CRSR

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Chief Executive Officer - Thi La Chief Financial Officer - Gordon Mattingly Investor Relations - David Pasquale Operator: Good afternoon, and welcome to Corsair Gaming's second quarter 2026 earnings conference call. [Operator Instructions] I would now like to turn the call over to David Pasquale, Investor Relations. Please go ahead. David Pasquale: Thank you, Operator. Good afternoon, everyone, and thank you for joining us today. With me on the call are Thi La, our Chief Executive Officer, and Gordon Mattingly, our Chief Financial Officer. Before we begin, I'd like to remind you that today's discussion contains forward-looking statements, including but not limited to our guidance for the third quarter and full year 2026, potential future growth in certain product categories, and other statements that are not historical in nature, are predictive in nature, or depend upon or refer to future events or conditions. These forward-looking statements are based on our current assumptions and expectations. Actual results could differ materially. Please refer to the risk factors in our most recent annual report on Form 10-K filed with the SEC, our subsequent SEC filings, and today's earnings press release for full discussion of the factors that could cause our actual results to differ. We undertake no obligation to update these forward-looking statements. Additionally, we will discuss certain non-GAAP financial measures today. Definitions and reconciliations to the most comparable GAAP measures are included in our earnings press release and the investor presentation posted to our investor relations website at ir.corsair.com. With that, I'd like to now turn the call over to Corsair's CEO, Thi La. Thi, please go ahead. Thi La: Thank you, David, and good afternoon, everyone. We are pleased to report strong results for Q2. Our core business outperformed expectations, and we are raising our outlook for the rest of the year. Based on our recent performance, Corsair is becoming a more profitable, more cash-generative company. We are improving the quality of our revenue, gaining share in the right categories, and building platforms for growth beyond the traditional PC cycle. I want to share the five numbers that tell the story. Gross profit for the quarter grew 21% year-over-year. Gross margin hit a company record of 33.2%. Gamer and Creator Peripherals revenue for the quarter grew 13% year-over-year. Gross profit in that segment grew 27% year-over-year, and gross margin reached 44.9%. We cut operating expenses for the quarter by $6.1 million year-over-year. So more of our gross profit gains reached the bottom line. Operating cash flow for the quarter grew 148% year-over-year to $74.8 million, and we are raising our full year 2026 outlook, which Gordon will review in a few minutes. Let's talk about the Gamer and Creator Peripherals segment. This segment was again a standout. Revenue grew 13% year-over-year to $115.9 million. Gross profit grew 27% year-over-year to $52 million. Gross margin expanded to 44.9%. This is the mix shift we've been working toward, faster growth in categories that carry stronger margins and deeper customer relationships. Fanatec remained a key driver, supported by new products, wider distribution, and strong direct-to-consumer sales. Fanatec has also carried gross margins above the segment average, so its growth improved both scale and quality. Building on that with the acquisition of Trak Racer, a complementary Sim Racing hardware brand with a strong direct-to-consumer model, it broadens our product range, extends our distribution, and brings experienced leadership into our Sim Solutions group. Our licensing strategy is also growing the Fanatec platform. We recently announced a partnership with Nissan, adding another global automotive brand alongside our existing motorsport relationships. These partnerships reinforce Fanatec as the premium platform for Sim Racing. Elgato, Stream Deck, and Marketplace are evolving from creator tools into a broader workflow platform. In the first half of 2026, Elgato Marketplace revenue and transactions each more than doubled year-over-year. Product submissions grew more than 300%. The marketplace added more than 500,000 new accounts, which is impressive growth on all metrics. The flywheel is working. More users attract more developers, more products increase the value of Stream Deck, and that value drives both hardware demand and recurring revenue. AI-assisted development is making it easier to build new profiles and plug-ins, which we believe should speed this up further. This quarter, we made a minority investment in Bitfocus, a professional show control software company already integrated with Stream Deck. This extends Elgato from the creator desktop into broadcast, live events, and control rooms. These are