Penguin Solutions, Inc.PENG

Penguin Solutions, Inc. Revenue Disclosure

10-KFiled Oct 21, 20252 min read
Revenue and Customer Contract Balances
We disaggregate revenue by segment and geography and by product and service revenue. See “Segment and Other Information.”
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:
Year endedAugust 29,
2025		August 30,
2024		August 25,
2023
Cost of materials and services invoiced in connection with logistics services$893,715 $518,685 $765,796 
Customer Contract Balances
As ofAugust 29,
2025		August 30,
2024
Contract assets (1)
$1,929 $1,801 
Contract liabilities: (2)
Deferred revenue$89,943 $76,178 
Customer advances21,5256,036
 $111,468 $82,214 
(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 August 29, 2025, we expect to recognize revenue of $73.9 million of the balance of $89.9 million in the next 12 months and the remaining amount thereafter. In 2025, we recognized revenue of $63.1 million from satisfying performance obligations related to amounts included in deferred revenue as of August 30, 2024. In addition, as of August 29, 2025, other current liabilities included $15.3 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 represent amounts received from customers for advance payments to secure product. In 2025, we recognized revenue of $0.5 million from satisfying performance obligations related to amounts included in customer advances as of August 30, 2024.
As of August 29, 2025 and August 30, 2024, other current liabilities included $17.7 million and $12.2 million, respectively, for estimates of consideration payable to customers, including estimates for pricing adjustments and returns.

Historical Timeline

Fiscal YearFiled
2025Oct 21, 2025Showing above
2024Oct 24, 2024
2023Oct 20, 2023
2022Oct 14, 2022
2021Oct 25, 2021

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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