[424B2] Wells Fargo & Co. Prospectus Supplement
PENGUIN SOLUTIONS, INC. 鈥� FQ3 2025 (quarter ended 30 May 2025)
The first quarterly report issued after the U.S. redomiciliation (30 Jun 2025) shows continued top-line expansion but mixed bottom-line results as the company absorbs restructuring and financing costs.
- Revenue momentum: Net sales grew 7.9 % YoY to $324.3 million (nine-month YTD +20 % to $1.03 billion). Growth was driven by product sales (+11 % YoY) while service revenue slipped 2.9 %.
- Margins: Quarterly gross margin eased 30 bp to 29.3 %. An $5.3 million goodwill impairment related to the wind-down of the Penguin Edge business pushed operating margin down to 3.0 % (vs 3.8 %).
- Earnings: GAAP net income attributable to common fell to $2.7 million (-53 % YoY). After $3.0 million preferred dividends tied to the SK Telecom $200 million convertible preferred investment, common shareholders posted a -$0.01 diluted EPS versus +$0.10 a year earlier. YTD diluted EPS improved to $0.18 (FY24 YTD: -$0.53) on higher sales and lower interest expense.
- Cash & liquidity: Cash and equivalents surged to $709.9 million (Aug-24: $383.1 million) after the SKT investment, strong operating cash flow ($183.6 million YTD) and receipt of the $28.4 million deferred payment from the SMART Brazil sale. Current ratio stands at 2.6脳.
- Capital structure: Total debt is stable at $659.5 million; net cash improved to ~+$50 million. $300 million TLA matures 2027; first convertible notes maturity ($20 million) in 2026.
- Shareholder returns: 2.46 million shares repurchased for $40.9 million YTD; $36.8 million remains under the $75 million January 2024 authorization.
- Corporate actions: 鈥� Completed redomiciliation to Delaware; Nasdaq ticker unchanged (PENG) effective 1 Jul 2025. 鈥� Continued wind-down of Penguin Edge expected to fully impair remaining $4.7 million goodwill by end-2025.
Outlook considerations
- Management expects positive free cash flow from the Edge wind-down but acknowledges further goodwill charges.
- Preferred dividends (6 % PIK/cash) will pressure EPS until potential conversion or redemption (earliest 2029 at company option).
- Remaining share-buyback flexibility, robust cash and lighter interest burden offer balance-sheet optionality.
PENGUIN SOLUTIONS, INC. 鈥� FQ3 2025 (trimestre terminato il 30 maggio 2025)
Il primo rapporto trimestrale pubblicato dopo la ricollocazione negli Stati Uniti (30 giugno 2025) mostra una continua espansione del fatturato ma risultati contrastanti a livello di utile netto, a causa dei costi di ristrutturazione e finanziamento sostenuti dall鈥檃zienda.
- Andamento dei ricavi: Le vendite nette sono cresciute del 7,9% su base annua, raggiungendo 324,3 milioni di dollari (9 mesi cumulati +20% a 1,03 miliardi). La crescita 猫 stata trainata dalle vendite di prodotti (+11% anno su anno), mentre i ricavi dei servizi sono diminuiti del 2,9%.
- Margini: Il margine lordo trimestrale si 猫 ridotto di 30 punti base al 29,3%. Una impairment di 5,3 milioni di dollari sul goodwill, legata alla chiusura dell鈥檃ttivit脿 Penguin Edge, ha abbassato il margine operativo al 3,0% (dal 3,8%).
- Utile: L鈥檜tile netto GAAP attribuibile alle azioni ordinarie 猫 sceso a 2,7 milioni di dollari (-53% anno su anno). Dopo 3,0 milioni di dollari di dividendi preferenziali legati all鈥檌nvestimento convertibile da 200 milioni di SK Telecom, l鈥檜tile per azione diluito ordinario 猫 risultato negativo per 0,01 dollari rispetto a +0,10 dollari dell鈥檃nno precedente. L鈥檜tile per azione diluito cumulato 猫 migliorato a 0,18 dollari (FY24 YTD: -0,53) grazie a vendite pi霉 elevate e minori oneri finanziari.
- 尝颈辩耻颈诲颈迟脿: La liquidit脿 e equivalenti 猫 salita a 709,9 milioni di dollari (agosto 2024: 383,1 milioni) in seguito all鈥檌nvestimento SK Telecom, a un forte flusso di cassa operativo (183,6 milioni YTD) e alla ricezione di un pagamento differito di 28,4 milioni dalla vendita di SMART Brazil. Il rapporto corrente 猫 di 2,6脳.
- Struttura del capitale: Il debito totale 猫 stabile a 659,5 milioni di dollari; la posizione di cassa netta 猫 migliorata a circa +50 milioni. Il TLA da 300 milioni scade nel 2027; la prima scadenza delle note convertibili (20 milioni) 猫 prevista per il 2026.
- Ritorno per gli azionisti: Sono state riacquistate 2,46 milioni di azioni per 40,9 milioni di dollari YTD; restano 36,8 milioni disponibili nell鈥檃utorizzazione da 75 milioni di gennaio 2024.
- Azioni societarie: 鈥� Completata la ricollocazione in Delaware; il ticker Nasdaq rimane invariato (PENG) dal 1掳 luglio 2025. 鈥� Prosegue la chiusura di Penguin Edge, con l鈥檌mpatto totale del goodwill residuo di 4,7 milioni previsto entro fine 2025.
Considerazioni sul futuro
- La direzione prevede un flusso di cassa libero positivo dalla chiusura di Edge, pur riconoscendo ulteriori svalutazioni di goodwill.
- I dividendi preferenziali (6% PIK/cash) continueranno a pesare sull鈥檜tile per azione fino a una possibile conversione o rimborso (non prima del 2029 a discrezione della societ脿).
- La flessibilit脿 residua nel riacquisto azionario, la solida liquidit脿 e il minor onere degli interessi offrono margini di manovra sul bilancio.
PENGUIN SOLUTIONS, INC. 鈥� FQ3 2025 (trimestre finalizado el 30 de mayo de 2025)
El primer informe trimestral emitido tras la reubicaci贸n en EE.UU. (30 de junio de 2025) muestra una continua expansi贸n de ingresos pero resultados mixtos en la l铆nea final, debido a los costos de reestructuraci贸n y financiamiento asumidos por la empresa.
- Impulso de ingresos: Las ventas netas crecieron un 7,9% interanual hasta 324,3 millones de d贸lares (nueve meses acumulados +20% a 1.030 millones). El crecimiento fue impulsado por las ventas de productos (+11% interanual), mientras que los ingresos por servicios disminuyeron un 2,9%.
- 惭谩谤驳别苍别蝉: El margen bruto trimestral disminuy贸 30 puntos b谩sicos hasta el 29,3%. Un impairment de 5,3 millones de d贸lares relacionado con la liquidaci贸n del negocio Penguin Edge redujo el margen operativo al 3,0% (desde 3,8%).
- Ganancias: El ingreso neto GAAP atribuible a acciones comunes cay贸 a 2,7 millones de d贸lares (-53% interanual). Tras 3,0 millones de d贸lares en dividendos preferentes vinculados a la inversi贸n convertible de 200 millones de SK Telecom, los accionistas comunes reportaron un EPS diluido de -0,01 d贸lares frente a +0,10 d贸lares un a帽o antes. El EPS diluido acumulado mejor贸 a 0,18 d贸lares (FY24 YTD: -0,53) gracias a mayores ventas y menores gastos por intereses.
- Efectivo y liquidez: El efectivo y equivalentes aumentaron a 709,9 millones de d贸lares (ago-24: 383,1 millones) tras la inversi贸n de SKT, fuerte flujo de caja operativo (183,6 millones YTD) y la recepci贸n de un pago diferido de 28,4 millones por la venta de SMART Brazil. La ratio corriente es de 2,6脳.
