Raspberry Pi Holdings plc (RPI.L) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to our 2025 first half interim results. We're going to start by sharing a few highlights of the half, and Richard is going to take us through the financials, and we'll round off with an update on some of our strategic programs and an outlook for the second half and beyond. We're very pleased with our performance in the first half of the year. We saw a 9% sequential increase in unit volumes, underlying demand growth from our existing and new OEM customers. And this happened in the context of a normalized channel inventory position. Recall that heavy inventory both in channel and at our OEM customers was a significant drag on the performance of the business in the second half of last year. So an 8% sequential increase in direct unit sales and a 27% increase in direct revenue, reflecting the success of our strategy to move more of our large OEM customers into the direct channel. A good product mix, certainly a better product mix than in the second half of last year, which together gave us a 19% sequential increase in adjusted EBITDA. Just to probably address a couple of potential headwinds on the company. Obviously, we are now in a high and dynamic, probably more importantly, dynamic tariff environment in respect to sales into the U.S., we've looked and we've seen no evidence of a significant impact of those tariffs on our demand from U.S. OEM or consumer customers. We do see this in the medium to long term as a significant source of differential competitive advantage over many of our competitors who tend to be manufactured in the Far East. And then there's been a lot of noise recently about DRAM pricing and DRAM availability. We entered the year with substantial stockpiles of DRAM, tens of millions of dollars of stockpile of DRAM across all densities. We are -- those stockpiles will take us through lower densities. That hedge will take us through into 2026. We do have some exposure to market pricing to a contract market pricing, not spot market pricing at higher densities at the 8 and 16 gigabyte points but sufficient supply to take us through to the end of the year. In the longer term, of course, we do have a number of technical and commercial levers that we can pull to mitigate our vulnerability to sustained high DRAM pricing. It's been a good half for product launches, where 2024, I think, was a year of platform refresh. We refreshed both the large Raspberry Pi, the Linux-based Raspberry Pi platforms and the small Raspberry Pi, the microcontroller-based platforms. 2025 is really a year of sustaining innovation. We'll talk a little bit more -- we'll give a little bit more detail on that later. And we'll also talk a little bit more about our board-to-board initiative. We're seeing encouraging progress in our board-to-board initiative that aims to open up CTO level conversations with major industrial OEMs and the progress -- the very substantial progress we've been making this year in our semiconductor franchise. So I'll turn it over to Richard for a little bit for some financials.

Thank you. Good morning. The financial review of the first half. I'm going to start with the first slide, if you would. And so really, for a bit of context, we've got this first graph here showing units by quarter. And within the categorized, you can see below the line really are our major boards. So what is that? That's sort of reading up from the bottom, it's the compute modules. It's Pi 3, which we're still selling significant volumes of having even launched the product in 2016, but continuing to be a major component of our unit volumes, Pi 4, through the period and then Pi 5, which was most recently launched at the last quarter of 2023. And really, why do I put this up? It's the changes we went through in '24 into '25, very helpful, I hope, in explaining some of the trends that underlie the particularly half 1 against half 1 comparison. So quarter 1 of 2024 came into the year, we were still seeing the backlog of orders that have been placed during the time of shortages in '22 and '23, particularly in the area of compute modules. And that was really the last significant part there. And then you can see the lighter blue Pi 5, actually very strong in that period. We've just launched the product and therefore, a lot of volume come through into quarter 2 and then quarter 3 and 4 of last year, where we saw this channel indigestion with so many people had bought boards. And really the period has that worked its way through. Key thing though, in quarter 3, obviously, one of the things that helped it. We launched Pico, board at $3 or $4, though, so not a lot of gross profit per unit. But clearly, as a unit volume quite significant. And the piece that we've -- Eben has already mentioned, we mentioned actually at the time of the full year results. Really that return to industrial OEM demand in quarter 1, quarter 2 of this year. Has the channel stabilized? And what did we see? We saw that strength. You can see in the bright orange Pi 3, very much an industrial board. Something of that age is very much a product that people have built into a design and they continue to use. And so we saw that come through and that return to volume in the second half -- sorry, in the first half of this year where those main boards have come through. So that's the underlying sort of trends. I don't think we'll give quarterly numbers very regularly, but I think is something of the pattern of what we've been through over the last year and into that period sort of I think much more confident growth now is, hopefully helpful. So overall, just looking at some of the key metrics, unit volume. We sold 3.6 million boards in the first half. That's down very slightly on $3.7 million we did a year ago, but up on that second half of last year, some 10% up on the second half of last year. Gross profit per unit down a little on 2024. Why is that? Well, that was the very strong