British toy company Yoto is expanding rapidly in the United States, driving a significant increase in its revenue. The London-based brand reported a turnover of nearly £136 million for the year ending December 2025, representing a rise of more than one-third compared to the previous year. Approximately half of the company’s revenue now originates from the U.S. market, according to co-founder and CEO Ben Drury.
Yoto’s expansion in the U.S. has been supported by partnerships with major retailers such as Target and Walmart, enabling wider distribution and visibility of its product range. The company anticipates continued growth this year, attributing resilience in consumer spending on children’s products as a key factor. “Spending on children is always pretty resilient; people will always defend spending money on their kids,” Drury stated.
The company’s flagship product is an audio player designed for children, which allows users to play content from physical cards loaded with music, audiobooks, or stories. Consumers can purchase the player for prices ranging from £89.99 to £119.99. Individual music cards retail between £3.99 and £11.99, while audiobook prices vary from £1.99 up to £12.99. Some collections, such as the complete Harry Potter audiobook series, can cost as much as £185.92. Additionally, customers have the option to create personalized cards by recording voices, a feature popular among families who use it to share stories from relatives.
Drury highlighted that the majority of Yoto’s content revenue is driven by audiobooks, reflecting consumer preferences for this format. The company attributes part of its recent success to growing public awareness about limiting children’s screen time, a trend supported by recent social media restrictions. “The tailwinds of social media bans and a general awareness that putting kids in front of screens for six hours a day is not the best thing” have helped fuel demand for Yoto’s screen-free audio content, Drury explained.
Founded in 2015, Yoto launched its first device in 2017 following a successful Kickstarter campaign. The company has since attracted notable investors, including musician Sir Paul McCartney and the investment fund of Meta co-founder Mark Zuckerberg and his wife, Priscilla Chan. A funding round in 2024 valued Yoto at $182 million, underscoring the growing appeal of its products in the educational and entertainment market for children.
Despite its rapid revenue growth, the company continues to report pre-tax losses, which narrowed from £8.4 million in 2024 to £6.6 million in 2025 as it scales operations and expands market reach.