Raspberry Pi posted first-half revenue of $256.9 million, up 90% year-on-year, on board shipments of 4.2 million units and a 42% rise in average selling price.

The Cambridge-based single-board computer maker converted that top-line growth into disproportionate earnings gains. Adjusted EBITDA more than doubled to $40.3 million, a 108% increase, while profit before tax climbed 216% to $19.6 million.

"Raspberry Pi delivered a record first half, with revenue up 90% and Adjusted EBITDA up 108%," said CEO Eben Upton. "Demand from our OEM customers and our reseller channel was strong throughout, and our order backlog doubled during the period. The decision in FY 2025 to build significant strategic memory inventory has allowed us to maintain product availability at a time when smaller competitors have struggled to secure allocation. With a substantial order backlog, expanding production capacity and a strong pipeline of OEM opportunities, Raspberry Pi is well positioned for rapid growth in unit shipments in 2027 and beyond."

The unit economics tell the story of a company shifting its mix toward higher-value customers. Board shipments rose 17% to 4.2 million units, but revenue grew far faster because ASP jumped 42%. Direct shipments to original equipment manufacturers, excluding licensee volumes, rose 26% to 3.4 million units — meaning OEMs now account for the overwhelming majority of Raspberry Pi's direct volume.

Gross profit increased 79% to $59.4 million, though gross margin narrowed to 23% from 25%. That compression did not stop per-unit profitability from improving sharply: gross profit per board rose 53% to $12.2.

Revenue outside the core board business grew fast from a smaller base. Accessories revenue climbed 46%, while component sales jumped 164%.

The order backlog doubled during the first half to 2.6 million units, with demand strongest in smart-home applications and in aerospace and defence — segments where design wins tend to be sticky and volume commitments long.

The memory bet behind the numbers

The earnings improvement came at the cost of balance-sheet liquidity. Net cash fell 46% year-on-year to $18.4 million, while inventory swelled by $117 million during the half to $263 million. The company attributes the build almost entirely to strategic purchases of memory components.

That inventory position is the competitive variable to watch. Upton's comment that "smaller competitors have struggled to secure allocation" points to the tightening DRAM and NAND supply environment, where memory makers have prioritized high-bandwidth modules for AI accelerators and datacenter customers, squeezing allocation for embedded and consumer buyers. By locking in supply during FY 2025, Raspberry Pi kept its production lines running while rivals faced shortages — a decision that cost working capital but preserved revenue.

The margin narrowing to 23% reflects the same dynamic: memory purchased ahead of price increases still carries a higher cost than in the prior period, and Raspberry Pi has so far passed only part of that through to customers via the 42% ASP increase.

With a 2.6-million-unit backlog, expanding production capacity, and what Upton describes as a strong pipeline of OEM opportunities, the company is positioning 2027 as the year unit shipments accelerate again. Whether the memory inventory continues to justify its $263 million carrying cost will depend on how allocation conditions and pricing evolve across the embedded supply chain over the coming quarters.