REG - Raspberry Pi Hldgs - FY 2025 Results
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RNS Number : 7060Y Raspberry Pi Holdings PLC 31 March 2026
31 March 2026
Raspberry Pi Holdings plc
("Raspberry Pi", "the Company", or "the Group")
Strong 25% EBITDA growth ahead of expectations, increased unit volumes and
continued product and platform expansion.
Strong momentum carried into FY 2026.
Raspberry Pi (LSE: RPI), a leader in high-performance, low-cost computing, is
pleased to announce its results for the year ended 31 December 2025 ("FY
2025").
Financial Highlights
FY 2025 FY 2024 Change
Revenue ($m) 323.2 259.5 25%
Gross profit ($m) 77.8 63.2 23%
Gross margin (%) 24.1% 24.4% -0.3ppt
Adjusted EBITDA * ($m) 46.4 37.2 25%
Profit before tax ($m) 26.5 16.3 63%
Basic Earnings per Share ("EPS") (c) 11.22 6.48 73%
Adjusted EPS (c) 14.48 10.69 35%
Cash ($m) 28.1 45.8 (39%)
*The Group uses certain measures in addition to those reported under IFRS,
under which the Group reports. These Alternative Performance Measures ("APMs")
are not considered a substitute for, or superior to, the equivalent statutory
IFRS measures. These APMs are explained, defined and reconciled in the APM
section and are applied consistently.
· Unit shipments were 4.0 million in H2, up 11% from 3.6 million in H1, and a
total of 7.6 million for FY 2025, up 9% from 7.0 million in FY 2024.
· Adjusted EBITDA was higher than expected at $46.4 million up 25% on the prior
year (FY 2024: $37.2 million), supported by strengthening demand and
favourable unit economics through H2.
· Net cash was $28.1 million at year end (FY 2024: $45.8 million), exceeding
expectations, after paying down $52.2 million of extended supplier payables
over the year.
Operational Highlights
FY 2025 FY 2024 Change
Unit volume (m) 7.6 7.0 9%
Number of products released 13 22 (41%)
Number of Approved Resellers 113 117 (3%)
Engineers as % of total employees 51% 48% 6%
· Demand strengthened through the year across both OEMs and Authorised
Resellers, with notably strong demand from USA and China.
· For the first time, semiconductor device volumes exceeded those of boards and
modules, with 8.4 million semiconductor units sold.
· The Company demonstrated continued product momentum with 13 launches in FY
2025 (FY 2024: 22), in addition to software and platform updates.
· Raspberry Pi Connect, which allows enterprises to cost-effectively and
securely connect to IoT devices in the field, finished the year with
approaching 400k connected devices. Over-the-air update functionality, a key
enabler for OEM customers, was added to the platform in Q4.
· The post-year-end launch of AI HAT+2 enables customers to run advanced AI
applications, including large language and vision language models.
· The Company successfully navigated rising DRAM costs, supported by supplier
diversification, pricing adjustments and substantial inventory buffers.
· The Company consolidated its network of Approved Resellers, Authorised
Distributors and Design Partners with a focus on developing industrial and OEM
sales expertise in key geographies.
Outlook
· Strong sales momentum has carried into the opening months of this year.
· The current DRAM supply environment is expected to persist beyond this year,
although we would expect some mitigation from demand elasticity in the short
term and increased foundry capacity investment in the medium term.
· While the DRAM environment limits second-half visibility, we have the
inventory position, supplier relationships and pricing flexibility to navigate
it effectively. Against that backdrop full-year profitability is anticipated
to be in-line with market estimates, with revenue materially higher.
· The current environment requires flexibility and fast decision-making. The
Company views it as a strategic opportunity to gain market share, strengthen
customer relationships, and convert disruption into competitive advantage.
Eben Upton, CEO of Raspberry Pi said:
"2025 was a year of strong execution for Raspberry Pi, with accelerating
demand across our global markets and adjusted EBITDA ahead of expectations. We
also passed an important milestone as semiconductor shipments exceeded those
of our boards and modules for the first time, reflecting our progress towards
a two-franchise business.
"Our performance in FY 2025 amid DRAM inflation speaks to the strength and
agility of our supply chain and the resilience of our operations. Our team has
delivered new products, strengthened our software platforms, and broadened our
reach across industrial and embedded markets globally.
"We have entered FY 2026 with strong momentum, underpinned by growing demand
and continued progress in direct customer engagements. Combined with strategic
hiring, rapid uptake of new products, and a channel whose capabilities are
well aligned with the opportunities ahead, I am more confident than ever in
our long-term growth trajectory."
Hybrid analyst and institutional investor briefing
Eben Upton, CEO, and Richard Boult, CFO, will host a hybrid analyst and
institutional investor briefing today at 09:30 BST at the offices of
Linklaters, 20 Ropemaker St, London EC2Y 9AR.
Those wishing to attend the event in person or online, please register via
raspberrypi@almastrategic.com (mailto:raspberrypi@almastrategic.com) .
This announcement contains certain forward-looking statements, including with
respect to the Company's current targets, expectations and projections about
future performance, anticipated events or trends and other matters that are
not historical facts. These forward‐looking statements, which sometimes use
words such as "aim", "anticipate", "believe", "intend", "plan", "estimate",
"expect" and words of similar meaning, include all matters that are not
historical facts and reflect the directors' beliefs and expectations, made in
good faith and based on the information available to them at the time of the
announcement. Such statements involve a number of risks, uncertainties and
assumptions that could cause actual results and performance to differ
materially from any expected future results or performance expressed or
implied by the forward‐ looking statement and should be treated with
caution. Any forward-looking statements made in this announcement by or on
behalf of Raspberry Pi speak only as of the date they are made. Except as
required by applicable law or regulation, Raspberry Pi expressly disclaims any
obligation or undertaking to publish any updates or revisions to any
forward-looking statements contained in this announcement to reflect any
changes in its expectations with regard thereto or any changes in events,
conditions or circumstances on which any such statement is based.
For more information, please contact:
Raspberry Pi Holdings plc
Eben Upton, CEO, Richard Boult, CFO Via Alma Strategic Communications
Andy Bryant - IR investors@raspberrypi.com
Alma Strategic Communications T: +44 (0)203 405 0205
Josh Royston, Caroline Forde, Hannah Campbell, Emma Thompson raspberrypi@almastrategic.com
Notes to Editor
Headquartered in Cambridge, UK, Raspberry Pi's mission is to put
high-performance, low-cost, general-purpose computing platforms in the hands
of enthusiasts and engineers all over the world.
Raspberry Pi is a full-stack engineering organisation, with research and
development capabilities spanning the entire value chain, from semiconductor
IP development, through semiconductor and electronic product design to
software engineering and regulatory compliance. The high performance, low
cost, and physical robustness of Raspberry Pi products make them suitable for
a wide range of applications, across three distinct markets: Industrial and
Embedded, Enthusiast and Education, and Semiconductors. To date, over 75
million units have been sold.
CEO's statement
Dr Eben Upton CBE FREng
Chief Executive Officer and Founder
"For the first time, semiconductor device volumes exceeded those of boards and
modules - a milestone on our journey towards a two‑franchise business."
Another exceptional year for Raspberry Pi
2025 was an exciting year for Raspberry Pi. It was a year defined by delivery
and by consolidation: completing the current generation of our core products,
developing our semiconductor offering and refining the channel relationships
that allow us to reach millions of customers around the world.
With the release of the Raspberry Pi 500+ all‑in‑one PC in September, we
rounded out our fifth-generation core product line up, freeing
our engineering team to focus on work that will in due course lead to
Raspberry Pi 6.
An updated version of our RP2350 microcontroller, released in August,
delivered reliability and performance enhancements, and was accompanied by new
variants that integrate non-volatile memory directly into the chip package.
These developments were complemented by accessory releases, including Radio
Module 2, Camera Module 3 Sensor Assemblies, and a 5" variant of Touch
Display 2. Our expanding range of board, module, semiconductor and accessory
offerings make it easier than ever for our customers to engage with Raspberry
Pi technology, and for OEMs to integrate it into their own products.
Our continued growth is made possible through the efforts of our global
ecosystem of distribution partners. Over the last year we have consolidated
our network of Approved Resellers, Authorised Distributors and Design Partners
with a focus on developing industrial and OEM sales expertise in key
geographies.
Delivering through transition
2025 was our first full year as a public company following our listing on the
London Stock Exchange in June 2024. The transition has been a rewarding one:
regular dialogue with our investors has deepened our understanding of the
fundamentals of our business and sharpened our focus on long-term value
creation.
Our board and module unit shipments reached 4.0 million in the second half,
bringing total shipments for the year to 7.6 million, an increase of 9% year
on year, as demand strengthened markedly through the year. We saw robust
demand in key international markets, particularly the United States and China.
Adjusted EBITDA of $46.4 million exceeded expectations, supported
by favourable unit economics in the second half of the year. We ended the
year with net cash of $28.1 million after the repayment of $52.2 million of
previously extended supplier payables, demonstrating our continued balance
sheet strength and prudent approach to capital management.
We reached an important strategic inflection point in 2025. For the first
time, shipments of our microcontroller devices, RP2040 and the RP2350 family,
exceeded those of our boards and modules, with a total of 8.4 million units
shipped. This milestone represents a key step forward in our ambition to
build Raspberry Pi into a two‑franchise business, with both electronic
products and semiconductors making significant contributions to volumes,
revenues, and profitability.
Innovation and product execution
Technical innovation remains the linchpin of our success and in 2025 we
launched 13 new products (2024: 22). These new releases delivered targeted
support for an ever-growing range of customer applications.
Industrial‑temperature compute modules and new variants of our RP2350
microcontroller extended our reach into challenging environments and demanding
deeply embedded use cases.
Our premium keyboard computer Raspberry Pi 500+ was welcomed with excitement
by enthusiasts and we announced a partnership with NComputing, a global leader
in end-user computing solutions, to bring it to the enterprise market.
Responding to demand from our microcontroller customers, we launched our first
standalone wireless module in June. Building on our heritage of modular
design, Radio Module 2 offers integrated Wi-Fi and Bluetooth radios from
our partner Infineon, a compact form factor, and a low-pin-count host
interface. These design choices simplify integration, reduce external
component count, and eliminate the expense and complexity of radio
certification, streamlining our customers' journey from prototype to
production.
Our software offering continues to evolve alongside our hardware. The Pico SDK
and its Visual Studio Code integration received major updates, while Raspberry
Pi OS (Trixie) introduced performance and security improvements, and an
enhanced desktop user experience.
Raspberry Pi Connect for Organisations added enterprise features for secure
device management and remote access, allowing OEM customers to simply and
securely maintain large fleets of devices in the field.
Connect now supports hundreds of thousands of devices in the free tier and
thousands more in its paid-for tier and continues to see robust
month‑on‑month growth. At the end of the year, we released
over‑the‑air ("OTA") update capability for Connect. Support for OTA
updates of IoT device firmware is becoming a regulatory requirement in many
jurisdictions, and we see this development as a natural extension of our
strategy to eliminate complexity for our OEM customers.
Artificial intelligence was a defining technology theme of 2025, and edge AI
represents a significant opportunity for Raspberry Pi. Our platforms allow
OEMs to deploy AI applications at the edge of the network, delivering improved
latency, privacy and cost compared to cloud-hosted alternatives. We continue
to work closely with model developers and partners to ensure that their
workloads run performantly on our platforms, and are confident that edge AI on
Raspberry Pi will play a key role in the next decade of digital
transformation.
Expanding markets and the two‑franchise model
The continued growth of our semiconductor business marks a new era for
Raspberry Pi. Our RP2040 and RP2350 microcontrollers sit at the heart of a
thriving ecosystem of partner‑developed products. For our existing board and
module OEM customers, our semiconductor devices represent a vital next rung on
the scaling ladder, enabling custom designs that can serve a vast range of
industrial and embedded applications. We continue to support these customers
by providing the engineering quality, transparent competitive pricing and
extensive technical collateral that has become our hallmark.
We continue to see the synergy between our two franchises as a powerful
driver of long‑term growth. Our boards and modules act as the shop window
for our semiconductor devices, while our semiconductor devices allow us to
build ever more capable and efficient boards and modules. As we move along
this trajectory, our aspiration is for semiconductor volumes to grow by orders
of magnitude, transforming Raspberry Pi from a company that sells millions of
boards and modules each year into one that also ships billions of
semiconductor devices.
Go-to-market strategy
We continue to strengthen our go-to-market strategy, working with our Approved
Reseller and Authorised Distributor partners, and directly with larger OEMs,
to secure the design wins which will deliver medium-term unit sales growth
and improved gross profit margins.
In the year, our number of Authorised Resellers fell to 113 (2024: 117). After
adding a net 13 new Approved Resellers in 2024, we took the opportunity this
year to refine our distribution strategy, retiring underperforming partners
and adding new ones to drive industrial and OEM growth in key geographies. Key
additions in the year included HT Componenti Srl in Italy, Icompplus
Electronics S.L. in Spain, eukleed in France and Electronica Elemon SA in
Argentina.
Our "Board to Board" initiative, launched after the 2024 IPO, continues to
target larger-scale design wins via direct senior-level engagement at major
OEMs. This more intensive approach provides deeper insight into prospective
customers' technical and operational needs and allows us to leverage
existing adoption of Raspberry Pi technology in prototyping and production
automation into scaled OEM adoption.
In the year, we held more than 20 C-Suite level discussions, supporting
customers in addressing critical challenges around security, connectivity and
supply chain resilience. These engagements have increased awareness and
understanding of the Raspberry Pi value proposition at senior levels in the
target organisations and enhanced our profile as a strategic partner rather
than solely as a technology provider. Numerous project discussions remain
ongoing, most notably with OEMs in the smart home and defence and aerospace
sectors.
Tariffs
Our sales to US customers remain strong, with revenue growing 56% year on
year. Our exclusively UK-manufactured boards and modules have been subject to
lower competitive tariffs than our predominantly China‑manufactured
competitors. Our major US distribution partners have worked closely with us
to maintain attractive pricing for our products. In our education and
enthusiast market, we expect a meaningful competitive benefit to arise from
the abolition of the de minimis tariff exemption on small, personal shipments
into the US.
DRAM supply
Global DRAM markets tightened significantly through 2025 and into 2026 due to
AI-driven demand. We have mitigated the impact on our business through
supplier diversification and targeted pricing adjustments and
continue to benefit from inventory acquired at lower historical prices.
These actions have supported supply continuity and profitability, and create
potential opportunities for market share gains against competitors who face
sourcing constraints.
We expect the current supply environment to persist beyond this year, although
we would expect some mitigation from demand elasticity in the short term and
increased foundry capacity investment in the medium term. Around one-third of
our boards and modules by volume either use no DRAM (Raspberry Pi Pico
products), or older LPDDR2 DRAM, for which we maintain a separate,
substantial inventory buffer; these products are not exposed to DRAM
market volatility.
Our people
We continue to make disciplined investments in our sales and business
development capacity, building a commercial organisation that can identify and
win OEM opportunities at scale. We are strengthening our engineering,
finance, legal and communications functions, while leveraging automation to
drive operational efficiency, manage costs and support sustainable long-term
growth.
At the end of 2025, the permanent headcount was 140 employees (end December
2024: 132 employees) with 51% (end December 2024: 48%) in engineering roles.
