Focusrite (TUNE) Trading update summary

Financial performance and outlook

• Achieved 3% revenue growth, improved underlying operating profit, and strong cash generation in H1 2026.

• Gross margins improved due to pricing discipline, supply chain management, and operational efficiency.

• Received £2.3 million in US tariff refunds, to be treated as an adjusting item.

• Net debt reduced significantly to approximately £2 million by 31 August 2026, down from £8.6 million at 28 February 2026.

• Board remains confident in meeting full-year expectations, with market forecasts for FY27 revenue at £170.1–£173.7 million and adjusted EBITDA at £25.2–£27.4 million.

Divisional performance

• Content Creation division saw 4% revenue growth, supported by healthy demand across all regions.

• Audio Reproduction orders grew 12%, with the order book up 9% year-on-year in August 2026.

• Audio Reproduction revenue declined 4% due to weakness in China, despite strong US growth.

• Revenue and profitability are expected to be more weighted to H1 due to sales phasing ahead of the Winter Holiday season.

Strategic initiatives and product development

• Continued investment in new products and proprietary ASIC silicon chip technology.

• Focus on pricing and cost discipline to support profitability and strengthen the balance sheet.