gross -- sorry, strong profits that we had on compute modules in the first half of last year offset by some of the additional profit we're now making because we have the cheaper Broadcom chip in the Raspberry Pi 5. That goes to a gross profit that was in truth more or less in line with 2024, aided by essentially the same sort of performance in accessories, but also additional profit that we're now making on semiconductors, which we'll talk a bit more about later. Overall, that came to an EBITDA of about $19.4 million, more or less in line with 2024. With our administrative costs, talk a bit about on the second page, continue to be sort of tightly controlled. One of the figure here. Cash at the end of the year was $34.3 million. That's down on the position at the end of the year, really with a reduction in payables. Inventory, we have started to -- inventory is in a good place particularly in finished goods, we've brought that down. And the real reduction is a one-off reduction in our extended payables, which we'll talk about a bit more later. Thank you. Just quickly on units per half, very much as previously described. It's worth noting the change in the sort of license volumes there, down after a strong Pi 5 launch was direct sales, the sales that we make to OEMs and resellers have risen consistently through the period, partly because of new products. And so things like Pi 5 with 2 gigabytes and memory, but also Pi 3s and compute modules returning to strength. Gross profit per unit in the half 1 of 2024, I think we've alluded to, compute module volumes, which are a much better margin product was strong and that was offset by the additional cost of the 2712 C1 chip that we had from Broadcom, which was the first chip, $5 more expensive than where we are now, that we use in the Pi 5 initially. During the second half of last year, we had then sequentially this Pico launch, which was definitely at a lower volume and a general slowdown in the mix of products. And then in the half -- first half of this year, more 2 gigabytes and 1 gigabyte products being sold, very much this return to OEM demand, together with Pi 3 offset in part by that cheaper Broadcom chip, which helped sort of push the profit per unit back up. And I think we'll see some of that trend into the second half. I think we'll continue to see a slight improvement through that period. We had a few other sort of one-off costs within there that should benefit that profit per unit. So moving to the next slide, I think it was Frederick the Great when presented by the Brandenburg Concertos complained too many notes -- my apologies that there are probably too many numbers on this one, a little bit of exuberance. As you can see, gross profit per unit -- sorry, gross profit down a little bit, but then admin expenses overall, a slight increase, a few more heads and some more costs from being a listed company, whether that was additional sort of areas like sort of Investor Relations, but offset by -- in this period by some foreign exchange gains on balances of about $700,000 or $800,000. So we have various sterling receivables, which we had some small gains on over the period. That brought down to an EBITDA of about $19.4 million. Amortization was up, I think as we flagged up by about $1 million. Principally, we relaunched the Raspberry Pi RP2350 chip, codenamed Amethyst at the time, which was launched in August. And from that period, we started amortizing. So no amortization on that chip in 2024 and about $1 million of amortization in 2025, which is why there's a step-up there. That brings you through to adjusted operating profit for the period of $13.2 million. After that, we've got adjustments. These numbers do not include share-based payment costs, the cost of the new scheme compared to the cost of the residue of the pre-IPO scheme that we had. And sadly, depending if you're someone who would like Rachel Reeves, fortunately, we now suffer and we have to accrue national insurance on that. So there are additional charges within there. Financing costs, those are up. We have some leases. They are based in sterling, and therefore, we have a foreign exchange loss on those, that's included in that financing charge. And we also have some discounts on some of the longer-term payables, which we'll talk about a little bit more. And those will unwind through this period. So that increased our financing cost by circa $1 million. And then tax is lower, tax is low for two reasons, partly yes, a bit less profit -- but the other aspect is we actually had within there some gains on sterling receivables. We had a tax receivable at the end of last year as sterling appreciated against the dollar. We have about a $700,000 gain which is in that line. Underlying tax rate is very much 25%, but that gain on foreign exchange means that the effective rate that you'll see for those cognizant of tax accounting, is about 13%, which is low but not something that could be repeated into the future. That brings us down to an earnings per share. Adjusted profit before tax. So this is excluding the cost of share schemes and the one-off costs that we had in 2024, which were relating to the IPO. That's down to $9.2 million from $11.9 million previously. Finance costs, I think I said, slightly higher, brought that down. Share-based payments, higher by about $1.6 million, but tax offsetting by $1.5 million. So that's overall there. Shares in issue coming to that adjusted basic EPS, $193 million. That's up significantly on the number for last year, but please remember the number for last year was actually pre-IPO, and therefore, is really before the effects of the primary raise that we did in June and also the crystallization of the pre-IPO LTIP. So really a comparison on that line. It's not just apples and pears, it's apples and potatoes. It's a whole variety of things within there. But going forward, that $193 million, more or less stable in the future. If you want to bring in dilution effects