After seven years with Raspberry Pi, Richard Boult, our CFO, announced in
October that he would be stepping down from his role before the end of 2026.
Richard has been instrumental in maturing the finance function at Raspberry Pi
and has made an invaluable contribution to the growth and development of the
Company during a period of rapid change, and most significantly through the
IPO process. I am deeply grateful for his friendship and leadership over the
past half-decade. The succession process is well-advanced, with strong
candidates identified, and we expect to confirm an appointment in the second
half, ensuring an orderly and seamless transition.
Post the year end we were pleased that Tim Mamtora joined as Chief Operating
Officer. Formerly CTO at Imagination Technologies, he will oversee engineering
operations, IT, cybersecurity, facilities, warehousing and general
administration.
Roadmap
Raspberry Pi continues to execute its development roadmap as planned. Major
platform releases typically arrive every four to five years, and as we enter
the middle period of the fifth generation, we are allocating more resource to
the design of the next platform.
When it arrives, Raspberry Pi 6 will embody the same philosophy that has
guided every generation before it: significant improvements in performance,
efficiency and usability, and an emphasis on continuity in the software stack.
This approach lowers execution risk and ensures that every generation of
Raspberry Pi hardware can be supported by a single codebase and single
software team.
On the microcontroller front, we continue to evolve the RP2 architecture,
exploring opportunities to scale performance, reduce cost and integrate
additional functionality. A key lesson from our compute module business is
that even small reductions in the engineering effort required to use our
products drive radical increases in the rate of adoption; our semiconductor
roadmap reflects this insight.
A decade and a half after shipping the first Raspberry Pi computer, we have
built a cost‑effective, high‑performance general-purpose computing
platform for professional engineers and innovators everywhere.
We continue to learn from our customers, and to build the products, and the
organisational capabilities, that will underpin our future success.
Outlook
We left 2025 with strong momentum in our core electronic products business -
the second half was stronger than the first, and within that the fourth
quarter stronger than the third - and have seen this momentum continue into
2026. Despite price increases associated with the increase in DRAM costs, we
continue to see robust demand from our OEM and enthusiast customer bases.
While the DRAM environment limits second-half visibility, we have the
inventory position, supplier relationships and pricing flexibility to navigate
it effectively. We remain confident in our ability to execute and view the
current market environment primarily as an opportunity rather than a threat.
It remains an immense privilege to lead Raspberry Pi and to work with such
extraordinary colleagues, partners and investors. Together we are building
the infrastructure for a more connected, intelligent and sustainable world
and we are only at the very beginning of the Raspberry Pi journey.
Dr Eben Upton CBE FREng
Chief Executive Officer and Founder
30 March 2026
Financial review
2025 was a year of good progress as the excess inventory purchased by sales
channel partners in 2024 cleared and demand returned to expected levels.
Unit sales continued to improve through 2025, accelerating in the second
half, with H2 2025 board unit volumes increasing 11%. The growth has been in
higher-margin boards leading to an 18% increase in profit per board and a 23%
increase in the gross profit.
Costs grew at a similar rate to gross profit resulting in a 25% increase in
adjusted EBITDA and a 35% increase in adjusted operating profit.
Through the period we continued to invest in product development, with
capital expenditure of $18.2 million consistent with our plans and guidance.
This investment will ensure a continued programme of new products and
semiconductors. At the same time we have maintained close control of our
finished good inventory while deploying capital to ensure that our stocks of
memory and processor components were sustained to ensure resilience in the
face of anticipated supply chain disruption.
As part of that resilience we have continued to focus on our cash resources.
We reinforced our position in early 2025 by increasing our RCF to $80 million
and extending its term to 2029. At the end of 2025 we had $28.1 million of
cash and no debt.
$ million 2025 2024 % change
Revenue 323.2 259.5 25%
Gross profit 77.8 63.2 23%
Gross margin (%) 24.1% 24.4% -0.3ppt
Other income 0.3 - 100%
Adjusted R&D costs (11.2) (8.7) (29%)
Adjusted administration costs (20.5) (17.3) (18%)
Adjusted EBITDA 46.4 37.2 25%
Depreciation and amortisation (10.5) (10.7) 2%
Adjusted operating profit 35.9 26.5 35%
Employee share schemes (7.9) (6.0) (32%)
Non-recurring costs - (2.9) (100%)
Statutory operating profit 28.0 17.6 59%
Sequential performance
2025 2024
H1 H2 H1 H2
Direct units (m) 2.7 3.1 2.4 2.5
Royalty unit (m) 0.9 0.9 1.3 0.8
Total units (m) 3.6 4.0 3.7 3.3
Microcontroller units (m) 4.5 3.9 2.2 3.5
ASP ($) 46.4 47.0 46.9 39.2
Gross profit per board ($) 8.0 9.5 8.3 6.4
Accessory profit per board ($) 1.1 1.7 1.1 1.3
Gross profit ($m) 33.2 44.6 34.2 29.0
Adjusted EBITDA ($m) 19.4 27.0 20.9 16.3
Basis of preparation of the financial statement
These condensed consolidated financial statements are the second Annual Report
for Raspberry Pi Holdings plc, the Group formed in May 2024. The comparator
period for these statements ("2024") has been prepared as if the Group had
been in place for the entirety of the 2024 financial year. For further
information see Note 2 of the condensed consolidated financial statements.
Unit sales of SBCs and compute modules and microcontrollers
Total board sales volumes increased by 9% compared to 2024 with growth in
sales through the direct channel more than offsetting the decline in royalty
sales.
Million units 2025 2024 % change
Unit sales in direct channel 5.8 4.9 18%
Unit sales through licensees 1.8 2.1 (14%)
Total unit sales 7.6 7.0 9%
Direct sales share of total 76% 70% +6ppt
Licensee share of total 24% 30% -6ppt
Microcontroller units 8.4 5.7 47%
Unit sales for the year improved across almost all product variants with
particularly strong underlying growth in Raspberry Pi 3 and Raspberry Pi 4.
There was underlying growth in Raspberry Pi 5 and growth enhanced overall by a
full year of sales in 2025 of the 2GB and 16GB variants, launched during 2024,
and the launch at the end of 2025 of Raspberry Pi 5 1GB.
Unit sales of compute modules were flat compared to 2024 which had a
particularly strong Q1 as the last back orders of the 2023 supply chain
shortage were fulfilled. Sales of Pico and Pi Zero were flat in total.
Royalty sales of Raspberry Pi 5 by our licensee, Premier Farnell, were lower
year on year after a strong Q1 2024 when unit sales benefited from the recent
launch of the Raspberry Pi 5. Sales of Raspberry Pi 4 increased substantially,
in line with the increases in the direct sales channel.
Direct unit sales continued to grow sequentially each half from the start of
2024 as the excess inventory accumulated in channel in H1 2024 was utilised.
Direct sales in H2 2025 were 15% up on H1 2025, with circa 33% growth in
compute module and Raspberry Pi 4 sales, 32% growth of Raspberry Pi Zero 2 and
flat sales of Raspberry Pi Pico, Raspberry Pi 5 and Raspberry Pi 3.
For the year, direct unit sales were 76% of total board unit sales in line
with our expectations of a share of 70-80%.
Microcontroller unit sales, which include standalone product sales and those
incorporated in other Raspberry Pi products such as Raspberry Pi Pico boards,
increased by 47% to 8.4 million units (2024: 5.7 million units) aided by the
new products RP2350 and Raspberry Pi Pico 2 and the continuing adoption of
RP2040 including individual orders for over 100,000 units.
Revenue
Revenue increased by $63.7 million, or 25%, from $259.5 million for 2024 to
$323.2 million for 2025. The split by revenue category was as follows:
$ million 2025 2024 % change
Products 247.0 181.2 36%
Components 60.2 61.2 (2%)
Royalties 15.0 15.9 (6%)
Publishing 1.0 1.2 (17%)
323.2 259.5 25%
Product revenues are generated by supplying SBCs, compute modules, accessories
and semiconductors directly to Approved Resellers and original equipment
manufacturers ("OEMs"). Royalties are earned per unit on products that Premier
Farnell has manufactured (Pi 5) or sold (Pi 4) by licensing our designs and
trademarks.
The increase in direct product sales largely relates to the 39% increase in
sales of SBCs and compute modules combined with a 26% growth in the sale of
accessories. Direct sales revenue grew substantially ahead of unit growth with
ASP increasing 8%, furthermore unit growth was significant in the higher value
Raspberry Pi 4 and Raspberry Pi 5 boards.
Component sales represent the sale of principally memory and processor chips,
used in the manufacture of Raspberry Pi products for our licensee which are
then sold to end customers.
Average selling price ("ASP") per board
ASP increased by $3.4 from $43.3 in 2024 to $46.7 in 2025 due to an increase
in the mix of higher-priced Raspberry Pi 5 boards, especially those with 8GB
of memory (launched in Q4 2023), and more compute module 5s.
Gross profit per board
$ per board 2025 2024 % change
SBCs and compute modules 8.7 7.4 18%
Board share of gross profit 85% 82% +3ppt
Accessory margin per board 1.4 1.2 17%
SBC and compute module gross profit per board increased by 18% from $7.4 to
$8.7 due to the planned $5 per unit reduction in the cost of the processor
chip in the Raspberry Pi 5 for the initial 2 million processor chips and a
shift in the mix of boards to higher-margin variants such as Raspberry Pi 4
and Raspberry Pi 5. In H2 2025 we have seen substantial and continuing
increases in the cost of LPDDR4 memory used in our fourth and fifth-generation
boards which represent approximately 65% of our unit sales in 2025. In making
these boards we have utilised 24 million gigabytes of DRAM with an average of
4.9 GB per board, representing 21% of the cost of direct boards.
The gross profit of accessories increased by 28% to $10.9 million. Of the
gross profit from accessories, cameras accounted for 19%, displays 15%, power
supplies 20%, SSD and SD memory 10% and AI HATs 10%, with cables, cases and
compute module accessories being the majority of the remainder. Growth was
notable in cameras, memory, AI HATs and displays, while flat in cases, cables,
mice and kits. Overall, the accessory profit per board improved to $1.4 per
board, ahead of our target of $1 per board.
Gross profit
$ million 2025 2024 % change
SBCs and compute modules 66.3 51.7 28%
Accessories 10.9 8.5 28%
Microcontrollers, publishing and others 0.6 3.0 (80%)
Reported gross profit 77.8 63.2 23%
Gross profit increased by $14.6 million, or 23%, from $63.2 million in 2024 to
$77.8 million in the current period due to higher unit sales and profit per
board together with a strong performance from sale of accessories. The
microcontroller results in 2024 benefited from a release of $3.0 million of
provisions made for an excess quantity of inventory in 2023.
Gross margin reduced to 24.1% (2024: 24.4%) as a result of the lower
proportion of higher‑margin licensee revenues.
Adjusted research and development costs
Adjusted research and development expenses is a non-IFRS measure used by the
Board and management to monitor the Group's performance.
$ million Year ended Year ended
31 December 2025 31 December 2024
Research and development expenses 22.5 17.9
Amortisation (net of capitalised amortisation) (6.8) (6.3)
Employee share schemes (4.5) (2.9)
Adjusted research and development expenses 11.2 8.7
Adjusted research and development expenses increased 29% to $11.2 million for
the year ended 31 December 2025 from $8.7 million in the prior year. This
reflects higher investment in a number of areas that do not meet our
capitalisation requirements, including ongoing development of the software
that runs on our boards and refinement of already launched products. The
engineering cost of these items is therefore expensed. Total research and
development expenses rose by 26% to $22.5 million (2024: $17.9 million). This
includes share‑based payments costs for engineering staff which are excluded
from the adjusted measure as they are non-cash items and the charges are not
comparable across periods due to fluctuations arising the listing process.
Amortisation of launched product development costs, net of capitalised
amounts, also increased to $6.8 million (2024: $6.3 million), reflecting
a growing portfolio of product developments that are now in production.
Adjusted administrative costs
$ million Year ended Year ended
31 December 2025 31 December 2024
Administrative expenses 27.6 27.7
Depreciation (net of capitalised depreciation) (3.7) (4.4)
Employee share schemes (3.4) (3.1)
Non-recurring costs - (2.9)
Adjusted administrative expenses 20.5 17.3
Adjusted administrative expenses increased to $20.5 million for the year ended
31 December 2025 from $17.3 million in the prior year principally due to
higher staff costs. The strong results for the year led to higher
performance-related payments compared to 2024 and account for much of the
adjusted expense increase. Of the remainder, there was an increase in
staff costs primarily due to the scaling of the Senior Management Team and a
full year of higher listed company-related costs. Total administrative
expenses dropped by 0.4% to $27.6 million (2024: $27.7 million), due to the
absence of non-recurring costs.
Depreciation and amortisation
$ million Year ended Year ended
31 December 2025 31 December 2024
Depreciation of PPE and leased assets (net of capitalised depreciation) 3.7 4.4
Amortisation (net of capitalised amortisation) 6.8 6.3
Depreciation and amortisation 10.5 10.7
Depreciation of PPE and leased assets decreased by 16% to $3.7 million in 2025
from $4.4 million in 2024. Amortisation of intangibles charged to the income
statement increased by 8% to $6.8 million in 2025 from $6.3 million in 2024,
with a full year's amortisation of RP2350, launched in August 2024, offset by
a reduced charge for semiconductor products after a review concluded that
their useful lives should be increased to eight years.
Total depreciation and amortisation decreased by 2% to $10.5 million in 2025
from $10.7 million in 2024.
Finance costs and finance income
Finance costs and income have stayed level year on year. Bank interest costs
are unchanged year on year despite an increase in the facility from $40
million to $80 million due to a significant reduction in the margin charged.
Included in finance costs is a charge of $1.3 million (2024: $1.2 million)
being the unwinding of the imputed discount representing the time value
of money on extended payables.
Share-based payments
A share-based payment charge of $8.7 million (2024: $4.7 million) was recorded
in the year together with a credit of $0.8 million (2024: $1.3million charge)
in respect of changes in the provision for employment taxes payable on these
schemes when they crystallise.
The Group has three main schemes in operation:
· a market value option scheme awarded in June 2024 which is in respect of
options over 11 million shares and runs until June 2027, with the fair value
of those options being spread over the three-year life. This scheme was
intended to retain and motivate staff in the transition from private to
public ownership. The charge in 2025 was $5.2 million;
· a four-year RSU programme for staff, the first grant of which was made in 2025
with shares released evenly each quarter. The fair value (the market value of
a share at date of award) of each quarter's tranche is charged evenly over
the period to its date of release. The income statement charge is therefore at
its greatest in the first year and reduces in subsequent years. It is intended
that the similar awards will be made for each financial year. The charge in
2025 was $2.8 million; and
· a three-year performance share scheme for the Senior Management Team based on
a percentage of salary. The amount of award granted depends on achievement
against EPS and TSR targets. The charge in 2025 was $0.6 million.
A provision for employment taxes for each of these schemes is required based
on the intrinsic value of the awards granted. The intrinsic value moves with
the share price of the Group. As the share price at the end of 2025 was lower
than the price at the end of the last reporting date or at the time of grant
the provision has reduced, leading to a credit of $0.8 million in the income
statement.
Non-recurring costs
Costs of $2.9 million were charged to the income statement in 2024 in respect
of fees and charges arising from the listing process which were incurred to
prepare the business for operation after listing. There were no comparable
costs in 2025 or other items identified as non-recurring.
