Raspberry Pi (RPI) H1 2025 earnings summary

Executive summary

• Achieved a strong first half in 2025 with full recovery in demand, normalization of channel inventory, and direct unit shipments to resellers and OEMs up 13% year-over-year and 8% sequentially.

• Launched 7 new products, including platform refreshes, Compute Module variants, and the first standalone wireless module, sustaining innovation.

• Product mix improved, leading to a 19% sequential increase in adjusted EBITDA.

• Semiconductor unit volumes surpassed board unit volumes for the first time, with 4.5 million units shipped, up 105% year-over-year, driven by industrial and aerospace demand.

• Channel inventory normalized, with industrial demand strengthening, especially in China.

Financial highlights

• Revenue for H1 2025 was $135.5 million, down 6% year-over-year, with gross margin up to 25% from 24% in H1 2024.

• Adjusted EBITDA was $19.4 million, down 7% year-over-year but up 19% sequentially.

• Adjusted operating profit was $13.2 million, down 16% year-over-year.

• Cash at period end was $34.3 million, down from $40.4 million last year, mainly due to reduction in extended payables.

• Gross profit per unit was $8.0, down from $8.3 in H1 2024.

Outlook and guidance

• H2 2025 has started well, with EBITDA ahead of last year and higher volumes expected, supported by strong demand and a substantial order backlog.

• Full-year profit expectations remain unchanged, with medium-term demand outlook positive.

• Sufficient DRAM supply secured for FY2025 and through 2026, with mitigations in place for price volatility.

• Anticipates increasing contributions from major OEM customers in 2026 and beyond.

• Anticipate return to positive cash flow in 2026 as working capital normalizes.