Penguin Solutions, Inc.
Penguin Solutions, Inc. is a U.S.-based technology company that designs, builds, deploys, and manages specialized computing, memory, and LED solutions. Its business is organized around enterprise-grade systems and components sold to OEM, enterprise, government, and industrial customers across global markets.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueHPC, AI, fault-tolerant, and edge computing systems plus related services.
Memory modules and storage-oriented solutions for OEM and enterprise applications.
LED products and lighting solutions sold through distributors and channel partners.
Design, installation, managed support, logistics, and inventory services.
Products
Reported · share of revenue- Products79.1 %
- Services20.9 %
Source: 10-K FY2024, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Penguin Solutions sells to a diversified base of OEM, enterprise, government, and channel customers, with sales made primarily through purchase orders rather than long-term supply agreements. Its offerings are used in AI cloud services, hyperscale computing, financial services, telecom, energy, transportation, healthcare, industrial automation, networking, storage, and lighting markets. The company also provides customized supply chain and support services for customers that need integration, deployment, and lifecycle management.
Buy HPC, AI, and fault-tolerant systems for mission-critical workloads and deployments.
Buy embedded memory, edge computing, and specialized hardware for integration into their own products.
Buy Optimized LED and selected edge products for resale into lighting and infrastructure markets.
Buy memory and edge solutions for industrial, communications, and networking applications.
Buy procurement, logistics, warehousing, and inventory management support alongside hardware.
Strategy
The company’s strategy centers on solving complex computing, memory, and LED problems with customized, high-availability solutions and related services. It emphasizes close customer collaboration, rapid time to value, and long-lifecycle support, while investing in R&D, manufacturing equipment, and software infrastructure to sustain its technical capabilities.
These systems are central to the company’s positioning in high-performance and high-availability computing.
Design, installation, managed support, and supply chain services improve customer stickiness and differentiation.
Specialized hardware businesses depend on reliable production, testing, and deployment capabilities.
Customization supports pricing power and relevance in niche enterprise and OEM markets.
Geography
2025Penguin Solutions operates globally, with most employees located in the United States, China, and Malaysia. The company’s manufacturing and support footprint spans multiple regions to serve build-to-order customers and to support specialized hardware supply chains. Its geography matters because production, sourcing, and customer proximity affect delivery speed, customization, and exposure to cross-border trade and geopolitical risk.
Share of the revenue the company reports by geography.
Risks
Penguin Solutions depends on a relatively small number of customers, and sales are largely purchase-order based, which makes revenue sensitive to order timing and customer concentration. The business also faces cybersecurity, supply-chain, trade, and geopolitical risks because it relies on global IT systems, third-party partners, and manufacturing and sourcing across multiple countries.
- Customer concentrationImpact: HighLikelihood: Medium
A small number of customers account for a large share of sales, so lost business would materially affect revenue.
Exposure: Ten largest end customers accounted for 66% of net sales in 2025.
- Purchase-order based demandImpact: HighLikelihood: Medium
Sales are not under long-term supply agreements, so order timing and volume can change quickly.
Exposure: Affects all major product lines and channel relationships.
- Cybersecurity and IT systems disruptionImpact: HighLikelihood: Low
The company depends on internal and third-party IT systems for operations and customer collaboration.
Exposure - Global supply chain and geopolitical exposureImpact: MediumLikelihood: High
Manufacturing and employees are spread across the U.S., China, and Malaysia, increasing cross-border complexity.
Exposure - Goodwill impairment in Penguin EdgeImpact: MediumLikelihood: High
Management has indicated the reporting unit may be fully impaired, which can reduce reported earnings and equity.
Exposure: Advanced Computing / Penguin Edge reporting unit.
Accounting
Judgemental itemsSome products are recognized when completed and made available to the customer, which affects timing and quarterly comparability.
Impact: Can shift revenue between periods depending on production and delivery timing.
Professional services, supply chain services, warranties, and subscriptions may be recognized over time or at specific milestones.
Impact: Affects mix between product and service revenue.
The Penguin Edge reporting unit has been partially impaired and may be fully impaired, requiring non-cash charges.
Impact: Can materially reduce reported earnings and book value.
SMART Brazil is presented as discontinued operations, changing trend comparability versus prior periods.
Impact: Affects revenue, margin, and operating trend analysis.
Similar listed companies
Publicly listed companies with a comparable business focus.
UL Solutions Inc.
ULS · Services-Testing Laboratories
Micron Technology, Inc
MU · Semiconductors & Related Devices
Micron Technology designs and manufactures memory and storage semiconductors, selling DRAM, NAND and NOR products under the Micron and Crucial brands.
PDF Solutions, Inc
PDFS · Services-Prepackaged Software
PDF Solutions is a U.S.-based software and services company focused on data analytics, yield improvement, and manufacturing intelligence for the semiconductor and electronics industries.
Power Integrations, Inc
POWI · Semiconductors & Related Devices
Power Integrations designs and markets analog and mixed-signal integrated circuits used in high-voltage power conversion.
OMNIQ Corp.
OMQS · Services-Computer Integrated Systems Design
Hexagon
HEXA-B · Technology
Hexagon is a global leader in precision technologies, providing digital solutions that transform industries through robotics, AI, and digital twins.
Last updated: 24/09/2026