Taxation
The total effective tax rate for 2025 was 18.1%, lower than the 25.0% rate due
to the treatment, after receiving the appropriate patent, of RP2040 and
Raspberry Pi 5 profits under the UK patent Box regime and the release of tax
provisions made in respect of taxation in 2024 after the receipt of further
confirmatory external advice.
Adjusted EBITDA and adjusted operating profit
$ million Year ended Year ended
31 December 2025 31 December 2024
Operating profit 28.0 17.6
Amortisation and depreciation 10.5 10.7
EBITDA 38.5 28.3
Employee share schemes 7.9 6.0
Non-recurring costs - 2.9
Adjusted EBITDA 46.4 37.2
Amortisation and depreciation (10.5) (10.7)
Adjusted operating profit 35.9 26.5
Adjusted EBITDA for the year ended 31 December 2024 was $46.4 million, up 25%
on $37.2 million in the prior year, primarily due to a 23% increase in gross
profit offset only in part by a 23% increase in costs. Adjusted operating
profit increased to $35.9 million (2024: $26.5 million), reflecting the
growth in adjusted EBITDA and the flat depreciation and amortisation charges.
Operating profit and profit after taxation for the period
Reported operating profit for the period was $28.0 million (2024: $17.6
million). The results for 2024 included $2.9 million of one-off charges in
respect of the IPO and charges for share‑based payments that included the
charges for the pre-IPO share-based payment scheme that ended in June 2024 and
six months of costs in respect of post-IPO share schemes.
Profit after taxation was $21.7 million (2024: $11.7 million), an increase of
$10.0 million primarily reflecting the improvement in reported operating
profit identified above.
Earnings per share
Basic earnings per share for the year ended 31 December 2025 was 11.22 cents,
up from 6.48 cents in the prior year, reflecting a higher profit after tax of
$21.7 million (2024: $11.7 million). Diluted earnings per share was 11.00
cents (2024: 6.20 cents), with the impact of unvested employee share options
increasing the weighted average number of shares to 197.3 million.
Adjusted basic earnings per share, which excludes the impact of non-recurring
costs and share‑based payments net of tax, was 14.48 cents (2024: 10.69
cents) an increase of 35% in line with the increase in adjusted operating
profit.
Dividends
No dividends have been proposed. The current medium-term expectation is that
cash generated will be reinvested into the business.
Cash flows from operations
$ million 2025 2024
Adjusted EBITDA 46.4 37.2
Decrease/(increase) in inventories 11.2 (51.1)
(Increase)/decrease in trade and other receivables (21.9) 3.5
(Decrease)/increase in trade and other payables (34.9) 13.0
(Decrease)/increase in provisions (0.2) 0.3
Non-recurring costs - (2.9)
Interest received 0.6 1.1
Tax credit received 9.4 -
Tax paid (4.1) (4.2)
Other non-cash movements (0.3) (0.1)
Net cash flows generated from/(used in) operating activities 6.2 (3.2)
Inventory
Inventory of finished goods decreased to $31.2 million (2024: $63.8 million)
due to increasing demand for products and the adjustment of production to
reflect the revised levels of demand. The inventory of boards is now at about
one month of sales and is probably at the lowest possible level. Component
inventory has increased by $21.2 million with stock of memory held for future
production being the principal cause of the increase. Stocks of processor
chips have remained at similar levels to 2024. Taken with confirmed orders for
delivery, the Group has sufficient supply of DRAM for the first half of 2026
across most memory variants and has sufficient memory to meet expected demand
for almost the whole of 2026 in respect of Raspberry Pi 3, Raspberry Pi Zero
and the 1GB and 2GB variants of Raspberry Pi 4, Raspberry Pi 5 and compute
modules.
Other working capital movements
Payables decreased compared to December 2024 as the payables with extended
payment terms for memory and processor chip purchases were repaid. The
extended payable balance at December 2024 was $52.2 million. The increase in
receivables reflected the higher level of product sales in December compared
to a year earlier together with a high level of component sales in the last
month of 2025.
Tax credit received comprises Research and Development Expenditure Credits
received in 2025 in respect of the 2023 and 2024 financial years.
Investing activities - capital expenditure
$ million 2025 2024
Plant and equipment 1.5 1.2
Office and computer equipment 0.2 0.5
Leasehold improvements 0.1 0.5
Tangible fixed assets 1.8 2.2
Internally generated intangibles and intangibles in the course of development 20.6 26.6
Net other intangibles acquired 3.0 0.3
Intangible assets 23.6 26.9
Leases (0.1) -
Total capital additions 25.3 29.1
Non-cash additions (7.1) (6.0)
Total cash capital expenditure 18.2 23.1
Capital additions for the year to 31 December 2025 were $25.3 million
(2024: $29.1 million), including expenditure on intangible assets of $23.6
million (2024: $26.9 million). This included work on new products and further
semiconductor development for use in future boards. In addition to the
external purchases the capital expenditure includes the capitalisation
of engineering salaries of $6.8 million (2024: $8.1 million). Where
development licences are purchased for use in new products, these are
initially capitalised in intangibles and then amortised. The amortisation
amounting to $6.8 million (2024: $6.0 million) and depreciation of $0.3
million (2024: $nil) as they relate to the development of a new product are
then capitalised in a product development asset for that project. Of its
nature, this amortisation and depreciation is non-cash and is shown as
non-cash additions.
Cash and facilities
Cash at 31 December 2025 was $28.1 million (31 December 2024: $45.8
million). On 5 March 2025, a new Revolving Credit Facility with four banks on
terms more suitable to a listed group and at substantially reduced pricing was
entered into replacing the existing facility. Available funds were increased
to $80 million (2024: $40 million) and with a term until 4 March 2029
(2024: 24 April 2027). The facility remains undrawn.
Related party transactions
Controlling Shareholder definition and related party transactions are
disclosed in Notes 25 and 26 of the condensed consolidated financial
statements.
Post-balance sheet events
As set out in Note 27, the Group has revised its long-term supply agreement
with Broadcom to increase the overall value of processor chips purchased and
extend the period of the commitment to five years from the three years
previously remaining.
Richard Boult
Chief Financial Officer
30 March 2026
Condensed consolidated statement of comprehensive income
For the year ended 31 December 2025
$ million Notes Year ended Year ended
31 December 2025 31 December 2024
Revenue 3 323.2 259.5
Cost of sales (245.4) (196.3)
Gross profit 77.8 63.2
Other income 0.3 -
Research and development expenses 4 (22.5) (17.9)
Administrative expenses 5 (27.6) (27.7)
Operating profit 28.0 17.6
Finance income 8 1.0 1.1
Finance cost 8 (2.5) (2.4)
Profit before taxation 26.5 16.3
Taxation charge 9 (4.8) (4.6)
Profit for the year 21.7 11.7
Operating profit 28.0 17.6
Amortisation and depreciation 7 10.5 10.7
EBITDA 38.5 28.3
Employee share schemes 24 7.9 6.0
Non-recurring costs 5 - 2.9
Adjusted EBITDA 46.4 37.2
Earnings per share (cents)
Basic 10 11.22 6.48
Diluted 10 11.00 6.20
The profit for the year is attributable to the shareholders of Raspberry Pi
Holdings plc and is derived from continuing operations. There are no
recognised gains or losses other than those presented above.
The accompanying notes are an integral part of these condensed consolidated
annual financial statements.
Condensed consolidated statement of financial position
As at 31 December 2025
Registration number 15557387
$ million Notes At 31 December 2025 At 31 December 2024
Assets
Intangible assets 11 83.2 73.2
Property, plant and equipment 12 3.9 4.5
Right-of-use assets 13 8.6 6.1
Other non-current assets 1.4 2.3
Total non-current assets 97.1 86.1
Inventories 14 145.3 156.7
Trade and other receivables 15 59.5 36.2
Current tax receivables 15 1.4 6.6
Cash and cash equivalents 16 28.1 45.8
Other financial assets 20 0.2 -
Total current assets 234.5 245.3
Total assets 331.6 331.4
Liabilities
Trade and other payables 17 (60.6) (96.1)
Provisions (0.3) (0.7)
Lease liabilities 18 (0.8) (1.4)
Total current liabilities (61.7) (98.2)
Provisions (0.9) (1.9)
Other non-current liabilities (6.9) (6.0)
Lease liabilities 18 (8.1) (4.8)
Deferred tax liabilities (13.2) (10.1)
Total non-current liabilities (29.1) (22.8)
Total liabilities (90.8) (121.0)
Net assets 240.8 210.4
Shareholders' equity
Share capital 22 0.8 0.8
Share premium 22 34.0 32.4
Merger reserve 22 (221.9) (221.9)
Share-based payments 22 10.6 2.7
Retained earnings 22 417.3 396.4
Total shareholders' equity 240.8 210.4
The accompanying notes are an integral part of these condensed consolidated
annual financial statements.
The financial statements were approved by the Board of Directors and
authorised for issue on 30 March 2026. They were signed on its behalf by:
Dr Eben Upton CBE FREng
Richard Boult
Chief Executive Officer and Founder Chief
Financial Officer
Condensed consolidated statement of changes in equity
For the year ended 31 December 2025
$ million Notes Share Share Share-based Merger Retained Total
capital premium payments reserve earnings
At 1 January 2024 - 65.4 1.3 - 92.5 159.2
Profit for the year - - - - 11.7 11.7
Share-based payments 23 - - 4.7 - 1.6 6.3
Shares issued - 0.8 - - - 0.8
Share reorganisation A 288.1 (66.2) - (221.9) - -
Share capital reduction A (287.3) - - - 287.3 -
Share listing proceeds B - 40.0 - - - 40.0
Share issuance costs B - (7.6) - - - (7.6)
Share scheme settlement - - (3.3) - 3.3 -
At 31 December 2024 22 0.8 32.4 2.7 (221.9) 396.4 210.4
Profit for the year - - - - 21.7 21.7
Share-based payments 23 - - 8.7 - (1.6) 7.1
Exercise of share awards - 0.2 (0.8) - 0.8 0.2
VAT recovered on IPO-related share issuance costs C - 1.4 - - - 1.4
At 31 December 2025 22 0.8 34.0 10.6 (221.9) 417.3 240.8
A Share capital reorganisation and reduction
On 23 May 2024, Raspberry Pi Holdings plc acquired Raspberry Pi Ltd in a
share-for-share exchange valued at $288.1 million. A shareholder resolution
reduced the share capital to its nominal value, increasing distributable
earnings by $287.3 million. Previous share capital and $66.2 million of share
premium were derecognised and recorded in merger reserve.
B London Stock Exchange listing
On 11 June 2024, Raspberry Pi Holdings plc listed on the London Stock
Exchange, issuing 11.2 million shares at £2.80 each. Net proceeds of $32.4
million after costs of $7.6 million were deducted from equity.
C VAT recovered on IPO-related share issuance costs
In 2025, the Group recognised $1.4 million of VAT on 2024 listing costs as
recoverable following the VAT registration of the parent company. As the
original costs were charged to share premium, the recoverable amount has been
credited to the share premium account.
The accompanying notes are an integral part of these consolidated annual
financial statements.
Condensed consolidated statement of cash flows
For the year ended 31 December 2025
$ million Notes Year ended Year ended
31 December 2025 31 December 2024
Cash flows from operating activities
Operating profit 28.0 17.6
Adjustments for:
Amortisation and depreciation 7 10.5 10.7
Gain on lease assignment 13 (0.3) -
Prepaid manufacturing charges 0.7 0.7
Employee share schemes 24 7.9 6.0
Research and development tax credit (0.5) (0.8)
Fair value gain on derivatives (0.2) -
(Decrease)/increase in provisions (0.2) 0.3
(Increase)/decrease in trade and other receivables (21.9) 3.5
Decrease/(increase) in inventories 11.2 (51.1)
(Decrease)/increase in trade and other payables (34.9) 13.0
Cash flows from operating activities 0.3 (0.1)
Interest received 8 0.6 1.1
Tax credit received 15 9.4 -
Tax paid 15 (4.1) (4.2)
Net cash flows generated from/(used in) operating activities 6.2 (3.2)
Cash flows from investing activities
Purchase of intangible assets (16.5) (20.9)
Purchase of property, plant and equipment 12 (1.8) (2.2)
Lease incentive received 13 0.3 -
Capitalised initial direct costs on leases (0.2) -
Net cash used in investing activities (18.2) (23.1)
Cash flows from financing activities
Cash proceeds from IPO share issues - 40.0
Share issuance costs of IPO shares - (7.6)
Cash proceeds from share issues (from pre-IPO) - 0.8
Proceeds from share-based awards exercises 0.2 -
Repayment of principal on lease liabilities 18 (1.1) (2.2)
Payment of interest on lease liabilities 18 (0.4) (0.4)
Cash paid for lease assignment (0.5) -
Settlement of IP licence payable (3.0) -
Interest and other financing charges 8 (1.0) (0.8)
Net cash (used in)/generated from financing activities (5.8) 29.8
Net (decrease)/increase in cash and cash equivalents (17.8) 3.5
Cash and cash equivalents at beginning of period 16 45.8 42.2
Effect of exchange rates on cash and cash equivalents 0.1 0.1
Cash and cash equivalents 16 28.1 45.8
The accompanying notes are an integral part of these condensed consolidated
annual financial statements. The financial statements were approved by the
Board of Directors and authorised for issue on 30 March 2026. They were
signed on its behalf by:
Dr Eben Upton CBE FREng Richard Boult
Chief Executive Officer and Founder Chief Financial Officer
Notes to the condensed consolidated financial statements
For the year ended 31 December 2025
1 General information
Raspberry Pi Holdings plc (the "Company") is a public limited company
incorporated in England and Wales. The Company's registered office is at 194
Cambridge Science Park, Milton Road, Cambridge, England CB4 0AB, and the
company number is 15557387.
2 Basis of presentation and accounting policies
Explained below are the key accounting policies of Raspberry Pi Holdings plc
and all its subsidiaries (the "Group").
2.1 Basis of preparation
The condensed set of financial information presented for the years ended 31
December 2025 and 2024 do not constitute statutory accounts within the meaning
of Section 434 of the Companies Act 2006. The financial information for the
year ended 31 December 2024 is derived from the statutory accounts of
Raspberry Pi Holdings plc for that year which have been delivered to the
Registrar of Companies. The report of the auditors on those accounts was
unqualified, did not draw attention to any matters by way of emphasis and did
not contain a statement under s498(2) or (3) of the Companies Act 2006. The
financial information for the year ended 31 December 2025 and the comparative
information have been extracted from the audited consolidated financial
statements for the year ended 31 December 2025 prepared under IFRS, which have
not yet been approved by the shareholders and have not yet been delivered to
the Registrar. The report of the auditors on the consolidated financial
statements for 2025 was unqualified and did not contain a statement under
Section 498 (2) or (3) of the Companies Act 2006.
These condensed consolidated financial statements are prepared in accordance
with UK-adopted International Accounting Standards ("IAS"), with International
Financial Reporting Standards ("IFRS") as issued by the International
Accounting Standards Board ("IASB") and with the requirements of the Companies
Act 2006 (the "Act").