from the share option schemes and things, I'm sure we can help you, but it is quite a complex story at the moment. Looking to the balance sheet side. On inventory, particularly broadly flat year-on-year, so up only slightly compared to the year-end. We've managed overall to bring control on inventory very much something that we said at the half year last year that -- we have seen the slowdown. Our production inevitably ran about a month ahead, and then we've gradually brought that in. We've reduced the overstock that we had at that stage of Pi 3 is working very closely with our manufacturing partner, to bring that down. So finished goods, I think we're in a very good place. We've intimated that maybe in some areas, we're really about as low as you could possibly go. I think Eben may talk a bit more about we do have some order backlog at the moment, which we'll see unwind. So maybe a little bit of an increase there, but pretty much now down to that sort of level. And then what we've seen on the other part of our inventory, which is components to what is this, this is memory stock. This is stock of processor chips and other sort of key components and that has continued to rise slightly. We've continued to see some increase in particularly processor chips. We have never wanted to have a repeat of what happened to us in '22, '23. So we're continuing to see some step up, but on overall level, but I think we'll stay fairly steady into the future in terms of inventory at around about that sort of $150 million mark and may even come down slightly over the period as some of the delivery patterns change into 2026. Trade payables. Trade payables, we finished June '25 with about $80 million of trade payables. That is a reduction on where we were at the year-end. I think at the year-end, we were at about $96 million, and that's predominantly in the area of extended payables that we had taken from suppliers at the end of 2024. The market at the end of '24 was definitely one in which it was really quite soft for them. So they were offering us in addition to some very strong payment prices on memory, also terms in terms of paying over longer periods, be that 6 months, even up to 12 months in some cases. So over that period, we took the benefit of that. That has been running down. That's really the key theme within the cash flow for the first half of this year is that reduction in those payables. That will continue into the second half. We'll be pretty much clear of those payables, which is this number here, about $30 million by the end of -- $22 million by the end of this year. So we would expect to see a reduction in cash through to the end of the year. But there is not that pretty much -- there is no more after that. What do we see after that? We see payables and inventory really staying pretty steady through the remainder of the '26. And therefore, our profit offset by CapEx, but therefore, generating some cash, which should start to actually make our cash number in '25, '26 start to improve. Looking at our cash flow for the first half, very much the pattern we've just mentioned, finished the year '24 at $45 million. EBITDA of about $19 million, small increase in inventory, which we had to pay for. And then that reduction in payables that you can see of about $18 million, which is the significant outflow. CapEx, the $19.5 million, consistently at that around about $20 million a year level that we've talked about before. And so you see by the -- at the end of the period, $34 million. The payables, we see there is more to be paid by the year-end, but then it stabilizes after that. So cash comes down at the end of the year to $34 million and then -- sorry, at the end of the period and maybe comes down by about another somewhere between $15 million and $20 million by the end of the year as we clear out the last of those extended payables. Clear out perhaps we're not being offered those anymore before moving into a period of positive cash flow in '26 as really that inventory and payables balances match one another through the year. And therefore, we see positive cash flow and an increase in cash coming into through '26. Finishing off, just a little bit on our reminder in some ways on our business model. On the revenue side, the relative profits of the channels. If we are selling through a licensee royalty channel, we expect a sort of profit of circa $5. If we're selling to a reseller, we would expect to make a profit of about $10. And if we're selling actually to a direct customer, say it's about $15. And it's really that sort of step, that ratio 10, 20, 30 as being the ratios between the channels. And therefore, that move between the channels has quite a significant effect on our profit per board. In terms of the unit economics, what goes into those; we've got the cost. We've got the costs being by size, really the process of cost, so that's what we're buying from Broadcom, our DRAM costs, so higher memory variance, more expensive DRAM. And then other components. And then finally, some costs, not a large proportion, don't tell Sony, but not a large proportion of our costs being the manufacturing in Wales. In terms of how do we manage the margin on that and margin upside. Memory density, the more memory that we sell, we do make a margin. If you're selling a chip with 16 gigabytes of DRAM, you are going to make more margin than if you're selling 1 with 2 gigabytes of DRAM, very much, I guess, the Apple iPhone model. Custom boards, we have been making more boards for particular customers who have the volume to justify the engineering investment and that ability to bring that together to bring some savings for them and saving for us has opportunity to improve our margin. We've certainly seen that in the case of the ones that we've done in the last year. Additional variants. So if we're making them with higher temperature ranges, we can charge a slightly higher premium for those and that opportunity. And of course, there's