EQS-News: Cherry SE: Preliminary half-year results 2025 shaped by strategic realignment

Munich, 18 July 2025 – Cherry SE today announced preliminary figures for the second quarter and, consequently, the first half of fiscal year 2025. According to initial estimates, Group revenue for the second quarter and first half stands at approximately EUR 20.7 million and EUR 46.0 million, respectively, with an adjusted EBITDA margin of around -1.3% and -5.0%, respectively. As expected by the company, both indicators are below the respective prior-year figures for Q2 and H1 2024, which were EUR 31.3 million and EUR 61.6 million in revenue and 5.1% and 4.0% in adjusted EBITDA margin. This performance is a direct result of the consistent execution of the company’s strategic realignment and is primarily attributable to the deliberate reduction in sell-in volumes in the Peripherals Europe segment to restructure distribution channels, continued weak demand in the Components segment, and an unsatisfactory performance in CHERRY Americas.

“The preliminary figures reflect that we are doing exactly what we said we would: we are cleaning up our own inventory as well as that of our distribution partners and laying the foundation for a sustainably profitable CHERRY,” says Oliver Kaltner, CEO of Cherry SE. “This is painful at the moment, but absolutely necessary. We are deliberately trading short-term volume for long-term margin strength. At the same time, we’re seeing strong traction with end customers – the 72% year-over-year increase in sell-out clearly shows that our strategy is working. We have also terminated all existing distribution agreements in Europe in order to launch a new market model starting in September 2025.“

Business performance in the first half of the year was significantly influenced by the measures implemented in the Gaming & Office Peripherals segment. In order to normalize channel inventory levels and stabilize street prices, sell-in volumes were deliberately reduced. Artificial sell-in pressure was avoided, as it would have inevitably led to a higher risk of product returns and thus negatively impacted both revenue and cash flow. At the same time, sell-out to end customers increased by 72% year-over-year, underlining the strong demand for CHERRY products and the effectiveness of the strategic realignment. However, the combination of reduced sell-in volumes and incentivized sell-through activities weighed on revenue, contribution margins, and ultimately, overall profitability in the first half of the year.

In addition, persistently weak demand in the Components segment continued to weigh on revenue performance. CHERRY Americas also once again fell short of expectations; however, corrective measures have already been initiated. At the same time, strategic progress demonstrates the management team’s ability to act, as evidenced by a key milestone: inventory was reduced from EUR 82 million in summer 2023 to EUR 43 million as of 30 June 2025 – effectively cutting stock levels nearly in half and releasing significant tied-up capital. A target range of EUR 35 to 38 million has been set for the end of December 2025. Furthermore, the company has streamlined its portfolio by divesting the hygiene peripherals business (“Active Key”) at an attractive price. In contrast, the Digital Health & Solutions segment has gained further momentum compared to the first quarter of 2025. The terminal business is currently benefiting from strong tailwinds driven by the legally mandated connection of nursing and healthcare professionals to the telematics infrastructure, effective 1 July 2025, or 1 January 2026, respectively.

The company is confident it will complete the cleanup of its distribution channels in Europe during July and August 2025, thereby laying the foundation for profitable growth starting in September.

A detailed breakdown of key preliminary figures for the second quarter and first half of 2025 will be published as planned on 31 July 2025. The half-year report for 2025 will be made available as scheduled on 14 August 2025, on the company’s website at: https://ir.cherry.de/en/home/publications/#interim-reports

About Cherry SE

Cherry SE [ISIN: DE000A3CRRN9] is a global manufacturer of computer input devices such as keyboards, mice, microphones, and headsets for applications in office, gaming, and industry for hybrid work, as well as hardware and software solutions in digital healthcare. Since its founding in 1953, CHERRY has been synonymous with innovative and durable high-quality products, developed in-house, specifically to meet customer needs.

CHERRY’s operational headquarters is in Germany (Auerbach in der Oberpfalz) and it employs staff in development, services, logistics, and production sites in Germany (Auerbach), China (Zhuhai), and Austria (Vienna), as well as in multiple sales offices in Germany (Munich, Auerbach), France (Paris), Sweden (Landskrona), the USA (Kenosha), China (Shanghai) and Taiwan (Taipei).

For more information, visit:https://ir.cherry.de/en/

Contact

Cherry SE
Nicole Schillinger
Investor Relations
P: Rosental 7, c/o Mindspace, 80331 Munich
T: +49 (0) 9643 2061 848
E: ir@cherry.de