Raspberry Pi surfs memory crunch to record first half

Raspberry Pi has delivered a record first half, with revenue and profits soaring as the Cambridge-based company navigated a surge in memory prices and shortages. The firm reported sales of $256.9 million for the six months ending June 30, a 90% increase from $135.5 million in the same period last year. Pre-tax profit also more than tripled to $19.6 million.

The company shipped 4.2 million Raspberry Pi boards during the six months, up 17% year-on-year, while its order backlog doubled to 2.6 million units. The key to this success was a strategic memory stockpile built by Raspberry Pi last year to counter the tightening market. CEO Eben Upton explained that this move allowed the company to maintain product availability as competitors faced difficulties securing allocation.

As a result, Raspberry Pi experienced a significant boost in gross profit per board, rising from $8 to $12.20, helped by higher prices and the cost savings from the acquired memory inventory. However, the benefit is now tapering as the cheaper memory from 2025 has been depleted. The company continues to stockpile, but at a higher cost, with 2.4 million LPDDR4 devices in inventory at the end of June, growing to 8.3 million GB by August.

Despite the memory squeeze, Raspberry Pi's Pi Zero sales fell 9% due to production issues at a Taiwanese packaging company, though demand remains strong. Direct sales of Raspberry Pi 4 and Pi 5 boards increased by 69% and 47% respectively, with demand particularly high in smart home and aerospace and defense sectors. Overall, Raspberry Pi's proactive move to stock memory has proven profitable, with further purchases planned to meet production targets through 2027.