These condensed consolidated financial statements of Raspberry Pi Holdings plc
comprise the results of Raspberry Pi Holdings plc, Raspberry Pi Ltd, Raspberry
Pi North America Inc, Raspberry Pi Ireland Ltd and the Raspberry Pi Employee
Benefit Trust (the "Group").
These condensed consolidated financial statements have been prepared under the
historical cost convention unless otherwise stated. The Group's presentation
currency is US Dollars, rounded to the nearest point million. Since all
material subsidiaries have US Dollars as their functional currency, there
is no foreign exchange upon consolidation and hence no cumulative
translation reserve.
2.2 Capital reorganisation
On 23 May 2024 Raspberry Pi Holdings plc acquired the entire shareholding of
Raspberry Pi Ltd for $288.1 million by way of a share-for-share exchange
agreement. This did not constitute a business combination under IFRS 3
"Business Combinations" as both entities were under common control and
Raspberry Pi Holdings plc as the listing vehicle did not constitute a
business as defined by IFRS 3.
No changes were made to the underlying book values of Raspberry Pi Ltd and the
Group's reserves were adjusted to reflect the statutory share capital of
Raspberry Pi Holdings plc, with difference recorded in a merger reserve.
2.3 Basis of consolidation
The condensed consolidated financial statements incorporate the financial
statements of Raspberry Pi Holdings plc (the "Company") and its subsidiary
undertakings. Subsidiaries are entities over which the Group has control.
Control is achieved when the Group is exposed, or has rights, to variable
returns from its involvement with the investee and has the ability to affect
those returns through its power over the investee. All intra-group assets and
liabilities, equity, income, expenses and cash flows relating to transactions
between members of the Group are eliminated in full on consolidation.
2.4 Going concern
The condensed consolidated financial statements have been prepared on a going
concern basis, assuming the Group can meet its liabilities as they fall due.
This assessment is supported by access to the Revolving Credit Facility
("RCF"), and strong relationships with key customers and suppliers.
Profitability and financial position: The Group reported a profit of $21.7
million for the year. Net current assets were $172.8 million, and net
current financial assets totalled $33.1 million.
Extension of Revolving Credit Facility: On 5 March 2025, the RCF was extended,
increasing available funds to $80.0 million (2024: $40.0 million) and
extending the term to 4 March 2029 (2024: 24 April 2027). The facility remains
undrawn.
Liquidity and cash flow forecasts: The Board's cash flow forecasts and
projections confirm the Group can operate within its cash and committed
facilities for the period to 30 April 2027. Available liquidity, including
both cash and committed facilities, has been considered in this assessment.
The Directors have deemed this period to be appropriate for the going concern
assessment. No plausible events or conditions beyond the assessment period
that may cast significant doubt on the Group's ability to continue as a going
concern have been identified.
Sensitivity analysis and stress testing: Sensitivities applied to forecasts
include a 50% to 75% reduction in higher density (8GB to 16 GB) LPDDR4 SBC
and Compute Module products with no mitigations other than executive variable
pay applied. Even under this scenario, the Group expects to meet its funding
needs for 2026 and 2027, confirming its ability to continue operations.
Reverse stress testing: A reverse stress test modelled the sales decline
required to exhaust liquidity and breach banking covenants. This scenario was
deemed highly unlikely.
Conclusion: Based on these considerations, the Board concludes the Group can
operate within its committed facilities and cash resources for the foreseeable
future. Accordingly, the Directors have adopted the going concern basis in
preparing the consolidated financial statements.
2.5 Critical accounting judgements and estimates
In preparing these condensed consolidated financial statements, critical
judgements in the application of accounting policies can have a significant
effect on the financial results. Any changes in critical estimates and
assumptions made could materially impact the amounts of assets, liabilities,
revenue and expenses reported next year as actual amounts and results could
differ from those estimates or those estimates could change in future.
2.5.1 Critical judgement: Capitalisation of internal and external
development costs
We prioritise in-house development with a small, highly skilled engineering
team, releasing new core hardware every three to four years. During the year,
our investment included the finalisation of the Raspberry Pi 500+, the ongoing
development of Raspberry Pi 6 and related semiconductor products and further
microcontroller variants.
The Group exercises significant judgement in determining whether internal and
external development costs for pipeline products meet the capitalisation
criteria within IAS 38 "Intangible Assets". Costs are capitalised only when
they are directly attributable and reliably measurable, and relate to future
new products that are considered technically feasible and commercially viable
and supported by the necessary skilled resources and internal commitment to
completion. Forecasted profit margins must exceed capitalised costs.
Management makes judgements when these capitalisation criteria are met and
continue to be met for active pipeline development projects. The costs
associated with the Group's efforts to develop new products are made up of
directly attributable internal employee costs for those working on
development, costs of external materials and services consumed in development
and amortisation of licences (software or designs) used directly in
development as per below.
$ million 2025 Capitalised 2025 2024 Capitalised 2024
Total % Total %
Internal costs 6.8 20.4 33% 8.1 17.6 46%
External costs 6.7 8.8 76% 12.5 14.6 86%
Directly attributable R&D - cash 13.5 29.2 46% 20.6 32.2 64%
Amortisation 6.8 8.2 83% 6.0 7.4 81%
Depreciation 0.3 1.3 23% - - -
Total directly attributable R&D 20.6 38.7 53% 26.6 39.6 67%
Overall R&D investment has decreased, with total costs falling from $39.6
million in 2024 to $38.7 million in 2025. Capitalisation of R&D costs in
2025 is 53% of total costs capitalised (2024: 67%). The value of costs being
capitalised exceeds amortisation by $12.4 million (2024: $19.2 million).
All costs associated with the research phase of projects are expensed as
incurred. Any development costs relating to maintaining and fixing bugs in
the software are also expensed as incurred. Capitalised employee costs of
engineers exclude any share-based payments and termination payments as they
are not considered directly attributable to the development projects.
2.5.2 Critical judgement: Identification of cash-generating units ("CGUs")
for impairment testing of pipeline development costs
Identifying CGUs is a critical step in the impairment review and can have a
significant impact on its results. The objective of identifying CGUs is to
identify the smallest identifiable group of assets that generates largely
independent cash inflows. CGUs are identified at the lowest level to minimise
the possibility that impairments of one asset or group will be masked by
a high‑performing asset.
The Group has two main CGUs: Pi 5 and semiconductors. The Group has assessed
that projects within each CGU reflect significant interdependencies, where
designs and outputs are shared and integrated, making individual cash flows
inseparable without arbitrary assumptions. The recoverability of intangible
assets arising from pipeline development activities is materially all part of
the semiconductor CGU. The recoverable amount of the semiconductor CGU is
assessed based on the collective earnings of all products in the CGU. The
remaining products, including cameras and other accessories, do not share the
same level of interdependency and are assessed individually for impairment
purposes.
2.5.3 Critical estimate: Useful economic lives ("UEL") of intangible assets
The Group determines the UEL of intangible assets at initial recognition and
reviews them at each reporting date. During the year, the useful life of
on-market semiconductors was revised from six to eight years based on updated
assessments of expected future use and economic benefits. As a result, the
annual amortisation charge decreased by $1.4 million. The historical cost
remains unchanged and the remaining cost is now spread over a longer period.
2.5.4 Critical estimate: Net realisable value of inventory
The valuation of inventory is a significant area of estimation uncertainty for
the Group due to the rapid pace of technological advancements and the risk of
product obsolescence inherent in the computer industry. Inventory is measured
at the lower of cost and net realisable value, which requires significant
management judgement and estimation.
In determining net realisable value, the Group evaluates several factors,
including market demand and pricing trends, assessing the likelihood of future
sales and the impact of declining prices on older inventory. Technological
obsolescence is also considered, with management assessing whether inventory
remains relevant in light of new product launches and advancements.
Additionally, expected selling costs, such as promotional discounts or
clearance pricing, are factored into the valuation.
The Group reviews inventory balances on a regular basis, taking into account
recent sales trends, the ageing of inventory, and the condition of items,
including damaged, slow-moving or obsolete stock. Future sales projections
over a three-year period, based on management-prepared financial budgets, are
used to support these assessments. For the year ended 31 December 2025, the
total inventory provision was $6.6 million (2024: $6.2 million). Given the
inherent uncertainties, changes in market conditions, technological
developments, or consumer preferences could materially impact the carrying
value of inventory.
2.5.5 Critical estimate: Taxation
Accounting for taxation requires significant judgement in determining taxable
profit, tax bases, and the recognition of deferred tax assets and liabilities.
Key estimates include interpreting complex tax regulations, assessing
potential challenges from tax authorities, and evaluating the recognition of
Research and Development Expenditure Credit ("RDEC") claims. Determining the
appropriate RDEC claim involves significant judgement in identifying
qualifying R&D activities and expenditures. Uncertainties in these areas
can lead to variations between estimated and actual credits received. The
Group maintains detailed records of R&D activities and consults with
external tax advisers to ensure compliance with legislation. Additionally,
changes in facts and circumstances between the preparation of these accounts
and the final tax submission, expected in approximately nine months, may
impact the final tax position. For the year ended 31 December 2025, the Group
is eligible to claim the benefit of the patent box regime on income generated
from the sale of products that incorporate technology for which the Group
received a patent in 2025. Judgement is required to determine the income and
costs related to the eligible income. The risk of error has been mitigated
through the use of external experts with detailed knowledge of the patent box
regime. Any changes in tax laws or interpretations thereof could materially
affect future amounts recognised. Whilst there are a variety of possible
outcomes management believes that it is reasonably plausible that the actual
tax claims submitted could vary to the accounting estimate by approximately
$1.5 million in any accounting period.
2.6 Critical accounting judgements and estimates (relating to the IPO)
In the prior year, which included the Group's IPO, several non-recurring
accounting judgements were required. For 2025, we have retained only those
judgements that remain relevant to understanding the 2024 comparative
information.
2.6.1 Critical judgement: Determination of the grant date share price and
option life for IPO share awards
On 11 June 2024, employee share awards were approved and finalised prior to
the Company's Admission to the London Stock Exchange. IFRS 2 requires that
the fair value of share-based payments is measured at the grant date.
Management determined the offer price of £2.80 ($3.56) as the appropriate
share price for valuation at that date. The grant date is defined under
IFRS 2 as the date when both the Company and participants have a mutual
understanding of the key terms of the award, which was confirmed to employees
prior to Admission.
The fair value of the IPO awards was therefore measured using this offer
price. Subsequent increases in share price would have significantly changed
the valuation if a later date were used. The resulting IFRS 2 charge is
recognised over the three-year vesting period.
Management also estimates the expected option life, applying an average of
five years based on benchmarking and employee attrition assumptions.
For subsequent share awards, the same valuation approach is applied, using the
opening share price on the day of grant as the reference for determining fair
value.
2.6.2 Critical judgement: Classification of transaction costs associated
with the issue of shares
The Group incurred $10.3 million in costs related to the IPO, with $7.6
million deducted from share premium, and $2.9 million expensed as
non-recurring administrative costs. Costs were classified based on whether
they directly related to new share issuance of the broader listing process.
Directly attributable costs, such as underwriting, brokerage and advisory
fees, were deducted from equity, while expenses for wider listing
requirements, such as corporate finance and costs of legal support, were
expensed.
At the time the costs were incurred, only a limited recovery of input VAT was
available, so the full expense was charged to share premium. During 2025, it
was possible to reclaim $1.4 million of VAT from HMRC. As the original costs
were charged to share premium, the amounts recoverable were also accounted for
as an increase in share premium.
2.7 Alternative performance measures ("APMs")
Alternative performance measures ("APMs"), which are used in these financial
statements, are also used by the Board and management for planning and
reporting. These measures are also used in discussions with the investors.
APMs are not displayed with more prominence, emphasis or authority than IFRS
measures.
Adjusted EBITDA is a non-IFRS measure comprising operating profit adding back
amortisation and depreciation, share-based payment charges and non-recurring
items.
Adjusted operating profit is a non-IFRS measure comprising operating profit
adding back share-based payment charges and non-recurring items.
Adjusted research and development expense is a non-IFRS measure comprising
research and development expense adjusted for amortisation, share-based
payment charges and non-recurring items. Share-based payments are excluded as
they are paid for by shareholders' dilution and the charges are not comparable
due to fluctuations around the listing process.
Adjusted administrative expense is a non-IFRS measure comprising
administrative expenses adjusted for depreciation, share-based payment charges
and non-recurring items. Share-based payments are excluded as they are paid
for by shareholders' dilution and the charges are not comparable due to
fluctuations around the listing process.
Non-recurring items are presented whenever significant expenses are incurred
or income is received because of events considered to be outside the normal
course of business, where the unusual nature and expected infrequency merit
separate presentation to assist comparisons with previous years.
To arrive at adjusted results, certain adjustments are made for normalised and
non-recurring items that are individually significant, and which could, if
included, distort the understanding of the performance of the year and the
comparability between periods.
2.8 Accounting policies and new and amended accounting standards
The set of condensed consolidated financial information has been prepared
using accounting policies consistent with those in Raspberry Pi Holdings plc
in 2024 except for the following standards, amendments and interpretations
which have been adopted from 1 January 2025.
New or revised standards or interpretations
From 1 January 2025, Amendments to IAS 21 "Lack of Exchangeability" became
effective for the Group's consolidated financial statements.
The amendments introduce requirements for assessing currency exchangeability
and estimating a spot exchange rate when observable rates are unavailable.
Management assessed all currencies in which the Group transacts and concluded
that no lack of exchangeability existed during the year. Accordingly, the
amendments had no material impact on the Group's financial statements.
Standards, amendments and interpretations not yet effective and not early
adopted
At the date of authorisation of these condensed consolidated financial
statements, several new, but not yet effective, standards and amendments to
existing standards, and interpretations have been published by the IASB or
IFRIC. None of these standards or amendments to existing standards have been
adopted early by the Group and no interpretations have been issued that are
applicable and need to be taken into consideration by the Group at either
reporting date.
The Group has not early adopted amendments to IFRS 9 relating to derecognition
of certain financial assets and liabilities and assessment of contractual cash
flows characteristics. The Group is assessing the potential impact of these
amendments which will be applied from 1 January 2026.
In April 2024, the IASB issued IFRS 18, which replaces IAS 1 "Presentation of
Financial Statements". Although IFRS 18 includes many of the requirements of
IAS 1, it introduces new requirements to better structure financial statements
and to provide more detailed and useful information to investors.
IFRS 18 is effective for annual periods beginning on or after 1 January 2027,
with earlier application permitted. IFRS 18 will be applied retrospectively
with specific transitional provisions.
The Group is currently working to identify all of the impacts that IFRS 18
will have on the primary financial statements and notes to the financial
statements.
Other new standards, amendments and interpretations not adopted in the current
year have not been disclosed as they are not expected to have a material
impact on the Group's condensed consolidated financial statements.
3 Revenue
The total revenue for the Group derives from its principal activity: the
development, marketing, manufacture and sale of cost-effective programmable
computing devices.
$ million - by category Year ended Year ended
31 December 2025 31 December 2024
Products 247.0 181.2
Components 60.2 61.2
Royalties 15.0 15.9
Other 1.0 1.2
323.2 259.5
$ million - by customer location Year ended Year ended
31 December 2025 31 December 2024
UK 121.8 118.4
Europe 64.3 48.1
Americas 76.1 49.9
Asia Pacific 59.2 40.8
Rest of the World 1.8 2.3
323.2 259.5
Included within Americas region is $69.0 million (2024: $44.2 million) of
revenue which is attributable to the United States of America, representing
the Group's largest end market by revenue.
