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Focusrite (TUNE) investor relations material
Focusrite H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved group-wide growth despite challenging macroeconomic conditions and industry-wide overstock issues, with content creation returning to growth and audio reproduction outperforming industry declines.
Revenue grew 6.6% (8.8% OCC) year-over-year, driven by strong Content Creation sales offsetting a slight decline in Audio Reproduction.
Strategic focus on diversification, operational efficiency, and new product launches supported resilience and market share gains.
Adjusted EBITDA decreased 2% to £24.7m, with higher sales offset by inflation and cost normalization.
Adjusted diluted EPS fell 7.2% to 16.7p, while reported diluted EPS more than doubled to 9.0p due to non-repeat of prior year impairment.
Financial highlights
Revenue: £168.9m, up from £158.5m year-over-year.
Gross margin remained broadly flat at 44.5%-44.4% year-over-year, with pricing actions offsetting tariff impacts.
Adjusted EBITDA margin was 14.6% of sales, slightly lower than last year, but improved in the second half.
Net debt reduced to £10.8m (0.4x net debt/EBITDA), reflecting strong cash inflow and improved working capital management.
Adjusted free cash flow: £6.4m, a significant improvement from -£4.5m in FY24.
Outlook and guidance
Market volatility and tariff uncertainty, especially in the U.S., expected to persist over the next 12 months.
Medium-term organic growth targeted at mid- to high-single digits, with incremental new products and selective M&A as growth drivers.
Gross margins expected to remain broadly flat, with further pricing actions possible to offset rising tariffs.
Ongoing focus on debt reduction and cost control, with stable overheads and gross margins.
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