PENGUIN SOLUTIONS, INC., 10-Q filed on 1/6/2026
Quarterly Report
v3.25.4
Cover Page - shares
3 Months Ended
Nov. 28, 2025
Jan. 02, 2026
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Nov. 28, 2025  
Document Transition Report false  
Entity File Number 001-38102  
Entity Registrant Name PENGUIN SOLUTIONS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-5142687  
Entity Address, Address Line One 45800 Northport Loop West  
Entity Address, City or Town Fremont  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94538  
City Area Code 510  
Local Phone Number 623-1231  
Title of 12(b) Security Common stock, $0.03 par value per share  
Trading Symbol PENG  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   52,560,157
Entity Central Index Key 0001616533  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Current Fiscal Year End Date --08-28  
v3.25.4
Consolidated Balance Sheets - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Assets    
Cash and cash equivalents $ 461,451 $ 453,754
Inventories 213,205 255,182
Other current assets 50,390 47,387
Total current assets 1,067,014 1,064,227
Property and equipment, net 90,383 92,603
Operating lease right-of-use assets 57,254 58,847
Intangible assets, net 80,568 87,754
Goodwill 145,895 145,895
Deferred tax assets 99,023 99,107
Other noncurrent assets 58,058 68,767
Total assets 1,598,195 1,617,200
Liabilities, Temporary Equity and Stockholders' Equity    
Accounts payable and accrued expenses 347,526 318,761
Current debt 19,974 19,945
Deferred revenue 43,648 73,893
Other current liabilities 46,962 61,300
Total current liabilities 458,110 473,899
Long-term debt 442,333 441,893
Noncurrent operating lease liabilities 61,406 62,736
Other noncurrent liabilities 31,877 30,445
Total liabilities 993,726 1,008,973
Commitments and contingencies
Temporary equity    
Preferred stock, $0.03 par value; authorized 30,000 shares; 200 shares of convertible preferred stock issued and outstanding as of November 28, 2025 and August 29, 2025. Redemption amount of 200,400 and 200,500 as of November 28, 2025 and August 29, 2025, respectively 202,710 202,710
Penguin Solutions stockholders’ equity:    
Common stock, $0.03 par value; authorized 200,000 shares; 63,605 shares issued and 52,560 outstanding as of November 28, 2025; 62,756 shares issued and 52,738 outstanding as of August 29, 2025 1,908 1,883
Additional paid-in capital 565,105 551,712
Retained earnings 48,946 46,709
Treasury stock, 11,045 and 10,018 shares held as of November 28, 2025 and August 29, 2025, respectively (226,269) (206,076)
Accumulated other comprehensive income 13 18
Total Penguin Solutions stockholders’ equity 389,703 394,246
Noncontrolling interest in subsidiary 12,056 11,271
Total stockholders' equity 401,759 405,517
Total liabilities, temporary equity and stockholders' equity 1,598,195 1,617,200
Nonrelated Party    
Assets    
Accounts receivable, net 326,892 307,904
Related Party    
Assets    
Accounts receivable, net $ 15,076 $ 0
v3.25.4
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.03 $ 0.03
Preferred stock, authorized (in shares) 30,000 30,000
Preferred stock, issued (in shares) 200 200
Preferred stock, outstanding (in shares) 200 200
Temporary equity, aggregate amount of redemption requirement $ 200,400 $ 200,500
Ordinary shares, par value (in usd per share) $ 0.03 $ 0.03
Ordinary shares, authorized (in shares) 200,000 200,000
Ordinary shares, issued (in shares) 63,605 62,756
Ordinary shares, outstanding (in shares) 52,560 52,738
Treasury shares (in shares) 11,045 10,018
v3.25.4
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Total net sales $ 343,071 $ 341,102
Total cost of sales 246,962 243,290
Gross profit 96,109 97,812
Operating expenses:    
Research and development 18,693 19,811
Selling, general and administrative 53,092 60,536
Other operating expense 4,742 109
Total operating expenses 76,527 80,456
Operating income 19,582 17,356
Non-operating (income) expense:    
Interest expense, net 47 4,396
Other non-operating expense 11,675 636
Total non-operating expense 11,722 5,032
Income (loss) before taxes 7,860 12,324
Income tax provision (benefit) 1,805 6,360
Net income (loss) 6,055 5,964
Net income (loss) attributable to noncontrolling interest 785 747
Net income (loss) attributable to Penguin Solutions 5,270 5,217
Preferred stock dividends 3,033 0
Income available for distribution 2,237 5,217
Income allocated to participating securities 231 0
Net income available to common stockholders, basic 2,006 5,217
Net income available to common stockholders, diluted $ 2,006 $ 5,217
Earnings (loss) per share    
Basic (in usd per share) $ 0.04 $ 0.10
Diluted (in usd per share) $ 0.04 $ 0.10
Common stock used in per share calculations:    
Basic (in shares) 52,900 53,482
Diluted (in shares) 54,991 54,312
Related Party    
Total net sales $ 32,174 $ 0
Products    
Total cost of sales 220,055 215,149
Products | Nonrelated Party    
Total net sales 246,392 270,260
Services    
Total cost of sales 26,907 28,141
Services | Nonrelated Party    
Total net sales $ 64,505 $ 70,842
v3.25.4
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 6,055 $ 5,964
Other comprehensive income (loss), net of tax:    
Gain (loss) on investments (5) 9
Comprehensive income (loss) 6,050 5,973
Comprehensive income attributable to noncontrolling interest 785 747
Comprehensive income (loss) attributable to Penguin Solutions $ 5,265 $ 5,226
v3.25.4
Consolidated Statements of Stockholders’ Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in-capital
Retained Earnings
Treasury Shares
Accumulated Other Comprehensive Income (Loss)
Total Penguin Solutions Stockholders’ Equity
Non- controlling Interest in Subsidiary
Beginning balance (in shares) at Aug. 30, 2024   60,226            
Beginning balance at Aug. 30, 2024 $ 399,208 $ 1,807 $ 513,335 $ 29,985 $ (153,756) $ 10 $ 391,381 $ 7,827
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 5,964     5,217     5,217 747
Other comprehensive income (loss) 9         9 9  
Shares issued under equity plans (in shares)   841            
Stock issued under equity plans 3,360 $ 25 3,335       3,360  
Repurchase of shares (11,123)       (11,123)   (11,123)  
Stock-based compensation expense 11,531   11,531       11,531  
Ending balance (in shares) at Nov. 29, 2024   61,067            
Ending balance at Nov. 29, 2024 $ 408,949 $ 1,832 528,201 35,202 (164,879) 19 400,375 8,574
Beginning balance (in shares) at Aug. 29, 2025 52,738 62,756            
Beginning balance at Aug. 29, 2025 $ 405,517 $ 1,883 551,712 46,709 (206,076) 18 394,246 11,271
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income 6,055     5,270     5,270 785
Other comprehensive income (loss) (5)         (5) (5)  
Shares issued under equity plans (in shares)   849            
Stock issued under equity plans 3,338 $ 25 3,313       3,338  
Repurchase of shares (20,193)       (20,193)   (20,193)  
Stock-based compensation expense 10,080   10,080       10,080  
Preferred share dividends $ (3,033)     (3,033)     (3,033)  
Ending balance (in shares) at Nov. 28, 2025 52,560 63,605            
Ending balance at Nov. 28, 2025 $ 401,759 $ 1,908 $ 565,105 $ 48,946 $ (226,269) $ 13 $ 389,703 $ 12,056
v3.25.4
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Cash flows from operating activities    
Net income (loss) $ 6,055 $ 5,964
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities:    
Depreciation expense and amortization of intangible assets 12,819 14,961
Amortization of debt issuance costs 658 953
Stock-based compensation expense 10,080 11,531
Loss on impairment of non-marketable equity investment 10,000 0
Deferred income taxes, net 85 211
Other 2,129 (712)
Changes in operating assets and liabilities:    
Accounts receivable (34,064) (23,885)
Inventories 41,977 (93,380)
Other assets (876) 705
Accounts payable and accrued expenses and other liabilities (17,805) 97,471
Net cash provided by operating activities 31,058 13,819
Cash flows from investing activities    
Capital expenditures and deposits on equipment (2,853) (1,836)
Proceeds from sales and maturities of investment securities 0 3,780
Purchases of held-to-maturity investment securities 0 (20,723)
Other (521) (143)
Net cash used for investing activities (3,374) (18,922)
Cash flows from financing activities    
Payments to acquire common stock (20,193) (11,123)
Payment of preferred stock cash dividends (3,133) 0
Proceeds from issuance of common stock 3,339 3,360
Net cash used for financing activities (19,987) (7,763)
Net increase (decrease) in cash, cash equivalents and restricted cash 7,697 (12,866)
Cash, cash equivalents and restricted cash at beginning of period 454,070 383,477
Cash, cash equivalents and restricted cash at end of period $ 461,767 $ 370,611
v3.25.4
Significant Accounting Policies
3 Months Ended
Nov. 28, 2025
Accounting Policies [Abstract]  
Significant Accounting Policies
Significant Accounting Policies
Basis of Presentation
U.S. Domestication: On June 30, 2025, we consummated the redomiciliation of the parent company of our corporate group, Penguin Solutions (Cayman), Inc., formerly known as Penguin Solutions, Inc., a Cayman Islands exempted company (“Penguin Solutions Cayman”), from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions, Inc., a Delaware corporation (“Penguin Solutions Delaware”), becoming our publicly traded parent company (the “U.S. Domestication”). The U.S. Domestication was approved by the shareholders of Penguin Solutions Cayman and effected via a court-sanctioned scheme of arrangement under Cayman Islands law, pursuant to which each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share of Penguin Solutions Cayman was exchanged for one share of convertible preferred stock of Penguin Solutions Delaware.
The accompanying consolidated financial statements include the accounts of Penguin Solutions Cayman and its consolidated subsidiaries prior to the consummation of the U.S. Domestication, and the accounts of Penguin Solutions Delaware and its consolidated subsidiaries after the consummation of the U.S. Domestication. Unless stated otherwise or the context otherwise requires, references to “Penguin Solutions,” “we,” “us,” “our,” and the “Company” in the accompanying consolidated financial statements (i) for periods prior to the consummation of the U.S. Domestication refer to Penguin Solutions Cayman and its consolidated subsidiaries and (ii) for periods at or after the consummation of the U.S. Domestication refer to Penguin Solutions Delaware and its consolidated subsidiaries.
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended August 29, 2025 (the “2025 Annual Report”) and the applicable rules and regulations of the SEC regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. These consolidated interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the 2025 Annual Report.