Product revenues are recognised at the point in time when single board
computers, compute modules, accessories or semiconductors are delivered to
Approved Resellers or OEMs, establishing an enforceable right to payment.
Raspberry Pi generates revenue from selling individual components, including
the RP2040 microcontroller, RP1 I/O controller and memory chips, primarily to
OEMs and for manufacturing by licensees, which also earns royalties. Royalties
are earned per unit on products organised for manufacture or sale through
licensing of designs and trademarks. Revenue is recognised on an accruals
basis in accordance with the agreement when the subsequent sale or usage
(point of manufacture) event occurs, in line with the IFRS 15 royalty
exemption from estimating variable consideration.
The Group generated $83.2 million or 26% (2024: $69.5 million or 27%) of
revenues from a major electronic component distributor. Sales to the contract
manufacturer accounted for $18.8 million or 6% of total revenues (2024: $36.9
million or 14%). The Group operates as a single segment, in accordance with
IFRS 8 "Operating Segments", aligned with its primary activity. The data
utilised by the Group's Chief Operating Decision Makers for resource
allocation and performance evaluation is provided on a consolidated basis and
therefore no segment analysis is included. All material non-current assets
are located in the United Kingdom.
4 Research and development expenses
$ million Year ended Year ended
31 December 2025 31 December 2024
Employee costs of internal engineers 15.9 14.4
Employee share schemes 4.5 3.2
Costs of external services and materials 8.8 14.6
Intangibles amortisation 13.6 12.3
Capitalised amortisation (6.8) (6.0)
Capitalised research and development costs (13.5) (20.6)
22.5 17.9
5 Administrative expenses
$ million Year ended Year ended
31 December 2025 31 December 2024
Employee costs 11.5 8.7
Employee share schemes 3.4 2.4
Other employee-related costs 2.1 2.2
Professional fees 3.7 3.2
Depreciation 3.7 4.4
Property-related costs 1.4 1.2
Other expenses 1.8 2.7
Non-recurring costs - 2.9
27.6 27.7
Non-recurring items are presented whenever significant expenses are incurred
or income is received because of events considered to be outside the normal
course of business, where the unusual nature and expected infrequency merits
separate presentation to assist comparisons with previous years. For the year
ended 31 December 2024, non-recurring costs consisted of IPO‑related costs
of $2.9 million. No such costs were incurred in 2025. Professional fees
include audit and interim review services obtained from the Group auditor,
Grant Thornton UK LLP. Details of its fees are as follows:
$ million Year ended Year ended
31 December 2025 31 December 2024
Fees payable to the Group auditor for:
· the audit of the parent entity and consolidated 0.1 0.2
financial statements
· the audit of subsidiary pursuant to legislation 0.6 0.4
Fees payable to the Group auditor for other services:
· non-audit-related services - procedures over the rights issue - 1.2
prospectus
· audit-related services - review procedures over interim accounts 0.1 0.2
0.8 2.0
6 Employee information
$ million Year ended Year ended
31 December 2025 31 December 2024
Wages and salaries 22.8 19.0
Social security costs 2.0 2.0
Pension costs 1.8 1.4
Share-based payments 8.7 4.7
Employee costs capitalised (6.8) (8.1)
28.5 19.0
Further details on share-based payments are provided in Note 23 and employee
costs capitalised in Note 2.5.1.
Average headcount Year ended Year ended
31 December 2025 31 December 2024
Engineering 67 66
Corporate and administrative 22 16
Communications and publishing 14 16
Sales and product management 24 26
Retail 7 10
134 134
Directors' remuneration
$ million Year ended Year ended
31 December 2025 31 December 2024
Remuneration 2.4 2.1
Pension contributions to defined contribution pension scheme 0.1 -
Share-based payments 0.7 0.2
3.2 2.3
The pension contribution for Directors in 2024 was $48,700. This figure is not
shown in the table above as the figures are presented in millions.
Total remuneration of the highest paid Director in 2025 amounted to $1.3
million (2024: $0.7 million). In both 2025 and 2024, there was one Director
who was a member of the defined contribution scheme.
The aggregate Directors' remuneration above includes fees paid to
Non-Executive Directors. The employee headcount and staff cost disclosures
exclude Non-Executive Directors, who are engaged under letters of appointment
rather than as employees. Further details of Directors' remuneration are set
out in the Directors' Remuneration Report.
7 Depreciation and amortisation
$ million Year ended Year ended
31 December 2025 31 December 2024
Depreciation of property, plant and equipment 2.4 2.8
Depreciation of right-of-use assets 1.6 1.6
Amortisation of intangible assets 13.6 12.3
Plant and equipment depreciation capitalised (0.3) -
Intangible amortisation capitalised (6.8) (6.0)
10.5 10.7
8 Net financing items
$ million Year ended Year ended
31 December 2025 31 December 2024
Finance income
Bank and other interest receivable 1.0 1.1
Finance costs
Bank interest payable and similar charges (1.0) (0.8)
Interest on lease liabilities (0.4) (0.4)
Unwinding of discounts (1.3) (1.2)
Foreign exchange 0.2 -
(2.5) (2.4)
Net financing items (1.5) (1.3)
As the Group has no external debt, interest charges primarily relate to RCF
arrangement and non-utilisation fees. Interest income is generated from
overnight money market deposits and from amounts receivable from HMRC.
Interest on lease liabilities and unwinding of discounts on extended trade
payable terms arise in accordance with leases and financial instrument
accounting rules.
9 Taxation charge
$ million Year ended Year ended
31 December 2025 31 December 2024
Current tax:
Current taxation charge 4.9 3.3
Adjustments in respect of previous periods (1.8) 0.1
3.1 3.4
Deferred tax:
Deferred taxation charge 1.4 1.6
Adjustment in respect of previous periods 0.3 (0.4)
1.7 1.2
Taxation charge for the year 4.8 4.6
The charge for the year can be reconciled to the profit per the Condensed
Consolidated Statement of Comprehensive Income as follows:
$ million Year ended Year ended
31 December 2025 31 December 2024
Profit before taxation 26.5 16.3
Corporation tax at an effective rate of 25% (2024: 25%) 6.6 4.1
Effect of:
Adjustments in respect of prior years (1.5) (0.3)
Expenses not deductible for tax purposes - 0.8
Foreign exchange (0.5) -
Share-based payments 1.6 -
Effect of group relief/other reliefs (1.4) -
Taxation charge for the year 4.8 4.6
In 2025, the total effective tax rate was 18.1%, which is lower than the
underlying rate of 25%. The difference from the statutory rate of 25% is due
to four factors. The relief for share-based payments differs for accounting
and tax purposes, and that resulted in an increase in the effective tax rate
by 6.1%. There were three factors reducing the effective tax rate. Changes in
estimates for prior year taxation resulted in a net reduction of 5.7%.
For 2023 there was some uncertainty of treatment for an item in the tax
return and a provision was made accordingly. In 2025, third party, expert
advice was received confirming the technical position taken, such that the
provision was no longer necessary. In 2025 a patent was granted, allowing the
Group to claim certain tax reliefs, reducing the effective rate by 5.7%.
Lastly, there was a reduction of 1.9% owing to foreign exchange differences.
In 2024 effective tax rate was 28.2%, higher than the underlying 25%, which
was mainly due to $2.9 million in non-recurring IPO-related costs, which were
largely non-deductible for tax purposes.
10 Earnings per share ("EPS")
Basic EPS: Profit for the period attributable to owners divided by the
weighted average number of ordinary shares in issue, excluding unvested shares
held by the Employee Benefit Trust, unless specifically allocated or
cancelled.
Diluted EPS: Adjusts the weighted average number of shares to include all
potentially dilutive shares, such as share options.
Adjusted EPS: Is a non-IFRS alternative performance measure which adjusts
basic EPS and diluted EPS for the non-recurring items and share-based payments
applied in computing adjusted EBITDA.
Earnings per share 2025 2024
Profit after tax ($ million) 21.7 11.7
Weighted average number of shares in issue during the period 193,477,224 180,669,421
Shares held in Employee Benefit Trust (155,226) (155,226)
Total number of shares for basic EPS 193,321,998 180,514,195
Basic earnings per share (cents) 11.22 6
Dilutive effect of legacy performance shares scheme - 7,638,832
Dilutive effect of post-IPO schemes 3,935,355 546,798
Weighted average dilutive number of shares during the period 197,257,353 188,699,825
Diluted earnings per share (cents) 11.00 6.20
Adjusted earnings per share 2025 2024
Profit after tax ($ million) 21.7 11.7
Non-recurring costs - disallowable for tax ($ million) - 2.9
Employee share schemes ($ million) 7.9 6.0
Tax on employee share schemes ($ million) (1.6) (1.3)
Adjusted profit after tax ($ million) 28.0 19.3
Total number of shares for basic EPS 193,321,998 180,514,195
Adjusted basic earnings per share (cents) 14.48 10.69
Weighted average dilutive number of shares in the period 197,257,353 188,699,825
Adjusted diluted earnings per share (cents) 14.19 10.23
11 Intangible assets
$ million On-market development Pipeline development Other acquired intangibles Total
Cost
At 1 January 2024 25.7 21.2 21.1 68.0
Additions - 26.6 0.3 26.9
Transfers 13.3 (13.3) - -
At 31 December 2024 39.0 34.5 21.4 94.9
Additions - 20.6 3.0 23.6
Transfers 1.2 (1.2) - -
At 31 December 2025 40.2 53.9 24.4 118.5
Amortisation
At 1 January 2024 (7.9) - (1.5) (9.4)
Charge (4.9) - (7.4) (12.3)
At 31 December 2024 (12.8) - (8.9) (21.7)
Charge (5.4) - (8.2) (13.6)
At 31 December 2025 (18.2) - (17.1) (35.3)
Net book value:
At 31 December 2025 22.0 53.9 7.3 83.2
At 31 December 2024 26.2 34.5 12.5 73.2
To maintain market leadership and drive growth, we develop next generation
technology platforms that embody our brand values of performance, price,
quality and ease of use. New core hardware is released every three to four
years, with software and documentation support setting Raspberry Pi apart from
competitors.
We prioritise in-house development with a skilled engineering team of 67
(2024: 66), focused on successors to Raspberry Pi 5, semiconductor chips, new
computer boards and accessories. Internal and external development costs are
capitalised when the criteria outlined in critical accounting judgement Note
2.5.1 are met.
On-market development is amortised from its market launch date over a life of
three years for accessories, four years for SBCs, and eight years for
microcontrollers. The useful economic life of microcontrollers was extended
from six years as described in Note 2.5.3. Impairment testing is performed
only when an internal or external impairment trigger is identified.
Pipeline development in progress is not amortised but instead tested annually
for impairment. Historically, most capitalised projects have been
commercialised, at which point they are transferred to on-market projects and
thereafter amortised as explained above.
The other acquired intangibles category primarily relates to licences but also
includes any externally acquired intangible assets not already captured in the
above categories. Licences, particularly those related to technical designs,
are amortised over the length of the licence.
Impairment testing
Impairment testing is performed at the CGU level in line with IAS 36, and as
explained in the critical estimate on CGU determination in Note 2.5.2.
Management has determined that the assets associated with the Pi 5 product
group and the semiconductor product group each constitute individual CGUs
representing the lowest level at which impairment can be assessed.
The projected cash flows arising from the CGUs are forecast over the expected
product demand lifecycle, which may extend up to 20 years from the launch
date, and which may exceed the assets' estimated useful economic life ("UEL")
of three to eight years. Beyond the period of peak performance, cash flows are
projected on a declining basis of up to 30% per annum until management
considers the horizon to be reasonable. This is consistent with the critical
estimate on CGU determination outlined in Note 2.5.2.
On-market developments were assessed for the following impairment triggers:
External impairment triggers: Market decline, economic changes, increased
competition, technological obsolescence, interest rate shifts, and legal or
political factors.
Internal impairment triggers: Underperformance, asset utilisation changes,
physical damage, restructuring, reduced useful life, and licensing or
contractual issues.
For the year ended 31 December 2025, an impairment trigger was identified for
the Pi 5 CGU due to current and increasing memory prices, which began rising
in the second half of 2025. Accordingly, management performed an impairment
assessment of the CGU. No other impairment triggers were identified. The
assessment was performed solely in response to memory price increases.
As development projects must undertake a mandatory impairment test, this is
performed at the CGU level as explained in the critical estimate on CGU
determination in Note 2.5.2.
Additionally, various other/accessory items are evaluated at the project unit
item level, as these products are generally less dependent on core technology
capabilities than the core development platforms. No impairment indicator was
identified for these products.
Semiconductor CGU
In accordance with IAS 36, impairment testing for projects under development
includes estimated future cash outflows required for completion, even if not
yet capitalised - an exception to the general principle. Cash flows have been
projected using a three-year forecast, being the period for which detailed
projections are available. Cash flows are initially projected on a growth
basis before declining at up to 30% per annum once peak performance has been
reached, until management considers the horizon to be reasonable. The total
projection period therefore extends beyond five years in aggregate. Cash flows
are projected based on expected revenue and cost patterns for the products. In
the case of semiconductors developed for use in future products, management
has based its forecasts on the market prices of equivalent products and
projected manufacturing costs based on the past performance of similar
products and management's expectations for the future.
A discount rate of 17.3% (2024: 15.7%) has been applied in determining the
present value of the cash flows anticipated. The discount rate is a pre-tax
rate which reflects any specific risks relating to the relevant products. An
asset-specific rate is not available directly from the market, and therefore
the discount rate has been estimated to reflect, as far as possible, a market
assessment of the time value of money. The assessment indicated significant
headroom and no impairment has been recognised. Management does not consider
that any reasonably possible change, or combination of changes, in key
assumptions including discount rates, cash flow projections, and demand
decline rates, would result in an impairment. The impact of external risks,
including supply chain uncertainties and market fluctuations, has been
considered. The assumptions used align with similar product lifecycles, though
uncertainties related to climate change risks, enhancement-related cash flows,
and extended forecast periods require ongoing assessment. Given the robust
development portfolio, the semiconductor CGU remains well positioned for
future growth. However, as at the date of these financial statements, there
remains a high level of uncertainty regarding long-term market conditions,
technological advancements and regulatory changes.
The Group continues to monitor potential risks in supply chain logistics,
intellectual property regulations and environmental compliance, ensuring that
future developments align with the Group's strategic objectives and IAS 36
requirements.
Pi 5 CGU
An impairment assessment was performed for the Pi 5 CGU due to an identified
trigger from rising memory prices, which was not present in 2024. Cash flows
were based on forecasts over a three-year budget period, with the model
extending to a five-year horizon. Beyond the budget period, future pipeline
development has been modelled based on expected sales over the product
lifecycle, with cash flows projected on a declining basis of up to 30% beyond
the period of peak revenues. Budgeted gross profit has been used, with revenue
projections reflecting management's expectations for unit sales volumes and
ASP.
A pre-tax discount rate of 17.3% has been applied, reflecting the time value
of money and CGU-specific risks. While rising memory prices present an
identified risk, the Group increased its ASP in line with cost growth,
maintaining gross profit per board at historic levels.
