Cherry (C3RY) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was €46.0 million, down 25.3% year-over-year, mainly due to strategic restructuring and weak demand in key segments.

• Adjusted EBITDA margin for H1 2025 was -5.0%, compared to +4.0% in H1 2024, reflecting restructuring costs and lower sales.

• Cash and cash equivalents decreased to €7.9 million from €16.4 million at year-end 2024, despite liquidity improvements from asset sales and inventory reduction.

• Strategic restructuring included the sale of the hygiene peripherals business, full relocation of switch production to China, and significant inventory reduction.

• Management highlights material uncertainty regarding going concern, but a restructuring plan and extended financing agreement with UniCredit support continued operations.

Financial highlights

• Q2 2025 revenue was €20.7 million, down 34% year-over-year.

• Adjusted EBITDA for H1 2025 was -€2.3 million, compared to €2.4 million in H1 2024.

• Equity ratio at 45.6%, down 2.1 percentage points from the previous quarter.

• Inventory levels dropped from a peak of €82 million in summer 2023 to €43 million in Q2 2025.

• Free cash flow improved to -€5.3 million in H1 2025 from -€8.1 million in H1 2024.

Outlook and guidance

• Full-year 2025 revenue expected between €100 million and €115 million, with adjusted EBITDA margin of 0%–2%.

• H2 2025 expected to see acceleration in eHealth terminal sales due to regulatory deadlines.

• Strategic focus is shifting from hardware sales to recurring software revenue streams, especially in Digital Health & Solutions.

• Focus remains on inventory management, SKU optimization, and cash flow discipline.

• New CFO, Jurjen Jongma, will join effective September 1, 2025.