Fiscal Year: Our fiscal year is the 52- or 53-week period ending on the last Friday in August. Fiscal years 2026 and 2025 each contain 52 weeks. All period references are to our fiscal periods unless otherwise indicated.
v3.25.4
Recently Issued Accounting Standards
3 Months Ended
Nov. 28, 2025
Accounting Changes and Error Corrections [Abstract]  
Recently Issued Accounting Standards
Recently Issued Accounting Standards
In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Improvements to the Accounting for and Disclosure of Internal-Use Software, which replaces the previous stage-based model for capitalizing internal-use software development costs with a principles-based approach. Under the new guidance, capitalization begins when management authorizes and commits to funding a project and it is probable the project will be completed and used as intended. The ASU also incorporates website development guidance into Accounting Standards Codification (“ASC”) 350-40 and introduces the concept of “significant development uncertainty,” which, if present, would delay capitalization. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, including interim periods within those years, with early adoption permitted at the beginning of an annual period. The new guidance may be applied prospectively, retrospectively, or using a modified prospective approach. We are currently evaluating the impact of this guidance on our consolidated financial statements and related disclosures, though we do not expect there to be a material impact.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods in those years. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the amendments prospectively. We are currently evaluating the potential impact of adopting ASU 2025-05 on our consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosure (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses, as well as a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. This ASU also requires disclosure of the total amount of selling expenses and an entity’s definition of selling expenses. The amendments in this ASU are effective for us in 2028 for annual reporting and in 2029 for interim reporting, with early adoption permitted and may be applied prospectively or retrospectively. We do not expect ASU 2024-03 to have an impact on our financial position, results of operations and cash flows. We are currently evaluating the impact on our consolidated financial statement disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU are intended to increase transparency through improvements to annual disclosures primarily related to income tax rate reconciliation and income taxes paid. The amendments in this ASU are effective for us in 2026 for annual reporting, with early adoption permitted. The ASU may be applied on a prospective basis, although retrospective application is permitted. We are evaluating the timing and effects of this ASU on our income tax disclosures.
v3.25.4
Cash and Investments
3 Months Ended
Nov. 28, 2025
Cash and Cash Equivalents [Abstract]  
Cash and Investments
Cash and Investments
As of November 28, 2025 and August 29, 2025, all of our debt securities, the fair values of which approximated their carrying values, were classified as held to maturity. As of November 28, 2025, restricted cash, which is included in other noncurrent assets, was $0.3 million. Cash, cash equivalents and short-term investments were as follows:
 As of November 28, 2025As of August 29, 2025
Cash and Cash Equivalents
Short-term Investments
Cash and Cash Equivalents
Short-term Investments
Cash$434,306 $— $426,870 $— 
Level 1:
Money market funds27,145 — 26,884 — 
 $461,451 $— $453,754 $— 
Non-marketable Equity Investments
As of both November 28, 2025 and August 29, 2025, other noncurrent assets included $43.0 million and $53.0 million, respectively, of non-marketable equity investments, which are accounted for under the measurement alternative at cost less impairment, if any. In the event an observable price change occurs in an orderly transaction for an identical or a similar investment, the carrying value of investments would be remeasured to fair value as of the date that the observable transaction occurred, with any resulting gains or losses recorded in net income (loss).
During the quarter ended November 28, 2025, the Company identified several significant qualitative impairment indicators related to one of its non-marketable equity investments. These indicators included substantial deterioration in the investee’s financial condition, liquidity position, and operating performance, as well as
significant leadership and governance changes. Collectively, these factors raised substantial doubt regarding the Company’s ability to recover the carrying value of the investment.
In accordance with ASC 321, the Company evaluated the fair value of the investment, taking into consideration the investee’s financial condition, operational viability, and overall governance environment. Based on this assessment, the Company concluded that the fair value of the investment was effectively zero as of the reporting date.
As a result, the Company recognized a full impairment charge of $10.0 million during the quarter ended November 28, 2025. The impairment is recorded within Other non-operating expense in the Consolidated Statements of Operations. Following the impairment, the carrying amount of the investment is zero.
The Company may have certain rights or claims in the event the investee pursues a formal restructuring or bankruptcy process. However, due to significant uncertainty regarding the recoverability of any amounts and the investee’s insolvency, no potential recoveries have been recognized as of the reporting date. The Company will continue to monitor developments and will recognize any future proceeds, if realized, in the period received within net income (loss).
v3.25.4
Accounts Receivable
3 Months Ended
Nov. 28, 2025
Receivables [Abstract]  
Accounts Receivable
Accounts Receivable
We continue to maintain a trade receivable sales program that allows us to sell certain of our trade receivables up to $60.0 million, on a non-recourse basis to a third-party financial institution. As of November 28, 2025, there have been no trade accounts receivable sold under this program.
v3.25.4
Inventories
3 Months Ended
Nov. 28, 2025
Inventory Disclosure [Abstract]  
Inventories
Inventories
As ofNovember 28,
2025
August 29,
2025
Raw materials$108,272 $92,393 
Work in process27,199 32,002 
Finished goods77,734 130,787 
 $213,205 $255,182 
As of November 28, 2025 and August 29, 2025, 13% and 21%, respectively, of total inventories were owned and held under our logistics services program.
v3.25.4
Property and Equipment
3 Months Ended
Nov. 28, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment
As ofNovember 28,
2025
August 29,
2025
Equipment$90,724 $90,160 
Buildings and building improvements70,275 69,245 
Furniture, fixtures and software44,261 46,784 
Land14,983 14,983 
220,243 221,172 
Accumulated depreciation(129,860)(128,569)
 $90,383 $92,603 
Depreciation expense for property and equipment was $5.1 million and $5.0 million in the first quarter of 2026 and 2025, respectively.
v3.25.4
Intangible Assets and Goodwill
3 Months Ended
Nov. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill
Intangible Assets and Goodwill
Gross
Amount
Accumulated
Amortization
Gross
Amount
Accumulated
Amortization
As of
November 28, 2025August 29, 2025
Intangible assets:
Technology$144,984 $(89,500)$144,445 $(83,375)
Customer relationships33,000 (14,641)33,000 (13,602)
Trademarks/trade names15,786 (9,061)15,786 (8,500)
$193,770 $(113,202)$193,231 $(105,477)
Goodwill by segment:
Advanced Computing$131,175 $131,175 
Integrated Memory14,720 14,720 
$145,895 $145,895 
In the first quarter of 2026 and 2025, we capitalized $0.5 million and $0.4 million, respectively, for intangible assets with weighted-average useful lives of 18.6 years and 18.5 years, respectively. Amortization expense for intangible assets was $7.7 million and $9.9 million in the first quarter of 2026 and 2025, respectively. Amortization expense is expected to be $25.0 million for the remainder of 2026, $29.7 million for 2027, $10.0 million for 2028, $6.1 million for 2029, $5.4 million for 2030 and $4.4 million for 2031 and thereafter.
v3.25.4
Accounts Payable and Accrued Expenses
3 Months Ended
Nov. 28, 2025
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Expenses
Accounts Payable and Accrued Expenses
As ofNovember 28,
2025
August 29,
2025
Accounts payable (1)
$304,938 $267,498 
Salaries, wages and benefits20,894 34,169 
Income and other taxes16,953 15,304 
Other4,741 1,790 
$347,526 $318,761 
(1)Included in accounts payable for property and equipment of $1.2 million and $1.7 million as of November 28, 2025 and August 29, 2025, respectively.
v3.25.4
Debt
3 Months Ended
Nov. 28, 2025
Debt Disclosure [Abstract]  
Debt
Debt
As ofNovember 28,
2025
August 29,
2025
2030 Notes194,201 193,906 
2029 Notes148,132 147,987 
2026 Notes19,974 19,945 
2025 Loans100,000 100,000 
462,307 461,838 
Less current debt(19,974)(19,945)
Long-term debt$442,333 $441,893 
Credit Agreement
On February 7, 2022, Penguin Solutions and SMART Modular Technologies, Inc. (collectively, the “Borrowers”) entered into a credit agreement, subsequently amended (the “2022 Amended Credit Agreement”), with a syndicate of banks and Citizens Bank, N.A., as administrative agent that provided for a term loan credit facility (the “Amended 2022 TLA”) and a revolving credit facility (the “2022 Revolver”), in each case, maturing on February 7, 2027.
On June 24, 2025 (the “Refinancing Closing Date”), the Borrowers entered into a new Credit Agreement (the “2025 Credit Agreement”) by and among the Borrowers, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, collateral agent and an issuing bank.
The 2025 Credit Agreement provides for a revolving credit facility in an aggregate principal amount of $400.0 million (the “2025 Credit Facility” and the revolving loans thereunder, the “2025 Loans”), maturing on June 24, 2030. The 2025 Credit Agreement provides that up to $35.0 million of the 2025 Credit Facility is available for issuances of letters of credit.
On the Refinancing Closing Date, we borrowed $100.0 million under the 2025 Credit Facility, and simultaneously applied such proceeds, together with $200.0 million cash on hand, to repay in full all borrowings and terminate all commitments under the 2022 Amended Credit Agreement. Immediately prior to the repayment and termination of the 2022 Amended Credit Agreement, we had $300.0 million of principal outstanding under the Amended 2022 TLA, with unamortized issuance costs of $1.8 million and the effective interest rate was 7.17%, and no amounts outstanding under the 2022 Revolver, with unamortized issuance costs of $1.5 million. Following the extinguishment of the 2022 Amended Credit Agreement, we recognized a loss on extinguishment of $2.9 million.
As of November 28, 2025, there was $100.0 million of principal amount outstanding under the 2025 Loans, and unamortized issuance costs were $3.5 million.
Convertible Senior Notes
Convertible Senior Notes Interest
Unamortized debt discount and issuance costs are amortized over the terms of our Convertible Senior Notes due 2026 (the “2026 Notes”), our 2.00% Convertible Senior Notes due 2029 (the “2029 Notes”) and our 2.00% Convertible Senior Notes due 2030 (the “2030 Notes,” and together with the 2026 Notes and the 2029 Notes, the “Convertible Senior Notes”) using the effective interest method. As of November 28, 2025 and August 29, 2025, the effective interest rate for our 2026 Notes was 2.83%. As of November 28, 2025 and August 29, 2025, the effective interest rate for our 2029 Notes was 2.40%. As of November 28, 2025 and August 29, 2025, the effective interest rate for our 2030 Notes was 2.65%. Aggregate interest expense for our Convertible Senior Notes consisted of contractual stated interest and amortization of issuance costs and included the following:
Three Months Ended
November 28,
2025
November 29,
2024
Contractual stated interest$1,842 $1,842 
Amortization of debt issuance costs470 458 
$2,312 $2,300 
Maturities of Debt
As of November 28, 2025, maturities of debt were as follows:
2026$20,000 
2027— 
2028— 
2029150,000 
2030300,000 
2031 and thereafter— 
Less unamortized discount and issuance costs(7,693)
$462,307 
v3.25.4
Leases
3 Months Ended
Nov. 28, 2025
Leases [Abstract]  
Leases
Leases
We have operating leases through which we utilize facilities, offices, and equipment in our manufacturing operations, research and development activities and selling, general and administrative functions. Sublease income was not significant in any period presented. The components of operating lease expense were as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Fixed lease cost$2,818 $2,975 
Variable lease cost583 448 
Short-term lease cost413 468 
 $3,814 $3,891 
Cash flows from operating activities included payments for operating leases of $1.5 million and $2.3 million in the first quarter of 2026 and 2025, respectively.
