| Payout Opportunity         |     |      Non-GAAP 
     Operating 
     Income(1) 
 (in millions) |     |     Net Sales 
 (in millions) |
| Maximum (150% Achievement) |     |        $252.5 |     |      $2,078.7 |
| Target (100% Achievement)  |     |        $168.3 |     |      $1,385.8 |
| Actual Achievement         |     |        $167.7 |     |      $1,368.8 |
| % of Target                |     |         99.6% |     |         98.8% |

(1) For purposes of determining cash incentive targets and attainment, “Non-GAAP Operating Income” is defined as GAAP operating income excluding stock-based compensation expense, amortization of acquisition-related intangible assets (consisting of amortization of developed technology, customer relationships, and trademarks/trade names acquired in connection with business combinations), cost of sales-related restructuring, diligence, acquisition, and integration expense, redomiciliation costs, restructuring charges, impairment of goodwill, and other infrequent or unusual items. The Compensation Committee determined that it was appropriate to exclude these items in order to better measure and assess Penguin Solutions’ core operating performance.

During fiscal 2025, we achieved $167.7 million in non-GAAP operating income, representing 99.6% of the $168.3 million target, and $1.37 billion in net sales, representing 98.8% of the $1.39 billion target. Net sales and GAAP operating income are presented in our audited consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended August 29, 2025. Non-GAAP operating income is presented, with reconciliation to GAAP operating income, in “ PART II – Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our Annual Report on Form 10-K for the fiscal year ended August 29, 2025. Weighting non-GAAP operating income achievement at 75% and net sales achievement at 25% yielded a Financial Performance Factor of 99.4%. After application of the decelerator, the Financial Performance Factor for fiscal 2025