- Estructura de capital: La deuda total se mantiene estable en 659,5 millones de d贸lares; el efectivo neto mejor贸 a aproximadamente +50 millones. El TLA de 300 millones vence en 2027; la primera madurez de notas convertibles (20 millones) es en 2026.
- Devoluciones a accionistas: Se recompraron 2,46 millones de acciones por 40,9 millones de d贸lares YTD; quedan 36,8 millones disponibles bajo la autorizaci贸n de 75 millones de enero de 2024.
- Acciones corporativas: 鈥� Completada la reubicaci贸n a Delaware; el ticker Nasdaq permanece sin cambios (PENG) desde el 1 de julio de 2025. 鈥� Contin煤a la liquidaci贸n de Penguin Edge con la amortizaci贸n total del goodwill restante de 4,7 millones prevista para finales de 2025.
Consideraciones para el futuro
- La direcci贸n espera flujo de caja libre positivo por la liquidaci贸n de Edge, aunque reconoce cargos adicionales por goodwill.
- Los dividendos preferentes (6% PIK/efectivo) presionar谩n el EPS hasta una posible conversi贸n o redenci贸n (no antes de 2029 a opci贸n de la empresa).
- La flexibilidad restante en la recompra de acciones, la s贸lida liquidez y la menor carga de intereses ofrecen opciones para el balance.
PENGUIN SOLUTIONS, INC. 鈥� 2025 須岅硠鞐半弰 3攵勱赴 (2025雲� 5鞗� 30鞚� 膦呺 攵勱赴)
氙戈淡 鞛摫搿�(2025雲� 6鞗� 30鞚�) 鞚错泟 氚滍枆霅� 觳� 攵勱赴 氤搓碃靹滌棎靹滊姅 毵れ稖鞚� 歆�靻嶌爜鞙茧 靹膘灔頄堨溂雮� 甑“臁办爼 氚� 旮堨湹 牍勳毄 攵�雼挫溂搿� 靾滌澊鞚奠潃 順检“靹鸽ゼ 氤挫榾鞀惦媹雼�.
- 毵れ稖 霃欗枼: 靾滊Г於滌潃 鞝勲厔 雽�牍� 7.9% 歃濌皜頃� 3鞏� 2,430毵� 雼煬毳� 旮半頄堨溂氅�(9臧滌洈 雸勳爜 +20%搿� 10鞏� 3觳滊 雼煬), 鞝滍拡 毵れ稖鞚� 鞝勲厔 雽�牍� 11% 歃濌皜頃� 氚橂┐ 靹滊箘鞀� 毵れ稖鞚� 2.9% 臧愳唽頄堨姷雼堧嫟.
- 毵堨: 攵勱赴 齑濎澊鞚惦鞚� 30bp 頃橂澖頃� 29.3%毳� 旮半頄堨姷雼堧嫟. Penguin Edge 靷梾 膦呺鞕� 甏�霠悳 530毵� 雼煬鞚� 鞓侅梾甓� 靻愳儊彀啇鞙茧 鞓侅梾鞚挫澋毳犾潃 3.0%搿� 頃橂澖頄堨姷雼堧嫟(鞚挫爠 3.8%).
- 靾橃澋: 氤错喌欤检棎 攴�靻嶋悩電� GAAP 靾滌澊鞚奠潃 鞝勲厔 雽�牍� 53% 臧愳唽頃� 270毵� 雼煬鞛呺媹雼�. SK 韰旊爤旖れ潣 2鞏� 雼煬 鞝勴櫂鞖办劆欤� 韴瀽鞕� 甏�霠悳 300毵� 雼煬鞚� 鞖办劆欤� 氚半嫻旮�鞚� 鞝滌櫢頃橂┐, 氤错喌欤� 頋劃 欤茧嫻靾滌澊鞚奠潃 鞝勲厔鞚� +0.10雼煬鞐愳劀 -0.01雼煬搿� 臧愳唽頄堨姷雼堧嫟. 雸勳爜 頋劃 欤茧嫻靾滌澊鞚奠潃 毵れ稖 歃濌皜鞕� 鞚挫瀽 牍勳毄 臧愳唽搿� 0.18雼煬搿� 臧滌劆霅橃棃鞀惦媹雼�(2024 須岅硠鞐半弰 雸勳爜 -0.53雼煬).
- 順勱笀 氚� 鞙犽彊靹�: SK 韰旊爤旖� 韴瀽, 臧曤牓頃� 鞓侅梾順勱笀頋愲(1鞏� 8,360毵� 雼煬 雸勳爜) 氚� SMART Brazil 毵り皝鞐� 霐半ジ 鞐瓣赴 歆�旮夑笀 2,840毵� 雼煬 靾橂牴鞙茧 順勱笀 氚� 順勱笀靹膘瀽靷办潃 7鞏� 999毵� 雼煬搿� 旮夓頄堨姷雼堧嫟(2024雲� 8鞗� 3鞏� 8,310毵� 雼煬). 鞙犽彊牍勳湪鞚� 2.6氚办瀰雼堧嫟.
- 鞛愲掣 甑“: 齑� 攵�毂勲姅 6鞏� 5,950毵� 雼煬搿� 鞎堨爼鞝侅澊氅�, 靾滍槃旮堨潃 鞎� +5,000毵� 雼煬搿� 臧滌劆霅橃棃鞀惦媹雼�. 3鞏� 雼煬 攴滊鞚� TLA電� 2027雲勳棎 毵岅赴霅橂┌, 觳� 鞝勴櫂靷眲 毵岅赴電� 2026雲�(2,000毵� 雼煬)鞛呺媹雼�.
- 欤检＜頇橃洂: 鞓暣 雸勳爜 246毵� 欤茧ゼ 4,090毵� 雼煬鞐� 鞛Г鞛呿枅鞙茧┌, 2024雲� 1鞗� 鞀轨澑霅� 7,500毵� 雼煬 欷� 3,680毵� 雼煬臧� 鞎勳 雮晞 鞛堨姷雼堧嫟.
- 旮办梾 頇滊彊: 鈥� 雿鸽澕鞗柎搿滌潣 鞛摫搿� 鞕勲; 2025雲� 7鞗� 1鞚茧秬韯� 雮橃姢雼� 韹办护電� 氤�霃� 鞐嗢澊 PENG 鞙犾. 鈥� Penguin Edge 靷梾 鞝曤Μ 歆�靻�, 雮潃 470毵� 雼煬鞚� 鞓侅梾甓� 鞝勳暋 靻愳儊 鞓堨儊(2025雲� 毵愱箤歆�).
頄ロ泟 鞝勲
- 瓴届榿歆勳潃 Edge 靷梾 鞝曤Μ搿� 鞚疙暅 旮嶌爼鞝侅澑 鞛愳湢順勱笀頋愲鞚� 旮半寑頃橃毵� 於旉皜 鞓侅梾甓� 靻愳儊 臧�電レ劚鞚� 鞚胳爼頃╇媹雼�.
- 鞖办劆欤� 氚半嫻旮�(6% PIK/順勱笀)鞚� 鞛犾灛鞝� 鞝勴櫂 霕愲姅 靸來櫂(斓滌唽 2029雲� 須岇偓 靹犿儩 鞁�) 鞝勱箤歆� 欤茧嫻靾滌澊鞚奠棎 攵�雼挫潉 欷� 瓴冹瀰雼堧嫟.
- 雮潃 鞛愳偓欤� 毵れ瀰 鞐牓, 瓴碃頃� 順勱笀 氤挫湢 氚� 雮潃 鞚挫瀽 牍勳毄鞚� 鞛甑“鞐� 鞙犾棸靹膘潉 鞝滉车頃╇媹雼�.
PENGUIN SOLUTIONS, INC. 鈥� T3 2025 (trimestre clos le 30 mai 2025)
Le premier rapport trimestriel publi茅 apr猫s la redomiciliation aux 脡tats-Unis (30 juin 2025) montre une poursuite de la croissance du chiffre d'affaires mais des r茅sultats nets mitig茅s, la soci茅t茅 absorbant des co没ts de restructuration et de financement.
