Focusrite
Half year results financial year 2024-2025
Short description
Focusrite is a leading audio technology company known for designing and producing high-quality audio recording equipment and software solutions. With a strong focus on innovation and quality, Focusrite has developed an extensive product portfolio that covers a wide range of audio solutions. One of their best-known product lines is the "Scarlett" series of audio interfaces, which are popular among both professional musicians and hobbyists for capturing and editing sound in studio and home settings.
Focusrite divides its activities into two segments: Content Creation, which accounts for 70% of revenue, and Audio Reproduction, which makes up the remaining 30%.
Content Creation goes beyond just the music industry. It also includes podcasts, vloggers, film, TV, and more. In this segment, Focusrite offers recording products for both home and professional use.
Novation and Ampify supply tools for creating electronic music. Adam Audio is known for its outstanding studio monitors and speakers. Oberheim and Sequential focus on synthesizers, and the recently acquired Sonnox provides processing software for music, TV, and film.
In the Audio Reproduction segment, Martin Audio leads with sound systems for auditoriums and concert halls.
Optimal Audio offers controllers to manage these systems, while Linea delivers class-D amplifiers, network signal processors, and live sound systems.
Focusrite continues to expand strategically with acquisitions such as Sonnox, TiMax, and Innovate Audio, further strengthening their portfolio within their niche.
Finally, it’s worth noting that a vibrant community has developed around Focusrite and its products, where both professional and hobbyist musicians and producers share their experiences and tips. This has created a notable network effect.
Why we selected Focusrite
Focusrite’s products are often used by major retailers as the image representing the entire category—similar to how "Bic" has sometimes become synonymous with ballpoint pens.
The market in which Focusrite operates is still growing. Where musicians and producers once made up the primary target audience, we now see entire albums being recorded at home. Additionally, YouTubers, TikTokers, and podcasters are gaining ground, expanding the creative sector as a whole.
I am also convinced that amateur users who learn to work with and trust Focusrite products remain loyal to these brands once they move into professional careers. For these users, the focus is not on the product itself, but on the creative process. The products are tools to help them achieve their goals, and ideally, they cause as little distraction or disruption as possible.
This, combined with the company’s strategic acquisitions—which make it a so-called "serial acquirer"—was the reason for the selection.