Focusrite (TUNE) Trading update summary

Trading performance

• Revenue for the 12 months to February 2026 is expected to be slightly ahead of the prior year at approximately £164 million, reflecting stable demand and strong sales rankings with online resellers.

• Gross margins remained strong and slightly improved, supported by pricing discipline and supply chain management, despite US tariffs.

• Operating margins are expected to remain stable due to ongoing cost control, with adjusted EBITDA in line with market expectations.

• Six-month revenue to February 2026 is expected at £76 million, down 5% year-on-year, due to a strong prior comparator and inventory adjustments in the US.

• Audio Reproduction, including the Martin Audio brand, returned to growth as markets normalized.

Financial position

• Healthy cash flows were generated, with net debt reduced to approximately £9.0 million from £10.8 million at August 2025.

• Improved working capital management and inventory reduction contributed to the lower net debt.

Outlook and strategic actions

• No material impact from geopolitical or macroeconomic volatility has been experienced to date, though the situation is monitored closely.

• Confidence in future progress is supported by agile teams, a strong product portfolio, strengthened routes to market, selective new product development, and careful cost management.