Raspberry Pi (RPI) H1 2026 earnings summary

Executive summary

• Achieved record H1 2026 revenue of $256.9 million, up 90% year-over-year, and record profitability, driven by strong OEM, reseller, and direct demand, increased unit shipments, and favorable product mix despite supply chain disruptions.

• Adjusted EBITDA rose 108% to $40.3 million, with profit before tax up 216% to $19.6 million and adjusted basic EPS up 192% to 13.90 cents.

• Unit shipments increased 17% to 4.2 million, with direct shipments up 26% and compute module sales up 57%; customer order backlog doubled to 2.6 million units.

• Five new product/platform launches, including AI HAT+2 and new memory options, expanded edge AI capabilities.

• Strategic investments in operational capacity, commercial team, and executive hires, including a new COO and upcoming CFO transition.

Financial highlights

• Revenue: $256.9 million (+90% YoY); Gross profit: $59.4 million (+79% YoY); Gross margin: 23% (down from 25% YoY) due to higher memory costs.

• Adjusted EBITDA: $40.3 million (+108% YoY); Adjusted operating profit: $35.2 million (+167% YoY); Profit before tax: $19.6 million (+216% YoY); Adjusted basic EPS: 13.90 cents (+192% YoY).

• Gross profit per board increased 53% to $12.20, aided by price increases and low-cost inventory.

• Accessories gross profit grew 90% to $7.8 million, or $1.90 per unit.

• Net cash at period end was $18.4 million, down from $34.3 million YoY, reflecting increased inventory and receivables.

Outlook and guidance

• H2 unit volumes expected to exceed H1, supported by strong order backlog (2.6 million units) and expanded production capacity.

• Full-year adjusted EBITDA anticipated to be above market consensus, though profit per unit expected to decrease as inventory costs normalize.

• Sufficient DRAM inventory secured for the remainder of 2026 and into 2027; strategic purchases ongoing.

• Well positioned for rapid growth in unit shipments in 2027 and beyond, with a robust OEM pipeline.

• Backlog reduction is a key focus, with investments to increase production capacity.