Raspberry Pi: What happened to the UK’s former tech darling?

Tuesday 23 September 2025 1:41 pm
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Tuesday 23 September 2025 1:42 pm

Shares in Raspberry Pi tumbled in London on Tuesday after the low-cost laptop maker revealed a pointy drop in half-year income, leaving traders questioning whether or not one of many UK’s most high-profile tech IPOs can reside as much as expectations.

The Cambridge-based agency, which floated in June 2024 in one of many London Inventory Trade’s most celebrated listings in years, mentioned its pre-tax revenue fell 43 per cent to $6.2m (£4.6m) within the six months to June.

The outcomes additionally confirmed that income had slipped practically six per cent to $135.5m (£100m), whereas adjusted earnings had been down seven per cent to $19.4m (£14.3m).

Consequently, shares slid as a lot as 5 per cent this morning to 382p, leaving the group 42 per cent decrease year-to-date.

The inventory stays above its 280p IPO value, however nicely off the 780p peak it reached in January.

Traders develop stressed

Chief govt Eben Upton harassed that the second half had “began nicely” and insisted full-year revenue steerage was unchanged.

“We continued to construct momentum within the half, with rising demand from our reseller channel and OEMs driving an eight per cent sequential enhance in direct unit shipments and a major buyer order backlog on the finish of June”, Upton mentioned.

“Our rising pipeline of OEM alternatives, disciplined provide chain administration and robust product roadmap place the enterprise for future development”.

The corporate launched seven new merchandise within the first half and highlighted surging demand for its microcontrollers, with semiconductor volumes surpassing board gross sales for the primary time.

However analysts warned that persistence could also be sporting skinny. Russ Mould, funding director at AJ Bell, mentioned: “It seems like rather a lot is driving on Raspberry Pi, which represented essentially the most significant tech IPO within the UK in years.”

“There shall be widespread disappointment to see its newest outcomes immediate additional share value losses. Income and revenue are meaningfully decrease for the interval, and the corporate’s try and get the market to deal with sequential enchancment is failing miserably,” he added.

Traders stay involved in regards to the impression of tariffs on parts, one thing Upton has downplayed, in addition to increased analysis and improvement prices, which rose practically 40 per cent within the half.

Dan Lane, UK lead analyst at Robinhood, famous the market was nonetheless keen to again Raspberry Pi however flagged that expectations had been now increased: “Flat volumes and an enormous fall in income don’t paint the best image for one of many UK’s most notable tech hopes. That’s in opposition to a tricky comparator although, and there’s much more to really feel constructive about”.

“DRAM provide and pricing is a wider concern however Raspberry Pi has sufficient readily available to hit gross sales targets. The second half ought to contribute much more meaningfully to income. Nonetheless, valuation is an actual subject and gross sales actually need to begin justifying the worth tag”.

A check for UK tech listings

Based in 2012 to make computing extra accessible, Raspberry Pi has offered tens of hundreds of thousands of its single-board computer systems worldwide, used in every single place, from school rooms to industrial programs.

Its IPO final yr, at a £542m valuation, was seen as a uncommon coup for London’s market because it battles to draw tech corporations that usually choose New York.

However with income beneath stress and the share value sliding, Raspberry Pi is more and more being seen as a litmus check for a way UK traders deal with small and mid-cap tech.

As Mould warned: “The corporate continues to be comparatively immature, and traders can’t count on income to rise in a straight line. Nonetheless, any additional disappointments and it might discover that persistence is operating skinny on the bottom”.