Raspberry Pi surfs memory crunch to record first half

Raspberry Pi has reported a record first half, driven by a strategic memory stockpile that helped it navigate rising prices and shortages. The Cambridge-based company posted revenue of $256.9 million for the six months ending June 30, a 90% increase from $135.5 million a year earlier. Pre-tax profit more than tripled to $19.6 million.

Raspberry Pi shipped 4.2 million boards, up 17% year-on-year, with its order backlog doubling to 2.6 million units. The company's decision to build a significant memory inventory last year has been crucial, allowing it to maintain product availability while competitors struggled. CEO Eben Upton said the move has paved the way for cheaper memory prices as Raspberry Pi burned through its stash.

Gross profit per board increased from $8 to $12.20, thanks to both price hikes and the cheaper memory inventory. However, as the cheaper memory is used up, the exceptional unit economics have since moderated. Raspberry Pi now holds 8.3 million GB of memory, enough to meet its production targets for the rest of 2026. Despite the memory squeeze, Pi Zero sales fell 9% due to production congestion, but overall demand remains strong.

Direct shipments of Raspberry Pi 4 and Pi 5 boards increased by 69% and 47% respectively, with strong demand from the smart home and aerospace sectors.