Cherry SE Reports First Quarter 2026 Results: Profitability Improvement Noted

On May 7, 2026, Cherry SE released their first quarter results, highlighting significant improvements in operating profitability despite a revenue decline to EUR 20.8 million, down from EUR 25.3 million in the previous year. The adjusted Group EBITDA margin rose to -2.9% from the previous -8.0%. This improvement was largely due to cost reductions and an improved gross margin in the Digital Health & Solutions and Components segments.

The company initiated "Project Blossom," a transformative program aimed at resizing the organizational structure and focusing on new growth initiatives. Achievements included reducing marketing and sales costs by 40% and turning operating cash flow positive, with a rise to EUR 1.3 million compared to an outflow of EUR 8.0 million in 2025.

The Digital Health & Solutions segment saw a revenue increase to EUR 5.2 million, driven by telematics infrastructure connections. Meanwhile, Gaming & Office Peripherals faced revenue declines due to market factors but maintained strong margins.