Raspberry Pi (RPI) H2 2025 earnings summary

Executive summary

• FY2025 saw shipments of boards and modules rise 9% to 7.8 million units, with EBITDA up 25% year-over-year and profit after tax increasing 85% to $21.7m.

• Chip sales grew 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 hardware variants, AI HAT+2, enhanced microcontrollers, and the first software product, Raspberry Pi Connect, with nearly 400,000 devices registered by year-end.

• Strengthened marketing, refined reseller channels, and increased direct channel sales to 76% of total units.

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%.

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

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

• Gross profit per unit increased to $8.70 from $7.40, driven by a better product mix and lower component costs.

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

Outlook and guidance

• FY2026 revenues anticipated to be substantially higher, with higher unit sales and price increases to offset rising memory costs.

• Gross profit per unit expected to decline due to elevated DRAM prices, though revenue will rise.

• Confident in short-term demand and ongoing customer backlogs; profitability expected in line with market estimates.

• DRAM supply remains a risk, but inventory and supplier relationships are strong.