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Raspberry Pi Holdings PLC (LSE:RPI) announced stronger-than-anticipated profits for the first half of the year, while maintaining its guidance for the full year. The company reported underlying profits (EBITDA) of $20.9 million, marking a 55% increase from the previous year, with revenues rising by 61% to $144 million.
Although sales volumes were slightly lower than projected, the sales were weighted toward higher-margin products. The previous year’s performance was constrained by supply issues, which impacted comparisons.
During the first half, the newly launched Pi 5 single-board computer (SBC), introduced at the end of October, sold 1.1 million units. Overall unit growth reached 31%, reflecting strong market demand. Raspberry Pi stated that initial expectations of performance being skewed toward the second half of the year no longer applied, as profitability for the first half surpassed internal forecasts.
Looking ahead, the company anticipates higher unit sales volumes in the second half, bolstered by new product launches. However, the anticipated product mix is expected to result in lower unit economics. In addition, Raspberry Pi noted that the higher-than-usual levels of customer and channel inventory seen during this period are showing signs of normalizing by year-end.
CEO Eben Upton emphasized that the company’s June IPO marked a significant milestone in the first half. He highlighted the strong market uptake of the flagship SBC and the successful launch of the Raspberry Pi AI Kit, along with the effective ramp-up to production of the RP2350, a second-generation microcontroller platform.
Following this positive announcement, shares climbed by 6% to 370p in early trading, recovering some of the value lost in recent weeks since the post-IPO peak. The combination of strong profit growth, robust product sales, and strategic product launches positions Raspberry Pi favorably as it navigates the remainder of the year. The company remains focused on sustaining momentum and leveraging its innovative product line to enhance market presence.
