Raspberry Pi revenue jumps 90% to $256.9 million on shipments and price rises

Key Facts

Raspberry Pi Holdings reported a 90% rise in first-half 2026 revenue to $256.9 million, from $135.5 million in the first half of 2025. Adjusted earnings before interest, tax, depreciation and amortisation rose 108% to $40.3 million from $19.4 million. Device shipments reached 4.2 million units, up 17% from 3.6 million. The unaudited results cover the six months ended June 30, 2026, and represent record first-half revenue and profitability for the company. Reading the sales increase, however, requires separating additional units from price rises intended to offset more expensive memory.

The revenue lines show how widely sales increased, although they did not move at the same pace. Product revenue reached $198.2 million, versus $109.6 million in the first half of 2025, and remained the largest contributor. Component revenue climbed to $46.5 million from $17.6 million, while royalties rose to $11.7 million from $7.8 million. Publishing revenue held at $0.5 million in both periods. The overall increase therefore reflects changes in the value of devices and components sold as well as shipment volume; assessing demand requires looking at units and prices separately.

Selling prices explain much of the gap between revenue growth and shipment growth. Average selling price across board channels rose 42% to $65.9 from $46.4 after increases designed to cover higher memory costs. Revenue from boards sold directly jumped 90% to $170.1 million from $89.3 million; the company attributed that to 26% more direct-channel units and a 51% increase in their average selling price. First-half earnings also benefited from memory bought in 2025 at lower prices. Revenue and profit growth driven by these factors should not automatically be projected forward if component prices or the cost of replacement inventory change.

Gross profit rose 79% to $59.4 million from $33.2 million, showing more clearly than revenue how much the company retained after the cost of sales. Gross profit per board reached $12.2, versus $8.0, a 53% increase supported by pricing and lower-cost inventory. Yet gross margin narrowed to 23% from 25% because board revenue rose proportionately faster than gross profit. A higher dollar profit and a lower percentage margin can coexist: one measures the amount earned, the other the return on each dollar of sales. That distinction matters as older, cheaper memory inventory is depleted and newly purchased components enter production.

The increase in units came more from direct sales than from the licensee channel. Direct-channel shipments rose 26% to 3.4 million from 2.7 million, while licensee shipments fell 11% to 0.8 million from 0.9 million. The customer order backlog doubled to 2.6 million units from 1.3 million at the end of 2025, making unfilled orders an important part of the growth outlook. The company reported strong engagement in smart home and aerospace and defence, alongside greater use of its products for edge-AI inference. Those orders become revenue only when the company can manufacture and deliver the devices; the backlog alone does not establish the timing of sales recognition.

Adjusted earnings are not the same as profit reported under accounting standards. Profit before tax rose 216% to $19.6 million from $6.2 million, while the adjusted EBITDA measure excludes items including charges for employee share schemes. Reported research and development expense increased to $16.6 million from $11.7 million, and administrative expense rose to $23.0 million from $13.5 million. Employee share-scheme charges in the company's reconciliation between adjusted and operating profit were $15.4 million, versus $5.2 million. Adjusted EBITDA helps track operating performance, but judging shareholder returns also requires the reported profit and the costs excluded from that measure.

Securing components absorbed working capital despite stronger earnings. Inventory rose to $262.7 million at the end of June 2026 from $145.3 million at the end of 2025, an increase of $117.4 million during the half. Net cash fell to $18.4 million from $28.1 million at the end of 2025 as the company increased memory purchases to protect production. On July 8, 2026, its committed bank facility expanded to $140.0 million from $80.0 million. Additional inventory reduces the risk of missed deliveries, but ties up more liquidity and makes the pace of converting orders into sales consequential for investors.

The results exceeded the company's June 5, 2026 first-half trading estimate of more than 4 million units and at least $38 million in adjusted EBITDA: actual figures were 4.2 million units and $40.3 million. Management expects second-half unit volumes to exceed the first half, supported by the backlog and added production capacity. It also said the exceptional profit earned per unit in the first half has started to moderate as cheaper memory inventory is consumed. Even so, it expects full-year EBITDA to exceed market consensus, without setting a new figure in the results announcement. Investors therefore need to distinguish prospective volume growth from the profit likely to be earned on each additional unit.

The results announcement scheduled an analyst and investor briefing for September 24, 2026 at 09:30 British time, offering a near-term opportunity to clarify delivery rates and margins. Performance through the second half of 2026 will then test whether the company can turn its backlog into shipments. Comparing units sold with gross profit per board will be more informative than revenue alone because higher prices can lift sales even as unit economics change. The company says memory held and on order is sufficient for its 2026 production goals, and plans further purchases for 2027 needs. Higher shipments with contained cash use would support its outlook; delivery delays or continuing pressure on board profitability would weaken it.