- Dynamiques des revenus : Les ventes nettes ont augment茅 de 7,9 % en glissement annuel pour atteindre 324,3 millions de dollars (9 mois cumul茅s +20 % 脿 1,03 milliard). La croissance a 茅t茅 port茅e par les ventes de produits (+11 % en glissement annuel) tandis que les revenus de services ont recul茅 de 2,9 %.
- Marges : La marge brute trimestrielle s鈥檈st l茅g猫rement repli茅e de 30 points de base 脿 29,3 %. Une d茅pr茅ciation du goodwill de 5,3 millions de dollars li茅e 脿 la cessation progressive de l鈥檃ctivit茅 Penguin Edge a fait chuter la marge op茅rationnelle 脿 3,0 % (contre 3,8 %).
- R茅sultats : Le r茅sultat net GAAP attribuable aux actions ordinaires a chut茅 脿 2,7 millions de dollars (-53 % en glissement annuel). Apr猫s 3,0 millions de dollars de dividendes pr茅f茅rentiels li茅s 脿 l鈥檌nvestissement convertible de 200 millions de SK Telecom, les actionnaires ordinaires ont enregistr茅 un BPA dilu茅 de -0,01 dollar contre +0,10 dollar un an plus t么t. Le BPA dilu茅 cumul茅 s鈥檈st am茅lior茅 脿 0,18 dollar (FY24 cumul : -0,53) gr芒ce 脿 la hausse des ventes et 脿 la baisse des charges d鈥檌nt茅r锚ts.
- Tr茅sorerie et liquidit茅s : La tr茅sorerie et les 茅quivalents ont bondi 脿 709,9 millions de dollars (ao没t 2024 : 383,1 millions) apr猫s l鈥檌nvestissement SKT, un solide flux de tr茅sorerie op茅rationnel (183,6 millions cumul茅s) et la r茅ception d鈥檜n paiement diff茅r茅 de 28,4 millions li茅 脿 la vente de SMART Brazil. Le ratio de liquidit茅 courante s鈥櫭﹖ablit 脿 2,6脳.
- Structure du capital : La dette totale est stable 脿 659,5 millions de dollars ; la tr茅sorerie nette s鈥檈st am茅lior茅e 脿 environ +50 millions. La ligne de cr茅dit TLA de 300 millions arrive 脿 茅ch茅ance en 2027 ; la premi猫re 茅ch茅ance des obligations convertibles (20 millions) est pr茅vue en 2026.
- Rendements aux actionnaires : 2,46 millions d鈥檃ctions rachet茅es pour 40,9 millions de dollars cumul茅s ; il reste 36,8 millions disponibles dans l鈥檃utorisation de 75 millions de janvier 2024.
- Actions corporatives : 鈥� Redomiciliation achev茅e dans le Delaware ; le ticker Nasdaq reste inchang茅 (PENG) 脿 compter du 1er juillet 2025. 鈥� Poursuite de la cessation progressive de Penguin Edge avec une d茅pr茅ciation totale du goodwill restant de 4,7 millions pr茅vue d鈥檌ci fin 2025.
Perspectives
- La direction pr茅voit un flux de tr茅sorerie libre positif li茅 脿 la cessation d鈥橢dge, tout en anticipant d鈥檃utres charges de goodwill.
- Les dividendes pr茅f茅rentiels (6 % PIK/cash) exerceront une pression sur le BPA jusqu鈥櫭� une 茅ventuelle conversion ou rachat (au plus t么t en 2029 脿 l鈥檌nitiative de la soci茅t茅).
- La flexibilit茅 restante en mati猫re de rachat d鈥檃ctions, une tr茅sorerie solide et une charge d鈥檌nt茅r锚ts all茅g茅e offrent des options sur la structure financi猫re.
PENGUIN SOLUTIONS, INC. 鈥� FQ3 2025 (Quartal zum 30. Mai 2025)
Der erste Quartalsbericht nach der US-Umfirmierung (30. Juni 2025) zeigt weiterhin ein Umsatzwachstum, jedoch gemischte Ergebnisse beim Nettogewinn, da das Unternehmen Restrukturierungs- und Finanzierungskosten tr盲gt.
- Umsatzentwicklung: Der Nettoumsatz stieg im Jahresvergleich um 7,9 % auf 324,3 Millionen US-Dollar (9 Monate kumuliert +20 % auf 1,03 Milliarden). Das Wachstum wurde durch Produktverk盲ufe (+11 % YoY) getrieben, w盲hrend die Serviceerl枚se um 2,9 % zur眉ckgingen.
- Margen: Die Bruttomarge im Quartal sank um 30 Basispunkte auf 29,3 %. Eine Goodwill-Abschreibung von 5,3 Millionen US-Dollar im Zusammenhang mit der Abwicklung des Penguin Edge-Gesch盲fts dr眉ckte die operative Marge auf 3,0 % (vorher 3,8 %).
- Ergebnis: Der GAAP-Nettogewinn, der den Stammaktion盲ren zuzurechnen ist, fiel auf 2,7 Millionen US-Dollar (-53 % YoY). Nach 3,0 Millionen US-Dollar Vorzugsdividenden im Zusammenhang mit der 200-Millionen-US-Dollar-Wandelschuldverschreibung von SK Telecom wiesen die Stammaktion盲re ein verw盲ssertes Ergebnis je Aktie von -0,01 US-Dollar gegen眉ber +0,10 US-Dollar im Vorjahr aus. Das kumulierte verw盲sserte Ergebnis je Aktie verbesserte sich auf 0,18 US-Dollar (FY24 YTD: -0,53) aufgrund h枚herer Ums盲tze und geringerer Zinsaufwendungen.
- Barmittel & Liquidit盲t: Barmittel und Zahlungsmittel盲quivalente stiegen auf 709,9 Millionen US-Dollar (Aug-24: 383,1 Millionen) nach der SKT-Investition, starkem operativen Cashflow (183,6 Millionen YTD) und dem Eingang einer aufgeschobenen Zahlung von 28,4 Millionen aus dem Verkauf von SMART Brazil. Die Liquidit盲tskennzahl liegt bei 2,6脳.
- Kapitalstruktur: Die Gesamtschulden bleiben stabil bei 659,5 Millionen US-Dollar; die Nettoliquidit盲t verbesserte sich auf etwa +50 Millionen. Die 300-Millionen-TLA l盲uft 2027 aus; die erste F盲lligkeit der Wandelanleihen (20 Millionen) ist 2026.
- 础办迟颈辞苍盲谤蝉谤别苍诲颈迟别苍: 2,46 Millionen Aktien wurden f眉r 40,9 Millionen US-Dollar YTD zur眉ckgekauft; es verbleiben 36,8 Millionen unter der Genehmigung von 75 Millionen aus Januar 2024.
- 鲍苍迟别谤苍别丑尘别苍蝉尘补脽苍补丑尘别苍: 鈥� Umfirmierung nach Delaware abgeschlossen; Nasdaq-Ticker bleibt ab 1. Juli 2025 unver盲ndert (PENG). 鈥� Fortgesetzte Abwicklung von Penguin Edge, vollst盲ndige Goodwill-Abschreibung von verbleibenden 4,7 Millionen bis Ende 2025 erwartet.
Ausblick
- Das Management erwartet positiven freien Cashflow aus der Edge-Abwicklung, erkennt aber weitere Goodwill-Abschreibungen an.
- Vorzugsdividenden (6 % PIK/Bar) werden das Ergebnis je Aktie belasten, bis eine m枚gliche Umwandlung oder R眉ckzahlung erfolgt (fr眉hestens 2029 nach Unternehmensoption).
- Verbleibende Flexibilit盲t beim Aktienr眉ckkauf, solide Liquidit盲t und geringere Zinsbelastung bieten Optionen f眉r die Bilanz.
- Revenue up 7.9 % YoY to $324 million, with YTD sales topping $1 billion for the first time.