all higher-value professional environments with a coordinated go-to-market path. As part of the agreement, Corsair and Bitfocus also established a partnership under which Stream Deck Studio and the broader Stream Deck range will serve as preferred and primary control surfaces across Bitfocus customer deployments. We are excited to build on our relationship and expand our growth opportunities. In the Gaming Components and Systems segment, revenue in this segment declined 9% year-over-year to $198.5 million as elevated memory pricing continues to delay DIY PC builds. We believe this demand is deferred, not lost. When builders have historically delayed an upgrade, the need didn't disappear. It built up and it returned as pricing and the product cycle normalized. Even so, segment gross profit grew 17% year-over-year to $52.2 million, and gross margin expanded 570 basis points year-over-year to 26.3%. Memory net revenue grew 17% year-over-year on strong supply chain execution and share gains in North America. Our memory inventory is now properly sized and supply availability remains adequate. Systems was a bright spot too, with solid year-over-year growth in AI workstations. This isn't a pivot. It's a natural extension of capabilities we've built over decades in high-performance system design, customization, overclocked memory, advanced water cooling, and power delivery to support the hottest GPUs. We are targeting the roughly $22 billion desktop AI PC market, focused first on prosumers and small and medium businesses that want local compute, data security, and lower cloud cost. The significance of this opportunity to the company's operation remains early, and GPU allocation is tight. Accordingly, we believe revenue contribution will pick up in the latter part of 2027 and beyond. Looking ahead, our investments remain focused on strategic revenue growth with accretive margin, ecosystem value with recurring revenue, and workstation market opportunity. This is why we chose to direct capital toward M&A and strategic partnerships this quarter, including Trak Racer and Bitfocus, which we believe will extend our platforms and further diversify our business. We will continue to prioritize these opportunities where we see the clearest path to durable, higher margin growth while remaining disciplined on price and integration risk. With GTA 6 expected to launch in Q4 2026, we see a meaningful tailwind for console products and are positioned to capture demand around one of the industry's most anticipated releases. With that, I will turn it over to Gordon to take you through the financials. Gordon? Gordon Mattingly: Thank you, Thi, and good afternoon, everyone. The second quarter showed strong conversion of gross profit improvement into earnings and cash generation. We're excited about our progress and the momentum we are building in our business as we continue to execute and build shareholder value. I'll provide some additional color on the quarter in our outlook before opening the call for any questions. Revenue for the second quarter was $314.3 million, above the assumed midpoint of our guidance range and down 2% year-over-year. Gross profit increased 21% year-over-year to $104.3 million, and gross margin expanded 640 basis points year-over-year and 50 basis points sequentially to a company record of 33.2%. GAAP operating income improved to $7.6 million from an operating loss of $16.9 million a year ago. GAAP net income was $9.1 million, compared with a net loss of $20.3 million in the prior year quarter. GAAP diluted EPS was $0.06 compared with a loss of $0.16 a year ago. Adjusted EBITDA increased to $30.8 million from $8.1 million a year ago, and adjusted EBITDA margin expanded to 9.8% from 2.5%. Non-GAAP diluted EPS increased to $0.23 from $0.01. During the second quarter of 2026, the company recognized the benefit of approximately $15.6 million to GAAP gross profit from refunds of tariffs previously paid under the International Emergency Economic Powers Act. This delivered approximately 500 basis points of benefit to gross margin. Net income benefited by approximately $14.9 million. Adjusted EBITDA by approximately $14.3 million. And non-GAAP diluted earnings per share by $0.13 (sic) [ $0.14 ] . Excluding this benefit, GAAP net loss would have been $5.7 million. And GAAP diluted loss per share would have been $0.07. Adjusted EBITDA would have been $16.6 million, and non-GAAP diluted earnings per share would have been $0.09, both above the high end of the company's guided ranges at $15.5 million and $0.07 respectively. Following receipt of these amounts, the company is materially complete with the tariff refund process, although it may receive immaterial administrative adjustments or interest in future periods. Gamer and Creator Peripherals revenue grew 13% year-over-year to $115.9 million. Segment gross profit increased 