accessories. We continue to sell accessories. We're making at the moment, about $1.10. It has been up to about $1.30. I think there's a bit of upside there still to come. And the nice thing we're seeing with accessories, particularly at the moment is actually people are buying them in their own right rather than an attachment to a Raspberry pie. So there's an increasing trend for people buying our power supplies because they're actually just very well engineered power supplies with the USB Connector. And finally, there is that portfolio lever opportunity to increase prices on products. We have done it in the past. We've reduced prices on products in the past. It has always been there, but it's something that is not entered into lightly because that is very much the integral part of how we have a consistent proposition to customers. We are -- still -- we still surprise new people by just how cheaper a Raspberry pie is, and we are perpetually aware of the risk that somebody in the Far East will design a board that will be cheaper. And I guess very much with Christensen's Innovator's Dilemma in mind, someone else will come in beneath us if we become too greedy on margin. Nonetheless, our target is to grow gross profit over time. And that is through those margin upside opportunities that we have there and that mix of products.

Okay. So let's take just a little look at how things have been going on the strategic side of the business. Starting off with products. As I said, another strong year, a strong half for product launches with a different character in 2025 to 2024. In 2024, we completed the rollout of Raspberry Pi 5. We launched Compute Module 5 and Raspberry Pi 500. So essentially completing the refresh of the large Raspberry Pi platform. We launched Raspberry Pi Pico 2 and Pico 2W in the second half, powered by RP2350, our second-generation microcontroller. 2025 really more about sustaining innovation, identifying gaps in our product lineup, addressing specific pieces of customer feedback and finding ways that we can put incremental improvements into existing products. I have a couple of examples here. Richard already mentioned extended temperature variants of Raspberry Pi Compute Module 4. Historically, our compute module products have been commercial temperature range products certified for operation between minus 20 degrees and plus 70 degrees Celsius. The extended temperature variances of these push that out to minus 40 to plus 85. So they broaden the range of applications that these products can be used in, obviously, in addition to growing the addressable market. These are features that we can charge, that we can generate incremental margin from selling the higher-performance devices. And then we have Radio Module 2, we have a lot of OEM customers prototyping with our Pico W and Pico 2W products, which have integrated modular wireless. Radio Module 2 provides a path to scale for those customers. It allows people to take the radio functionality from the Pico products, go chip on board with our microcontroller products without facing a substantial radio conformance burden. We're not done yet for the year coming up in the second half. We don't talk in detail about future product releases, but we have a major platform release, which is fairly imminent, which targets our education enthusiasts and enterprise customer base. Last year, we launched our first AI product, the AI camera, AI Kit and AI HAT products. We have a refresh of one of those products, which adds support for more modern workloads, particularly for generative workloads. We have a cost-engineered compute module. In fact, this was launched this morning in China. We have a cost-engineered compute module product specifically for the Chinese OEM market. It's the first time we've done a geographic-specific product. And there, we're really recognizing the very high level of price sensitivity in the Chinese modular computing market. And finally, on the software side, we're planning to roll out. We're seeing good momentum in our Raspberry Pi Connect IoT cloud platform, and we're planning to roll out at the end of the second half or possibly might slide slightly into next year, extra functionality, in particular around over-the-air updates. We are providing our OEM customers with a turnkey solution for over-the-air and regulatory compliant solution for over-the-air firmware updates for their deployed IoT objects. Talked before about our board-to-board initiative. We initiated this in the aftermath of last year's IPO. And what we're trying to do here is reach out and have conversations with senior decision-makers at large industrial OEMs to understand the opportunity for Raspberry Pi at those companies. The goal there to generate individual design wins, which move the needle. In our general OEM customer base, our median OEM customer is under 1,000 units a year of volume. We have a very broad OEM customer base. What we're trying to do here is generate more of what we call whales, the 50,000 plus 100,000 plus customers. Really three elements to this effort, discuss with these -- once we got in the door, discuss and identify the barriers to scale the use of Raspberry Pi technology. We almost always find that these customers are using Raspberry Pi in some capacity generally in prototyping or in production and test automation. Some of them are already at scale with Raspberry Pi products, some of them aren't. So trying to understand what the barriers are, which are preventing them from being at scale with Raspberry Pi products, whether that's misconceptions about our business, whether that is misconceptions about our products, whether there are genuine gaps in our product offering that we can address through additional documentation, through additional performance testing or through changes to the product lineup. That's where the industrial temperature -- that was the genesis of the industrial temperature grade Raspberry Pi Compute Module 4 