Raspberry Pi leans into semiconductors as sales climb • The Register

Raspberry Pi has reported spectacular income and revenue progress, however its hobbyist origins danger taking a backseat amid hovering semiconductor shipments.

The agency, well-known for its eponymous diminutive computer systems, recorded [PDF] revenues of $323.5 million in FY 2025, a rise of 25 p.c on 2024. Gross revenue was $77.8 million, up 23 p.c, and the group reported a 73 p.c improve in earnings per share to 11.22 cents.

Progress remains to be there, however DRAM inflation … pushed up by overwhelming demand from AI … and cloudy second-half visibility stay the important thing issues traders will fear about

The group noted strengthening demand all year long, notably from the US and China. Considerably, semiconductor machine volumes exceeded these of boards and modules, totaling 8.4 million models.

The latter statistic may trigger concern among the many hobbyist neighborhood, who would in any other case be delighted on the firm’s success. Whereas the $66.3 million gross revenue from the corporate’s SBC and compute modules was far in extra of the $0.6 million from “Microcontrollers, publishing and others,” the corporate has an “ambition to construct Raspberry Pi right into a two‑franchise enterprise, with each digital merchandise and semiconductors making important contributions to volumes, revenues, and profitability.”

Alex Pugh, an analyst at Freetrade, commented: “What’s fascinating is the enterprise is beginning to look broader and extra industrial. Semiconductor shipments overtaking boards and modules for the primary time is a significant milestone. Raspberry Pis are transferring out of garages and workshops into elevators, transferring walkways, industrial management and automation, digital signage, good buildings, and power administration.

“The agency is graduating from maker tradition and hobbyist fan fave to one thing extra mature: a enterprise with rising semiconductor scale, stronger OEM and Authorised Reseller demand, and a wider business footprint.”

The corporate famous will increase in unit gross sales throughout nearly all product variants. It stated that improvement on the Raspberry Pi 6 was “ongoing” following the discharge of the Raspberry Pi 500+ all-in-one PC in 2025. It didn’t point out when the machine may attain prospects, saying solely there could be “important enhancements in efficiency, effectivity, and value, and an emphasis on continuity within the software program stack.” So a bit sooner, and also you most likely will not need to recompile every thing to make use of it.

There was no point out of the anticipated alternative for the Pi Zero 2, which first debuted in 2021.

Trying forward, the corporate stated it had adequate reminiscence stock to hold it by a lot of 2026, though uncertainty round pricing has clouded long-term forecasts. CEO and founder Eben Upton stated: “Whereas the DRAM setting limits second-half visibility, we now have the stock place, provider relationships and pricing flexibility to navigate it successfully.

“We stay assured in our means to execute and look at the present market setting primarily as a possibility moderately than a risk.”

Pugh added: “Progress remains to be there, however DRAM inflation – Dynamic Random Entry Reminiscence (DRAM) chips, pushed up by overwhelming demand from AI – and cloudy second-half visibility stay the important thing issues traders will fear about. The agency says it has managed DRAM stress by provider diversification, pricing changes and substantial stock buffers.

“Extra income is sweet. But when revenue solely tracks in line, the plain query is how a lot of that further progress will get absorbed by reminiscence prices or pricing stress.”

Raspberry Pi’s outcomes will please shareholders, and its product pipeline seems strong. Nevertheless, uncertainty within the long-term DRAM market is more likely to concern traders, whereas fanatics and hobbyists – the neighborhood on which the corporate was constructed – might be aware of rising microcontroller shipments and costs, and think about what that would imply for its future. ®