Raspberry Pi (RPI) H2 2025 earnings summary

Executive summary

• 2025 saw shipments of boards and modules up 9% to 7.8 million units, with adjusted EBITDA rising 25% to $46.4m, driven by strong demand in the US and China.

• Semiconductor chip sales increased 47% year-over-year to 8.4 million units, surpassing board sales for the first time.

• Expanded product portfolio with 13 launches, including new microcontroller variants, AI HAT+2, and the debut of Raspberry Pi Connect.

• Marketing outreach and board-to-board programs targeting industrial OEMs were strengthened, with notable growth in smart home and aerospace/defense sectors.

• The reseller channel was refined, retiring underperforming partners and adding targeted resellers in key geographies.

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 operating profit increased 35% to $35.9m; adjusted EPS rose to $0.145 from $0.107.

• Cash at year-end was $28.1m after repaying $52.2m in extended supplier payables, with an undrawn $80m revolving credit facility.

• Direct sales share rose to 76%, with gross profit per board up 18% to $8.70.

Outlook and guidance

• Momentum from late 2025 and early 2026 is expected to continue, with unit sales and revenue projected to increase in 2026.

• Gross profit per unit is expected to decline in 2026 due to rising memory costs, despite price increases.

• Profitability is expected to be in line with market estimates, but revenue is likely to exceed expectations due to higher ASPs.

• Elevated DRAM prices are anticipated to persist into 2027, with supply chain resilience and expanded supplier relationships mitigating risk.