products. And then internal barriers to adoption, internal lack of capacity, we'll talk a little bit in a moment, finding significant number of OEM customers who could be designing with Raspberry Pi, but where the barriers to adoption are largely inside those organizations rather than in our organization and trying to understand what we can do to address those. Then once we've had those discussions, working at the senior level to develop a shared understanding of the opportunities inside that organization and then to assist in matching those opportunities to our products and/or to our capabilities. And finally, then working with engineers to design products with Raspberry Pi and then bring those designs rapidly to scale production. These are -- we say rapidly, these are multiyear efforts. The very quickest that we can reasonably expect to do this is about 12 months, but we expect some of these will be a 2- or 3-year effort before they generate material impact, material financial impact on the business. But I think you'll see us address these opportunities with a mix of standard products and customization. Traditionally, we offer customized products to customers who are already at scale with our standard products, but the scale of some of these opportunities probably indicates that we may address them out of the gate. They may be suitable for customization, candidates for customization right out of the gate. And what sort of things are we finding when we talk to these OEM customers? The first thing to emphasize, great domain-specific engineering capabilities. These are amazing engineering organizations, which are already very, very good at whatever it is they do. They have great enthusiasm often for the idea of adding connectivity and for the idea of adding intelligence to their existing product line, but they face a series of common barriers, really not just barriers to adoption of Raspberry Pi products, but more broadly barriers to the addition of intelligence and the addition of connectivity to those products. What are the barriers? Well, the hardware and software platforms that they need to work with in order to add connectivity and intelligence are becoming more complex to work with, both the hardware and software environments on their own and also the co-optimization of the hardware and software elements of the platform to meet the required price performance point. There's obviously an increasing focus on security, reliability, availability, serviceability. Some of this is reputational. This is these companies not wanting to put product into the field, which is going -- which is going to perform poorly in the field. Some of this is regulatory, particularly in the security area, there is increased regulatory scrutiny of the risks associated with deploying insecure IoT devices at scale. They have the usual commercial considerations, but also, I think, probably more modern post-pandemic concerns about supply chain integrity in what's an increasingly complex geopolitical environment. And this was an enormous surprise for us, a difficulty in recruiting and retaining design engineers within the organization. I think you're going to see a lot of focus from us on understanding the extent to which people are not designing with -- understanding and mitigating the extent to which people are not designing Raspberry Pi simply because they lack the internal electrical and software engineering capabilities to work with our products. We do see Raspberry Pi technology as an answer, a complete or partial answer to all of these issues, very easy to work with, very highly integrated, a turnkey software platform, which, to the greatest possible degree, reduces the amount of internal capacity you need inside the organization and of course, the U.K. supply chain. It's important not to neglect the broader market. As I say, our median OEM customer is under 1,000 units a year. So even as we focus on developing more of these board-to-board relationships, we do need to keep investing in the engine that's powered the growth of Raspberry Pi over the last decade. How are we doing that? Investing more in physical events, primarily trade shows. I think we're attending 6. We have significant attendance at 6 trade shows this year, up from 3 last year. Virtual events as well. First and third party, we have -- we've begun a very successful webinar program, particularly focused on non-English language webinars on our own platform and on other people's platforms. Better use of our existing communications assets. We have some fantastic assets in our website, in our newsletter readership and in our social channels, really trying to use those -- make more use of those assets and make use of those assets specifically in the context of supporting OEM customers. We've been working with partners on messaging. That's particularly important in China, where there can be significant cultural and language barriers to understanding the value proposition of our products. And finally, early access programs. I think if you look at the demand -- the early demand curve for RP2350 and Compute Module 5 and compare that to the early demand curve for Compute Module 4 and RP2040, you really see the fruits of a big effort that we put in, in the tail end of 2023 and into 2024 to get our key OEM customers early access to these next-generation platforms, and you'll see more of that from us over the next couple of years. Case study slide. We love case studies. We think they bring our customer value proposition and competitive advantage to life. The examples here are taken from a recent visit to Brazil by Roger Thornton, who runs our application engineering team. 3 -- I think 3 very typical -- if you look at our global OEM base, 3 very typical applications. The first one, Pro Data to make transport products. This is a payment gateway for public transport solutions in Brazil. Second one is an Agritech is a precision agriculture, precision irrigation solution. All of