- Operating cash flow jumped 56 % YoY to $183.6 million, reinforcing liquidity.
- Cash & equivalents nearly doubled to $710 million, turning the company net-cash positive.
- SK Telecom $200 million preferred investment strengthens strategic AI partnership and capital base.
- Share buybacks of $40.9 million signal confidence while leaving $36.8 million authorized.
- Quarterly diluted EPS turned to a loss of $-0.01 due to preferred dividends and impairment.
- Goodwill impairment of $11.4 million YTD highlights challenges in the Penguin Edge segment.
- Tax provision rose sharply to $7.3 million vs a benefit last year, pressuring net income.
- Service revenue declined 3 % YoY, softening overall growth.
- High leverage remains with $659 million total debt and a $300 million term loan maturing 2027.
Insights
TL;DR鈥擲olid revenue growth and cash build offset by small EPS loss; neutral overall.
Performance: 8 % quarterly sales growth is healthy given the tougher macro backdrop, and YTD operating income quadrupled. However, narrower gross margin, goodwill impairment and the new preferred dividend swung EPS to a one-cent loss. Investors will weigh the sustainability of 30 %+ product gross margin against anticipated Edge impairment charges.
Balance sheet: The $710 million cash reserve (鈮�40 % of assets) and positive net cash position meaningfully de-risk the $300 million TLA and staggered convert maturities. Lower interest expense (-$5.6 million YoY) already shows the benefit of last year鈥檚 note repurchase.
Capital allocation: Management deployed $49 million on buybacks while still generating $180 million FCF, highlighting ample liquidity. Yet preferred dividends reduce distributable earnings, effectively raising the cost of capital to common holders until conversion.
Valuation impact: Modest quarterly miss on EPS but improving YTD trajectory and cash inflow from Brazil sale keep the thesis intact. I view the filing as neutral for the stock near term.
TL;DR鈥擡dge wind-down progressing; core advanced-computing sales resilient.
The impairment confirms Penguin Edge鈥檚 planned sunset by end-2025, but the relatively small $5 million charge suggests inventory and contractual exposure are well managed. Product revenue growth indicates strong demand in advanced computing (AI server builds) and integrated memory despite lapping a 53-week FY24 period.
Service revenue softness (-3 % YoY) is typical as hardware mix shifts, but the 30 % service gross margin remains attractive. Watch for continued mix improvement as Stratus integration benefits materialise.
Overall, the operational signals are positive, though investors should monitor customer concentration and component availability as order volumes climb.
PENGUIN SOLUTIONS, INC. 鈥� FQ3 2025 (trimestre terminato il 30 maggio 2025)
Il primo rapporto trimestrale pubblicato dopo la ricollocazione negli Stati Uniti (30 giugno 2025) mostra una continua espansione del fatturato ma risultati contrastanti a livello di utile netto, a causa dei costi di ristrutturazione e finanziamento sostenuti dall鈥檃zienda.
- Andamento dei ricavi: Le vendite nette sono cresciute del 7,9% su base annua, raggiungendo 324,3 milioni di dollari (9 mesi cumulati +20% a 1,03 miliardi). La crescita 猫 stata trainata dalle vendite di prodotti (+11% anno su anno), mentre i ricavi dei servizi sono diminuiti del 2,9%.
- Margini: Il margine lordo trimestrale si 猫 ridotto di 30 punti base al 29,3%. Una impairment di 5,3 milioni di dollari sul goodwill, legata alla chiusura dell鈥檃ttivit脿 Penguin Edge, ha abbassato il margine operativo al 3,0% (dal 3,8%).
- Utile: L鈥檜tile netto GAAP attribuibile alle azioni ordinarie 猫 sceso a 2,7 milioni di dollari (-53% anno su anno). Dopo 3,0 milioni di dollari di dividendi preferenziali legati all鈥檌nvestimento convertibile da 200 milioni di SK Telecom, l鈥檜tile per azione diluito ordinario 猫 risultato negativo per 0,01 dollari rispetto a +0,10 dollari dell鈥檃nno precedente. L鈥檜tile per azione diluito cumulato 猫 migliorato a 0,18 dollari (FY24 YTD: -0,53) grazie a vendite pi霉 elevate e minori oneri finanziari.
- 尝颈辩耻颈诲颈迟脿: La liquidit脿 e equivalenti 猫 salita a 709,9 milioni di dollari (agosto 2024: 383,1 milioni) in seguito all鈥檌nvestimento SK Telecom, a un forte flusso di cassa operativo (183,6 milioni YTD) e alla ricezione di un pagamento differito di 28,4 milioni dalla vendita di SMART Brazil. Il rapporto corrente 猫 di 2,6脳.
- Struttura del capitale: Il debito totale 猫 stabile a 659,5 milioni di dollari; la posizione di cassa netta 猫 migliorata a circa +50 milioni. Il TLA da 300 milioni scade nel 2027; la prima scadenza delle note convertibili (20 milioni) 猫 prevista per il 2026.
- Ritorno per gli azionisti: Sono state riacquistate 2,46 milioni di azioni per 40,9 milioni di dollari YTD; restano 36,8 milioni disponibili nell鈥檃utorizzazione da 75 milioni di gennaio 2024.
- Azioni societarie: 鈥� Completata la ricollocazione in Delaware; il ticker Nasdaq rimane invariato (PENG) dal 1掳 luglio 2025. 鈥� Prosegue la chiusura di Penguin Edge, con l鈥檌mpatto totale del goodwill residuo di 4,7 milioni previsto entro fine 2025.
Considerazioni sul futuro
- La direzione prevede un flusso di cassa libero positivo dalla chiusura di Edge, pur riconoscendo ulteriori svalutazioni di goodwill.
- I dividendi preferenziali (6% PIK/cash) continueranno a pesare sull鈥檜tile per azione fino a una possibile conversione o rimborso (non prima del 2029 a discrezione della societ脿).
- La flessibilit脿 residua nel riacquisto azionario, la solida liquidit脿 e il minor onere degli interessi offrono margini di manovra sul bilancio.
PENGUIN SOLUTIONS, INC. 鈥� FQ3 2025 (trimestre finalizado el 30 de mayo de 2025)
El primer informe trimestral emitido tras la reubicaci贸n en EE.UU. (30 de junio de 2025) muestra una continua expansi贸n de ingresos pero resultados mixtos en la l铆nea final, debido a los costos de reestructuraci贸n y financiamiento asumidos por la empresa.
- Impulso de ingresos: Las ventas netas crecieron un 7,9% interanual hasta 324,3 millones de d贸lares (nueve meses acumulados +20% a 1.030 millones). El crecimiento fue impulsado por las ventas de productos (+11% interanual), mientras que los ingresos por servicios disminuyeron un 2,9%.
- 惭谩谤驳别苍别蝉: El margen bruto trimestral disminuy贸 30 puntos b谩sicos hasta el 29,3%. Un impairment de 5,3 millones de d贸lares relacionado con la liquidaci贸n del negocio Penguin Edge redujo el margen operativo al 3,0% (desde 3,8%).
- Ganancias: El ingreso neto GAAP atribuible a acciones comunes cay贸 a 2,7 millones de d贸lares (-53% interanual). Tras 3,0 millones de d贸lares en dividendos preferentes vinculados a la inversi贸n convertible de 200 millones de SK Telecom, los accionistas comunes reportaron un EPS diluido de -0,01 d贸lares frente a +0,10 d贸lares un a帽o antes. El EPS diluido acumulado mejor贸 a 0,18 d贸lares (FY24 YTD: -0,53) gracias a mayores ventas y menores gastos por intereses.
- Efectivo y liquidez: El efectivo y equivalentes aumentaron a 709,9 millones de d贸lares (ago-24: 383,1 millones) tras la inversi贸n de SKT, fuerte flujo de caja operativo (183,6 millones YTD) y la recepci贸n de un pago diferido de 28,4 millones por la venta de SMART Brazil. La ratio corriente es de 2,6脳.
