Raspberry Pi (RPI) H2 2025 earnings summary

Executive summary

• 2025 saw standout profit growth with shipments of boards and modules up 9% to 7.8 million units, and EBITDA rising 25% year-over-year.

• Chip/semiconductor sales surged 47% to 8.4 million units, surpassing board sales for the first time.

• The second half of 2025, especially Q4, was notably stronger, driven by demand in the US (+56%) and China (+62%).

• Expanded product portfolio with 13 new launches, including new microcontroller variants, AI HAT+2, and the first software product, Raspberry Pi Connect, with nearly 400,000 devices registered by year-end.

• Marketing outreach and OEM engagement were strengthened, focusing on industrial, smart home, aerospace, and deepened engagement with major industrial OEMs.

Financial highlights

• Revenue grew 25% year-over-year to $323.2m, with gross profit up 23% to $77.8m and gross margin steady at 24%.

• Gross profit per unit increased to $8.70 from $7.40, driven by a favorable product mix and lower chip costs in later Pi 5 production.

• Adjusted EBITDA grew 25% to GBP 46.4 million ($46.4m); adjusted EPS rose 35% to 14.50 pence (14.5c).

• Year-end cash was GBP 28 million ($28.1m), down from GBP 45 million, after repaying $52.2m in extended supplier payables.

• Inventory reduced to GBP 145 million, with finished goods down and component holdings up.

Outlook and guidance

• Expectation of higher unit sales and revenue in 2026, with continued strong demand, customer backlogs, and demand-creation initiatives.

• Gross profit per unit anticipated to decline due to rising memory costs, despite price increases.

• Elevated DRAM prices expected to persist into 2027, with supply chain resilience and expanded supplier base mitigating risks.

• Profitability for 2026 expected in line with market estimates, but revenue likely to exceed due to higher ASPs.