these are compute module. All of these are compute module based. Precision agriculture and then fuel station automation. So I think really kind of good examples right in the heartland of our OEM -- of our traditional OEM business. Why Brazil? Well, historically, we've seen South America is the last market, the last significant market that we've yet to make significant direct investments in. What's fascinating was to go there, was for Roger to go there and see even though this is somewhere that hasn't benefited from enormous investments from us in the past, we're still seeing a landscape and OEM demand landscape, which is very, very familiar to us from our work in Europe, North America and Asia Pacific. A word on semiconductors. We've always described our electronic product offering and our semiconductor offering as mutually supporting franchises. The semiconductors that we make allow us to build better electronic products and those electronic products then become the shop window for the semiconductors. They are the first place in which design engineers who may in future work with our semiconductor products encounter those products. We have an aspiration over the next decade to reach a point where the semiconductor side of our business, the semiconductor franchise is making an equal contribution to our business alongside the electronic products. A really significant milestone for us in the first half in that we sold more chips than boards for the first time. So you have to remember, these are $0.50 chips versus $50 board. So this is not yet financially material for the business. But this is the first half year in which more of the compute experiences that people are having with Raspberry Pi, more of the boxes that people buy that have a Raspberry Pi logo on them are chips rather than board-level products. It's driven by RP2040. Gives you an indication of the length of the design cycles in this industry. We launched Raspberry Pi -- RP2040 in January of 2021. So it's very nearly a 5-year-old product, and it's still ramping extremely aggressively in the OEM space. Shipments were up 69% sequentially. A very broad customer base for that broad general purpose microcontroller customer base, but we did have a smaller number of very substantial wins in the half. I'll give an example here, WIZnet, Taiwanese networking product vendor. They make Ethernet chips. What have they done with RP2040? They've taken their Ethernet silicon and they've taken our compute silicon, and they packaged them together in what's called a system-in-a-package to produce an intelligent Ethernet controller for IoT applications. Absolutely not a line of business that we envisaged being in when we launched RP2040, but I think a really good demonstration of the fact that if you make great product and you put it out in the wild and you make it available to people, the market will discover -- this is really the story for Raspberry Pi, right. If you put great products in the wild, the market will discover what those products are for, and you have to be agile enough to respond to that demand signal. RP2350, obviously, earlier in the adoption curve. We launched that in August of last year. We put it in general availability in March. We put a -- we had a one significant analog bug in the A2 launch silicon. And we had a number of security upgrades, which came out of a hacking contest that we sponsored in the second half of last year. Last month, we launched the A4 stepping of the silicon, which addresses all of those issues, which rolls up all those fixes. We had intended to defer the general availability, the general distribution availability of RP2350 until the A4 silicon was available. We got into the first quarter of this year and the volume of we have a gentleman, Chris Boross, who works for us, who runs the early access program for the silicon. And simply in order to stop his inbox melting, we put the A2 silicon in the market just as a way of managing the very, very high level of interest in that product, put in the -- put that into general availability in March, released A4 in August and cycled all of that residual A2 inventory out of the channel, replaced it with A4, seeing really, really good adoption and inquiries from Tier 1 consumer electronics companies where I think RP2040 probably a kind of sort of Tier 2, Tier 3 companies, definitely kind of Tier 1 consumer electronics companies looking at RP2350 now. Really an illustration of, as Richard said earlier, the second product that you put into the market is the one that really establishes your credibility. It builds on the momentum of the first product, and it establishes a product line. People are much more to invest in a product line than they are to invest in a product. We certainly saw that with Raspberry Pi 2 back in 2015, and we're seeing this now in the semiconductor franchise. Finally, to the outlook for second half and beyond. We do continue to see improvement in underlying demand, and we expect alongside that in the second half to be able to address much of the very substantial customer backlog that accumulated in the first half of the year, which obviously will make a contribution to second half volumes. We've got confidence in the unit economics, a very similar product mix to the first half and sufficient DRAM supply, much of which was acquired at what now looks like extremely favorable historical prices and certainly at the lower density -- the lower densities enough for that to last through the year and into the quarter of 2026. In consequence, we're not expecting any change to our profit expectations. And then looking further out, continuing to see a good demand environment, continuing to see good progress and perhaps the first contribution in 2026 to volumes and revenue from the board-to-board work, good levers for mitigating any continued strength in the pricing of DRAM and the opportunity for continued growth in our semiconductor business. Thank you very much indeed.