As of November 28, 2025 and August 29, 2025, the weighted-average remaining lease term for our operating leases was 9.6 years and 10.1 years, respectively, and the weighted-average discount rate was 6.1% and 6.1%, respectively. Certain of our operating leases include one or more options to extend the lease term for periods from 2 years to 5 years. In determining the present value of our operating lease liabilities, we have assumed we will not extend any lease terms.
As of November 28, 2025, minimum payments of lease liabilities were as follows:
Remainder of 2026$7,247 
20279,549 
20289,540 
20299,617 
20309,788 
2031 and thereafter43,828 
89,569 
Less imputed interest(22,471)
Present value of total lease liabilities$67,098 
v3.25.4
Commitments and Contingencies
3 Months Ended
Nov. 28, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Product Warranty and Indemnities
We generally provide a limited warranty that our products are in compliance with applicable specifications existing at the time of delivery. Under our standard terms and conditions of sale, liability for certain failures of product during a stated warranty period is usually limited to repair or replacement of defective items or return of amounts paid for such items. Our warranty obligations are not material.
We are party to a number of agreements in which we have agreed to defend, indemnify and hold harmless our customers and suppliers from damages and costs, which may arise from product defects as well as from any alleged infringement by our products of third-party patents, trademarks or other proprietary rights. We believe our internal development processes and other policies and practices limit our exposure related to such indemnities. Maximum potential future payments cannot be estimated because many of these agreements do not have a maximum stated liability. However, to date, we have not had to reimburse any of our customers or suppliers for any significant losses related to these indemnities. We have not recorded any liability for such indemnities.
Contingencies
From time to time, we may be involved in legal matters that arise in the normal course of business. Litigation in general, and intellectual property, employment and shareholder litigation in particular, can be expensive and disruptive to normal business operations. Moreover, the results of complex legal proceedings are difficult to
predict. We regularly review contingencies to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made.
v3.25.4
Temporary Equity
3 Months Ended
Nov. 28, 2025
Equity [Abstract]  
Temporary Equity
Temporary Equity
Convertible Preferred Stock
On December 13, 2024, we closed the SKT Investment (as defined below). Pursuant to the terms of the Securities Purchase Agreement (the “SKT Purchase Agreement”) by and between Penguin Solutions and SK Telecom Co., Ltd. (“SKT”), we sold to Astra AI Infra LLC (“Astra AI Infra”), an affiliate of SKT, 200,000 convertible preferred shares, par value $0.03 per share, of Penguin Solutions (the “Issued Cayman CPS”) at a price of $1,000 per share or an aggregate price of $200.0 million (the “SKT Investment”).
Additionally, on the closing date of the SKT Investment, we and Astra AI Infra entered into an Investor Agreement (the “Investor Agreement”), and the Certificate of Designation relating to the Issued Cayman CPS (the “CPS Certificate of Designation”) became effective. The Investor Agreement and the CPS Certificate of Designation provide for certain rights and restrictions relating to the SKT Investment, including but not limited to board representation rights, pro rata rights, registration rights and consent rights, and standstill provisions, disposition restrictions and voting obligations.
At the time of issuance, we evaluated the terms and conditions of the Issued Cayman CPS. Based on this evaluation, we determined that the Issued Cayman CPS did not contain redemption features that were outside the Company’s control and therefore initially classified the Issued Cayman CPS as permanent equity within the consolidated balance sheet.
On June 30, 2025, we completed the U.S. Domestication, at which time each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share of Penguin Solutions Cayman was exchanged for one share of convertible preferred stock of Penguin Solutions Delaware. In connection with the U.S. Domestication, Penguin Solutions Delaware executed and adopted a Certificate of Designation of Convertible Preferred Stock (the “CPS Delaware Certificate of Designation”) that sets forth the terms, rights and obligations of a series of 200,000 shares of preferred stock of Penguin Solutions Delaware, par value $0.03 per share, designated as convertible preferred stock (the “Issued CPS”). In connection with this event, we reassessed the classification of the Issued CPS.

The terms of the Issued CPS are substantially the same as those of the Issued Cayman CPS. However, the Cayman governing documents included protective provisions that set forth the Company's ability to solely control redemption features. These provisions are not explicitly included in the Company's amended and restated certificate of incorporation or the CPS Delaware Certificate of Designation. The Company evaluated the absence of these provisions in the Delaware governing documents and determined that the CPS should be classified as temporary equity beginning June 30, 2025. Accordingly, the Issued CPS was reclassified to temporary equity effective June 30, 2025.

In accordance with SEC guidance on redeemable equity securities, we reclassified the Issued CPS out of permanent equity at its fair value as of the date of the U.S. Domestication. The reclassification resulted in an adjustment to additional paid-in capital, representing the difference between the historical carrying amount and the fair value at the reclassification date. This adjustment had no impact on the Company’s net income, comprehensive income, or cash flows.

As of June 30, 2025, we recorded $202.7 million of Issued CPS within temporary equity on the consolidated balance sheet. As of August 29, 2025 and November 28, 2025, we did not adjust the carrying values of the Issued CPS to the redemption values of such shares because a deemed liquidation event did not occur and the shares were not probable of becoming redeemable in the future as of the consolidated balance sheet date.

Amended and Restated Investor Agreement
On June 30, 2025, effective upon consummation of the U.S. Domestication, Penguin Solutions Delaware assumed the Investor Agreement from Penguin Solutions Cayman and Penguin Solutions Delaware and SKT amended and restated the Investor Agreement such that the rights and restrictions relating to SKT’s beneficial
ownership of the Issued Cayman CPS in place prior to the U.S. Domestication apply in respect of SKT’s holdings of Issued CPS following consummation of the U.S. Domestication.

Delaware Certificate of Designation for Convertible Preferred Stock
On June 27, 2025, in connection with the U.S. Domestication, Penguin Solutions Delaware executed and adopted the CPS Delaware Certificate of Designation that sets forth the terms, rights and obligations of the Issued CPS. The principal attributes of the Issued Cayman CPS and the Issued CPS are substantially the same, subject to changes to give effect to requirements of Delaware law. Refer to the Certificate of Designation of Penguin Solutions, Inc., effective as of June 27, 2025, filed as Exhibit 3.3 hereto, to the description of the Issued CPS contained in the description of the Registrant’s capital stock, filed as Exhibit 4.1 to the 2025 Annual Report, and to the information under the heading “Comparison of Rights of Cayman Islands Shareholders and Delaware Stockholders” in Penguin Solutions Cayman’s definitive proxy statement on Schedule 14A filed with the SEC on May 2, 2025.
Conversion
A holder of Issued CPS may convert such holder’s Issued CPS into common stock at any time, provided that the shares of Issued CPS may, at our option, automatically be converted into common stock on any date following the second anniversary of the closing of the SKT Investment upon which the volume-weighted average price of the common stock for any fifteen consecutive trading day period equals or exceeds 150% of the then-applicable conversion price. The shares of Issued CPS are convertible into common stock at an initial conversion price of $32.81, subject to customary adjustment upon the occurrence of certain events (including share subdivision and consolidation, certain dividends and distributions, and any reclassification or share exchange).

Dividends
The shares of Issued CPS entitle the holder to receive dividends of six percent per annum, cumulative, and payable quarterly in-kind or in cash at our option, subject to certain conditions, including a stock issuance limitation. We declared and paid preferred cash dividends of $3.1 million in the first quarter of 2026. As of November 28, 2025, we accrued preferred dividends of $0.4 million.

Liquidation Preference
In case of a Liquidation Trigger Event (as defined in the CPS Delaware Certificate of Designation), each holder of Issued CPS will be entitled to receive, in preference to holders of common stock, the greater of (i) the original issue price plus accrued but unpaid dividends (whether or not declared) to the date of the applicable Liquidation Trigger Event to the extent such accrued but unpaid dividends are not compounded dividends as of such time and (ii) the amount such holder of Issued CPS would receive had such holder, immediately prior to such Liquidation Trigger Event, converted the shares of Issued CPS into shares of common stock. The liquidation preference associated with the Issued CPS was $1,000 per share at August 29, 2025.

Voting Rights
Except as specified under applicable law, each holder of Issued CPS will be entitled to vote or consent as a single class with the holders of common stock on all matters submitted for a vote of or consent by holders of common stock, such number of votes equal to the largest number of whole shares of common stock in which all Issued CPS held of record by such holder could then be converted.

Director Designation Rights
SKT (through Astra AI Infra) is entitled to nominate one director if the total number of directors of the Company is eleven or less, and two directors if the total number of directors of the Company is twelve or more, to be elected or appointed to the Board of Directors of the Company (any such director, an “Investor Designee”). The right to nominate an Investor Designee continues until such time as SKT and its subsidiaries and affiliates (including Astra AI Infra) beneficially own less than five percent of the common stock then issued and outstanding (calculated on a fully-diluted basis) directly or by holding Issued CPS.
Company Redemption Rights

Holders of Issued CPS do not have pre-emptive, subscription, or redemption rights. We may repurchase the Issued CPS in one installment upon notice to the holders of Issued CPS, provided that no such notice shall be sent until at least five years after the date of the closing of the SKT Investment.
v3.25.4
Equity
3 Months Ended
Nov. 28, 2025
Equity [Abstract]  
Equity
Equity
Penguin Solutions Stockholders’ Equity
Common Stock Repurchase Authorization
On April 4, 2022, our Board of Directors approved a $75.0 million stock repurchase authorization (the “2022 Authorization”), under which we may repurchase our outstanding common stock from time to time through open market purchases, privately-negotiated transactions or otherwise. On each of January 8, 2024 and October 6, 2025, the Audit Committee of the Board of Directors approved additional $75.0 million stock repurchase authorizations (the “2024 Authorization” and “2025 Authorization,” respectively, and together, the “Current Authorizations”). The Current Authorizations, which consist solely of amounts approved pursuant to the 2024 Authorization and 2025 Authorization as all amounts under the 2022 Authorization have been utilized, have no expiration date but may be suspended or terminated by the Board of Directors at any time. In the first quarter of 2026 and 2025, we repurchased 791 thousand and 467 thousand shares of common stock for $15.0 million and $7.8 million, respectively, under the Current Authorizations. As of November 28, 2025, an aggregate of $96.5 million remained available for the repurchase of our common stock under the Current Authorizations. Certain of our agreements, including the 2025 Credit Agreement, the SKT Purchase Agreement and the CPS Delaware Certificate of Designation, contain restrictions that limit our ability to repurchase our common stock.
Other Stock Repurchases
Common stock withheld as payment of withholding taxes and exercise prices in connection with the vesting or exercise of equity awards are treated as common stock repurchases. In the first quarter of 2026 and 2025, we repurchased 235 thousand and 213 thousand shares of common stock as payment of withholding taxes for $5.2 million and $3.3 million, respectively.
Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component in the first quarter of 2026 were as follows:
Gains (Losses)
on
Investments
As of August 29, 2025$28 
Other comprehensive income (loss) before reclassifications13 
Reclassifications out of accumulated other comprehensive income— 
Other comprehensive income (loss)13 
As of November 28, 2025$41 
v3.25.4
Fair Value Measurements
3 Months Ended
Nov. 28, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Fair
Value
Carrying
Value
Fair
Value
Carrying
Value
As of
November 28, 2025August 29, 2025
Assets:
Derivative financial instruments$4,300 $4,300 $4,223 $4,223 
Liabilities:
2030 Notes$207,726 $194,201 $224,048 $193,906 
2029 Notes$175,356 $148,132 $197,363 $147,987 
2026 Notes$22,838 $19,974 $25,713 $19,945 
The deferred cash adjustment resulting from the divestiture of an 81% interest in Zilia Technologies Indústria e Comércio de Componentes Eletrônicos Ltda. (formerly SMART Modular Technologies do Brasil - Indústria e Comércio de Componentes Ltda.) is accounted for as a derivative financial instrument and is revalued at the end of each reporting period. The asset’s fair value, as measured on a recurring basis, was based on Level 2 measurements, including market-based observable inputs of interest rates and credit-risk spreads.
The fair value of the Amended 2022 TLA, as measured on a non-recurring basis, was estimated based on Level 2 measurements, including discounted cash flows and interest rates based on similar debt issued by parties with credit ratings similar to ours. The fair values of our Convertible Senior Notes, as measured on a non-recurring basis, were determined based on Level 2 measurements, including the trading prices of the Convertible Senior Notes.
v3.25.4
Equity Plans
3 Months Ended
Nov. 28, 2025
Share-Based Payment Arrangement [Abstract]  
Equity Plans
Equity Plans
As of November 28, 2025, 3.6 million shares of our common stock were available for future awards under our equity plans.

Restricted Stock Awards and Restricted Stock Units Awards (“Restricted Awards”)
Restricted Award activity was as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Restricted awards granted1,500635
Weighted-average grant date fair value per share$21.46 $30.25 
Aggregate vesting date fair value of shares vested$13,364 $9,028 
As of November 28, 2025, total unrecognized compensation costs for unvested Restricted Awards were $95.4 million, which were expected to be recognized over a weighted-average period of 2 years, 10 months.
Employee Stock Purchase Plan (“ESPP”)
Under our ESPP, employees purchased 247 thousand shares of common stock for $3.3 million in the first quarter of 2026 and 253 thousand shares of common stock for $3.2 million in the first quarter of 2025.
Stock-Based Compensation Expense
Stock-based compensation expense for our continuing operations was as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Stock-based compensation expense by caption:
Cost of sales$1,386 $1,643 
Research and development1,494 1,689 
Selling, general and administrative7,200 8,199 
 $10,080 $11,531 
Income tax benefits for stock-based awards were $1.4 million in the first quarter of 2026, respectively, and $1.5 million in the first quarter of 2025, respectively.
v3.25.4
Revenue and Customer Contract Balances
3 Months Ended
Nov. 28, 2025
Revenue from Contract with Customer [Abstract]  
Revenue and Customer Contract Balances
Revenue and Customer Contract Balances
Net Sales and Gross Billings
We provide certain services on an agent basis, whereby we procure product, materials and services on behalf of our customers and then resell such product, materials or services to our customers. As a result, we recognize only the amount related to the agent component as revenue in our results of operations. The cost of products, materials and services invoiced to our customers under these arrangements, but not recognized as revenue or cost of sales in our results of operations, were as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Cost of materials and services invoiced in connection with logistics services$262,185 $212,947 
Customer Contract Balances
As ofNovember 28,
2025
August 29,
2025
Contract assets (1)
$2,696 $1,929 
Contract liabilities: (2)
Deferred revenue$59,326 $89,943 
Customer advances24,213 21,525 
$83,539 $111,468 
(1)Contract assets are included in other current and noncurrent assets.
(2)Contract liabilities are included in other current and noncurrent liabilities based on the timing of when our customers are expected to take control of the asset or receive the benefit of the service.
Contract assets represent amounts recognized as revenue for which we do not have the unconditional right to consideration.
Deferred revenue represents amounts received from customers in advance of satisfying performance obligations. As of November 28, 2025, we expect to recognize revenue of $47.9 million of the balance of $59.3 million in the next 12 months and the remaining amount thereafter. In the first quarter of 2026, we recognized revenue of $42.6 million from satisfying performance obligations related to amounts included in deferred revenue as of August 29, 2025. In addition, as of November 28, 2025, other current liabilities included $15.2 million that is not included in the above remaining performance obligations. While this liability relates to amounts received from customers in
connection with arrangements that are cancellable at the customer’s discretion, we have not had to refund any such amounts to our customers in the periods presented.
Customer advances, which is included in other current liabilities in the accompanying consolidated balance sheets, represent amounts received from customers for advance payments to secure product. In the first quarter of 2026, we recognized revenue of $18.9 million from satisfying performance obligations related to amounts included in customer advances as of August 29, 2025.
As of November 28, 2025 and August 29, 2025, other current liabilities included $16.8 million and $17.7 million, respectively, for estimates of consideration payable to customers, including estimates for pricing adjustments and returns.
v3.25.4
Other Operating (Income) Expense
3 Months Ended
Nov. 28, 2025
Other Income and Expenses [Abstract]  
Other Operating (Income) Expense
Other Operating (Income) Expense
In recent periods, we executed plans that included the elimination of certain projects across our businesses, which resulted in workforce reductions. In connection therewith, we recorded restructuring charges of $4.7 million and $0.1 million in the first quarter of 2026 and 2025, respectively, consisting solely of employee severance costs and other benefits, reflected in Other Operating (Income) Expense in the Consolidated Statements of Operations. These charges were primarily concentrated in the period management defined, committed, and communicated the plan, and therefore, they were accrued and recorded in the respective period announced. We anticipate there will be additional restructuring activities in future quarters, for which we will record additional charges.
The following table summarizes the liabilities directly attributable to us that were recognized under the plans discussed above:
As of August 29, 2025$1,063 
Additions4,742 
Cash payments(3,516)
As of November 28, 2025$2,289 
The 2026 beginning restructuring liability balance was $1.1 million, of which $0.3 million remained outstanding as of November 28, 2025. The total unpaid balance as of November 28, 2025 was $2.3 million, and it is expected to be fully paid by the end of 2026.
v3.25.4
Other Non-operating (Income) Expense
3 Months Ended
Nov. 28, 2025
Nonoperating Income (Expense) [Abstract]  
Other Non-operating (Income) Expense
Other Non-operating (Income) Expense
Three Months Ended
November 28,
2025
November 29,
2024
Loss (gain) from changes in foreign currency exchange rates1,212 1,028 
Loss (gain) on disposition of assets(19)(20)
Loss (gain) on non-marketable equity investments10,000 — 
Other482 (372)
$11,675 $636 
v3.25.4
Income Taxes
3 Months Ended
Nov. 28, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Three Months Ended
November 28,
2025
November 29,
2024
Income (loss) before taxes$7,860 $12,324 
Income tax provision (benefit)$1,805 $6,360 
Effective tax rate23.0 %51.6 %
Income taxes include a provision (benefit) for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to us and our subsidiaries, adjusted for certain discrete items, which are fully recognized in the period they occur. We have determined our interim income tax provision (benefit) by applying the annual estimated effective income tax rate expected to be applicable for the full fiscal year to the income (loss) before taxes for jurisdictions which are subject to income tax. In determining the full year estimate, we do not include the impact of unusual and/or infrequent items, which may cause significant variations in the customary relationship between income tax provision (benefit) and income (loss) before taxes. Accordingly, the interim effective tax rate may not be reflective of the annual estimated effective tax rate. Additionally, our income tax provision (benefit) is subject to volatility and could be impacted by changes in our geographic earnings, non-deductible share-based compensation and certain tax credits.
The effective tax rate was 23.0% in the first quarter of 2026 and was higher than the U.S. statutory tax rate of 21.0% primarily due to cross border tax costs, state income taxes, and nondeductible compensation paid to officers, partially offset by foreign operations which reflects the impact of lower tax rates in locations outside the U.S. and tax credits. The effective tax rate was 51.6% in the first quarter of 2025, and differed from the U.S. statutory rate primarily due to losses generated in a jurisdiction where no tax benefit can be recognized, withholding taxes, tax credits, and state income taxes.
Determining the consolidated income tax provision (benefit), income tax liabilities and deferred tax assets and liabilities involves judgment. We calculate and provide for income taxes in each of the tax jurisdictions in which we operate, which involves estimating current tax exposures as well as making judgments regarding the recoverability of deferred tax assets in each jurisdiction. The estimates used could differ from actual results, which may have a significant impact on operating results in future periods.
v3.25.4
Earnings Per Share
3 Months Ended
Nov. 28, 2025
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
We calculate basic earnings per common share (“EPS”) pursuant to the two-class method as a result of the issuance of the Issued CPS. The two-class method is an earnings allocation formula that determines EPS for common shares and participating securities according to dividend and participation rights in undistributed earnings. Under this method, all current period earnings, distributed and undistributed, are allocated to common stock and participating securities based on their respective rights to receive dividends. The Issued CPS is considered a participating security. The Issued CPS is not included in the computation of basic EPS in periods in which we have a net loss, as the Issued CPS is not contractually obligated to share in our net losses.
With respect to the Issued CPS, diluted EPS is calculated using the more dilutive of the two-class method or if-converted method. The two-class method uses net income available to common stockholders and assumes conversion of all potential shares other than the participating securities. The if-converted method uses net income and assumes conversion of all potential shares including the participating securities.
Dilutive potential common stock includes outstanding share options, unvested restricted share units, Convertible Senior Notes and Convertible Preferred Shares.
The following table summarizes the computation of basic and diluted EPS under the two-class or if-converted method in applicable periods, as well as the anti-dilutive shares excluded:
Three Months Ended
November 28,
2025
November 29,
2024
Net income (loss) attributable to Penguin Solutions – Basic and Diluted$5,270 $5,217 
Less: Preferred stock dividends3,033 — 
Income available for distribution2,237 5,217 
Income allocated to participating securities231 — 
Net income available to common stockholders$2,006 $5,217 
Weighted-average shares outstanding – Basic52,90053,482
Dilutive effect of equity plans and Convertible Senior Notes2,091830
Weighted-average shares outstanding – Diluted54,99154,312
Earnings (loss) per share:
Basic$0.04 $0.10 
Diluted$0.04 $0.10 
Unweighted anti-dilutive shares:
Equity plans6621,371
Convertible Senior Notes
Preferred stock6,096
6,758 1,371 
Upon any conversion of our Convertible Senior Notes, we will be required to pay cash in an amount at least equal to the principal portion and have the option to settle any amount in excess of the principal portion in cash and/or shares of common stock. As a result, only the amounts expected to be settled in excess of the principal portion are considered in calculating diluted earnings per share under the if-converted method.
v3.25.4
Segment and Other Information
3 Months Ended
Nov. 28, 2025
Segment Reporting [Abstract]  
Segment and Other Information
Segment and Other Information
Segment information presented below is consistent with how our Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, evaluates our results of operations to make decisions about allocating resources and assessing performance using segment net sales, cost of sales, operating expenses, and operating income (loss). The CODM is regularly provided this segment information to assess relative segment performance and allocate resources to the segment in the annual planning process.
