Focusrite (TUNE) AI Stock Analysis

• Market Cap: £123.11M
• Dividend Yield: 3.43%
• Average Volume (3M): 67.46K
• Price to Earnings (P/E): 60.1
• Beta (1Y): 0.80
• Revenue Growth: -3.88%
• EPS Growth: -83.28%
• Country: UK
• Employees: 565
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.07
• Shares Outstanding: 59,211,640
• 10 Day Avg. Volume: 112,328
• 30 Day Avg. Volume: 67,456
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £355.00
• Price Target Upside: 69.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: 169.00p ▼(-19.52% Downside)

Focusrite's overall stock score is primarily impacted by its financial performance, which shows declining revenue and profitability. The technical analysis indicates mixed signals with short-term bullishness but long-term bearishness. The high P/E ratio suggests potential overvaluation, though the dividend yield offers some compensation. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Focusrite Business Overview & Revenue Model

Company Description

Focusrite plc develops and markets hardware and software products primarily for audio professionals and amateur musicians in North America, Europe, the Middle East, Africa, and internationally. It operates through Focusrite, Focusrite Pro, Novation, ADAM Audio, Martin Audio, and Sequential segments. The company provides audio interface and other products for musicians under the Focusrite and Focusrite Pro brands; and products that are used in the creation of electronic music using synthesisers, grooveboxes, controllers, and software and apps under the Novation and Ampify brands. It also manufactures and distributes professional monitoring and loudspeaker technology under the ADAM Audio brand; performance ready systems for auditoriums under the Martin Audio brand; and analogue synthesizers under the Sequential brand. The company sells its products through distributors, retailers, and system integrators, as well as directly to end users through its e-commerce platform and in-app software. Focusrite plc was founded in 1985 and is headquartered in High Wycombe, the United Kingdom.

How the Company Makes Money

Focusrite generates revenue primarily through the sale of its audio interfaces, microphones, and related software products. Key revenue streams include direct sales to consumers through online and retail channels, as well as sales to professional studios and audio equipment distributors. Additionally, the company benefits from recurring revenue through software subscriptions and updates. Focusrite has established significant partnerships with music production software companies and educational institutions, which contribute to its earnings by integrating its hardware with popular DAWs and providing training resources for audio professionals.

Focusrite Financial Statement Overview

Summary

Focusrite faces financial challenges with declining revenue and profitability. While the balance sheet remains stable with moderate leverage, the cash flow statement raises concerns with negative free cash flow. The company needs to address revenue growth and operational cost efficiency to improve financial health.

Income Statement

Focusrite's income statement shows declining revenues from 2022 to 2023, with a significant drop in net income and EBIT margins. The gross profit margin stood at 44.5% for 2023, which indicates adequate cost management. However, the net profit margin decreased to 1.6%, reflecting challenges in maintaining profitability amidst decreasing revenue.

Balance Sheet

The balance sheet is relatively stable with a debt-to-equity ratio of 0.37, indicating moderate leverage. The equity ratio is 57.1%, suggesting a solid equity base. Return on equity has declined due to lower net income, posing a challenge in maximizing shareholder value.

Cash Flow

Cash flow from operations decreased notably, and free cash flow turned negative in 2023, impacting liquidity. The operating cash flow to net income ratio is 4.25, indicating cash generation efficiency, but the free cash flow to net income ratio is negative, reflecting operational cash challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	158.52M	158.52M	178.47M	183.73M	173.94M	130.14M
Gross Profit	70.49M	70.49M	84.85M	83.28M	84.13M	59.89M
EBITDA	21.47M	19.64M	36.88M	40.77M	45.92M	16.01M
Net Income	2.61M	2.61M	17.80M	24.78M	28.28M	4.09M
Balance Sheet
Total Assets	202.94M	202.94M	210.79M	177.53M	117.21M	104.70M
Cash, Cash Equivalents and Short-Term Investments	22.04M	22.04M	26.79M	12.76M	17.34M	14.97M
Total Debt	42.88M	42.88M	37.92M	21.90M	-248.00K	11.64M
Total Liabilities	86.99M	86.99M	92.34M	72.22M	32.87M	47.80M
Stockholders Equity	115.96M	115.96M	118.45M	105.32M	84.35M	56.90M
Cash Flow
Free Cash Flow	9.56M	-3.14M	11.94M	-4.04M	31.91M	27.00M
Operating Cash Flow	11.10M	11.10M	26.33M	8.46M	38.52M	36.61M
Investing Cash Flow	-16.73M	-16.73M	-21.54M	-22.60M	-20.56M	-44.92M
Financing Cash Flow	1.31M	1.31M	10.19M	8.83M	-15.59M	8.41M

Focusrite Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:TUNE, the sentiment is Positive. The current price of 210 is above the 20-day moving average (MA) of 167.95, above the 50-day MA of 165.61, and above the 200-day MA of 181.34, indicating a bullish trend. The MACD of 8.76 indicates Negative momentum. The RSI at 80.93 is Negative, neither overbought nor oversold. The STOCH value of 94.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:TUNE.

Focusrite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G4M	63 Neutral	62.30M	74.81	2.12%	―	1.62%	28.06%
TUNE	55 Neutral	£123.11M	60.09	1.70%	3.43%	-3.88%	-83.28%
VCP	55 Neutral	79.05M	-0.30	96.81%	―	-12.17%	-145.41%
WJG	55 Neutral	79.95M	-207.67	1.43%	―	-27.17%	98.73%
TPT	46 Neutral	67.63M	-7.02	-233.36%	5.81%	6.55%	-1914.81%
IGR	43 Neutral	51.93M	-0.66	-37.92%	―	-10.23%	-380.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Focusrite Corporate Events

Focusrite Reports Robust Growth Amid Challenging Conditions

Focusrite plc reported strong performance for the six months ending 31 August 2025, with revenue growth driven by the Content Creation segment and a refreshed product range. Despite challenging trading conditions and macroeconomic uncertainties, the company achieved a 6% revenue increase compared to the previous year, with improved gross margins and reduced net debt. Focusrite’s strategic initiatives, including supply chain flexibility and selective pricing, have positioned it well to navigate ongoing market challenges.

The most recent analyst rating on (GB:TUNE) stock is a Hold with a £163.00 price target. To see the full list of analyst forecasts on Focusrite stock, see the GB:TUNE Stock Forecast page.