Raspberry Pi Holdings posted more than doubled profit in the first half of 2026 as demand from industrial users drove a sharp rise in both revenue and per-unit margins, the company said on Sept. 24.
Adjusted EBITDA climbed 108% to $40.3 million from $19.4 million a year earlier, while revenue surged 90% to $256.9 million from $135.5 million. Gross profit expanded 79% year over year, and gross profit per unit rose 53% to $12.20, up from $8.00. Adjusted basic earnings per share reached 13.9 cents, compared with 4.8 cents in the prior-year period.
The Cambridge-based company, which manufactures its products in the UK and sells in more than 80 countries, shipped 4.2 million board units in the six months through June, a 17% increase from 3.6 million in H1 2025. The order backlog grew to 2.6 million units from 600,000 at the end of last year’s first half. More than 77 million single-board computers and compute modules have been sold since the company began activity in 2012.
A significant shift in end-market mix underpinned the results. Industrial applications now account for an estimated 75% of the company’s end markets, up from 70% in fiscal 2024, while the enthusiast and education segment fell to 25%. The move toward higher-value industrial and enterprise customers lifted average selling prices 42% to $65.90 per unit.
Gross margin slipped slightly to 23% from 25%, weighed down by memory costs. The CM4 4GB module’s recommended retail price rose to $110 in H1 2026 from $60 a year earlier as memory prices surged, with reports of RAM costs climbing as much as 90% from the fourth quarter of 2025. Total inventory increased by $117.4 million during the half to $262.7 million, with component inventory rising $105.9 million, largely driven by LPDDR4 volumes and unit cost increases. The company secured enough core 4GB and 8GB memory inventory into Q1 2027 and expanded its memory supplier base from two to seven over 18 months.
Flagship product sales continued to accelerate: Raspberry Pi 4 and Pi 5 sales grew 69% and 47% respectively, while direct compute module unit sales jumped 57%. Semiconductor unit shipments reached 4.0 million in the half. The company is targeting greater than 1% share of the $40 billion microcontroller market.
Operating costs rose alongside the scale expansion. Research and development expenses increased 42% to $16.6 million, with adjusted R&D at $5.3 million. Administrative expenses grew 70.4% to $23.0 million. The company employs 153 people.
On the ecosystem side, Raspberry Pi Connect reported 614,000 users, 690,000 connected devices and 3,400 organizations on the paid tier.
Looking ahead, management targeted production capacity exceeding 1 million units per month from the second half of 2026 onward. Full-year EBITDA guidance is expected to exceed market consensus, with the company describing estimates in the £60 million to £65 million range.
Shares rose 16.04% to $732.81 following the results, extending year-to-date gains to 110%. CEO Dr. Eben Upton described the performance as “record profitability” achieved through strong demand, disciplined execution and favorable unit economics. Incoming CFO Tim Powell, formerly of Alpha Group, will take over from Richard Boult in October 2026.
