Cherry (C3RY) Q2 2026 earnings summary

Executive summary

• Strategic transformation focused on stabilizing, simplifying, and prioritizing core business segments, with Project Blossom driving operational improvements and growth initiatives.

• Leadership continuity established with CEO appointment and management demonstrating commitment by oversubscribing in the rights issue.

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

Financial highlights

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

• Adjusted EBITDA improved to €-4.0 million from €-10.2 million year-over-year, driven by cost reductions and margin improvements.

• Gross margin increased by 12 percentage points year-over-year, with group gross margin rising from 36.8% to 43.4% and peripherals margin from 41.7% to 45.1%.

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

• Cash balance at end of June was €4.3 million, further strengthened by a €10.1 million capital increase.

Outlook and guidance

• Targeting breakeven at €85 million revenue and 44% gross margin for Peripherals by 2027.

• H2 growth in peripherals is uncertain due to ongoing inventory normalization, but focus remains on preparing for 2027 targets.

• Project Blossom expected to drive top-line growth and further cost reductions, with a clear path to sustainable profitability.

• 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.