- Estructura de capital: La deuda total se mantiene estable en 659,5 millones de d贸lares; el efectivo neto mejor贸 a aproximadamente +50 millones. El TLA de 300 millones vence en 2027; la primera madurez de notas convertibles (20 millones) es en 2026.
- Devoluciones a accionistas: Se recompraron 2,46 millones de acciones por 40,9 millones de d贸lares YTD; quedan 36,8 millones disponibles bajo la autorizaci贸n de 75 millones de enero de 2024.
- Acciones corporativas: 鈥� Completada la reubicaci贸n a Delaware; el ticker Nasdaq permanece sin cambios (PENG) desde el 1 de julio de 2025. 鈥� Contin煤a la liquidaci贸n de Penguin Edge con la amortizaci贸n total del goodwill restante de 4,7 millones prevista para finales de 2025.
Consideraciones para el futuro
- La direcci贸n espera flujo de caja libre positivo por la liquidaci贸n de Edge, aunque reconoce cargos adicionales por goodwill.
- Los dividendos preferentes (6% PIK/efectivo) presionar谩n el EPS hasta una posible conversi贸n o redenci贸n (no antes de 2029 a opci贸n de la empresa).
- La flexibilidad restante en la recompra de acciones, la s贸lida liquidez y la menor carga de intereses ofrecen opciones para el balance.
PENGUIN SOLUTIONS, INC. 鈥� 2025 須岅硠鞐半弰 3攵勱赴 (2025雲� 5鞗� 30鞚� 膦呺 攵勱赴)
氙戈淡 鞛摫搿�(2025雲� 6鞗� 30鞚�) 鞚错泟 氚滍枆霅� 觳� 攵勱赴 氤搓碃靹滌棎靹滊姅 毵れ稖鞚� 歆�靻嶌爜鞙茧 靹膘灔頄堨溂雮� 甑“臁办爼 氚� 旮堨湹 牍勳毄 攵�雼挫溂搿� 靾滌澊鞚奠潃 順检“靹鸽ゼ 氤挫榾鞀惦媹雼�.
- 毵れ稖 霃欗枼: 靾滊Г於滌潃 鞝勲厔 雽�牍� 7.9% 歃濌皜頃� 3鞏� 2,430毵� 雼煬毳� 旮半頄堨溂氅�(9臧滌洈 雸勳爜 +20%搿� 10鞏� 3觳滊 雼煬), 鞝滍拡 毵れ稖鞚� 鞝勲厔 雽�牍� 11% 歃濌皜頃� 氚橂┐ 靹滊箘鞀� 毵れ稖鞚� 2.9% 臧愳唽頄堨姷雼堧嫟.
- 毵堨: 攵勱赴 齑濎澊鞚惦鞚� 30bp 頃橂澖頃� 29.3%毳� 旮半頄堨姷雼堧嫟. Penguin Edge 靷梾 膦呺鞕� 甏�霠悳 530毵� 雼煬鞚� 鞓侅梾甓� 靻愳儊彀啇鞙茧 鞓侅梾鞚挫澋毳犾潃 3.0%搿� 頃橂澖頄堨姷雼堧嫟(鞚挫爠 3.8%).
- 靾橃澋: 氤错喌欤检棎 攴�靻嶋悩電� GAAP 靾滌澊鞚奠潃 鞝勲厔 雽�牍� 53% 臧愳唽頃� 270毵� 雼煬鞛呺媹雼�. SK 韰旊爤旖れ潣 2鞏� 雼煬 鞝勴櫂鞖办劆欤� 韴瀽鞕� 甏�霠悳 300毵� 雼煬鞚� 鞖办劆欤� 氚半嫻旮�鞚� 鞝滌櫢頃橂┐, 氤错喌欤� 頋劃 欤茧嫻靾滌澊鞚奠潃 鞝勲厔鞚� +0.10雼煬鞐愳劀 -0.01雼煬搿� 臧愳唽頄堨姷雼堧嫟. 雸勳爜 頋劃 欤茧嫻靾滌澊鞚奠潃 毵れ稖 歃濌皜鞕� 鞚挫瀽 牍勳毄 臧愳唽搿� 0.18雼煬搿� 臧滌劆霅橃棃鞀惦媹雼�(2024 須岅硠鞐半弰 雸勳爜 -0.53雼煬).
- 順勱笀 氚� 鞙犽彊靹�: SK 韰旊爤旖� 韴瀽, 臧曤牓頃� 鞓侅梾順勱笀頋愲(1鞏� 8,360毵� 雼煬 雸勳爜) 氚� SMART Brazil 毵り皝鞐� 霐半ジ 鞐瓣赴 歆�旮夑笀 2,840毵� 雼煬 靾橂牴鞙茧 順勱笀 氚� 順勱笀靹膘瀽靷办潃 7鞏� 999毵� 雼煬搿� 旮夓頄堨姷雼堧嫟(2024雲� 8鞗� 3鞏� 8,310毵� 雼煬). 鞙犽彊牍勳湪鞚� 2.6氚办瀰雼堧嫟.
- 鞛愲掣 甑“: 齑� 攵�毂勲姅 6鞏� 5,950毵� 雼煬搿� 鞎堨爼鞝侅澊氅�, 靾滍槃旮堨潃 鞎� +5,000毵� 雼煬搿� 臧滌劆霅橃棃鞀惦媹雼�. 3鞏� 雼煬 攴滊鞚� TLA電� 2027雲勳棎 毵岅赴霅橂┌, 觳� 鞝勴櫂靷眲 毵岅赴電� 2026雲�(2,000毵� 雼煬)鞛呺媹雼�.
- 欤检＜頇橃洂: 鞓暣 雸勳爜 246毵� 欤茧ゼ 4,090毵� 雼煬鞐� 鞛Г鞛呿枅鞙茧┌, 2024雲� 1鞗� 鞀轨澑霅� 7,500毵� 雼煬 欷� 3,680毵� 雼煬臧� 鞎勳 雮晞 鞛堨姷雼堧嫟.
- 旮办梾 頇滊彊: 鈥� 雿鸽澕鞗柎搿滌潣 鞛摫搿� 鞕勲; 2025雲� 7鞗� 1鞚茧秬韯� 雮橃姢雼� 韹办护電� 氤�霃� 鞐嗢澊 PENG 鞙犾. 鈥� Penguin Edge 靷梾 鞝曤Μ 歆�靻�, 雮潃 470毵� 雼煬鞚� 鞓侅梾甓� 鞝勳暋 靻愳儊 鞓堨儊(2025雲� 毵愱箤歆�).
頄ロ泟 鞝勲
- 瓴届榿歆勳潃 Edge 靷梾 鞝曤Μ搿� 鞚疙暅 旮嶌爼鞝侅澑 鞛愳湢順勱笀頋愲鞚� 旮半寑頃橃毵� 於旉皜 鞓侅梾甓� 靻愳儊 臧�電レ劚鞚� 鞚胳爼頃╇媹雼�.
- 鞖办劆欤� 氚半嫻旮�(6% PIK/順勱笀)鞚� 鞛犾灛鞝� 鞝勴櫂 霕愲姅 靸來櫂(斓滌唽 2029雲� 須岇偓 靹犿儩 鞁�) 鞝勱箤歆� 欤茧嫻靾滌澊鞚奠棎 攵�雼挫潉 欷� 瓴冹瀰雼堧嫟.
- 雮潃 鞛愳偓欤� 毵れ瀰 鞐牓, 瓴碃頃� 順勱笀 氤挫湢 氚� 雮潃 鞚挫瀽 牍勳毄鞚� 鞛甑“鞐� 鞙犾棸靹膘潉 鞝滉车頃╇媹雼�.
PENGUIN SOLUTIONS, INC. 鈥� T3 2025 (trimestre clos le 30 mai 2025)
Le premier rapport trimestriel publi茅 apr猫s la redomiciliation aux 脡tats-Unis (30 juin 2025) montre une poursuite de la croissance du chiffre d'affaires mais des r茅sultats nets mitig茅s, la soci茅t茅 absorbant des co没ts de restructuration et de financement.
