Cherry (C3RY) Q4 2025 earnings summary

Executive summary

• 2025 was marked by structural refocusing, operational cleanup, and stabilization, with a strengthened leadership team including a new interim CEO, CFO, and divisional heads.

• Sale of Active Key hygiene business for €10.3 million, generating a €5.7 million book gain and supporting liquidity.

• Major management changes and expansion of the management board to drive turnaround and transformation.

• Inventory reduced by €29.5 million year-over-year, with SKUs cut by over 40% and focus on operational efficiency.

• Cost discipline and restructuring, including at the Auerbach site, led to a €10 million reduction in operating expenses year-over-year.

Financial highlights

• Full year 2025 revenue was €94.3 million, down 15% year-over-year, mainly due to weaker Component segment and Active Key sale.

• Adjusted EBITDA for 2025 was €-9.8 million, a 40% decline year-over-year; Q4 adjusted EBITDA at €-4.9 million, down 22% year-over-year.

• Q4 2025 revenue was €23.7 million, down 10% year-over-year.

• Inventory reduced sharply to €28.8 million from €53.7 million, improving the cash conversion cycle from 178 to 116 days.

• Cost base reduced by €60 million since 2023, with another €10 million targeted for 2026.

Outlook and guidance

• Focus on transparency, operational discipline, and sustainable profitability, with guidance for 2026 to be provided in Q2.

• Digital Health business transitioning to a platform model with recurring SaaS revenues projected to surpass terminal revenues by 2029; up to 200,000 additional unit deliveries expected through 2028.

• Peripherals segment stabilization ongoing, with improvements in margin and operational discipline.

• Strategic review and M&A process for potential divestment of either Peripherals or Digital Health & Solutions, aiming to conclude in H1 2026.