Trading Update: Trading in-line with expectations

Trading in-line with expectations

Focusrite plc (AIM: TUNE), the global music and audio products group supplying hardware and software used by professional and amateur musicians and the entertainment industry, provides the following update on trading ahead of its results for the 18 month period ended 28 February 2026.

As previously announced, the Group has changed its financial year end from 31 August to 28 February. As a result, the Group's next audited results will cover the 18 month period to 28 February 2026 and the Company expects to announce these results in early June 2026.

12 months to 28 February 2026

On a 12 month basis to February 2026, Group revenue is expected to be slightly ahead of the prior 12 month period at approximately £164 million on a reported basis, reflecting stable underlying demand across the Group's product portfolio, with the Group's products consistently occupying top sales rankings with online resellers.

Gross margins for the period have remained strong and slightly ahead of the prior 12 months, notwithstanding the impact of tariffs in the US, with the Group benefiting from continued pricing discipline and strong supply chain management. Operating margins are also expected to remain stable reflecting an ongoing focus on cost control. As a result the Board expects adjusted EBITDA* for the 12 months to February 2026 to be in-line with current market expectations**.

Six months to 28 February 2026

For the six months to 28 February 2026, Group revenue is expected to be approximately £76 million, representing a decrease of approximately 5% on a reported basis compared to the six months ended 28 February 2025. As expected, this reflects a particularly strong comparator for the Content Creation division in the prior period, which benefitted from stock levels being increased in the US distribution channel ahead of anticipated tariff increases, as well as the continued unwinding of inventory levels in the US distribution channel in the six month period to 28 February 2026. Audio Reproduction, including the Martin Audio brand, returned to growth during this period as markets normalised.

Cash and net debt position

The Group has generated healthy cash flows in the period. Net debt at 28 February 2026 was approximately £9.0 million compared to £10.8 million at 31 August 2025, reflecting improved working capital management and the reduction of inventory levels following the previously noted increase in US channel stock ahead of tariff increases.

Commenting on the results, Tim Carroll CEO said:

"While geopolitical developments in the Middle East and macroeconomic uncertainty continue to create volatility in global markets, the Group has not experienced any material impact to date. The situation continues to be monitored closely. The agility of our teams and strength of our product portfolio in combination with strategic actions including the strengthening of routes to market, selective new product development and careful cost management give us confidence in the future progress of the Group."

*Adjusted EBITDA comprises operating profit (earnings) adjusted for interest, taxation, depreciation, amortisation and adjusting items.

** In so far as the Board is aware, as at 19 March 2026, the range of market forecasts for the 12 month period to 28 February 2026 based on published sell-side research were for revenue of £165.0 million to £168.1 million and adjusted EBITDA of £23.7 million to £25.3 million. For the six months to 28 February 2026 the ranges were £77.0 million to £80.1 million for revenue and £9.4 million to £11.0 million for EBITDA.