What Penguin Solutions, Inc. told the SEC could break it.

Sales are concentrated: an Integrated Memory customer was 14.1% of net sales in 2025, two customers individually exceeded 10%, and the ten largest customers were 66% of net sales (all unnamed in filing).

“Net sales to an Integrated Memory customer was 14.1 % of total net sales in 2025. No other customers accounted for more than 10% of our total net sales in 2025, 2024 and 2023.”

A significant portion of product design and manufacturing is performed in Malaysia and China, with significant design activities in Taiwan and India; sales outside the U.S. were 43% of net sales in 2025.

“a significant portion of our product design and manufacturing is performed at our facilities in Malaysia and China, and a significant amount of our product design activities are performed in Taiwan and India.”

New and increased U.S. tariffs on goods from China, combined with supply constraints, have increased material costs and in some cases affected delivery timelines for Penguin's products.

“Global macroeconomic headwinds and evolving industry dynamics have contributed to supply constraints across our business segments. These supply challenges, combined with geopolitical factors including tariffs, have increased material costs and, in some cases, affected delivery timelines.”

Depends on a small number of sole or limited-source suppliers for certain critical components and subsystems; purchases from its two largest suppliers were $0.6 billion in 2025.

“We are dependent upon a small number of sole or limited source suppliers for certain materials, including certain critical components or subsystems, we use in manufacturing our products. Purchases from our two largest suppliers were $0.6”