Penguin Solutions Inc Stock Price, News & Analysis

Penguin Solutions (Nasdaq: PENG) announced inducement equity awards granted to its new Senior Vice President and Chief Revenue Officer, Tony Frey. The awards, approved by the Compensation Committee on August 25, 2025, include 51,858 time-based restricted stock units (RSUs) and 51,858 performance-based restricted stock units (PSUs) at target level.

The RSUs will vest over four years, with 25% vesting on October 20, 2026, and the remainder vesting quarterly. The PSUs will vest based on the company's total stockholder return relative to the Russell 2000 Index median over a three-year period, with potential earnings ranging from 0% to 200% of target.

Penguin Solutions (Nasdaq: PENG) announced an inducement equity award granted to Ted Gillick, their new Senior Vice President of Strategy and Corporate Development. The award, approved by the independent Compensation Committee, consists of 70,275 restricted stock units (RSUs) granted under the company's 2021 Inducement Plan.

The RSUs will vest over a four-year period, with 25% vesting on October 20, 2026, and the remaining 75% vesting in equal quarterly installments thereafter, contingent on Mr. Gillick's continued employment. The grant was made in accordance with Nasdaq Marketplace Rule 5635(c)(4) as an inducement for joining the company.

Penguin Solutions (NASDAQ: PENG) announced key leadership changes as part of its strategic transformation into an AI Infrastructure Solutions Company. The company appointed Tony Frey as SVP and Chief Revenue Officer (effective August 25) and Ted Gillick as SVP of Strategy and Corporate Development (effective August 4).

Tony Frey brings over 25 years of global leadership experience in enterprise technology, previously serving at NetApp and Informatica. Ted Gillick contributes more than 20 years of experience in corporate development and strategic planning, having previously led global M&A efforts at Dell Technologies. The company also announced the departure of Pete Manca, SVP and president of Advanced Computing, with his role being eliminated in the revised structure.

CreeLED (NASDAQ: PENG), a Penguin Solutions brand, has filed a patent infringement lawsuit against NanoLumens, Inc. in the United States District Court for the Northern District of Georgia. The lawsuit alleges infringement of 10 patents related to LED display technology.

The company, a leading provider of LED chips and components, emphasizes its two-decade track record of innovation, including developments like IPX6/IPX8-rated surface-mount device LEDs, High Contrast SMD LEDs, and proprietary FusionBeam™ Technology. Jesse Reiherzer, vice president of Cree LED's High Bright business, stressed the importance of protecting intellectual property to maintain innovation and fair competition.

CreeLED Inc. (NASDAQ: PENG) has filed a patent infringement lawsuit against NanoLumens, Inc. in the United States District Court for the Northern District of Georgia. The lawsuit alleges that NanoLumens has infringed on six U.S. patents related to LED display technology through the sale of certain display products.

As a global leader in advanced LED solutions, Cree LED has pioneered several innovations including the first IPX6/IPX8-rated surface-mount device LEDs for displays, High Contrast SMD LEDs, and proprietary FusionBeam™ Technology. The company actively monitors the global market to protect its intellectual property across the entire value chain.

Penguin Solutions (NASDAQ: PENG) reported Q3 fiscal 2025 results with net sales of $324 million, up 7.9% year-over-year. The company posted GAAP diluted EPS of $(0.01) compared to $0.10 in Q3 2024, while non-GAAP diluted EPS increased to $0.47 from $0.37 year-over-year.

The company raised its full-year outlook, projecting 17% year-over-year revenue growth (±2%) and non-GAAP diluted EPS of $1.80 (±$0.05). Gross margins showed slight pressure with GAAP gross margin at 29.3% (down 30 basis points) and non-GAAP gross margin at 31.7% (down 60 basis points) versus the year-ago quarter.

Performance across segments showed mixed results with Advanced Computing at $132.5M, Integrated Memory at $130.1M, and Optimized LED at $61.6M. The company also completed a post-quarter refinancing to strengthen its balance sheet.

Penguin Solutions (Nasdaq: PENG) has successfully completed its redomiciliation from the Cayman Islands to become a Delaware corporation in the United States. The process was executed through a Cayman Islands Scheme of Arrangement, which received strong shareholder approval on June 16, 2025, and was sanctioned by the Grand Court of the Cayman Islands on June 25, 2025.

As part of the transition completed on June 30, 2025, all existing ordinary and preferred shares of the Cayman Islands entity were exchanged on a one-for-one basis for newly issued shares of the Delaware corporation. The company's common stock will continue trading on the Nasdaq Global Select Market under the same symbol "PENG" starting July 1, 2025. The company expects no material impact on its employees or day-to-day operations.

Penguin Solutions (Nasdaq: PENG) has successfully completed a significant refinancing of its credit facilities, establishing a new $400 million Revolving Credit Facility with a $35 million letter of credit subfacility. The company has reduced its funded debt by $200 million by using $100 million from the new facility and $200 million in available cash to repay the existing $300 million Term Loan A Facility.

The new Credit Facilities, maturing in 2030, replace the previous $300 million Term Loan A Facility and $250 million Revolving Credit Facility that were due in 2027. The initial interest rate is set at SOFR plus 1.75%, based on a Total Net Leverage grid. The refinancing was led by JPMorgan Chase Bank, with several other major banks participating as joint lead arrangers.

Penguin Solutions (NASDAQ: PENG) has scheduled its Q3 FY2025 earnings conference call and webcast for July 8, 2025, at 1:30 PM PT / 4:30 PM ET. The company will release its financial results before the conference call. Investors can access the live webcast through the PENG Q3 FY25 Earnings Call Webcast link or join via phone using the provided domestic (+1-833-470-1428) and international (+1-404-975-4839) numbers with access code 305335. A replay will be available on the company's IR website for one year and via phone for one week using the replay numbers +1-866-813-9403 (domestic) or +44 204 525 0658 (international) with access code 979651.