Full Year 2025 Raspberry Pi Holdings PLC Earnings Call Transcript
Key Points
- Shipments of boards and modules increased by 9% to 7.6 million units, leading to a 25% increase in EBITDA.
- Strong demand in key markets, particularly the United States and China, with a 47% year-on-year increase in chip sales.
- Successful launch of new hardware products, including the RP2350 microcontroller variants with integrated non-volatile memory.
- Raspberry Pi Connect, the company's first software product, ended the year with nearly 400,000 registered devices, showing strong adoption.
- Direct sales channel increased from 70% to 76% of total sales, improving profit margins.
- Cash reserves decreased to $28 million due to clearing extended payables, despite an undrawn $80 million RCF.
- Gross profit per unit is expected to decrease in 2026 due to anticipated memory price increases.
- Overheads increased by 22%, with research and development costs rising by 28%, impacting overall profitability.
- Memory price increases are expected to continue, potentially affecting product pricing and demand.
- Limited visibility in the second half of 2026 due to ongoing supply chain challenges, particularly in DRAM.
Welcome to our results presentation for 2025 -- fourth time we've done this; first time we've done it in this particular room.
Richard and I are going to walk you through some abbreviated highlights of the year; give a summary of our financial performance; an update on our progress against strategy in the year; and then, we'll conclude with some words on the outlook for the rest of 2026.
In summary, 2025 was an absolutely standout year for us. Shipments of boards and modules increased 9% to 7.6 million units. That delivered a 25% increase in EBITDA.
We saw demand build steadily through the year. The second half of the year was better than the first half; the fourth quarter was better than the third quarter. We've really taken that demand with us -- that demand momentum with us -- into the first quarter of 2026.
We saw particular strength in our two largest markets: the United States and China. As we speculated when we did our half-year results, this was, in the end, the cross
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