We have the following three business units, which are our reportable segments:
Advanced Computing: Our Advanced Computing segment, under our Penguin Computing and Stratus brands, offers specialized platform solutions and services for artificial intelligence, high-performance computing, machine learning, advanced modeling and the internet of things that span the continuum of edge, core and cloud. Our solutions are designed specifically for customers across multiple markets, including hyperscale, financial services, energy, government, education, healthcare and others.
Integrated Memory: Our Integrated Memory segment, under our SMART Modular Technologies brand, provides high-performance and reliable integrated memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. These specialty products are tailored to meet customer-specific requirements across networking and communications, enterprise storage and computing, including server applications and other vertical markets. These products are marketed to original equipment manufacturers and to commercial and government customers. The Integrated Memory segment also offers SMART Supply Chain Services, which provides customized, integrated supply chain services to enable our customers to better manage supply chain planning and execution, reduce costs and increase productivity.
Optimized LED: Our Optimized LED segment, under our Cree LED brand, offers a broad portfolio of application-optimized LEDs focused on improving lumen density, intensity, efficacy, optical control and/or reliability. Backed by expert design assistance and superior sales support, our LED products enable our customers to develop and market LED-based products for general lighting, video displays and specialty lighting applications.
Segments are determined based on sources of sales, types of customers and operating performance.
There are no differences between the accounting policies for our segment reporting and our consolidated results of operations. Operating expenses directly associated with the activities of a specific segment are charged to that segment. Certain other indirect operating income and expenses are generally allocated to segments based on their respective percentage of net sales. We do not identify (other than goodwill) or report internally our assets nor allocate certain expenses and amortization, interest, other non-operating (income) expense or taxes to segments.
Three Months Ended
November 28,
2025
November 29,
2024
Net sales:
Advanced Computing$151,452 $177,426 
Integrated Memory136,521 96,706 
Optimized LED55,098 66,970 
Total net sales$343,071 $341,102 
Costs of Goods Sold
Advanced Computing$99,678 $114,931 
Integrated Memory105,528 75,565 
Optimized LED34,944 45,484 
Total Costs of Goods Sold240,150 235,980 
Operating Expense
Advanced Computing$29,655 $32,379 
Integrated Memory15,061 14,024 
Optimized LED16,677 17,801 
Total Operating Expenses61,393 64,204 
Segment operating income:
Advanced Computing$22,119 $30,117 
Integrated Memory15,932 7,116 
Optimized LED3,477 3,685 
Total segment operating income41,528 40,918 
Reconciliation of profit (loss)
Stock-based compensation expense(10,080)(11,531)
Amortization of acquisition-related intangibles(7,508)(9,755)
Cost of sales-related restructuring483 42 
Diligence, acquisition and integration expense— (833)
Redomiciliation costs
— (1,243)
Restructuring charges(4,742)(109)
Other(99)(133)
Total unallocated(21,946)(23,562)
Total non-operating expense$(11,722)$(5,032)
Income (loss) before taxes$7,860 $12,324 

Depreciation included in segment operating income was as follows:
November 28,
2025
November 29,
2024
Advanced Computing
$2,135 $1,779 
Integrated Memory
889 924 
Optimized LED
2,070 2,314 
$5,094 $5,017 
v3.25.4
Related Party Disclosures
3 Months Ended
Nov. 28, 2025
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
From time to time, we may enter into an agreement with a related party in the ordinary course of business. These agreements are reviewed and approved or ratified by the Audit Committee of the Board pursuant to our related person transaction policy. We follow ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions, under which related parties are defined as members of our Board of Directors, affiliates of the Company, management and principal owners of our outstanding stock and members of their immediate families. Related parties also include any other person or entity with significant influence over our
management or operations. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. We assess related parties each reporting period.
On May 26, 2025, we entered into an agreement with SKT, a related party, under which we subsequently entered into statements of work to provide solutions to support SKT’s future AI data center infrastructure initiatives. SKT, through Astra AI Infra, a special purpose vehicle formed by SKT, holds more than 10% of the voting interest of the Company. Additionally, Min Yong Ha, an executive of SKT, is a member of our Board of Directors. At the beginning of fiscal 2026 we had $18.3 million in cash deposits recorded as a contract liability. During the quarter ended November 28, 2025, we recognized revenue of $32.2 million, on the fulfillment of AI hardware solutions and installation services. As of November 28, 2025, $15.1 million remained outstanding in accounts receivable.
v3.25.4
Subsequent Events
3 Months Ended
Nov. 28, 2025
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
On December 29, 2025, the Company entered into a certain Stock Transfer Agreement (the “Stock Transfer Agreement”), by and among the Company, Lexar Europe B.V., a company organized under the laws of the Netherlands (“Buyer”), Zilia Technologies Indústria e Comércio de Componentes Eletrônicos Ltda., a sociedade limitada governed by the laws of Brazil (“Zilia Technologies”), Shenzhen Longsys Electronics Co., Ltd., a company limited by shares governed by the laws of the People’s Republic of China (“Parent”), and Shanghai Intelligent Memory Semiconductor Co., Ltd., a limited liability company governed by the laws of the People’s Republic of China (“Parent Funding Entity”, together with Buyer and Parent, the “Parent Group Companies” and each a “Parent Group Company”).
Pursuant to the Stock Transfer Agreement, the Company will sell its equity interest in Zilia Technologies to the Buyer for a gross cash purchase price of $46.1 million (the “Transaction”). The closing of the Transaction is subject to customary closing conditions and is expected to occur on or about March 30, 2026, or such earlier date as may be mutually agreed. If certain required approvals have not been obtained by March 30, 2026, the closing is expected to occur no later than April 28, 2026.
The Company’s equity investment in Zilia Technologies is accounted for under the measurement alternative accordance with ASC 321, Investments – Equity Securities, and had a carrying value of $37.8 million as of November 28, 2025. As of the date of filing of this Form 10-Q, the Transaction has not closed and the investment continues to be carried at its historical cost basis, adjusted for any previously recognized impairments or observable price changes, as applicable.
v3.25.4
Insider Trading Arrangements
3 Months Ended
Nov. 28, 2025
shares
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Joseph Clark [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 11, 2025, Joseph Clark, our President of Optimized LED, adopted a Rule 10b5-1 trading arrangement (the “Clark 10b5-1 Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Clark 10b5-1 Plan provides for the sale of up to (i) 52,943 shares of common stock, plus (ii) one-half of the net shares of common stock that may be acquired by Mr. Clark upon the future vesting of 27,513 restricted stock units and all of the net shares of common stock that may be acquired by Mr. Clark upon the future vesting of up to 30,932 performance-based restricted stock units (net of shares of common stock surrendered to Penguin Solutions to satisfy tax withholding obligations in connection with vesting), each subject to pre-established limit prices, commencing on February 10, 2026 and continuing until all shares are sold or until July 30, 2027, whichever occurs first.
Name Joseph Clark
Title President of Optimized LED
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 11, 2025
Expiration Date July 30, 2027
Arrangement Duration 535 days
Anne Kuykendall [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On November 11, 2025, Anne Kuykendall, our Senior Vice President and Chief Legal Officer, adopted a Rule 10b5-1 trading arrangement (the “Kuykendall 10b5-1 Plan”) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Kuykendall 10b5-1 Plan provides for the sale of up to (i) 28,000 shares of common stock, plus (ii) 25% of the net shares of common stock that may be acquired by Ms. Kuykendall upon the future vesting of 18,043 restricted stock units (net of shares of common stock surrendered to Penguin Solutions to satisfy tax withholding obligations in connection with vesting), each at market price, commencing on February 25, 2026 and continuing until all shares are sold or until December 31, 2026, whichever occurs first.
Name Anne Kuykendall
Title Senior Vice President and Chief Legal Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 11, 2025
Expiration Date December 31, 2026
Arrangement Duration 309 days
Joseph Clark Trading Arrangement, Common Shares [Member] | Joseph Clark [Member]  
Trading Arrangements, by Individual  
Aggregate Available 52,943
Joseph Clark Trading Arrangement, Restricted Stock Units [Member] | Joseph Clark [Member]  
Trading Arrangements, by Individual  
Aggregate Available 27,513
Joseph Clark Trading Arrangement, Performance-Based Restricted Stock Units [Member] | Joseph Clark [Member]  
Trading Arrangements, by Individual  
Aggregate Available 30,932
Anne Kuykendal Trading Arrangement, Common Shares [Member] | Anne Kuykendall [Member]  
Trading Arrangements, by Individual  
Aggregate Available 28,000
Anne Kuykendal Trading Arrangement, Restricted Stock Units [Member] | Anne Kuykendall [Member]  
Trading Arrangements, by Individual  
Aggregate Available 18,043
v3.25.4
Significant Accounting Policies (Policies)
3 Months Ended
Nov. 28, 2025
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
U.S. Domestication: On June 30, 2025, we consummated the redomiciliation of the parent company of our corporate group, Penguin Solutions (Cayman), Inc., formerly known as Penguin Solutions, Inc., a Cayman Islands exempted company (“Penguin Solutions Cayman”), from the Cayman Islands to the State of Delaware in the United States, resulting in Penguin Solutions, Inc., a Delaware corporation (“Penguin Solutions Delaware”), becoming our publicly traded parent company (the “U.S. Domestication”). The U.S. Domestication was approved by the shareholders of Penguin Solutions Cayman and effected via a court-sanctioned scheme of arrangement under Cayman Islands law, pursuant to which each ordinary share of Penguin Solutions Cayman was exchanged for one share of common stock of Penguin Solutions Delaware, and each convertible preferred share of Penguin Solutions Cayman was exchanged for one share of convertible preferred stock of Penguin Solutions Delaware.
The accompanying consolidated financial statements include the accounts of Penguin Solutions Cayman and its consolidated subsidiaries prior to the consummation of the U.S. Domestication, and the accounts of Penguin Solutions Delaware and its consolidated subsidiaries after the consummation of the U.S. Domestication. Unless stated otherwise or the context otherwise requires, references to “Penguin Solutions,” “we,” “us,” “our,” and the “Company” in the accompanying consolidated financial statements (i) for periods prior to the consummation of the U.S. Domestication refer to Penguin Solutions Cayman and its consolidated subsidiaries and (ii) for periods at or after the consummation of the U.S. Domestication refer to Penguin Solutions Delaware and its consolidated subsidiaries.
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended August 29, 2025 (the “2025 Annual Report”) and the applicable rules and regulations of the SEC regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of our management, the accompanying unaudited consolidated financial statements contain all necessary adjustments, consisting of a normal recurring nature, to fairly state the financial information set forth herein. These consolidated interim financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the 2025 Annual Report.
Fiscal Year: Our fiscal year is the 52- or 53-week period ending on the last Friday in August. Fiscal years 2026 and 2025 each contain 52 weeks. All period references are to our fiscal periods unless otherwise indicated.
