Raspberry Pi Holdings PLC (LON: RPI) delivered record first-half revenue and profitability, with revenue for the six months to 30 June rising 90% to $256.9 million.
For investors, the standout is not just the headline growth but the combination of a doubled 2.6 million-unit backlog, stronger second-half volume expectations and full-year adjusted EBITDA now forecast ahead of market consensus. That gives the company stronger earnings visibility into the second half, although margin pressure and working-capital investment remain important risks.
Adjusted EBITDA more than doubled to $40.3 million from $19.4 million, while profit before tax increased 216% to $19.6 million.
Unit shipments rose 17% to 4.2 million, with direct shipments up 26% to 3.4 million as OEM adoption accelerated. Demand was particularly strong in Smart Home and Aerospace & Defence, while Raspberry Pi continued expanding its edge-AI offering with the launch of AI HAT+ 2 for Raspberry Pi 5.
Gross profit increased 79% to $59.4 million, although gross margin eased to 23% from 25% as higher memory costs were passed through in product pricing.
Net cash fell to $18.4 million from $34.3 million, largely reflecting investment in strategic memory inventory intended to protect production during supply-chain disruption.
Looking ahead, Raspberry Pi expects second-half unit volumes to exceed the first half, supported by its backlog, production capacity expansion and strong OEM pipeline.
The key issue for the valuation is whether Raspberry Pi can convert its enlarged backlog into sustained shipment growth through 2027 without sacrificing too much margin or consuming materially more cash. If execution holds, the stronger backlog and earnings outlook materially improve near-term visibility; if memory costs remain elevated, margin expansion could lag the revenue growth.
Eben Upton, CEO of Raspberry Pi said:
“Raspberry Pi delivered a record first half, with revenue up 90% and Adjusted EBITDA up 108%. Demand from our OEM customers and our reseller channel was strong throughout, and our order backlog doubled during the period. The decision in FY 2025 to build significant strategic memory inventory has allowed us to maintain product availability at a time when smaller competitors have struggled to secure allocation. With a substantial order backlog, expanding production capacity and a strong pipeline of OEM opportunities, Raspberry Pi is well positioned for rapid growth in unit shipments in 2027 and beyond.”
Investor takeaway: Raspberry Pi has strengthened near-term earnings visibility, with a doubled 2.6 million-unit backlog, second-half volumes expected to exceed the first half and full-year adjusted EBITDA now forecast ahead of market consensus. The main risks are margin pressure from memory costs and further cash absorption from inventory investment.
