Core Insights - The company reported a standout fiscal 2025, with rising unit shipments and strong demand trends expected to continue into early 2026, despite challenges from elevated DRAM prices [7][10]. Financial Performance - Year-end cash decreased to GBP 28 million from GBP 45 million, with an undrawn GBP 80 million revolving credit facility [1]. - Gross profit rose by 23%, adjusted EBITDA increased by approximately 25% year-over-year to $46.4 million, and adjusted earnings per share increased by 35% to $0.145 from $0.107 [2]. - Board and module shipments increased by 9% to 7.8 million units, contributing to a 25% increase in EBITDA, with overall unit volume at 7.6 million, up about 9% from 2024 [3]. Market Dynamics - Demand for Raspberry Pi products built steadily throughout 2025, with the second half showing stronger performance than the first, particularly in the U.S. and China [6]. - The company experienced a transition from strong direct sales in 2024 to an "industry-wide indigestion" phase, with demand settling by early 2025 [5]. DRAM Pricing and Strategy - DRAM prices have significantly increased, driven by hyperscalers' demand and a shift in production focus, with prices rising roughly sevenfold recently [8]. - The company has widened its supplier base beyond Micron and Samsung and is pursuing strategies to use memory more efficiently, including larger purchases and price increases [9][10]. Product Development and Innovations - 2025 saw slower product launches compared to 2024, but still among the strongest historically, with notable developments like Raspberry Pi Connect, which ended 2025 with about 370,000 registered devices [12]. - The semiconductor business marked a crossover year with chip sales up 47% year-over-year to 8.4 million units, indicating a potential second franchise for the company [14]. Operational Changes and Future Outlook - The company has strengthened its operational requirements to prevent diversion of products into conflict-related uses, particularly in the context of the Ukraine war [15]. - The company entered 2026 with substantial customer backlogs and expects profitability to align with market estimates, while revenue is likely to exceed market expectations due to product price increases [17].