Management's assessment considered the interdependencies between memory costs,
unit sales volumes and margin when stress-testing key assumptions. Management
does not consider that any reasonably possible change, or combination of
changes, in key assumptions would result in an impairment. Following the
assessment, management concluded that the recoverable amount of the Pi 5 CGU
exceeded its carrying amount and no impairment was recognised.
12 Property, plant and equipment
$ million Leasehold improvements Plant and equipment Office and computer equipment Total
Cost
At 1 January 2024 1.7 8.8 2.5 13.0
Additions 0.5 1.2 0.5 2.2
At 31 December 2024 2.2 10.0 3.0 15.2
Additions 0.1 1.5 0.2 1.8
At 31 December 2025 2.3 11.5 3.2 17.0
Depreciation
At 1 January 2024 (0.2) (6.4) (1.3) (7.9)
Charge (0.5) (1.7) (0.6) (2.8)
At 31 December 2024 (0.7) (8.1) (1.9) (10.7)
Charge (0.4) (1.3) (0.7) (2.4)
At 31 December 2025 (1.1) (9.4) (2.6) (13.1)
Net book value:
At 31 December 2025 1.2 2.1 0.6 3.9
At 31 December 2024 1.5 1.9 1.1 4.5
As at 31 December 2025, $4.2 million of fully depreciated property, plant and
equipment was still in use (2024: $1.7 million).
13 Right-of-use ("ROU") assets
$ million 2025 2024
At 1 January 6.1 6.7
Remeasurements 4.5 1.0
Derecognition (0.4) -
Depreciation (1.6) (1.6)
8.6 6.1
ROU assets relate to the Group's property leases over its office building and
its warehouse in Suffolk. Leases include variable payments and termination or
extension options.
During the year, the Group assigned its former office lease which was
previously impaired when it was vacated. The ROU asset, lease liability, and
dilapidation provision were derecognised, resulting in a $0.3 million gain,
net of exit costs.
The lease on the current office building was also extended, giving rise to a
lease modification and remeasurement of the ROU and corresponding lease
liability.
ROU assets are depreciated over the shorter of the asset's useful life and
the lease term on a straight-line basis.
Details in respect of the Group's lease liabilities are disclosed in Note 18.
14 Inventories
$ million 2025 2024
Components 114.1 92.9
Finished goods 31.2 63.8
145.3 156.7
Inventories are stated net of provisions for write-downs to net realisable
value, which are recognised as an expense in profit or loss. The movements in
inventories presented in the cash flow statement reflect the net change in
inventory balances after these provisions, net of the fair value adjustment in
relation to the extended payable as discussed in Note 17. Accordingly,
separate presentation of write-downs as non-cash adjustments in the
reconciliation of profit to cash flows is not considered necessary.
During the year, $235.5 million (2024: $191.8 million) of inventories were
charged as cost of sales. Write-downs of inventories to net realisable value
amounted to $1.5 million (2024: $1.5 million). These were recognised as an
expense during the year ended 31 December 2025 and included in cost of goods
sold. The Group recorded an amount of $1.1 million (2024: $4.2 million) as
income resulting from reversal of inventory write-downs that were previously
recognised. The income was recognised within cost of sales to reverse the
original expense. The remaining provision within inventories of $6.6 million
(2024: $6.2 million) is for anticipated future obsolescence on specific
slow-moving units.
As at 31 December 2025, $5.3 million (2024: $3.5 million) of inventories are
committed and have been purchased back after the year end as part of
repurchase liabilities described in Note 17.
15 Trade and other receivables
The Group considers that the carrying amount of trade and other receivables is
a reasonable approximation of their fair value due to their short-term nature.
$ million 2025 2024
Trade receivables 52.6 31.0
Prepayments 4.5 3.6
VAT receivable 1.6 0.9
Other receivables 0.8 0.7
59.5 36.2
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for all trade
receivables. Management has assessed the expected credit losses on trade
receivables and determined that no loss allowance is required in 2025 (2024:
$nil). Accordingly, no movement in the expected credit loss provision has been
recognised in administrative expenses in the Consolidated Statement of
Comprehensive Income. In 2025, Raspberry Pi Holdings plc was registered for
VAT to account for VAT on intercompany services. This allowed a reclaim of VAT
on some of the costs incurred as part of the IPO. As the registration and
reclaim of VAT occurred towards the end of 2025 the amount reclaimed was still
outstanding at the year end but was repaid by HMRC in February 2026.
$ million 2025 2024
Current tax receivable 1.4 6.6
Owing to its size, the Group has to pay all of its expected corporation tax
liability for the financial year, during the calendar year. In calculating and
paying this corporation tax, no account can be taken of the Research and
Development Expenditure Credit ("RDEC") that is claimed in the tax return and
paid out by HMRC. This means that at the year end there is normally a current
tax receivable. In 2025, the 2024 tax returns were submitted earlier than in
previous years, meaning that RDEC for both 2023 and 2024 were received during
2025, reducing the net receivable at the end of 2025 compared to 2024.
16 Cash and cash equivalents
$ million 2025 2024
Cash at bank 11.1 5.8
Money market deposits 17.0 40.0
28.1 45.8
Cash and cash equivalents include money market deposits, cash at bank and cash
in hand. Money market deposits are highly liquid and accessible on demand
within 24 hours, and carry minimal risk of value changes due to interest
fluctuations, ensuring certain returns of investment. The fair value of cash
and cash equivalents equals their carrying amount when repayable on demand.
The Group's cash and cash equivalents are held with Barclays Bank UK PLC with
credit ratings of A-1 (S&P), P-1 (Moody's), and F1 (Fitch); and in a money
market fund managed by JP Morgan Chase & Co with credit ratings of A-1
(S&P), P-1 (Moody's) and F1+ (Fitch).
17 Trade and other payables
$ million 2025 2024
Trade payables 46.5 83.1
Accruals and other payables 6.5 7.1
Repurchase liabilities 5.9 4.4
Other taxation and social security 1.2 1.0
Deferred income - RDEC 0.5 0.5
60.6 96.1
In 2024, the Group had extended payment terms of nine to twelve months with
two electronic component suppliers. Supplier invoices totalling $52.2 million
were discounted to $51.0 million with reference to observable market interest
rates. These payables remained classified within the normal operating cycle.
As at 31 December 2025, there is no outstanding balance under these extended
term agreements and no such arrangements are still in place. All trade
payables are now subject to standard 30 to 45-day terms and are considered by
management to approximate to their fair value.
Repurchase liabilities relate to components sold to contract manufacturers for
producing finished products the Group has committed to buy. When the Group
sells components and orders the assembly of a single board computer using
those components, the cash from the sale is deferred as a repurchase
liability. This liability is not released until the contract manufacturer
delivers the completed product to the Group.
18 Lease liabilities
$ million 2025 2024
At 1 January 6.2 7.1
Remeasurements 4.5 1.0
Derecognition (0.9) -
Interest 0.4 0.4
Principal repayment (1.1) (2.2)
Interest payment (0.4) (0.4)
Foreign exchange 0.2 0.3
8.9 6.2
Refer to Note 13 for the disposals in the year.
Total cash payment made for leases amounted to $1.5 million (2024: $2.6
million) with $0.4 million relating to interest (2024: $0.4 million).
Maturity analysis
$ million 2025 2024
Less than one year 0.8 1.4
Between one and five years 6.1 5.2
Over five years 4.9 -
11.8 6.6
Effect of discounting (2.9) (0.4)
8.9 6.2
19 Financial commitments
In July 2022, the Group entered into a commitment to purchase other licences
for intellectual property and related tools over the period to July 2025. This
arrangement was amended in January 2025 extending the commitment to January
2027. As at 31 December 2025, the value of the commitment was $7.8 million
(2024: $3.7 million). Subsequent to the year end, $1.8 million of this
commitment was settled in January 2026.
To ensure the uninterrupted supply of essential components to meet projected
demand, the Group has established long-term supply agreements and placed
substantial orders with key suppliers and distributors. As both the supplier
(delivery) and the Group (payment once delivered) have obligations
outstanding, they are not recognised as liabilities on the balance sheet.
However, they are disclosed as significant contractual obligations to provide
clarity on the financial commitments.
As of 31 December 2025, these agreements have committed to component
purchases over a pre-defined schedule to December 2028 and are valued at
$265.7 million (2024: $333.0 million). The long-term supply agreement
relating to these commitments was subsequently revised as disclosed in Note
32.
In November 2025, communication was made to applicable employees on the
intention to issue new Restricted Share Units, subject to Board approval,
within an open period for employee share dealing purposes in calendar year
2026.
In December 2025, the Group had committed to pay for equipment for use by its
contract manufacturer in the production of Raspberry Pi products. This
commitment was made through a purchase order amounting $1.3 million. The
related cash outflow occurred after the reporting period.
20 Forward foreign exchange contracts
During the year, the Group entered into new forward foreign exchange contracts
to manage short-term currency exposures arising from operational activities.
These contracts are used primarily to reduce the impact of exchange rate
fluctuations on forecasted transactions, receivables and payables denominated
in GBP. Forward contracts that do not meet the criteria for hedge accounting
under IFRS 9 are classified as financial instruments at fair value through
profit or loss. As such, they are recognised on the balance sheet as financial
assets or liabilities at fair value, with changes in fair value recognised
immediately in the income statement within administrative expenses,
reflecting their connection to operational activities.
As at 31 December 2025, the aggregate contract amount of forward contracts
not designated as hedging instruments was £21.0 million. Realised gains for
contracts that matured in the year were immaterial, while unrealised fair
value gains for outstanding contracts was $0.2 million which was recognised in
the Consolidated Statement of Comprehensive Income within administrative
expenses.
These contracts expose the Group to foreign currency risk, credit risk and
liquidity risk. The Group manages these risks in accordance with its
financial risk management policies as disclosed in Note 21.
21 Financial instruments and financial risk management
All of the Group's financial assets and liabilities, with the exception of the
forward exchange contracts which are measured at FVTPL, were non-derivative
and measured at amortised cost in the current and comparative period
comprising cash and cash equivalents, trade receivables, trade payables, and
both short-term and long-term licence payables.
The Board regulates the use of free-standing derivatives (such as forward
foreign exchange contracts) in accordance with established risk management
strategies.
The Group is exposed to currency, liquidity and credit risks arising from its
financial instruments. The Group's risk management policies are designed to
mitigate potential adverse impacts on financial performance. The key risks are
addressed as follows:
21.1 Market risk analysis
$ million 2025 2024
Trade receivables 52.6 31.0
Cash and cash equivalents 28.1 45.8
Financial assets at amortised cost due within one year 80.7 76.8
Financial asset measured at FVTPL 0.2 -
Currency risk: The Group presents its condensed consolidated financial
statements in US Dollars, being the currency that predominantly influences the
sales prices; nonetheless, operations are primarily UK based, which is where
the majority of employees work and activities occur. Consequently, the Group
is exposed to foreign currency risk arising from exchange rate movements
mainly between US Dollar, British Pound Sterling and Euro. These movements
affect the value of transactions (e.g. UK payroll) and the translation of
comparative financial results.
In accordance with IFRS 7, the Group is required to present a sensitivity
analysis illustrating hypothetical changes in foreign exchange rates on profit
or loss and shareholders' equity.
• A 10% strengthening of the US Dollar would result in an FX gain of
$0.4 million
(2024: $0.5 million).
• A 10% weakening of the US Dollar would result in an FX loss of
$0.3 million (2024: $0.4 million).
The impact on profit and loss and shareholders' equity would be identical as
no currency translation reserve or difference arises on consolidation as all
subsidiaries share a US Dollar functional currency.
Interest rate risk: The Group has access to an RCF which remained undrawn at
the reporting date and therefore did not give rise to interest expense. The
Group does not have any external borrowings outside of property leases that
contain fixed rates of interest in the current or comparative periods, and
therefore interest rate risk is not considered material. Management
regularly reviews forecast debt, cash and cash equivalents and interest rates
to monitor this risk and would consider hedging instruments if the perceived
risk was to increase.
21.2 Credit risk analysis
Exposure to credit risk emerges primarily through trade receivables of $52.6
million (2024: $31.0 million) for providing credit to customers in the
normal course of business. In order to minimise credit risk, the Group has
policies to check that potential customers are demonstrably creditworthy and
this, together with the aggregate financial exposure, is monitored.
Credit limits are reviewed by the credit controller on a regular basis in
conjunction with debt ageing and collection history. Commercial insurance is
also obtained as deemed necessary. There have been no material instances of
actual or expected credit losses during the current or prior financial years.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for all trade
receivables. Any movement in expected credit loss provision is included in
administrative expenses in the Condensed Consolidated Statement of
Comprehensive Income.
Liquidity risk: Refers to the risk that the Group will not have sufficient
financial resources to meet its obligations as they fall due.
$ million 2025 2024
Trade payables 46.5 84.0
Other financial liabilities 1.3 3.0
Financial liabilities at amortised cost due within one year 47.8 87.0
Financial liabilities at amortised due over one year - 1.3
Financial liabilities at amortised cost 47.8 88.3
The comparative figure for trade payables for the prior year was updated to
correct a calculation error. The correction does not affect the overall
liquidity risk assessment.
The amounts above reflect the contractual undiscounted cash flows, which may
differ to the carrying values of the liabilities at the reporting date.
The Group mitigates this risk by:
• maintaining appropriate levels of cash and access to credit facilities;
• monitoring forecast and actual cash flows; and
• matching the maturity profiles of financial assets and liabilities.
The Group constantly reviews revenue, purchases, inventory and cash flow
forecasts to ensure that obligations can be met as they arise. Since the
Group's financial assets and liabilities arise from operations, with the
exception of the non-current lease liabilities, they all have a maturity
within the one-year business operating cycle.
The Group does not have any external borrowings in the current or comparative
period; therefore, net debt is positive as net cash being $19.2 million (2024:
$39.6 million) represented by cash and cash equivalents in Note 16 less the
lease liabilities in Note 18.
As at 31 December 2025, the Group has access to an $80.0 million undrawn RCF
available until 4 March 2029.
22 Share capital and other reserves
The share capital represents the nominal value of share capital subscribed
for. Raspberry Pi Holdings plc has the following share capital as at the
reporting date.
Share capital Number of shares Nominal capital
$ million
Ordinary shares of £0.0025 each 193,582,149 0.6
Deferred shares of £0.0025 each 61,610,435 0.2
255,192,584 0.8
Share capital
193,415,715 ordinary shares of £0.0025 each have been listed for trading on
the London Stock Exchange. During the year, as detailed in Note 23, additional
shares were issued in connection with the vesting and release of share-based
awards. 61,610,435. deferred shares of £0.0025 each were created as part of
the share capital reorganisation. The deferred shares have no voting rights
or rights to a dividend. It is intended for the holders of the deferred shares
to transfer them to the Company otherwise than for valuable consideration
pursuant to s659(1) CA 2006 in Q2 2025. They will then be cancelled pursuant
to s662(1)(c).
Share premium account
The share premium account records the amount above the nominal value received
for shares issued, less transaction costs. The listing generated $40.0 million
in gross proceeds, with $7.6 million in costs deducted directly from equity.
At the time the costs were incurred, only a limited recovery of input VAT was
available, so the full expense was charged to share premium. During 2025 it
was possible to reclaim $1.4 million of VAT from HMRC. As the original costs
were charged to share premium, the recovery was accounted for as an increase
in share premium. The share premium account is in most circumstances not
immediately available for distribution.
