Raspberry Pi Holdings PLC shares rose 16% after the company reported first-half profit figures that surpassed expectations, driven by higher average selling prices, stronger demand for memory configurations, and a customer backlog that has more than doubled in nine months.
The stock climbed $101.31, or 16.04%, to $732.81 from a previous close of $631.50. The company’s market capitalization stands at $1.61 billion. Shares have gained roughly 110% year to date and are trading within a 52-week range of $253.80 to $1,078.
First-half revenue rose more than 90% year over year, supported by average selling prices that increased approximately 42% as the company passed through higher DRAM costs. Unit shipments totaled 4.2 million, up 17% from a year earlier. Gross profit came in at GBP 59 million, up 79% from GBP 33 million, bringing gross profit per board to $12.20 from $8.00 in the same period last year.
Adjusted EBITDA more than doubled to GBP 40.3 million from GBP 19.4 million, and management said full-year adjusted EBITDA is expected to exceed market consensus, which had been in the GBP 60 million to GBP 65 million range.
A significant portion of the earnings benefit came from cheaper DRAM purchased near the end of 2025, yielding a one-time inventory gain estimated between $10 million and $15 million that was largely consumed by mid-year. Looking ahead, the company warned that profitability per unit will ease as that inexpensive historical inventory runs out.
Demand was concentrated in higher-memory models — the 4GB and 8GB versions of the Raspberry Pi 4 and Pi 5 — along with Compute Modules and accessories such as cameras, SD cards, displays and AI HATs. Accessories gross profit surged 90% to $7.8 million, averaging $1.90 per board sold, surpassing the company’s $1 target.
The customer backlog reached 2.6 million units, more than doubling from 600,000 at the end of 2025. Management expressed confidence that second-half unit volumes would exceed the first half as production capacity improves with factory partner Sony in Wales and the backlog is gradually reduced.
Inventory investment stood at GBP 106 million, primarily allocated for DRAM purchases. Capital expenditures were GBP 11 million in the first half, in line with annual guidance of roughly GBP 20 million. The company’s current ratio was 3.8.
In early July, Raspberry Pi completed an increase in bank facilities to GBP 140 million of committed funds. Closing cash was GBP 8.4 million, down from $28 million at the start of the year. Management expects debt to reach GBP 40 million to GBP 50 million by year-end and said positive free cash flow is unlikely before 2028 at the earliest.
Non-capitalized R&D costs rose by about GBP 700,000, while adjusted administrative costs grew by roughly GBP 4.6 million, driven by foreign-exchange effects, bonuses and headcount increases.
On the product front, the company is working on a second-generation AI accessory called the AI HAT+ 2, developing a 3GB version of the Raspberry Pi 4, and building a programming jig for the Compute Module 5. Next-generation microcontroller designs were taped out in the first half, with sales expected to begin in 2026 with volumes likely landing between 10 million and 12 million units. Work is also underway on Raspberry Pi Connect and a future Linux-based platform, potentially designated Raspberry Pi 6, which remains several years away.
Tim Mamtora joined as chief operating officer in March. CEO Eben Upton and CFO Richard led the earnings call.
