Penguin Solutions reported a strong second quarter for fiscal year 2025, with Revenue of $366 million, up 28% year over year, reflecting robust demand for AI infrastructure and enterprise computing solutions. Non-GAAP gross margins were 30.8%, and non-GAAP earnings per share (EPS) reached $0.52, a 97% year-over-year increase. Non-GAAP operating income was $49 million, delivering a 13.4% operating margin, up 4.1 percentage points year over year. The company also posted Adjusted EBITDA of $54 million, up 61% YoY. Management raised the full-year revenue growth outlook to 17% YoY (from 15%), highlighting a large Advanced Computing order that shipped in H1 and signaling a more front-loaded year with expectations of a softer H2. Segment performance was led by Advanced Computing ($200 million, +42% YoY) and Integrated Memory ($105 million, +26% YoY), while Optimized LED was flat. The quarter showcased material strategic progress, including ICE ClusterWare enhancements (multi-tenancy, AIM Service), expansion of partnerships (Dell, SK hynix/SK Telecom), and the planned redomiciliation to the United States. Free cash flow remained strong at $70.5 million, and the balance sheet exhibited solid liquidity with approximately $622 million in cash and cash equivalents and a net debt position of about $93.9 million. The management team signaled ongoing investment in AI infrastructure capabilities, a shift toward higher-growth, high-value workloads, and an expanded go-to-market strategy, underscoring the firm’s long-term AI infra opportunity. Risks cited include ongoing supply chain constraints, tariffs in LED, macro uncertainty, and the need to sustain bookings in a lumpy AI deployment cycle.