Recently Adopted Accounting Standards /Recently Issued Accounting Standards
Recently Issued Accounting Standards
In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Improvements to the Accounting for and Disclosure of Internal-Use Software, which replaces the previous stage-based model for capitalizing internal-use software development costs with a principles-based approach. Under the new guidance, capitalization begins when management authorizes and commits to funding a project and it is probable the project will be completed and used as intended. The ASU also incorporates website development guidance into Accounting Standards Codification (“ASC”) 350-40 and introduces the concept of “significant development uncertainty,” which, if present, would delay capitalization. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, including interim periods within those years, with early adoption permitted at the beginning of an annual period. The new guidance may be applied prospectively, retrospectively, or using a modified prospective approach. We are currently evaluating the impact of this guidance on our consolidated financial statements and related disclosures, though we do not expect there to be a material impact.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides a practical expedient that all entities can use when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue from Contracts with Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim reporting periods in those years. Entities that elect the practical expedient and, if applicable, make the accounting policy election are required to apply the amendments prospectively. We are currently evaluating the potential impact of adopting ASU 2025-05 on our consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosure (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments in this ASU require disclosure, in the notes to the financial statements, of specified information about certain costs and expenses, as well as a qualitative description of amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. This ASU also requires disclosure of the total amount of selling expenses and an entity’s definition of selling expenses. The amendments in this ASU are effective for us in 2028 for annual reporting and in 2029 for interim reporting, with early adoption permitted and may be applied prospectively or retrospectively. We do not expect ASU 2024-03 to have an impact on our financial position, results of operations and cash flows. We are currently evaluating the impact on our consolidated financial statement disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this ASU are intended to increase transparency through improvements to annual disclosures primarily related to income tax rate reconciliation and income taxes paid. The amendments in this ASU are effective for us in 2026 for annual reporting, with early adoption permitted. The ASU may be applied on a prospective basis, although retrospective application is permitted. We are evaluating the timing and effects of this ASU on our income tax disclosures.
v3.25.4
Cash and Investments (Tables)
3 Months Ended
Nov. 28, 2025
Cash and Cash Equivalents [Abstract]  
Fair Value, Assets Measured on Recurring and Nonrecurring Basis Cash, cash equivalents and short-term investments were as follows:
 As of November 28, 2025As of August 29, 2025
Cash and Cash Equivalents
Short-term Investments
Cash and Cash Equivalents
Short-term Investments
Cash$434,306 $— $426,870 $— 
Level 1:
Money market funds27,145 — 26,884 — 
 $461,451 $— $453,754 $— 
v3.25.4
Inventories (Tables)
3 Months Ended
Nov. 28, 2025
Inventory Disclosure [Abstract]  
Schedule of Inventories
As ofNovember 28,
2025
August 29,
2025
Raw materials$108,272 $92,393 
Work in process27,199 32,002 
Finished goods77,734 130,787 
 $213,205 $255,182 
v3.25.4
Property and Equipment (Tables)
3 Months Ended
Nov. 28, 2025
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
As ofNovember 28,
2025
August 29,
2025
Equipment$90,724 $90,160 
Buildings and building improvements70,275 69,245 
Furniture, fixtures and software44,261 46,784 
Land14,983 14,983 
220,243 221,172 
Accumulated depreciation(129,860)(128,569)
 $90,383 $92,603 
v3.25.4
Intangible Assets and Goodwill (Tables)
3 Months Ended
Nov. 28, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill by Segment
Gross
Amount
Accumulated
Amortization
Gross
Amount
Accumulated
Amortization
As of
November 28, 2025August 29, 2025
Intangible assets:
Technology$144,984 $(89,500)$144,445 $(83,375)
Customer relationships33,000 (14,641)33,000 (13,602)
Trademarks/trade names15,786 (9,061)15,786 (8,500)
$193,770 $(113,202)$193,231 $(105,477)
Goodwill by segment:
Advanced Computing$131,175 $131,175 
Integrated Memory14,720 14,720 
$145,895 $145,895 
v3.25.4
Accounts Payable and Accrued Expenses (Tables)
3 Months Ended
Nov. 28, 2025
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Expenses
As ofNovember 28,
2025
August 29,
2025
Accounts payable (1)
$304,938 $267,498 
Salaries, wages and benefits20,894 34,169 
Income and other taxes16,953 15,304 
Other4,741 1,790 
$347,526 $318,761 
(1)Included in accounts payable for property and equipment of $1.2 million and $1.7 million as of November 28, 2025 and August 29, 2025, respectively.
v3.25.4
Debt (Tables)
3 Months Ended
Nov. 28, 2025
Debt Disclosure [Abstract]  
Summary of Long-Term Debt
As ofNovember 28,
2025
August 29,
2025
2030 Notes194,201 193,906 
2029 Notes148,132 147,987 
2026 Notes19,974 19,945 
2025 Loans100,000 100,000 
462,307 461,838 
Less current debt(19,974)(19,945)
Long-term debt$442,333 $441,893 
Summary of Interest Income and Interest Expense Disclosure Aggregate interest expense for our Convertible Senior Notes consisted of contractual stated interest and amortization of issuance costs and included the following:
Three Months Ended
November 28,
2025
November 29,
2024
Contractual stated interest$1,842 $1,842 
Amortization of debt issuance costs470 458 
$2,312 $2,300 
Summary of Maturities of Debt
As of November 28, 2025, maturities of debt were as follows:
2026$20,000 
2027— 
2028— 
2029150,000 
2030300,000 
2031 and thereafter— 
Less unamortized discount and issuance costs(7,693)
$462,307 
v3.25.4
Leases (Tables)
3 Months Ended
Nov. 28, 2025
Leases [Abstract]  
Summary of Components of Operating Lease Expense The components of operating lease expense were as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Fixed lease cost$2,818 $2,975 
Variable lease cost583 448 
Short-term lease cost413 468 
 $3,814 $3,891 
Schedule of Minimum Payments of Lease Liabilities
As of November 28, 2025, minimum payments of lease liabilities were as follows:
Remainder of 2026$7,247 
20279,549 
20289,540 
20299,617 
20309,788 
2031 and thereafter43,828 
89,569 
Less imputed interest(22,471)
Present value of total lease liabilities$67,098 
v3.25.4
Equity (Tables)
3 Months Ended
Nov. 28, 2025
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive income (loss) by component in the first quarter of 2026 were as follows:
Gains (Losses)
on
Investments
As of August 29, 2025$28 
Other comprehensive income (loss) before reclassifications13 
Reclassifications out of accumulated other comprehensive income— 
Other comprehensive income (loss)13 
As of November 28, 2025$41 
v3.25.4
Fair Value Measurements (Tables)
3 Months Ended
Nov. 28, 2025
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurements of Other Assets and Liabilities
Fair
Value
Carrying
Value
Fair
Value
Carrying
Value
As of
November 28, 2025August 29, 2025
Assets:
Derivative financial instruments$4,300 $4,300 $4,223 $4,223 
Liabilities:
2030 Notes$207,726 $194,201 $224,048 $193,906 
2029 Notes$175,356 $148,132 $197,363 $147,987 
2026 Notes$22,838 $19,974 $25,713 $19,945 
v3.25.4
Equity Plans (Tables)
3 Months Ended
Nov. 28, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Aggregate Restricted Award Activity and Assumptions
Restricted Award activity was as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Restricted awards granted1,500635
Weighted-average grant date fair value per share$21.46 $30.25 
Aggregate vesting date fair value of shares vested$13,364 $9,028 
Schedule of Share Based Compensation Expense Allocation
Stock-based compensation expense for our continuing operations was as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Stock-based compensation expense by caption:
Cost of sales$1,386 $1,643 
Research and development1,494 1,689 
Selling, general and administrative7,200 8,199 
 $10,080 $11,531 
v3.25.4
Revenue and Customer Contract Balances (Tables)
3 Months Ended
Nov. 28, 2025
Revenue from Contract with Customer [Abstract]  
Summary of Net Sales by Products and Services and Gross Amounts Billed for Services The cost of products, materials and services invoiced to our customers under these arrangements, but not recognized as revenue or cost of sales in our results of operations, were as follows:
Three Months Ended
November 28,
2025
November 29,
2024
Cost of materials and services invoiced in connection with logistics services$262,185 $212,947 
Summary of Customer Contract Balances
As ofNovember 28,
2025
August 29,
2025
Contract assets (1)
$2,696 $1,929 
Contract liabilities: (2)
Deferred revenue$59,326 $89,943 
Customer advances24,213 21,525 
$83,539 $111,468 
(1)Contract assets are included in other current and noncurrent assets.
(2)Contract liabilities are included in other current and noncurrent liabilities based on the timing of when our customers are expected to take control of the asset or receive the benefit of the service.
