Raspberry Pi (RPI) H2 2025 earnings summary

Executive summary

• FY 2025 saw shipments of boards and modules rise 9% to up to 7.8 million units, with adjusted EBITDA up 25% to $46.4 million and profit after tax up 85% to $21.7 million.

• Semiconductor shipments reached 8.4 million, surpassing board sales for the first time.

• Expanded product portfolio with 13 launches, including new microcontroller variants, AI HAT+2, and the first software product, Raspberry Pi Connect, which reached over 400,000 registered devices.

• Strongest demand and notable unit growth came from the US (+56%) and China (+62%), with the second half and Q4 particularly robust.

• Marketing outreach and reseller channel structure were refined, focusing on key geographies and sectors, and presence in industrial and OEM markets was strengthened.

Financial highlights

• Revenue grew 25% year-over-year to $323.2 million, driven by higher unit sales and improved product mix.

• Gross profit per unit rose to $8.70 from $7.40, aided by a better mix and lower chip costs in later Pi 5 boards.

• Gross profit up 23% to $77.8 million; adjusted EBITDA up 25% to $46.4 million; adjusted operating profit increased 35% to $35.9 million.

• Adjusted EPS increased 35% to $0.145 (14.5c).

• Cash at year-end was $28.1 million, down from $45 million, after repaying $52.2 million in extended supplier payables; net cash position maintained and $80 million revolving credit facility undrawn.

• Direct sales share rose to 76% of total, with royalties flat.

Outlook and guidance

• Expectation for higher unit sales and revenue in FY 2026, driven by continued demand and price increases to offset rising memory costs.

• Gross profit per unit expected to decline due to elevated memory prices, though revenue will rise; margin percentage anticipated to decrease, with focus on profit per unit.

• Confident in short-term demand and supply chain resilience, viewing DRAM challenges as an opportunity to gain market share.

• Profitability for FY 2026 expected to be in line with market estimates, with revenue likely to exceed expectations.

• Second-half FY 2026 visibility is limited, but substantial inventory and flexible pricing provide resilience.