- Dynamiques des revenus : Les ventes nettes ont augment茅 de 7,9 % en glissement annuel pour atteindre 324,3 millions de dollars (9 mois cumul茅s +20 % 脿 1,03 milliard). La croissance a 茅t茅 port茅e par les ventes de produits (+11 % en glissement annuel) tandis que les revenus de services ont recul茅 de 2,9 %.
- Marges : La marge brute trimestrielle s鈥檈st l茅g猫rement repli茅e de 30 points de base 脿 29,3 %. Une d茅pr茅ciation du goodwill de 5,3 millions de dollars li茅e 脿 la cessation progressive de l鈥檃ctivit茅 Penguin Edge a fait chuter la marge op茅rationnelle 脿 3,0 % (contre 3,8 %).
- R茅sultats : Le r茅sultat net GAAP attribuable aux actions ordinaires a chut茅 脿 2,7 millions de dollars (-53 % en glissement annuel). Apr猫s 3,0 millions de dollars de dividendes pr茅f茅rentiels li茅s 脿 l鈥檌nvestissement convertible de 200 millions de SK Telecom, les actionnaires ordinaires ont enregistr茅 un BPA dilu茅 de -0,01 dollar contre +0,10 dollar un an plus t么t. Le BPA dilu茅 cumul茅 s鈥檈st am茅lior茅 脿 0,18 dollar (FY24 cumul : -0,53) gr芒ce 脿 la hausse des ventes et 脿 la baisse des charges d鈥檌nt茅r锚ts.
- Tr茅sorerie et liquidit茅s : La tr茅sorerie et les 茅quivalents ont bondi 脿 709,9 millions de dollars (ao没t 2024 : 383,1 millions) apr猫s l鈥檌nvestissement SKT, un solide flux de tr茅sorerie op茅rationnel (183,6 millions cumul茅s) et la r茅ception d鈥檜n paiement diff茅r茅 de 28,4 millions li茅 脿 la vente de SMART Brazil. Le ratio de liquidit茅 courante s鈥櫭﹖ablit 脿 2,6脳.
- Structure du capital : La dette totale est stable 脿 659,5 millions de dollars ; la tr茅sorerie nette s鈥檈st am茅lior茅e 脿 environ +50 millions. La ligne de cr茅dit TLA de 300 millions arrive 脿 茅ch茅ance en 2027 ; la premi猫re 茅ch茅ance des obligations convertibles (20 millions) est pr茅vue en 2026.
- Rendements aux actionnaires : 2,46 millions d鈥檃ctions rachet茅es pour 40,9 millions de dollars cumul茅s ; il reste 36,8 millions disponibles dans l鈥檃utorisation de 75 millions de janvier 2024.
- Actions corporatives : 鈥� Redomiciliation achev茅e dans le Delaware ; le ticker Nasdaq reste inchang茅 (PENG) 脿 compter du 1er juillet 2025. 鈥� Poursuite de la cessation progressive de Penguin Edge avec une d茅pr茅ciation totale du goodwill restant de 4,7 millions pr茅vue d鈥檌ci fin 2025.
Perspectives
- La direction pr茅voit un flux de tr茅sorerie libre positif li茅 脿 la cessation d鈥橢dge, tout en anticipant d鈥檃utres charges de goodwill.
- Les dividendes pr茅f茅rentiels (6 % PIK/cash) exerceront une pression sur le BPA jusqu鈥櫭� une 茅ventuelle conversion ou rachat (au plus t么t en 2029 脿 l鈥檌nitiative de la soci茅t茅).
- La flexibilit茅 restante en mati猫re de rachat d鈥檃ctions, une tr茅sorerie solide et une charge d鈥檌nt茅r锚ts all茅g茅e offrent des options sur la structure financi猫re.
PENGUIN SOLUTIONS, INC. 鈥� FQ3 2025 (Quartal zum 30. Mai 2025)
Der erste Quartalsbericht nach der US-Umfirmierung (30. Juni 2025) zeigt weiterhin ein Umsatzwachstum, jedoch gemischte Ergebnisse beim Nettogewinn, da das Unternehmen Restrukturierungs- und Finanzierungskosten tr盲gt.
- Umsatzentwicklung: Der Nettoumsatz stieg im Jahresvergleich um 7,9 % auf 324,3 Millionen US-Dollar (9 Monate kumuliert +20 % auf 1,03 Milliarden). Das Wachstum wurde durch Produktverk盲ufe (+11 % YoY) getrieben, w盲hrend die Serviceerl枚se um 2,9 % zur眉ckgingen.
- Margen: Die Bruttomarge im Quartal sank um 30 Basispunkte auf 29,3 %. Eine Goodwill-Abschreibung von 5,3 Millionen US-Dollar im Zusammenhang mit der Abwicklung des Penguin Edge-Gesch盲fts dr眉ckte die operative Marge auf 3,0 % (vorher 3,8 %).
- Ergebnis: Der GAAP-Nettogewinn, der den Stammaktion盲ren zuzurechnen ist, fiel auf 2,7 Millionen US-Dollar (-53 % YoY). Nach 3,0 Millionen US-Dollar Vorzugsdividenden im Zusammenhang mit der 200-Millionen-US-Dollar-Wandelschuldverschreibung von SK Telecom wiesen die Stammaktion盲re ein verw盲ssertes Ergebnis je Aktie von -0,01 US-Dollar gegen眉ber +0,10 US-Dollar im Vorjahr aus. Das kumulierte verw盲sserte Ergebnis je Aktie verbesserte sich auf 0,18 US-Dollar (FY24 YTD: -0,53) aufgrund h枚herer Ums盲tze und geringerer Zinsaufwendungen.
- Barmittel & Liquidit盲t: Barmittel und Zahlungsmittel盲quivalente stiegen auf 709,9 Millionen US-Dollar (Aug-24: 383,1 Millionen) nach der SKT-Investition, starkem operativen Cashflow (183,6 Millionen YTD) und dem Eingang einer aufgeschobenen Zahlung von 28,4 Millionen aus dem Verkauf von SMART Brazil. Die Liquidit盲tskennzahl liegt bei 2,6脳.
- Kapitalstruktur: Die Gesamtschulden bleiben stabil bei 659,5 Millionen US-Dollar; die Nettoliquidit盲t verbesserte sich auf etwa +50 Millionen. Die 300-Millionen-TLA l盲uft 2027 aus; die erste F盲lligkeit der Wandelanleihen (20 Millionen) ist 2026.
- 础办迟颈辞苍盲谤蝉谤别苍诲颈迟别苍: 2,46 Millionen Aktien wurden f眉r 40,9 Millionen US-Dollar YTD zur眉ckgekauft; es verbleiben 36,8 Millionen unter der Genehmigung von 75 Millionen aus Januar 2024.
- 鲍苍迟别谤苍别丑尘别苍蝉尘补脽苍补丑尘别苍: 鈥� Umfirmierung nach Delaware abgeschlossen; Nasdaq-Ticker bleibt ab 1. Juli 2025 unver盲ndert (PENG). 鈥� Fortgesetzte Abwicklung von Penguin Edge, vollst盲ndige Goodwill-Abschreibung von verbleibenden 4,7 Millionen bis Ende 2025 erwartet.
Ausblick
- Das Management erwartet positiven freien Cashflow aus der Edge-Abwicklung, erkennt aber weitere Goodwill-Abschreibungen an.
- Vorzugsdividenden (6 % PIK/Bar) werden das Ergebnis je Aktie belasten, bis eine m枚gliche Umwandlung oder R眉ckzahlung erfolgt (fr眉hestens 2029 nach Unternehmensoption).
- Verbleibende Flexibilit盲t beim Aktienr眉ckkauf, solide Liquidit盲t und geringere Zinsbelastung bieten Optionen f眉r die Bilanz.
