Cherry (C3RY) Q2 2026 earnings summary

Executive summary

• Strategic transformation focused on stabilizing, simplifying, and prioritizing core business segments, with Project Blossom driving operational improvements and growth initiatives.

• CEO appointment confirmed, with management demonstrating commitment by oversubscribing in the rights issue.

• Rights issue completed, raising EUR 10.1 million to strengthen the balance sheet and support transformation.

Financial highlights

• Group revenue for H1 2026 reached EUR 40 million, up 3% year-over-year on a comparable basis, despite challenging market conditions.

• Adjusted EBITDA loss improved to minus EUR 4 million from minus EUR 10.2 million in H1 2025, reflecting strong margin management.

• Gross margin increased by 12 percentage points year-over-year, reaching up to 45.1% on an adjusted basis.

• Operating expenses reduced from EUR 17.5 million to EUR 10.8 million year-over-year.

• Working capital reduced from EUR 45.1 million to EUR 25.3 million, highlighting focus on cash generation.

Outlook and guidance

• Targeting breakeven at EUR 85 million revenue and 44% gross margin by 2027.

• Inventory normalization in Europe expected to support higher sell-in by 2027.

• Project Blossom initiatives and regional strategies aimed at double-digit growth by 2027.

• Key priorities include completing the sale of Digital Health & Solutions, repaying debt, and executing Project Blossom.

• Cautious on H2 2026 peripherals growth due to ongoing inventory normalization.