Penguin Solutions reports 2026 results

Annual report, 13 new risk factors

Written from the 10-K on EDGAR. Check the filing before you rely on it.

What changed since last year

13 new risk factors · 16 removed · 2 new legal mentions

Compared with the 10-K for the period ended Aug 29, 2025.

Key numbers from the XBRL in this filing and the previous one.
	This filing	Previous	Change YoY
Revenue	$1.73B	$1.37B	+27%
Operating income and margin	$165.6M · 9.6%	$58.14M · 4.2%	+185%, margin +5.4 pts
Net income	$180.62M	$25.39M	+611%
Operating cash flow	−$151.91M	$109.08M	−239%
Cash	$647.21M	$453.75M	+43%
Backlog (remaining performance obligations)	$157.2M	$89.9M	+75%

New risk factors (13)

Our business, financial condition, operating results and common stock price could be materially affected by the risks described below and elsewhere in this Annual Report, including in Item 7 and the financial statements and related notes. Our financial results for SMART Brazil are presented as discontinued… +2 more paragraphs
Our managed services engagements involve risks related to cost estimation, performance requirements and customer retention that could adversely affect our results of operations.
We may not achieve the intended benefits of the sale of our SMART Brazil business.
Exchange controls and restrictions on dividends and other distributions in certain jurisdictions, including China, limit and may further limit our ability to receive dividends and other distributions from our foreign subsidiaries.
Our quarterly results of operations have fluctuated in the past and may fluctuate in the future. As a result, our past quarterly results of operations are not necessarily indicative of future performance. Furthermore, we may not be able to maintain the margins we have achieved in recent periods. We have in the past…
and 8 more in the filing

Removed risk factors (16)

You should carefully consider the risks and uncertainties described below and the other information in this Annual Report, including PART II Item 7. Management s Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and related notes. Our business… +2 more paragraphs
We may fail to realize the anticipated benefits of our acquisitions or the sale of our SMART Brazil business.
The sale of our Brazil business could impair our ability to protect our trademarks and brand.
If enacted, exchange controls may limit our ability to receive dividends and other distributions from our foreign subsidiaries.
Our quarterly results of operations have fluctuated in the past and may fluctuate in the future. As a result, our past quarterly results of operations are not necessarily indicative of future performance. Furthermore, we may not be able to maintain the margins we have achieved in recent periods. Our results of…
and 11 more in the filing

New legal mentions (2)

( SMART Brazil ) to Lexar Europe B.V. ( Lexar Europe ), an affiliate of Shenzhen Longsys Electronics Co., Ltd. During 2026, we sold our remaining 19% interest in SMART Brazil, subsequently renamed Zilia Technologies, completing our divestiture of the business.
On November 29, 2023, we completed the divestiture of SMART Brazil, subsequently renamed Zilia Technologies, pursuant to the terms of that certain Stock Purchase Agreement (the Brazil Purchase Agreement ), by and among SMART Modular Technologies (LX) S. r.l. +1 more paragraph

Companies of similar size in SIC 3674 and related industry codes: the same peer list as the financial tables.