The information in this preliminary pricing supplement is not complete and may be changed. This preliminary pricing supplement and the accompanying prospectus supplement and
prospectus are not an offer to sell these notes and we are not soliciting an offer to buy these notes in any jurisdiction where the offer or sale is not permitted.
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Subject To Completion, dated July 8, 2025 PRICING SUPPLEMENT No. 456 dated July , 2025 (To Prospectus Supplement dated April 27, 2023 and Prospectus dated April 27, 2023)
Wells Fargo & Company Medium-Term Notes, Series T $ Fixed Rate Callable Notes Notes due July 22, 2032
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Filed Pursuant to Rule 424(b)(2)
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The notes have a term of 7 years, subject to our right to redeem the notes on the optional redemption dates beginning 1 year after issuance. The notes pay interest semi-annually at a fixed per annum rate, as set forth below. All payments on the notes are subject to the credit risk of Wells Fargo & Company. If Wells Fargo & Company defaults on its obligations, you could lose some or all of your investment. The notes will not be listed on any exchange and are designed to be held to maturity.
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Terms of the Notes |
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Wells Fargo & Company (“Wells Fargo”) |
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Original Offering Price: |
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$1,000 per note; provided that the original offering price for an eligible institutional investor and an investor purchasing the notes in a fee-based advisory account will vary but will not be less than $982.50 per note and will not be more than $1,000 per note. Because the original offering price for eligible institutional investors and investors purchasing the notes in a fee-based advisory account will vary as described in footnote (1) below, the price such investors pay for the notes may be higher than the prices paid by other eligible institutional investors or investors in fee-based advisory accounts based on then-current market conditions and the negotiated price determined at the time of each sale. |
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Principal Amount: |
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$1,000 per note. References in this pricing supplement to a “note” are to a note with a principal amount of $1,000. |
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Pricing Date: |
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July 18, 2025.* |
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Issue Date: |
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July 22, 2025.* |
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Stated Maturity Date: |
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July 22, 2032.* The notes are subject to redemption by Wells Fargo prior to the stated maturity date as set forth below under “Optional Redemption.” The notes are not subject to repayment at the option of any holder of the notes prior to the stated maturity date. |
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Payment at Maturity: |
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Unless redeemed prior to stated maturity by Wells Fargo, a holder will be entitled to receive on the stated maturity date a cash payment in U.S. dollars equal to $1,000 per note, plus any accrued and unpaid interest. |
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Interest Payment Dates: |
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Semi-annually on the 22nd day of each January and July, commencing January 22, 2026, and at stated maturity or earlier redemption.* |
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Interest Period: |
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With respect to an interest payment date, the period from, and including, the immediately preceding interest payment date (or, in the case of the first interest period, the issue date) to, but excluding, that interest payment date. |
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Interest Rate: |
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5.00% per annum. See “Description of Notes—Interest and Principal Payments” and “—Fixed Rate Notes” in the prospectus supplement for a discussion of the manner in which interest on the notes will be calculated, accrued and paid. |
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Optional Redemption: |
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The notes are redeemable by Wells Fargo, in whole but not in part, on the optional redemption dates, at 100% of their principal amount plus accrued and unpaid interest to, but excluding, the redemption date. Any redemption may be subject to prior regulatory approval. Wells Fargo will give notice to the holders of the notes at least 5 days and not more than 30 days prior to the date fixed for redemption in the manner described in the accompanying prospectus supplement under “Description of Notes—Redemption and Repayment.” |
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Optional Redemption Dates: |
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Semi-annually on the 22nd day of each January and July, commencing July 22, 2026 and ending January 22, 2032*. |
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Listing: |
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The notes will not be listed on any securities exchange or automated quotation system. |
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Denominations: |
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$1,000 and any integral multiples of $1,000 |
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CUSIP Number: |
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95001DL57 |
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* |
To the extent that we make any change to the expected pricing date or expected issue date, the interest payment dates, the optional redemption dates and stated maturity date may also be changed in our discretion to ensure that the term of the notes remains the same. |
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Investing in the notes involves risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” on page PRS-3 herein and “Risk Factors” beginning on page S-4 of the accompanying prospectus supplement. |
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The notes are unsecured obligations of Wells Fargo, and all payments on the notes are subject to the credit risk of Wells Fargo. If Wells Fargo defaults on its obligations, you could lose some or all of your investment. The notes are not savings accounts, deposits or other obligations of a depository institution and are not insured by the Federal Deposit Insurance Corporation, the Deposit Insurance Fund or any other governmental agency. |
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Neither the Securities and Exchange Commission nor any state securities commission or other regulatory body has approved or disapproved of these notes or passed upon the accuracy or adequacy of this pricing supplement or the accompanying prospectus supplement and prospectus. Any representation to the contrary is a criminal offense. |
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Original Offering Price(1) |
Agent Discount(2) |
Proceeds to Wells Fargo |
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Per Note |
$1,000.00 |
$17.50 |
$982.50 |
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Total |
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(1) |
The original offering price for an eligible institutional investor and an investor purchasing the notes in a fee-based advisory account will vary based on then-current market conditions and the negotiated price determined at the time of each sale; provided, however, the original offering price for such investors will not be less than $982.50 per note and will not be more than $1,000 per note. The original offering price for such investors reflects a foregone selling concession with respect to such sales as described in footnote (2) below. |
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(2) |
The agent will receive an agent discount of up to $17.50 per note, and from such agent discount will allow selected dealers a selling concession of up to $17.50 per note depending on market conditions that are relevant to the value of the notes at the time an order to purchase the notes is submitted to the agent. Dealers who purchase the notes for sales to eligible institutional investors and fee-based advisory accounts may forgo some or all selling concessions. The per note agent discount in the table above represents the maximum agent discount payable per note. See “Supplemental Plan of Distribution (Conflicts of Interest)” in the prospectus supplement for further information including information regarding how we may hedge our obligations under the notes and offering expenses. Wells Fargo Securities, LLC, a wholly owned subsidiary of Wells Fargo & Company, is the agent for the distribution of the notes and is acting as principal. |
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Wells Fargo Securities |
ADDITIONAL INFORMATION ABOUT THE ISSUER AND THE NOTES
The notes are senior unsecured debt securities of Wells Fargo & Company and are part of a series entitled “Medium-Term Notes, Series T.” The paying agent and security registrar for the notes is Computershare Trust Company, N.A.
All payments on the notes are subject to the credit risk of Wells Fargo.
You should read this pricing supplement together with the prospectus supplement dated April 27, 2023 and the prospectus dated April 27, 2023 for additional information about the notes. To the extent that disclosure in this pricing supplement is inconsistent with the disclosure in the prospectus supplement or prospectus, the disclosure in this pricing supplement will control. Certain defined terms used but not defined herein have the meanings set forth in the prospectus supplement.
You may access the prospectus supplement and prospectus on the SEC websiteiwww.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):
●Prospectus Supplement dated April 27, 2023:
https://www.sec.gov/Archives/edgar/data/72971/000183988223010804/seriest-424b2_042723.htm
●Prospectus dated April 27, 2023:
https://www.sec.gov/Archives/edgar/data/72971/000183988223010799/wf_424b2-0427.htm
PRS-2
SELECTED RISK CONSIDERATIONS
Your investment in the notes will involve risks not associated with an investment in conventional debt securities. You should carefully consider the risk factors set forth below and the “Risk Factors” section of the accompanying prospectus supplement as well as the other information contained in the prospectus supplement and prospectus, including the documents they incorporate by reference. You should reach an investment decision only after you have carefully considered with your advisors the appropriateness of an investment in the notes in light of your particular circumstances.
Risks Relating To The Notes Generally
The Amount Of Interest You Receive May Be Less Than The Return You Could Earn On Other Investments.
Interest rates may change significantly over the term of the notes, and it is impossible to predict what interest rates will be at any point in the future. The interest rate payable on the notes may be more or less than prevailing market interest rates at any time during the term of the notes. As a result, the amount of interest you receive on the notes may be less than the return you could earn on other investments.