v3.25.4
Other Operating (Income) Expense (Tables)
3 Months Ended
Nov. 28, 2025
Other Income and Expenses [Abstract]  
Schedule of Restructuring Liability
The following table summarizes the liabilities directly attributable to us that were recognized under the plans discussed above:
As of August 29, 2025$1,063 
Additions4,742 
Cash payments(3,516)
As of November 28, 2025$2,289 
v3.25.4
Other Non-operating (Income) Expense (Tables)
3 Months Ended
Nov. 28, 2025
Nonoperating Income (Expense) [Abstract]  
Schedule of Other Non-operating (Income) Expense
Three Months Ended
November 28,
2025
November 29,
2024
Loss (gain) from changes in foreign currency exchange rates1,212 1,028 
Loss (gain) on disposition of assets(19)(20)
Loss (gain) on non-marketable equity investments10,000 — 
Other482 (372)
$11,675 $636 
v3.25.4
Income Taxes (Tables)
3 Months Ended
Nov. 28, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Taxes and Components of Income Tax Provision (Benefit)
Three Months Ended
November 28,
2025
November 29,
2024
Income (loss) before taxes$7,860 $12,324 
Income tax provision (benefit)$1,805 $6,360 
Effective tax rate23.0 %51.6 %
v3.25.4
Earnings Per Share (Tables)
3 Months Ended
Nov. 28, 2025
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Share
The following table summarizes the computation of basic and diluted EPS under the two-class or if-converted method in applicable periods, as well as the anti-dilutive shares excluded:
Three Months Ended
November 28,
2025
November 29,
2024
Net income (loss) attributable to Penguin Solutions – Basic and Diluted$5,270 $5,217 
Less: Preferred stock dividends3,033 — 
Income available for distribution2,237 5,217 
Income allocated to participating securities231 — 
Net income available to common stockholders$2,006 $5,217 
Weighted-average shares outstanding – Basic52,90053,482
Dilutive effect of equity plans and Convertible Senior Notes2,091830
Weighted-average shares outstanding – Diluted54,99154,312
Earnings (loss) per share:
Basic$0.04 $0.10 
Diluted$0.04 $0.10 
Unweighted anti-dilutive shares:
Equity plans6621,371
Convertible Senior Notes
Preferred stock6,096
6,758 1,371 
v3.25.4
Segment and Other Information (Tables)
3 Months Ended
Nov. 28, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information
Three Months Ended
November 28,
2025
November 29,
2024
Net sales:
Advanced Computing$151,452 $177,426 
Integrated Memory136,521 96,706 
Optimized LED55,098 66,970 
Total net sales$343,071 $341,102 
Costs of Goods Sold
Advanced Computing$99,678 $114,931 
Integrated Memory105,528 75,565 
Optimized LED34,944 45,484 
Total Costs of Goods Sold240,150 235,980 
Operating Expense
Advanced Computing$29,655 $32,379 
Integrated Memory15,061 14,024 
Optimized LED16,677 17,801 
Total Operating Expenses61,393 64,204 
Segment operating income:
Advanced Computing$22,119 $30,117 
Integrated Memory15,932 7,116 
Optimized LED3,477 3,685 
Total segment operating income41,528 40,918 
Reconciliation of profit (loss)
Stock-based compensation expense(10,080)(11,531)
Amortization of acquisition-related intangibles(7,508)(9,755)
Cost of sales-related restructuring483 42 
Diligence, acquisition and integration expense— (833)
Redomiciliation costs
— (1,243)
Restructuring charges(4,742)(109)
Other(99)(133)
Total unallocated(21,946)(23,562)
Total non-operating expense$(11,722)$(5,032)
Income (loss) before taxes$7,860 $12,324 

Depreciation included in segment operating income was as follows:
November 28,
2025
November 29,
2024
Advanced Computing
$2,135 $1,779 
Integrated Memory
889 924 
Optimized LED
2,070 2,314 
$5,094 $5,017 
v3.25.4
Cash and Investments - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Aug. 29, 2025
Cash and Cash Equivalents [Abstract]      
Restricted cash $ 300    
Equity securities, FV-NI, noncurrent 43,000   $ 53,000
Loss on impairment of non-marketable equity investment $ 10,000 $ 0  
v3.25.4
Cash and Investments - Schedule of Cash, Cash Equivalents, and Short-term Investments (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents $ 461,451 $ 453,754
Short-term investments 0 0
Money market funds | Level 1:    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 27,145 26,884
Short-term investments 0 0
Cash    
Cash and Cash Equivalents [Line Items]    
Cash and cash equivalents 434,306 426,870
Short-term investments $ 0 $ 0
v3.25.4
Accounts Receivable (Details)
3 Months Ended
Nov. 28, 2025
USD ($)
Receivables [Abstract]  
Trade accounts receivable, available-for-sale $ 60,000,000.0
Trade accounts receivable, sale $ 0
v3.25.4
Inventories - Schedule of Inventories (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Inventory Disclosure [Abstract]    
Raw materials $ 108,272 $ 92,393
Work in process 27,199 32,002
Finished goods 77,734 130,787
Total inventories $ 213,205 $ 255,182
v3.25.4
Inventories - Additional Information (Details)
Nov. 28, 2025
Aug. 29, 2025
Inventory Disclosure [Abstract]    
Percentage of inventories 13.00% 21.00%
v3.25.4
Property and Equipment (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Aug. 29, 2025
Property Plant And Equipment [Line Items]      
Property and equipment, gross $ 220,243   $ 221,172
Accumulated depreciation (129,860)   (128,569)
Net property and equipment 90,383   92,603
Depreciation expense 5,094 $ 5,017  
Equipment      
Property Plant And Equipment [Line Items]      
Property and equipment, gross 90,724   90,160
Buildings and building improvements      
Property Plant And Equipment [Line Items]      
Property and equipment, gross 70,275   69,245
Furniture, fixtures and software      
Property Plant And Equipment [Line Items]      
Property and equipment, gross 44,261   46,784
Land      
Property Plant And Equipment [Line Items]      
Property and equipment, gross $ 14,983   $ 14,983
v3.25.4
Intangible Assets and Goodwill - Schedule of Intangible Assets and Goodwill by Segment (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Finite Lived Intangible Assets [Line Items]    
Gross
Amount $ 193,770 $ 193,231
Accumulated Amortization (113,202) (105,477)
Goodwill 145,895 145,895
Advanced Computing    
Finite Lived Intangible Assets [Line Items]    
Goodwill 131,175 131,175
Integrated Memory    
Finite Lived Intangible Assets [Line Items]    
Goodwill 14,720 14,720
Technology    
Finite Lived Intangible Assets [Line Items]    
Gross
Amount 144,984 144,445
Accumulated Amortization (89,500) (83,375)
Customer relationships    
Finite Lived Intangible Assets [Line Items]    
Gross
Amount 33,000 33,000
Accumulated Amortization (14,641) (13,602)
Trademarks/trade names    
Finite Lived Intangible Assets [Line Items]    
Gross
Amount 15,786 15,786
Accumulated Amortization $ (9,061) $ (8,500)
v3.25.4
Intangible Assets and Goodwill - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Identifiable assets acquired finite-lived intangibles $ 0.5 $ 0.4
Acquired finite-lived intangible assets, weighted average useful life 18 years 7 months 6 days 18 years 6 months
Amortization of intangible assets $ 7.7 $ 9.9
Finite-lived intangible assets, expected amortization remainder of fiscal year 25.0  
Finite-lived intangible assets, expected amortization for 2027 29.7  
Finite-lived intangible assets, expected amortization for 2028 10.0  
Finite-lived intangible assets, expected amortization for 2029 6.1  
Finite-lived intangible assets, expected amortization for 2030 5.4  
Finite-lived intangible asset, expected amortization, 2031 and after $ 4.4  
v3.25.4
Accounts Payable and Accrued Expenses (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Payables and Accruals [Abstract]    
Accounts payable $ 304,938 $ 267,498
Salaries, wages and benefits 20,894 34,169
Income and other taxes 16,953 15,304
Other 4,741 1,790
Total 347,526 318,761
Accounts payable for property and equipment $ 1,200 $ 1,700
v3.25.4
Debt - Summary of Long-Term Debt (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Debt Instrument [Line Items]    
Debt $ 462,307 $ 461,838
Less current debt (19,974) (19,945)
Long-term debt 442,333 441,893
2030 Notes    
Debt Instrument [Line Items]    
Debt 194,201 193,906
2029 Notes    
Debt Instrument [Line Items]    
Debt 148,132 147,987
2026 Notes    
Debt Instrument [Line Items]    
Debt 19,974 19,945
2025 Loans    
Debt Instrument [Line Items]    
Debt $ 100,000 $ 100,000
v3.25.4
Debt - Credit Facility (Details) - USD ($)
Jun. 24, 2025
Nov. 28, 2025
Aug. 29, 2022
Debt Instrument [Line Items]      
Unamortized debt discounts and issuance costs   $ 7,693,000  
The Credit Facility Agreement      
Debt Instrument [Line Items]      
Loss on extinguishment or prepayment of debt $ 2,900,000    
Amended 2022 TLA      
Debt Instrument [Line Items]      
Unamortized debt discounts and issuance costs (1,800,000)    
Debt instrument, effective interest rate   7.17%  
Debt instrument outstanding amount   $ 0  
Revolving Credit Facility | 2025 Credit Agreement      
Debt Instrument [Line Items]      
Debt instrument, face amount 400,000,000    
Proceeds from Lines of Credit 100,000,000    
Revolving Credit Facility | Amended 2022 TLA      
Debt Instrument [Line Items]      
Debt instrument outstanding amount   100,000,000  
Unamortized debt issuance expense 1,500,000 $ 3,500,000  
Letter of Credit | 2025 Credit Agreement      
Debt Instrument [Line Items]      
Debt instrument, face amount 35,000,000    
Amended 2022 TLA | The Credit Facility Agreement      
Debt Instrument [Line Items]      
Debt instrument, face amount     $ 300,000,000
Repayments of long-term debt $ 200,000,000    
v3.25.4
Debt - Convertible Senior Notes (Details)
Nov. 28, 2025
Aug. 29, 2025
2029 Notes    
Debt Instrument [Line Items]    
Note interest rate 2.00%  
Debt instrument, effective interest rate 2.40% 2.40%
Two Percent Convertible Senior Notes Due 2030    
Debt Instrument [Line Items]    
Note interest rate 2.00%  
2.25% Convertible Senior Notes Due 2026    
Debt Instrument [Line Items]    
Debt instrument, effective interest rate 2.83% 2.83%
2030 Notes    
Debt Instrument [Line Items]    
Debt instrument, effective interest rate 2.65% 2.65%
v3.25.4
Debt - Interest Expense Disclosure (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Debt Instrument [Line Items]    
Amortization of debt issuance costs $ 658 $ 953
Convertible Notes    
Debt Instrument [Line Items]    
Contractual stated interest 1,842 1,842
Amortization of debt issuance costs 470 458
2.25% Convertible Senior Notes Due 2026    
Debt Instrument [Line Items]    
Total interest cost recognized $ 2,312 $ 2,300
v3.25.4
Debt - Summary of Maturities of Debt (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Debt Disclosure [Abstract]    
2026 $ 20,000  
2027 0  
2028 0  
2029 150,000  
2030 300,000  
2031 and thereafter 0  
Less unamortized discount and issuance costs (7,693)  
Debt $ 462,307 $ 461,838
v3.25.4
Leases - Summary of Components of Operating Lease Expense (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Leases [Abstract]    
Fixed lease cost $ 2,818 $ 2,975
Variable lease cost 583 448
Short-term lease cost 413 468
Total lease cost $ 3,814 $ 3,891
v3.25.4
Leases - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Aug. 29, 2025
Lessee Lease Description [Line Items]      
Operating lease payments $ 1.5 $ 2.3  
Weighted-average remaining lease term for operating leases 9 years 7 months 6 days   10 years 1 month 6 days
Weighted-average discount rate for operating leases 6.10%   6.10%
Minimum      
Lessee Lease Description [Line Items]      
Operating lease term 2 years    
Maximum      
Lessee Lease Description [Line Items]      
Operating lease term 5 years    
v3.25.4
Leases - Schedule of Minimum Payments of Lease Liabilities (Details)
$ in Thousands
Nov. 28, 2025
USD ($)
Leases [Abstract]  
Remainder of 2026 $ 7,247
2027 9,549
2028 9,540
2029 9,617
2030 9,788
2031 and thereafter 43,828
Total 89,569
Less imputed interest (22,471)
Present value of total lease liabilities $ 67,098
v3.25.4
Temporary Equity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Dec. 13, 2024
USD ($)
day
$ / shares
shares
Nov. 28, 2025
USD ($)
installment
director
Nov. 29, 2024
USD ($)
Aug. 29, 2025
USD ($)
Jun. 30, 2025
USD ($)
Class Of Stock [Line Items]          
Temporary equity, including noncontrolling interest | $   $ 202,710   $ 202,710 $ 202,700
Preferred cash dividends | $   3,133 $ 0    
Accrued preferred dividends | $   $ 400      
Temporary equity, redemption rights, number of installments | installment   1      
Temporary equity, redemption rights, notice period   5 years      
Minimum          
Class Of Stock [Line Items]          
Director nominees, lower range | director   1      
Director nominees, upper range | director   2      
Maximum          
Class Of Stock [Line Items]          
Director nominees, lower range | director   11      
Director nominees, upper range | director   12      
Private Placement          
Class Of Stock [Line Items]          
Issued in transaction (in shares) | shares 200        
Preferred stock, par value (in dollars per share) | $ / shares $ 0.03        
Price per share (in dollars per share) | $ / shares $ 1,000        
Consideration received on transaction | $ $ 200,000        
Number of consecutive trading days | day 15        
Conversion price threshold 150.00%        
Conversion price (in dollars per share) | $ / shares $ 32.81        
Dividend rate 6.00%        
v3.25.4
Equity - Additional Information (Details) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Jan. 08, 2024
Apr. 04, 2022
Class Of Stock [Line Items]        
Shares acquired, value $ 20,193 $ 11,123    
Share Repurchase Authorization        
Class Of Stock [Line Items]        
Stock repurchase program, authorized amount       $ 75,000
Repurchase of ordinary shares (in shares) 791 467    
Shares acquired, value $ 15,000 $ 7,800    
Stock Repurchase Programs 2024 and 2025        
Class Of Stock [Line Items]        
Stock repurchase program, authorized amount     $ 75,000  
Initial Authorization        
Class Of Stock [Line Items]        
Remaining authorized repurchase amount $ 96,500      
Silver Lake Partners, Repurchase        
Class Of Stock [Line Items]        
Repurchase of ordinary shares (in shares) 235 213    
Shares acquired, value $ 5,200 $ 3,300    
v3.25.4
Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details)
$ in Thousands
3 Months Ended
Nov. 28, 2025
USD ($)
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]  
Beginning balance $ 405,517
Ending balance 401,759
Gains (Losses) on Investments  
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]  
Beginning balance 28
Other comprehensive income (loss) before reclassifications 13
Reclassifications out of accumulated other comprehensive income 0
Other comprehensive income (loss) 13
Ending balance $ 41
v3.25.4
Fair Value Measurements - Schedule of Fair Value Measurements of Other Assets and Liabilities (Details) - Fair Value, Inputs, Level 2 - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Fair Value    
Assets:    
Derivative financial instruments $ 4,300 $ 4,223
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Assets Assets
Fair Value | 2030 Notes    
Liabilities:    
Debt instruments fair value $ 207,726 $ 224,048
Fair Value | 2029 Notes    
Liabilities:    
Debt instruments fair value 175,356 197,363
Fair Value | 2026 Notes    
Liabilities:    
Debt instruments fair value 22,838 25,713
Carrying Value    
Assets:    
Derivative financial instruments $ 4,300 $ 4,223
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Assets Assets
Carrying Value | 2030 Notes    
Liabilities:    
Debt instruments fair value $ 194,201 $ 193,906
Carrying Value | 2029 Notes    
Liabilities:    
Debt instruments fair value 148,132 147,987
Carrying Value | 2026 Notes    
Liabilities:    
Debt instruments fair value $ 19,974 $ 19,945
v3.25.4
Fair Value Measurements - Additional Information (Details)
Nov. 29, 2023
SMART Brazil | Lexar Europe B.V.  
