Filing Flows › Penguin Solutions (PENG) › Q3 FY25
Penguin Solutions (PENG) Q3 FY25 earnings results (third quarter fiscal 2025)
10-Q filed Jul 8, 2025
Penguin Solutions (PENG) reported revenue of $324M for the third quarter fiscal 2025 (Q3 FY25), +8% from a year earlier and -11% from the quarter before. Operating margin was 3.0%, net earnings $2.7M (0.8% of revenue).
Penguin Solutions, Q3 FY25: revenue $324M (+8% year over year), operating margin 3.0%, net earnings $2.7M, operating cash flow $92.8M. The chart follows the revenue to costs, profit and cash.
| Q3 FY25 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $324M | -11% | +8% |
| Gross profit | $95.1M | -9% | +7% |
| Operating profit | $9.8M | -47% | -14% |
| Net earnings | $2.7M | -67% | -53% |
| Operating cash flow | $92.8M | +27% | +16% |
| Free cash flow | $90.9M | +29% | +20% |
What changed
Revenue was $324.3M in Q3 FY25, up 8% year over year and down 11% from the previous quarter. Product was the largest line at 80% of revenue. Product added $25.6M year over year (up 11%), 108% of the total change. Service declined 3%.
Gross margin was 29.3%, down 0.3 points from a year earlier. Operating profit was $9.8M, a 3.0% margin (down 0.8 points year over year). Operating profit fell $1.7M even though revenue rose $23.7M versus a year earlier, so costs grew faster than sales. Operating expenses grew 10% against revenue growth of 8%. The fastest-growing cost line was Other operating costs (+1038%). Net earnings were $2.7M, down 53% year over year. The effective tax rate was 67.8%.
Operating cash flow was $92.8M (up 16% year over year), 2690% of net income including minority interests. Non-cash charges added back $14.0M of depreciation and amortization and $10.3M of share-based compensation. Working capital and other items added $65.1M. Capital expenditures of $1.9M left free cash flow of $90.9M.
Questions
What was Penguin Solutions' revenue in the third quarter fiscal 2025?
Penguin Solutions (PENG) reported revenue of $324M for the third quarter fiscal 2025 (Q3 FY25), +8% from a year earlier and -11% from the quarter before.
Was Penguin Solutions profitable in the third quarter fiscal 2025?
Operating profit was $9.8M (3.0% of revenue) and net earnings $2.7M.
Source: Penguin Solutions 10-Q on SEC EDGAR.