Cherry SE publishes Q1 2025 report and reaffirms full-year guidance

Munich, 14 May 2025 – Cherry SE [ISIN: DE000A3CRRN9], a global manufacturer of computer input devices and digital solutions for the healthcare sector, today published its first quarter 2025 report and reaffirmed full-year guidance.

In the first quarter of 2025, Cherry SE generated Group revenue of EUR 25.3 million. Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) amounted to EUR -2.0 million, corresponding to an adjusted EBITDA margin of -8.0%. While the results were in line with the company’s own expectations, they were below the figures reported in the same period of the previous year (Q1 2024 Group revenue: EUR 30.3 million; adjusted EBITDA margin: 2.8%).

The macroeconomic environment remained challenging in Q1 2025, shaped by continued economic weakness in Germany and market uncertainty related to anticipated increases in U.S. tariffs on Chinese goods.

Business Segment Performance in Q1 2025

• GAMING & OFFICE PERIPHERALS: Revenue of EUR 19.1 million (Q1 2024: EUR 20.6 million) with an adjusted EBITDA margin of 10.5% (Q1 2024: 10.6%). Sales were impacted by high inventory levels in Germany and a weaker-than-expected performance in the U.S. market. In contrast, China recorded a solid sales performance.
• DIGITAL HEALTH & SOLUTIONS: Revenue amounted to EUR 4.8 million (Q1 2024: EUR 8.0 million), with an adjusted EBITDA margin of 17.6% (Q1 2024: 32.2%). The year-over-year decline reflects a strong prior-year base due to the rollout of e-prescriptions and the delayed introduction of the electronic patient file in the current year.
• COMPONENTS: Revenue totaled EUR 1.5 million (Q1 2024: EUR 1.7 million), with an adjusted EBITDA margin of -22.5% (Q1 2024: 21.1%). The market environment remained highly challenging due to intense price competition.

Restructuring and Strategic Measures

On 22 April 2025, Cherry SE announced its decision to discontinue switch production at its Auerbach site and fully relocate it to a partner in China as part of a comprehensive restructuring plan. The Auerbach location will be retained and is to be transformed into a development, logistics, and service hub.

In parallel, Cherry SE reached an agreement with UniCredit Bank GmbH to extend its existing loan facility under adjusted terms until the end of 2027. Additionally, on 8 May 2025, the company announced the sale of its hygienic input device business (formerly Active Key) to Contour Design Nordic A/S. The transaction has a total value of EUR 21 million, consisting of fixed and performance-based components.

Outlook for the 2025 Financial Year

The Management Board confirms its forecast for the 2025 financial year, expecting Group revenue in the range of EUR 105 to 120 million and an adjusted EBITDA margin between 3.0% and 6.0%.

Oliver Kaltner, CEO of Cherry SE, commented: “The results of the first quarter reflect the market conditions we had anticipated in our internal business plan. We are confident that the restructuring measures we have initiated, along with the continued focus on strengthening our core businesses, will enable us to navigate current challenges and return to profitable growth. The divestment of the Active Key division provides us with additional flexibility.”

Further Information
The full Q1 2025 quarterly financial report is available for download on the Investor Relations section of the Cherry SE website.

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 (Chicago), 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