Cherry SE's Q1 2025 Performance Aligns with Expectations

Cherry SE has released its preliminary financial results for the first quarter of 2025, reporting that both revenue and adjusted EBITDA margins align with their budget, yet fall below the previous year's figures as planned. Group sales reached EUR 25.3 million, marking a 16% decline from Q1 2024's EUR 30.3 million. The adjusted EBITDA margin was reported at -8.0%, compared to 2.8% in the same quarter last year.

The dip in revenue is attributed primarily to reduced peripheral sales in the U.S., influenced by impending tariffs, and weak performance in the switch segment. Conversely, CHERRY APAC surpassed expectations, boosting revenue and managing lower inventory levels. Despite challenges, Cherry remains optimistic about growth opportunities, especially in its Digital Health division, notwithstanding initial declines due to timing issues with ePa rollout.

Cherry maintains a cautious outlook given global economic conditions and ongoing tensions between major trading blocs, focusing on strategic growth and cost management.