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]  
Stock repurchase agreement, ownership rights, percentage 0.81
v3.25.4
Equity Plans - Additional Information (Details) - USD ($)
shares in Thousands, $ in Millions
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Issuance (in shares) 3,600  
Income tax benefits for share-based awards $ 1.4 $ 1.5
Employee Stock Purchase Plan    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share issued under purchase plan (in shares) 247 253
Share issued under purchase plan $ 3.3 $ 3.2
Restricted Awards    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Unrecognized compensation costs related to awards $ 95.4  
Unrecognized compensation costs recognition period 2 years 10 months  
v3.25.4
Equity Plans - Summary of Aggregate Restricted Award Activity and Assumptions (Details) - Restricted Award Activity - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Restricted awards granted (in shares) 1,500 635
Weighted average grant-date fair value per share (in usd per share) $ 21.46 $ 30.25
Aggregate vesting date fair value of shares vested $ 13,364 $ 9,028
v3.25.4
Equity Plans - Summary of Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 10,080 $ 11,531
Cost of sales    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 1,386 1,643
Research and development    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense 1,494 1,689
Selling, general and administrative    
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]    
Share-based compensation expense $ 7,200 $ 8,199
v3.25.4
Revenue and Customer Contract Balances - Summary of Net Sales by Products and Services and Gross Amounts Billed for Services (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Nov. 29, 2024
Revenue from Contract with Customer [Abstract]    
Contract with Customer, Receivable, after Allowance for Credit Loss $ 262,185 $ 212,947
v3.25.4
Revenue and Customer Contract Balances - Summary of Customer Contract Balances (Details) - USD ($)
$ in Thousands
Nov. 28, 2025
Aug. 29, 2025
Revenue from Contract with Customer [Abstract]    
Contract assets $ 2,696 $ 1,929
Contract liabilities:    
Deferred revenue 59,326 89,943
Customer advances 24,213 21,525
Contract liabilities $ 83,539 $ 111,468
v3.25.4
Revenue and Customer Contract Balances - Additional information (Details) - USD ($)
$ in Millions
3 Months Ended
Nov. 28, 2025
Aug. 29, 2025
Disaggregation Of Revenue [Line Items]    
Expected revenue recognized on remaining performance obligations $ 59.3  
Revenue recognized 42.6  
Customer refund liability, current 15.2  
Contract with customer, liability, revenue recognized, customer advances 18.9  
Estimates of consideration payable to customers, including estimates for pricing adjustments and returns 16.8 $ 17.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-11-29    
Disaggregation Of Revenue [Line Items]    
Expected revenue recognized on remaining performance obligations $ 47.9  
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months  
v3.25.4
Other Operating (Income) Expense - Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Aug. 29, 2025
Other Income and Expenses [Abstract]      
Restructuring charges $ 4,700 $ 100  
Restructuring costs payable 2,289   $ 1,063
Restructuring reserve, original balance remaining outstanding $ 300    
v3.25.4
Other Operating (Income) Expense - Schedule of Restructuring Liability (Details)
$ in Thousands
3 Months Ended
Nov. 28, 2025
USD ($)
Restructuring Reserve [Roll Forward]  
Beginning Balance $ 1,063
Additions 4,742
Cash payments (3,516)
Ending Balance $ 2,289
v3.25.4
Other Non-operating (Income) Expense (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Nonoperating Income (Expense) [Abstract]    
Loss (gain) from changes in foreign currency exchange rates $ 1,212 $ 1,028
Loss (gain) on disposition of assets (19) (20)
Loss on impairment of non-marketable equity investment 10,000 0
Other 482 (372)
Other non-operating (income) expense $ 11,675 $ 636
v3.25.4
Income Taxes - Schedule Of Income (Loss) Before Income Taxes And Components Of Income Tax Provision (Benefit) (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Income Tax Disclosure [Abstract]    
Income (loss) before taxes $ 7,860 $ 12,324
Income tax provision (benefit) $ 1,805 $ 6,360
Effective tax rate 23.00% 51.60%
v3.25.4
Income Taxes - Additional Information (Details)
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Income Tax Disclosure [Abstract]    
Effective tax rate 23.00% 51.60%
v3.25.4
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Net income (loss) attributable to Penguin Solutions – Basic and Diluted $ 5,270 $ 5,217
Less: Preferred stock dividends 3,033 0
Income available for distribution 2,237 5,217
Income allocated to participating securities 231 0
Net income available to common stockholders, basic 2,006 5,217
Net income available to common stockholders, diluted $ 2,006 $ 5,217
Weighted-average shares outstanding – Basic (in shares) 52,900 53,482
Dilutive effect of equity plans and Convertible Senior Notes (in shares) 2,091 830
Weighted-average shares outstanding – Diluted (in shares) 54,991 54,312
Earnings (loss) per share:    
Basic (in usd per share) $ 0.04 $ 0.10
Diluted (in usd per share) $ 0.04 $ 0.10
Antidilutive securities excluded from computation of earnings per share (in shares) 6,758 1,371
Equity plans    
Earnings (loss) per share:    
Antidilutive securities excluded from computation of earnings per share (in shares) 662 1,371
Convertible Senior Notes    
Earnings (loss) per share:    
Antidilutive securities excluded from computation of earnings per share (in shares) 0 0
Preferred stock    
Earnings (loss) per share:    
Antidilutive securities excluded from computation of earnings per share (in shares) 6,096 0
v3.25.4
Segment and Other Information - Additional Information (Details)
3 Months Ended
Nov. 28, 2025
segment
Segment Reporting [Abstract]  
Number of reportable segments 3
v3.25.4
Segment and Other Information - Schedule of Segment Reporting Information (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Segment Reporting Information [Line Items]    
Total net sales $ 343,071 $ 341,102
Total cost of sales 246,962 243,290
Total operating expenses 76,527 80,456
Total segment operating income 19,582 17,356
Stock-based compensation expense (10,080) (11,531)
Restructuring charges (4,700) (100)
Total non-operating expense (11,722) (5,032)
Income (loss) before taxes 7,860 12,324
Depreciation expense 5,094 5,017
Advanced Computing    
Segment Reporting Information [Line Items]    
Depreciation expense 2,135 1,779
Integrated Memory    
Segment Reporting Information [Line Items]    
Depreciation expense 889 924
Optimized LED    
Segment Reporting Information [Line Items]    
Depreciation expense 2,070 2,314
Operating Segments    
Segment Reporting Information [Line Items]    
Total net sales 343,071 341,102
Total cost of sales 240,150 235,980
Total operating expenses 61,393 64,204
Total segment operating income 41,528 40,918
Operating Segments | Advanced Computing    
Segment Reporting Information [Line Items]    
Total net sales 151,452 177,426
Total cost of sales 99,678 114,931
Total operating expenses 29,655 32,379
Total segment operating income 22,119 30,117
Operating Segments | Integrated Memory    
Segment Reporting Information [Line Items]    
Total net sales 136,521 96,706
Total cost of sales 105,528 75,565
Total operating expenses 15,061 14,024
Total segment operating income 15,932 7,116
Operating Segments | Optimized LED    
Segment Reporting Information [Line Items]    
Total net sales 55,098 66,970
Total cost of sales 34,944 45,484
Total operating expenses 16,677 17,801
Total segment operating income 3,477 3,685
Corporate, Non-Segment    
Segment Reporting Information [Line Items]    
Stock-based compensation expense (10,080) (11,531)
Amortization of acquisition-related intangibles (7,508) (9,755)
Cost of sales-related restructuring 483 42
Diligence, acquisition and integration expense 0 (833)
Redomiciliation costs 0 (1,243)
Restructuring charges (4,742) (109)
Other (99) (133)
Total unallocated $ (21,946) $ (23,562)
v3.25.4
Related Party Transactions (Details) - USD ($)
$ in Thousands
3 Months Ended
Nov. 28, 2025
Nov. 29, 2024
Aug. 29, 2025
May 26, 2025
Related Party Transaction [Line Items]        
Total net sales $ 343,071 $ 341,102    
Related Party        
Related Party Transaction [Line Items]        
Related party, voting interest percentage (more than)       10.00%
Related party transaction, contract liability, amount 15,100   $ 18,300  
Total net sales $ 32,174 $ 0    
v3.25.4
Subsequent Events (Details) - USD ($)
$ in Millions
Dec. 29, 2025
Nov. 28, 2025
Zilia Technologies    
Subsequent Event [Line Items]    
Carrying value   $ 37.8
Subsequent Event | Zilia Technologies | Disposal Group, Disposed of by Sale, Not Discontinued Operations    
Subsequent Event [Line Items]    
Consideration $ 46.1