Germany's Cherry Q1 revenue falls, operational profitability improves

Cherry SE

07/05/2026 07:45

Overview

German computer peripherals maker's Q1 revenue fell yr/yr, operational profitability improved

Adjusted EBITDA margin rose to -2.9% from -8.0%, driven by cost cuts and better gross margins

Company launched 'Project Blossom' to cut costs and supportgrowth

Outlook

Cherry aims to return to operating profitability from 2027 onwards

Company targets break-even at EBIT with annual revenue of EUR 85 mln and gross margin of 44%

Cherry plans further annualized fixed cost reductions of about EUR 8 mln

Result Drivers

COST REDUCTIONS - Co said significant cuts to marketing and sales costs, especially in the Peripherals segment, improved operational profitability

SEGMENT MARGIN GAINS - Improved gross margins in Digital Health & Solutions and Components segments contributed to better profitability

SUBDUED DEMAND - Weak demand and high distributor inventory in Europe weighed on revenue

Company press release: ID:nEQ6BWqBSa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EBITDA
-EUR 300,000


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

Wall Street's median 12-month price target for Cherry SE is €0.58, about 23.7% above its May 6 closing price of €0.47

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)