Raspberry Pi (RPI) investor relations material

Executive summary

• Achieved record H1 2026 revenue of $256.9 million, up 90% year-over-year, and record profitability, with adjusted EBITDA of $40.3 million, driven by strong OEM, reseller, and direct demand, increased unit shipments, and favorable product mix despite supply chain disruptions.

• 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 enhancements to IoT and memory options, expanded edge AI capabilities.

• Strategic investments in operational capacity, including hiring a COO, expanding the commercial team, and strengthening OEM engagement, especially in Smart Home and Aerospace & Defence sectors.

• Supplier diversification and inventory management ensured product availability amid memory market volatility.

Financial highlights

• Revenue increased 90% year-over-year to $256.9 million, driven by higher unit sales and a 42% increase in average selling price.

• Gross profit rose 79% to $59.4 million, with gross profit per board up 53% to $12.20; gross margin declined to 23% from 25% due to higher input costs.

• Adjusted EBITDA reached $40.3 million, more than doubling from H1 2025; adjusted operating profit up 167% to $35.2 million.

• Accessories gross profit grew 90% to $7.8 million, with strong sales in cameras, SD cards, displays, and AI HATs.

• Net cash at period end was $18.4 million, down from $34.3 million in H1 2025, 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 ($60–65 million), though exceptional unit economics from H1 are expected to moderate.

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

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