Focusrite

TUNE.L

Leisure · Consumer Cyclical

Price

272.00 GBp

+0.00 (+0.00%)

Market Cap

£159.5M

Exchange

London Stock Exchange

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through Feb 28, 2026

How the score breaks down

Quality

Mixed

Growth

Weak

Cash Flow

Mixed

Stability

Strong

Valuation

Data not available

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Share count rising — dilution

+2.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 58.7M (2021) → 59.9M (2025)

Winston Score History

The full picture

Focusrite is a British company that makes audio equipment for musicians, podcasters, and music producers. Its most well-known products are the Scarlett range of audio interfaces — small devices that connect microphones and instruments to a computer for recording. The company also owns brands like ADAM Audio (studio speakers) and Novation (electronic music keyboards and controllers), selling to hobbyists and professionals worldwide.

Focusrite earns money by selling hardware through retailers and online stores, with no significant recurring subscription revenue. It operates globally, with strong sales in North America and Europe, and generates roughly £170–180 million in annual revenue. Its moat comes from strong brand recognition in the entry-level and mid-range recording market, where the Scarlett interface is widely considered the default starter product. The main risk the business faces is slowing consumer spending on non-essential electronics, which has already pressured sales and margins in recent years as the post-pandemic home-recording boom fades.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-514.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

£0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Cash Position

Cash flow positive

£21M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Focusrite's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

41.6%

Healthy — 41.6% gross margin

Profit after running costs

Operating Margin

3.6%

Thin — 3.6% operating margin

Return on the money invested

ROCE

6.8%

Weak — 6.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+1.3%

Nearly flat sales (+1.3% YoY)

Profit growth

EPS YoY

-307.4%

Earnings shrinking (-307.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

16.1%

Converts sales into free cash efficiently (16.1%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns

Debt / Equity

0.26

Conservative — low debt load (0.26)

Covers its interest

Interest Cover

2.76x

Tight — interest eats into profit (2.8x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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