Share-based payment reserve
This reserve represents the cumulative income statement charges for unvested
employee share awards. Once the awards vest this reserve is recycled to
retained earnings and the issue of equity is reflected in share capital, share
premium or retained earnings as appropriate.
Merger reserve
As described in Note 2.2, the Group completed a capital reorganisation in
2024. Subsidiary assets and liabilities were consolidated at book value, and
consolidated reserves were adjusted to reflect the statutory share capital of
the Company with the difference recorded in the merger reserve.
The merger reserve and retained earnings are presented gross on consolidation
such that the Group's retained earnings are a reasonable measure of the
underlying distributable reserves of the Company on a standalone entity basis
as this is considered useful information for investors.
Retained earnings
This reserve represents the total of all current and prior retained earnings
available to facilitate future shareholder distributions.
23 Share-based payments
All share-based payments are related to employee share schemes and are equity
settled for shares of Raspberry Pi Holdings plc. Equity awards are a key
component of the overall remuneration package, being essential for
retaining, motivating and rewarding key employees.
The Group has four active equity-settled share schemes: market value options,
nil-cost options, Restricted Share Units ("RSU") and Performance Share Units
("PSU"). In addition, awards under the Deferred Bonus Plan ("DBP") relating to
2025 performance will be granted in 2026.
The table below illustrates the number and movements in the schemes during the
year:
Market value options Nil cost Restricted Share Units Performance Share Units
Outstanding at beginning of the year 11,561,566 253,773 - -
Granted during the year - - 926,875 967,956
Forfeited during the year (186,978) - (2,057) -
Exercised during the year (46,768) - (119,666) -
Outstanding at end of the year 11,327,820 253,773 805,152 967,956
The share-based payment charges are as follows:
$ million Year ended Year ended
31 December 2025
31 December 2024
Deferred Bonus Plan 0.1 -
Performance Share units and Restricted Share Units - granted on 14 May 2025 3.4 -
Market value and nil-cost options - granted on 11 June 2024 5.2 2.7
Legacy 2020 LTIP scheme - IFRS 2 charge - 0.8
Legacy 2020 LTIP scheme - accelerated charge on settlement - 1.2
8.7 4.7
Deferred Bonus Plan
The Deferred Bonus Plan is available to Executive Directors of Raspberry Pi
Holdings plc. Awards are made in respect of performance in the financial year
immediately preceding the grant and are based on performance against
objectives set annually. Incentives are typically delivered partly in cash and
partly in ordinary shares of the Company on a deferred basis.
The share element is usually granted as nil-cost options which vest after a
three-year vesting period. The share-based payment charge is recognised over
four years, reflecting the performance year and the subsequent vesting period.
An unvested award will normally lapse if the Executive Directors leaves
employment, unless they leave because of disability or ill health, a corporate
event or are otherwise classified as a good leaver at the Board's discretion.
Further details are provided in the Directors' Remuneration Report on page 75.
Share-based awards granted in the year
On 14 May 2025, the Group made additional equity grants comprising Restricted
Share Units ("RSUs") and Performance Share Units ("PSUs").
The RSUs vest quarterly over a four-year period, subject to continued
employment. They are not subject to any performance conditions. Each RSU
carries an exercise price of one-quarter of a penny per share. Shares for the
RSUs vesting in June and September 2025 were released in the year.
On 19 January 2026, the Company allotted 74,712 ordinary shares to its
third-party share plan administrator to facilitate the settlement of
share-based compensation awards that vested on 31 December 2025. This is a
non-adjusting event under IAS 10.
The PSUs are subject to performance conditions based on earnings per share
("EPS") growth and relative total shareholder return ("TSR") compared to the
FTSE 250, excluding companies in the Financial Services, Mining and
Extraction, and Investment Trust sectors. Performance will be assessed over a
three-year period, based on the cumulative EPS achieved over the three
financial years. Vesting will occur on a straight-line basis between threshold
and maximum performance targets.
PSUs granted to the Executive Directors of Raspberry Pi Holdings plc are
subject to a post‑vesting holding period of two years.
The following table sets out the key inputs used in the valuation models
applied to each of the schemes.
TSR Performance Share Units EPS Performance Share Units Restricted Share Units
Post-vesting holding period None 2 years None 2 years None
Grant date 14 May 2025
Number of awards granted 212,055 111,242 422,841 221,818 926,875
Grant date share price £5.20
Fair value of share £4.25 £3.59 £5.20 £4.39 £5.20
Exercise price - - - - £0.0025
Expected term 2.6 years 2.6 years 2.6 years 2.6 years 4 years
Expected volatility 35.0% 35.0% 35.0% 35.0% n/a
Risk-free rate 3.90% 3.90% 3.90% 3.90% n/a
Dividend yield 0.0% 0.0% 0.0% 0.0% n/a
Valuation type Monte Carlo Monte Carlo Grant date fair value Adjusted grant date fair value (post-vesting restriction) Grant date fair value
Option awards granted upon Admission to the London Stock Exchange
On 11 June 2024 immediately before the IPO, alongside the settlement of legacy
share awards, new awards were granted in the form of market value options and
nominal-cost options over shares of Raspberry Pi Holdings plc.
The market value options have an exercise price equal to the IPO share issue
price of £2.80. The nominal-cost options have a quarter pence nominal
exercise price. The awards vest on the third anniversary of the date of
grant, subject to the employee remaining in Group employment. The awards are
not subject to other performance or holding conditions. The options expire on
the tenth anniversary of the date of grant or upon leaving.
The grant date fair value of the new awards was calculated with assistance
from an external valuation expert using a Black-Scholes model with the
following inputs and assumptions:
Market value options Nil cost
Grant date 11 June 2024 11 June 2024
Number of awards granted 11,561,566 253,773
Grant date share price £2.80 £2.80
Exercise price £2.80 £0.00
Expected term 5 years 3 years
Expected volatility 35.0% 35.0%
Risk-free rate 4.2% 4.4%
Dividend yield 0.0% 0.0%
Key assumptions in calculating the fair value of the awards
Equity schemes granted on 11 June 2024 and 14 May 2025 used a volatility
assumption of 35.0%. This was determined in reference to the midpoint between
the mean and median enterprise value volatilities of a selected peer group of
listed technology and software companies and is consistent with the volatility
input applied in the valuation of the market value option grant issued in June
2024.
An employee attrition rate of 5% was applied in calculating the fair value of
the awards, reflecting management's expectations of forfeiture based on the
post-IPO environment.
Settlement of 2020 LTIP scheme upon listing on the London Stock Exchange
In 2020, the Board approved a Long-Term Incentive Plan ("LTIP") and up to the
listing date had awarded 19,480 B ordinary shares to employees. These shares
were designed to participate in the proceeds from an exit, defined as the
Company's sale or a stock exchange listing. On the sale of Raspberry Pi Ltd to
Raspberry Pi Holdings plc in May 2024, the B shares were exchanged for shares
with equivalent rights in Raspberry Pi Holdings plc.
Upon listing on the London Stock Exchange, all outstanding awards vested and
settled by the granting of ordinary shares in Raspberry Pi Holdings plc.
When the awards vested in 2024, the cumulative $3.3 million charged to the
income statement since 2020 was transferred to retained earnings.
24 Alternative performance measures ("APMs")
Adjusted EBITDA (as presented in the Condensed Consolidated Statement of
Comprehensive Income), adjusted operating profit, adjusted research and
development expenses and adjusted administrative expenses are non-IFRS
measures used by the Board and management to monitor the Group's performance.
$ million Year ended Year ended
31 December 2025 31 December 2024
Operating profit 28.0 17.6
Amortisation and depreciation 10.5 10.7
EBITDA 38.5 28.3
Share-based payment charges 8.7 4.7
NI on share-based payment charges (0.8) 1.3
Employee share schemes 7.9 6.0
Non-recurring costs - 2.9
Adjusted EBITDA 46.4 37.2
Amortisation and depreciation (10.5) (10.7)
Adjusted operating profit 35.9 26.5
$ million Year ended Year ended
31 December 2025 31 December 2024
Research and development expenses 22.5 17.9
Amortisation (net of capitalised amortisation) (6.8) (6.3)
Share-based payment charges (5.1) (2.3)
NI on share-based payment charges 0.6 (0.6)
Adjusted research and development expenses 11.2 8.7
$ million Year ended Year ended
31 December 2025 31 December 2024
Administrative expenses 27.6 27.7
Depreciation (net of capitalised depreciation) (3.7) (4.4)
Share-based payment charges (3.6) (2.4)
NI on share-based payment charges 0.2 (0.7)
Non-recurring costs - (2.9)
Adjusted administrative expenses 20.5 17.3
25 Controlling shareholder(s)
Under UK Listing Rule 5.3, a controlling shareholder is any party that, alone
or with others, controls 30% or more of voting rights. No single entity holds
a majority stake in the Group or is considered its ultimate controlling
party.
The Raspberry Pi Foundation (the "Foundation") is a registered charity in
England and Wales (Charity No. 1129409), owns 90,326,121 (46.7%) ordinary
shares in the Company through its wholly owned subsidiary, Raspberry Pi Mid Co
Limited (the "Controlling Shareholder"), and is incorporated in England and
Wales (Reg. No. 13603843). The address of both entities is 37 Hills Road,
Cambridge CB2 1NT.
As disclosed to the takeover panel prior to the initial public offering in May
2024, the Group believes that Ezrah acts in concert with the Foundation. With
a combined shareholding of 50.02%, a parallel Relationship Agreement with
Ezrah was also executed on 11 June 2024. As at 31 December 2025, the combined
shareholding was 49.98%, as set out in the Directors' Report.
On 11 June 2024, the Group entered into Relationship Agreements with the
Foundation, the Controlling Shareholder and the Ezrah Charitable Trust
(together, the "Controlling Shareholders") to ensure the Group operates
independently, at arm's length and on a normal commercial basis. These
agreements prohibit the Foundation from voting on matters affecting itself
or actions that could breach UK Listing Rules or compromise the Group's
independence.
The Controlling Shareholder may nominate up to two Non-Executive Directors if
its shareholding exceeds 25%, or one if above 10%. Currently, Daniel Labbad, a
trustee of the Foundation until 10 June 2024, is the sole Board Director of
the Company nominated by the Foundation in this manner. All other Board
members were appointed independently.
In September 2020 Raspberry Pi Ltd and the Foundation entered into to an
agreement to transfer the Raspberry Pi brand to Raspberry Pi Ltd. As a
condition of that agreement Raspberry Pi Ltd undertook to provide low-cost
computers to education customers. Failure to meet this would result in
trademark ownership reverting to the Foundation. On 21 February 2024,
Raspberry Pi Ltd amended its trademark agreement with the Foundation, to
change the definition of low cost to be a price of no more than $45
(or, if higher, manufactured cost plus 20%, plus applicable taxes and fees).
During the year, the Foundation purchased $24,000 (2024: $27,400) in goods
from the Group. The Group had historically provided life assurance and medical
insurance for employees jointly with the Foundation. For administrative
simplicity the Group paid the entire premium and recharged the relevant share
to the Foundation. Annual arrangements were in place at the time of the
listing and accordingly will continue to their expiry. Post-listing pension
contributions and life assurance costs for the Foundation, totalling $1.6
million (2024: $0.8 million), were recharged. No amount was outstanding at
the end of the year (2024: $47,200). These transactions do not relate to the
main business of the Group. All other related party transactions are
disclosed in Note 26.
As required by UK Listing Rule 6.2.3, all the Independent Directors confirm
that, since listing, the Group has operated independently from the Controlling
Shareholders at all times.
26 Related party transactions
The Group's related parties include subsidiary undertakings, Board members and
their close family members, and principal shareholders holding 10% or more of
voting rights.
Transactions between the parent and subsidiaries are eliminated on
consolidation and are not disclosed in this note.
Key management personnel is defined as the Board. Board remuneration is
detailed in Note 6 and in the Directors' Remuneration Report. In addition to
the short-term employee benefits, post-employment benefits and share-based
payment expenses outlined in Note 6, a total of $0.2 million (2024: $0.3
million) was paid for social security contributions related to key management
personnel. Related party transactions with the Controlling Shareholder are
disclosed in Note 25.
During the year, members of the Board and their close family members undertook
the following share dealings:
Transaction date Party Transaction type Number of shares Transaction price
30 January 2025 Close family member Sale of shares 56,000 £7.10
17 June 2025 Executive Directors Sale of shares 500,000 £4.55
30 July 2025 Close family member Sales of shares 16,200 £4.29
31 July 2025 Close family member Sale of shares 13,800 £4.19
5 November 2025 Executive Director Purchase of shares 5,832 £3.43
17 November 2025 Executive Director Purchase of shares 6,036 £0.00
21 November 2025 Non-Executive Director Transfer of shares into Self-Invested Personal Pension ("SIPP") 12,000 £0.00
28 November 2025 Executive Director Purchase of shares 3,078 £3.23
1 December 2025 Executive Director Purchase of shares 3,127 £3.18
27 Events after the reporting period
The Group entered into an amendment to a long-term supply agreement as
disclosed in Note 19. The amendment, effective from 1 January 2026,
modifies the remaining contractual commitments, with a total value of
approximately $300.0 million over the period 2026 to 2030 and includes
updated supply obligations with the supplier. As the agreement was executed
after the reporting date, no adjustments to the financial statements
for the year ended 31 December 2025 are required.
28 Material accounting policies
This note provides a list of other potentially material accounting policies
adopted in the preparation of these condensed consolidated financial
statements to the extent that they have not already been disclosed in the
notes above. These policies have been consistently applied to all of the
years presented, unless otherwise stated. The financial statements are for the
Group consisting of Raspberry Pi Holdings plc and its subsidiaries as listed
in the Company financial statements.
28.1 Revenue recognition
Revenue is recognised in accordance with IFRS 15 "Revenue from Contracts with
Customers". Revenue is recognised when control of goods or services is
transferred to the customer, reflecting the consideration expected to be
received. The five-step model in IFRS 15 is applied, except for royalties for
the licence of intellectual property as explained below. Revenue is only
recognised if an enforceable right to payment can be demonstrated.
Product revenues: Generated by supplying single board computers ("SBCs"),
compute modules, accessories and semiconductors from our contract manufacturer
directly to Approved Resellers ("ARs") and original equipment manufacturers
("OEMs"). The Group acts as principal in these direct distribution
transactions. Revenues are recognised at the point in time when physical
possession of the product has transferred to the customer, based on fixed
prices per unit. The transfer is evidenced by receipt of an undisputed
delivery note, as the sole performance obligation is satisfied.
Royalties: Earned per unit on products that customers manufacture (e.g. Pi 5)
and sell (e.g. Pi 4) through licensing of designs and trademarks. According to
IFRS 15, the sales-based or usage‑based royalty exception (paragraph B63)
applies, as the licence is the predominant performance obligation. Royalties
are recognised on an accruals basis in accordance with the underlying
agreement when the subsequent sale or usage event that triggers the royalty
occurs and are presented net of any amounts collected on behalf of third
parties, regardless of whether the licence is a right to use or right to
access.
Component revenues: Recognised at the point in time when physical possession
of the product has transferred to the customer, based on fixed prices per
unit, following the accounting policy for product revenues, unless the Group
has made a promise to repurchase the component.
