Raspberry Pi eyes "materially higher" revenue in 2026 but costs rise

(Alliance News) - Raspberry Pi Holdings PLC on Tuesday said it expects to meet market expectations for 2026, citing strong demand and despite the impact of rising memory costs.

In response, shares in the Cambridge, England-based manufacturer of low-cost computers soared 24% to 363.20 pence each in London on Tuesday morning. Raspberry Pi shares were issued at 280p each at its June 2024 initial public offer and are up 30% since.

The FTSE 250-listing said pretax profit increased 63% to USD26.5m in 2025 from USD16.3 million in 2024.

Basic earnings per share jumped 73% to 11.22 US cents from 6.48 cents, or by 35% to 14.48 cents from 10.69 cents on an adjusted basis.

Adjusted earnings before interest, tax, depreciation and amortisation improved 25% to USD46.4 million from USSD37.2 million, compared to guidance of "not less than" USD45 million provided in January.

This was supported by strengthening demand and favourable unit economics through the second half of 2025, Raspberry Pi said.

Revenue grew 25% to USD323.2 million from USD259.5 million. Unit shipments of 7.6 million in 2025 were up 8.6% from 7.0 million in 2024.

Net cash was USD28.1 million at year end, "exceeding expectations", although down from USD45.8 million on-year. The reduction reflects paying down USD52.2 million of extended supplier payables over the year.

Raspberry Pi said demand strengthened through the year with notably strong demand from US and China.

For the first time, semiconductor device volumes exceeded those of boards and modules, with 8.4 million semiconductor units sold, it added.

Rising memory costs are being "successfully navigated" supported by "supplier diversification, pricing adjustments and substantial inventory buffers".

While the memory environment "limits second-half visibility, we have the inventory position, supplier relationships and pricing flexibility to navigate it effectively," Raspberry Pi said.

It said strong sales momentum carried into the opening months of 2026.

"Against that backdrop full-year 2026 profitability is anticipated to be in-line with market estimates, with revenue materially higher," Raspberry Pi said.

Peel Hunt raised its 2026 revenue forecast to USD490.9 million from USD357.5 million and left its adjusted Ebitda estimate at USD40.0 million. It cut its gross profit margin projection to 14.5% from 19.5%.

Raspberry Pi noted strong sales momentum has carried into the opening months of this year.

"Combined with strategic hiring, rapid uptake of new products, and a channel whose capabilities are well aligned with the opportunities ahead," Chief Executive Eben Upton said.

By Jeremy Cutler, Alliance News reporter

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