Penguin Solutions earned more, but customers now owe it far longer

Penguin Solutions, a US company in computing and memory hardware, reported revenue of USD 1.7bn in FY2026, up 26.5%. Net profit rose to USD 181m from USD 25.4m. Trade receivables, the money customers still owe, grew to USD 796m from USD 308m. That equals 168 days of revenue, against 82 days a year earlier. Operating cash flow was USD -152m, so the profit did not arrive as cash from operations. The year looks strong on the income statement and much less so in the collections.

Receivable days rise when a company offers longer payment terms, when a few large customers stretch their payments, or when invoices go out late or are disputed. The accounts do not say which applies here. Inventories grew to USD 749m and trade payables to USD 817m, so the working capital lines all grew faster than sales. I would watch the cash line. A profit of USD 181m is a fine number, but the bank balance only counts what customers have paid.