The Per Annum Interest Rate Will Affect Our Decision To Redeem The Notes.
It is more likely that we will redeem the notes prior to the stated maturity date during periods when the remaining interest is to accrue on the notes at a rate that is greater than that which we would pay on a conventional fixed-rate non-redeemable note of comparable maturity. If we redeem the notes prior to the stated maturity date, you may not be able to invest in other notes that yield as much interest as the notes.
An Investment In The Notes May Be More Risky Than An Investment In Notes With A Shorter Term.
The notes have a relatively long term to maturity, subject to our right to redeem the notes on the optional redemption dates. By purchasing notes with a longer term, you will bear greater exposure to fluctuations in interest rates than if you purchased a note with a shorter term. In particular, you may be negatively affected if interest rates begin to rise because the likelihood that we will redeem your notes will decrease and the interest rate payable on the notes may be less than the amount of interest you could earn on other investments available at such time. In addition, if you tried to sell your notes at such time, the value of your notes in any secondary market transaction would also be adversely affected.
Holders Of The Notes Have Limited Rights Of Acceleration.
Holders Of The Notes Could Be At Greater Risk For Being Structurally Subordinated If We Convey, Transfer Or Lease All Or Substantially All Of Our Assets To One Or More Of Our Subsidiaries.
Risks Relating To An Investment In Wells Fargo’s Debt Securities, Including The Notes
The Notes Are Subject To The Credit Risk Of Wells Fargo.
The notes are our obligations and are not, either directly or indirectly, an obligation of any third party. Any amounts payable under the notes are subject to our creditworthiness. As a result, our actual and perceived creditworthiness may affect the value of the notes and, in the event we were to default on our obligations, you may not receive any amounts owed to you under the terms of the notes.
Our Ability To Service Our Debt, Including The Notes, May Be Limited By The Results Of Operations Of Our Subsidiaries And Certain Contractual Arrangements.
The Resolution Of Wells Fargo Under The Orderly Liquidation Authority Could Result In Greater Losses For Holders Of Our Debt Securities, Including The Notes, Particularly If A Single-Point-Of-Entry Strategy Is Used.
The Resolution Of Wells Fargo In A Bankruptcy Proceeding Could Also Result in Greater Losses For Holders Of Our Debt Securities, Including The Notes.
PRS-3
Risks Relating To The Value Of The Notes And Any Secondary Market
The Agent Discount, Offering Expenses And Certain Hedging Costs Are Likely To Adversely Affect The Price At Which You Can Sell Your Notes.
Assuming no changes in market conditions or any other relevant factors, the price, if any, at which you may be able to sell the notes will likely be lower than the original offering price. The original offering price includes, and any price quoted to you is likely to exclude, the agent discount paid in connection with the initial distribution, offering expenses and the projected profit that our hedge counterparty (which may be one of our affiliates) expects to realize in consideration for assuming the risks inherent in hedging our obligations under the notes. In addition, any such price is also likely to reflect dealer discounts, mark-ups and other transaction costs, such as a discount to account for costs associated with establishing or unwinding any related hedge transaction. The price at which the agent or any other potential buyer may be willing to buy your notes will also be affected by the interest rate provided by the notes and by the market and other conditions discussed in the next risk factor.
The Value Of The Notes Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways.
The value of the notes prior to stated maturity will be affected by interest rates at that time and a number of other factors, some of which are interrelated in complex ways. The effect of any one factor may be offset or magnified by the effect of another factor. The following factors, among others, are expected to affect the value of the notes. When we refer to the “value” of your note, we mean the value that you could receive for your note if you are able to sell it in the open market before the stated maturity date.
●Interest Rates. The value of the notes may be affected by changes in the interest rates in the U.S. markets.
●Our Creditworthiness. Actual or anticipated changes in our creditworthiness may affect the value of the notes. However, because the return on the notes is dependent upon factors in addition to our ability to pay our obligations under the notes, such as whether we exercise our option to redeem the notes, an improvement in our creditworthiness will not reduce the other investment risks related to the notes.
The Notes Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Notes To Develop.
The notes will not be listed or displayed on any securities exchange or any automated quotation system. Although the agent and/or its affiliates may purchase the notes from holders, they are not obligated to do so and are not required to make a market for the notes. There can be no assurance that a secondary market will develop. Because we do not expect that any market makers will participate in a secondary market for the notes, the price at which you may be able to sell your notes is likely to depend on the price, if any, at which the agent is willing to buy your notes.
If a secondary market does exist, it may be limited. Accordingly, there may be a limited number of buyers if you decide to sell your notes prior to stated maturity. This may affect the price you receive upon such sale. Consequently, you should be willing to hold the notes to stated maturity.
Risk Relating To Conflicts Of Interest
A Dealer Participating In The Offering Of The Notes Or Its Affiliates May AG真人官方ize Hedging Profits Projected By Its Proprietary Pricing Models In Addition To Any Selling Concession, Creating A Further Incentive For The Participating Dealer To Sell The Notes To You.
If any dealer participating in the offering of the notes, which we refer to as a “participating dealer,” or any of its affiliates conducts hedging activities for us in connection with the notes, that participating dealer or its affiliates will expect to realize a projected profit from such hedging activities, if any, and this projected hedging profit will be in addition to any concession that the participating dealer realizes for the sale of the notes to you. This additional projected profit may create a further incentive for the participating dealer to sell the notes to you.
PRS-4
UNITED STATES FEDERAL TAX CONSIDERATIONS
In the opinion of our counsel, Davis Polk & Wardwell LLP, the notes will be treated as debt instruments for U.S. federal income tax purposes.
We expect the “issue price” of the notes to be equal to their stated principal amount. Assuming that the notes’ issue price is equal to the stated principal amount, the notes will be issued without original issue discount (“OID”) for U.S. federal income tax purposes. However, the issue price of the notes will be determined on the pricing date. If the notes’ stated principal amount exceeds their issue price by more than a de minimis amount, the notes would be issued with OID, in which case a U.S. holder (as defined in the accompanying prospectus supplement) would generally be required to recognize the OID in income in advance of the receipt of the related cash payments.
Both U.S. and non-U.S. persons considering an investment in the notes should read the discussion under “United States Federal Tax Considerations” in the accompanying prospectus supplement for more information.
PRS-5
SUPPLEMENTAL PLAN OF DISTRIBUTION
The original offering price is $1,000 per note; provided that the original offering price for an eligible institutional investor and an investor purchasing the notes in a fee-based advisory account will vary based on then-current market conditions and the negotiated price determined at the time of each sale. The original offering price for such investors will not be less than $982.50 per note and will not be more than $1,000 per note. The original offering price for such investors reflects a foregone selling concession with respect to such sales as described in the next paragraph.
Wells Fargo Securities, LLC, a wholly owned subsidiary of Wells Fargo & Company, is the agent for the distribution of the notes. The agent may resell the notes to other securities dealers at the original offering price of $1,000 per note less a concession not in excess of the agent discount. Such securities dealers may include Wells Fargo Advisors (the trade name of the retail brokerage business of our affiliates, Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC). Wells Fargo Securities LLC will receive an agent discount of up to $17.50 per note, and from such agent discount will allow selected dealers a selling concession of up to $17.50 per note depending on market conditions that are relevant to the value of the notes at the time an order to purchase the notes is submitted to the agent. Dealers who purchase the notes for sales to eligible institutional investors and fee-based advisory accounts may forgo some or all selling concessions.
The agent or another affiliate of ours expects to realize hedging profits projected by its proprietary pricing models to the extent it assumes the risks inherent in hedging our obligations under the notes. If any dealer participating in the distribution of the notes or any of its affiliates conducts hedging activities for us in connection with the notes, that dealer or its affiliate will expect to realize a profit projected by its proprietary pricing models from such hedging activities. Any such projected profit will be in addition to any discount or concession received in connection with the sale of the notes to you.
PRS-6
Source:
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