Sales returns provision: The Group recognises a provision for expected sales
returns on SBCs, which typically include a 12-month warranty under standard
sales terms. Returns are assessed at each reporting date, and if no
significant returns are expected, no provision is recognised. This estimate is
periodically reviewed based on emerging trends and historical data. As there
has been no history of material returns, no such provision has been recognised
to date.
Repurchase liabilities: These occur when the Group sells components to the
contract manufacturer and simultaneously raises an order for the manufacture
of a finished product that contains the same component. As the Group will
subsequently repurchase the asset, control has not been transferred, with the
contract manufacturer limited in its ability to direct the use of, and obtain
substantially all of the remaining benefits from, the asset. Consequently, in
accordance with paragraph B66(b) of IFRS 15, the transaction is treated as a
financing arrangement. The inventory is not derecognised, and instead the cash
received from the contract manufacturer is treated as a short-term financial
liability. On repurchase, the repurchase price which represents the cost of
the finished goods including processing costs incurred by the contract
manufacturer, is capitalised as inventory in accordance with the Group's
inventories policy (Note 28.10). No financing component is separately
recognised owing to the immateriality of the time value of money within
standard 30-day payment terms. These costs are recognised in cost of sales
upon sale of the finished goods.
Principal versus agent: The Group evaluates the following indicators, among
others, when determining whether it is acting as a principal or agent in the
transaction and recording revenue on a gross or net basis:
(i) The Group is primarily responsible for fulfilling the promise to
provide the product.
(ii) The Group has inventory risk before the product has been transferred to
a customer.
(iii) The Group has discretion in establishing the price for the product.
The Group also operates a publishing business, Raspberry Pi Press, which
produces magazines and books, as well as the Raspberry Pi Store in Cambridge,
England. All revenue is recognised at the point in time that the product is
transferred to the customer, except for publishing revenue, which is
recognised over the length of the magazine subscription. Furthermore, the
Group applies IFRS 15 practical expedients for significant financing
components and costs to fulfil contracts, as the Group's sales cycles are
generally short term and do not exceed 12 months.
28.2 Cost of Sales
The Group recognises cost of sales at the point at which it recognises revenue
as explained above. Cost of sales predominantly relates to the cost of goods
or services purchased from suppliers and then sold to customers. The cost of
sales for products sold by us through our direct distribution channel is the
price we pay for them to be manufactured, plus licence fees paid to parties
whose intellectual property is used in their design. The Group considers the
cost of shipping its products to the customer to be directly associated with
generating revenue and therefore presents these costs (2025: $3.5 million;
2024: $1.9 million) within cost of sales. The cost of sales for products sold
through the licensee channel is the licence fees paid to parties whose
intellectual property is used in these products' design. The manufacturing
cost of the products sold through the licensee channel is borne by
the licensee.
28.3 Foreign exchange
All material entities have a US Dollar functional currency. The US Dollar
primarily influences both the sales prices for products and services and the
cost of associated raw materials and component parts.
As the Group's presentational currency is also US Dollars no exchange reserve
arises on consolidation.
Underlying foreign currency transactions (primarily transactions in Sterling)
are translated into US Dollars using daily average exchange rates. Foreign
exchange gains and losses resulting from the settlement of such transactions,
and from the translation of Sterling‑denominated working capital items, are
recognised in the Condensed Consolidated Statement of Comprehensive Income.
28.4 Segmental analysis
The Group determines and presents operating segments based on the information
that is provided internally to the Board, which is the Group's Chief
Operating Decision Maker ("CODM").
It is the view of the Directors that the Group has a single operating segment,
as defined by IFRS 8 "Operating Segments", being the manufacture and sale of
cost-effective programmable computing devices.
The CODM makes operating decisions for a single operating unit and operating
performance is assessed as a single operating segment. The information used by
the CODM is consistent with, and prepared on the same basis as, that
presented in the financial statements.
28.5 Current and deferred taxation
The tax expense for the period consists of the tax payable on the current
period's taxable income, based on applicable income tax rates, adjusted for
changes in deferred tax assets and liabilities due to temporary differences.
Current tax receivables and payables are measured at the expected amount to be
recovered from or paid to tax authorities, based on the annual corporation
tax return prepared with our tax advisers, in accordance with enacted
or substantively enacted UK tax rates and legislation.
Deferred tax is provided on temporary differences between the tax bases of
assets and liabilities and their carrying amounts in the financial statements.
It is calculated using tax rates that have been enacted or substantively
enacted by the reporting period's end and are expected to apply when the
timing differences are resolved. Deferred tax assets are recognised only if it
is probable that future taxable amounts will be available to utilise them.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to do so, and they relate to the same taxation authority.
Current tax assets and liabilities are similarly offset when there is a legal
right to net them, or to realise the asset and settle the liability
simultaneously. Excess tax benefits beyond IFRS 2 charges are recognised in
equity.
Current and deferred tax is recognised in profit or loss, except when it
relates to items recognised in other comprehensive income or directly in
equity, in which case the tax is recognised accordingly in those areas.
The Group applies IFRIC 23 "Uncertainty over Income Tax Treatments" when
assessing tax positions where uncertainty exists regarding acceptance by tax
authorities. Under IFRIC 23, tax treatments are evaluated based on whether it
is probable that the relevant tax authority will accept them. If acceptance is
not probable, the most likely outcome or expected value approach is applied to
determine the tax position. The Group recognises uncertain tax positions in
current or deferred tax calculations and records provisions where necessary.
Changes in facts or circumstances are monitored, and adjustments are made as
required. The Group's policy ensures consistent application of IFRIC 23
principles, with judgements reviewed regularly in consultation with external
tax advisers.
28.6 Intangible assets
Externally acquired intangible assets predominantly relate to software
licences which are initially recognised at cost and subsequently amortised
over the life of the licence. All other intangible assets are amortised
straight line over a period of three to eight years.
The accounting for capitalised pipeline development projects is considered to
contain a critical judgement upon initial capitalisation of the costs and a
critical estimate in determining the useful lives of the projects once
launched. Refer to the critical judgements and estimates relating to these
items in Note 2.5.
Capitalised development costs are amortised over the periods the Group expects
to benefit from selling the products developed. The amortisation expense is
included within research and development expenses in the Condensed
Consolidated Statement of Comprehensive Income.
For capitalised pipeline development costs that are not yet complete, these
costs are not amortised but subject to mandatory annual impairment testing in
accordance with IAS 36.
28.7 Property, plant and equipment
Property, plant and equipment ("PPE") are stated at historical cost less
depreciation and impairment. Depreciation uses the straight-line method, with
asset residual values, useful lives and depreciation methods reviewed
periodically. All PPE is depreciated over three years except for leasehold
improvements which are depreciated with reference to the life of the lease.
The estimated useful lives and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate accounted
for on a prospective basis.
An item of property, plant and equipment is derecognised upon disposal or when
no future economic benefits are expected to arise from the continued use of
the asset. The gain or loss arising on the disposal or retirement of an asset
is determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognised in profit or loss.
28.8 Leases
The Group assesses whether a contract is or contains a lease, at inception of
the contract. The Group recognises a right-of-use asset and a corresponding
lease liability with respect to all lease arrangements in which it is the
lessee, except for short-term leases (defined as leases with a lease term of
12 months or less) and leases of low-value assets (defined as assets with a
value of $5,000 or less when new). For these leases, the Group recognises the
lease payments as an operating expense on a straight-line basis over the term
of the lease unless another systematic basis is more representative of the
time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease
payments that are not paid at the commencement date, discounted by its
incremental borrowing rate. The lease liability is subsequently measured by
increasing the carrying amount to reflect interest on the lease liability
(using the effective interest method) and by reducing the carrying amount to
reflect the lease. The Group remeasures the lease liability (and makes a
corresponding adjustment to the related right-of-use asset) whenever the lease
term or payments are changed.
28.9 Financial Instruments
Financial assets and liabilities are recognised when the Group becomes a party
to the contract provisions.
They are initially measured at fair value with subsequent measurement
dependent on their classification as either amortised cost or fair value
through profit and loss or other comprehensive income.
The Group's financial instruments comprise financial assets and liabilities
measured at amortised cost and derivative financial instruments measured at
fair value through profit or loss.
· Cash and cash equivalents comprise cash at bank and in hand and short-term
deposits maturing in less than three months. For the purposes of the Condensed
Consolidated Statement of Cash Flows, cash and cash equivalents consist of
cash and cash equivalents as defined above, net of outstanding bank
overdrafts.
· Trade and other receivables are recognised at fair value (which ordinarily
reflects the invoice amount) and carried at amortised cost, less an allowance
for expected lifetime losses as permitted under the simplified approach
in IFRS 9.
· Trade payables and other payables are not interest bearing and are recognised
at fair value (which ordinarily reflects the invoice amount) and subsequently
at amortised cost.
Trade receivables and payables are amounts due from customers or owed to
suppliers in the ordinary course of business. As they are subject to standard
payment terms these balances are considered current and are recognised at
their invoice value, being a reasonable approximation of fair value due to
their short-term nature. They are recognised initially at the invoice amount,
unless they contain significant financing components, in which case they are
recognised at fair value. The Group holds the trade receivables with
the objective of collecting the contractual cash flows, and it therefore
measures them subsequently at amortised cost.
Interest-bearing loans and overdrafts are initially recorded at fair value,
net of direct issue costs, and subsequently measured at amortised cost using
the effective interest method, with interest expense recognised over the term
of the liabilities. Since the RCF is undrawn, the arrangement fee cannot be
offset against any borrowing and is therefore recognised within other debtors
and prepayments. The arrangement fee is amortised over the term of the RCF.
Although there are currently no external borrowings drawn, the Group has
access to the RCF, necessitating the inclusion of this accounting policy.
The Group's activities expose it to financial risks from fluctuations in
foreign exchange and interest rates. The Board regulates the use of
free-standing derivatives (such as forward FX contracts) in line with
established risk management strategies
· Derivative financial instruments comprise of forward foreign
exchange contracts to manage short-term operational currency exposures,
primarily to reduce the effect of fluctuations in GBP on forecasted
transactions, receivables and payables.
Forward foreign exchange contracts are recognised on the Condensed
Consolidated Statement of Financial Position at fair value. Forward contracts
that do not meet the criteria for hedge accounting under IFRS 9 are classified
as financial instruments at fair value through profit or loss. Changes in
fair value of contracts not qualifying for hedge accounting are recognised in
profit or loss and classified within administrative expenses, reflecting the
operational nature of the contracts.
Fair values are determined using observable market inputs and are classified
as Level 2 in the fair value hierarchy. The Group's use of forward contracts
exposes it to foreign currency, credit and liquidity risks, which are managed
in accordance with the Group's financial risk management policies.
Derecognition of financial assets
The Group derecognises a financial asset when the contractual rights to the
cash flows from the asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which substantially all of the
risks and rewards of ownership of the financial asset are transferred or in
which the Group neither transfers nor retains substantially all of the risks
and rewards of ownership and does not retain control of the financial asset.
On derecognition of a financial asset, the difference between the carrying
amount of the asset (or the carrying amount allocated to the portion of the
asset that is derecognised) and the consideration received (including any new
asset obtained less any new liability assumed) is recognised in the Condensed
Consolidated Statement of Comprehensive Income. Any interest in such
transferred financial assets that is created or retained by the Group
is recognised as a separate asset or liability.
Derecognition of financial liabilities
The Group derecognises financial liabilities when the Group's obligations are
discharged or cancelled or have expired. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and
payable is recognised in the Condensed Consolidated Statement of
Comprehensive Income.
28.10 Inventories
Inventories, which comprise components and finished goods for resale, are
valued at the lower of cost and net realisable value, after making due
allowance for obsolete and slow‑moving inventories. Cost comprises all costs
of purchase and cost of conversion (excluding borrowing costs). Costs are
assigned to individual items of inventory on the basis of weighted average
costs. Net realisable value is the estimated selling price in the ordinary
course of business less the estimated costs necessary to make the sale.
For finished goods acquired under repurchase arrangements with contract
manufacturers (Note 28.1), cost includes the repurchase price paid, which
incorporates the cost of conversion.
28.11 Provisions
A provision is recorded in the Condensed Consolidated Statement of Financial
Position when the Group has a legal or constructive obligation arising from a
past event, and it is likely that settling the obligation will require an
outflow of economic benefits.
If the impact is material, the provision is calculated by discounting the
anticipated future cash flows at a pre-tax rate that reflects current market
views on the time value of money and, where relevant, risks specific to the
liability.
When discounting is applied, the increase in the provision over time is
recognised as a finance cost. If it is virtually certain that an insurer will
reimburse part or all of the economic outflows required to settle a provision,
the reimbursement amount is recognised as an insurance receivable asset and
reported separately within other receivables, provided the receivable amount
can be measured reliably.
28.12 Employee benefits
Liabilities for wages, salaries, non-monetary benefits and annual leave
expected to be settled within 12 months are recognised and measured at the
expected amounts. Defined contribution plans are expensed as incurred on an
accruals basis.
28.13 Deferred income - RDEC (government grants)
The Research and Development Expenditure Credit ("RDEC") is accounted for as a
government grant where there is a reasonable assurance that the grant will be
received, and the Group will comply with all attached conditions. The tax
credits are initially recognised once they are receivable on an accruals
basis. Whilst IAS 20 "Accounting for Government Grants and Disclosure of
Government Assistance" excludes tax credits from its scope, so does IAS 12
"Income Taxes" and no other standard either includes it or appears relevant;
therefore, in the absence of any other specific guidance, we follow IAS 20 as
it is considered normal in this scenario.
To the extent that the credits relate to expenses already incurred the income
is presented as a reduction in R&D expenses, offsetting the underlying
costs that the RDEC incentives are intended to compensate.
To the extent that the credits relate to pipeline development costs that have
been capitalised within intangible assets, the income is initially deferred
onto the Condensed Consolidated Statement of Financial Position and then
subsequently recognised in profit and loss to match the amortisation of the
related costs being compensated. This income is presented as a reduction in
R&D expense within operating profit as the income is taxable.
28.14 Share-based payments
The Group issues equity-settled share-based payments which are fair valued at
the grant date. For awards valued by reference to the Company's share price,
the opening market price on the grant date is used. Once the grant date fair
value has been determined, it is recognised in the Condensed Consolidated
Statement of Comprehensive Income on a straight-line basis over the vesting
period, with appropriate adjustments for forfeitures. Where vesting periods or
other vesting conditions apply, the expense is allocated over the relevant
vesting period based on the best available estimate of the number of share
options expected to vest. The corresponding credit is to the share-based
payment reserve. Upon vesting, amounts recognised in the share-based payment
reserve are transferred to retained earnings.
28.15 Own shares
The Group provides finance to Employee Benefit Trusts to either purchase
Company shares on the open market, or to subscribe for newly issued share
capital, to meet the Group's obligation to provide shares when employees
exercise their options or awards. Costs of running the Trusts are charged to
the Condensed Consolidated Statement of Comprehensive Income. Shares held by
the ESOP Trusts are deducted from reserves and presented in equity as an own
share reserve until such time that an employee exercises their award. At the
reporting period, there were 155,226 shares in the Trust at historical cost of
approximately $500.
28.16 Dividends
Dividends are recognised when they become legally payable. In the case of
final dividends, this is when approved by the shareholders at the AGM. Interim
dividends are recorded when paid.
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