Cherry (C3RY) Q2 2026 earnings summary

Executive summary

• Strategic transformation focused on stabilizing, simplifying, and focusing the business, with Project Blossom driving operational improvements and growth initiatives.

• Leadership continuity established with the CEO confirmed and management demonstrating commitment through participation in the rights issue.

• Rights issue completed, raising approximately €10.1m to strengthen the balance sheet and support ongoing transformation.

Financial highlights

• H1 2026 Group Revenue reached €40.0m, up 3% year-over-year on a comparable basis, despite challenging market conditions.

• Gross margin improved significantly from 36.8% to 43.4% year-over-year, driven by cost discipline and improved product mix.

• Adjusted EBITDA loss narrowed to €-4.0m in H1 2026 from €-10.2m in H1 2025, reflecting €10m lower costs and strong margin management.

• Working capital reduced from €45.1m to €25.3m, highlighting focus on cash generation and operational efficiency.

• Q2 2026 Group Revenue was €19.2m (comparable), with adjusted EBITDA improving to €-3.4m from €-7.9m in Q2 2025.

Outlook and guidance

• 2027 ambition targets break-even for Peripherals at ~€85m revenue and ~44% gross margin.

• Key priorities include completing the sale of DH&S, repaying debt, and executing Project Blossom to reduce costs and return to growth.

• Clear strategy to stabilize, simplify, and focus, with disciplined execution and strong focus on cash and working capital.