27% to $52 million, and gross margin expanded to 44.9% from 40%. The improvement reflects growth in higher margin categories, including Sim Racing, and continued momentum across gaming peripherals and streaming products, as well as the tariff refund. Gaming Components and Systems revenue declined 9% year-over-year to $198.5 million, reflecting the market-wide pressure from elevated memory pricing on DIY builds and standalone components. Despite the lower revenue, we were still able to increase segment gross profit by 17% to $52.2 million, and gross margin expanded to 26.3% from 20.6%. Strong performance in memory, led by strong demand, market share gains, and continued strong supply chain management helped drive this improvement, along with the refund benefits. Systems also showed year-over-year momentum led by AI workstation demand. Direct-to-consumer or D2C represented 20% of revenue in the quarter. D2C is a priority for us because it carries better unit economics, gives us richer end-user data, and creates a deeper relationship with our customers while benefiting our cash conversion. Fanatec and Trak Racer also increased our presence in this structurally attractive channel. Operating expenses declined $6.1 million year-over-year to $96.7 million. That discipline allowed more of the gross profit improvement to reach operating income and adjusted EBITDA. Cash provided by operating activities increased 148% year-over-year to $74.8 million, reflecting both strong earnings and disciplined working capital management across inventory, receivables, and vendor terms. Notably, in the first six months of the year alone, we generated more operating cash flow than in all of 2025 and 2024 combined. This is a clear sign of the traction we are gaining in this area and one we plan to build on. Cash and restricted cash increased $74.1 million sequentially to $193.9 million at the end of the second quarter. And with total debt balance of $118.7 million, we ended the quarter with a net cash position of approximately $75.1 million. Our stronger balance sheet increases our flexibility to invest in organic growth, pursue disciplined strategic acquisition, repurchase shares when attractive, and manage leverage appropriately. We will continue to pursue a combination of those levers as we work to expand growth and profitability and drive shareholder value. I will now turn to the guidance. For the third quarter of 2026, we expect net revenue to be in the range of $320 million to $350 million. Adjusted EBITDA to be in the range of $18 million to $21 million. And non-GAAP diluted EPS to be in the range of $0.09 to $0.12. The outlook assumes continued low double-digit year-over-year growth in Gamer and Creator Peripherals, led by Fanatec, Elgato, and Stream Deck, with a higher margin mix and continued direct-to-consumer progress supporting consolidated gross margin. Gaming Components and Systems are expected to be down low double digits year-over-year and will remain pressured by elevated memory pricing and delayed DIY demand, although supply availability is expected to remain adequate. For the full year 2026, we are raising our outlook. We now expect net revenue to be in the range of $1.4 billion to $1.47 billion. Adjusted EBITDA to be in the range of $121 million to $131 million. And non-GAAP diluted EPS to be in the range of $0.85 to $0.94. Our full year 2026 outlook for net revenue represents an increase of approximately $35 million at the assumed midpoint of our updated guidance range, compared to our prior guidance range of $1.33 billion to $1.47 billion. The assumed midpoint of our adjusted EBITDA range is also up approximately $19 million compared to the assumed midpoint of our prior guidance range of $100 million to $115 million. To close, we are encouraged with our continued business momentum and the progress we are making to increase the quality of Corsair's earnings. Our diversified portfolio of leading brands continues to perform strongly. We are entering the second half with stronger financial capacity, improving mix, and a broader set of growth opportunities. We believe that combination positions us well to compound earnings and cash flow and create long-term shareholder value. Operator, that concludes our formal remarks. You can now open the call up for Q&A. Operator: [Operator Instructions] Our first question is from Aaron Lee of Macquarie. Please go ahead. Aaron Lee: I wanted to start with guidance. The midpoint of the 2026 EBITDA guidance range went up by about $19 million, which is more than the $14 million tariff benefit and the 2Q beat versus the midpoint of the guide, which would imply a strengthening of the back half outlook. So can you just talk about what's changed in your expectations for the second half and what the major drivers are? Gordon Mattingly: Yes, sure, you're absolutely right, Aaron. This is Gordon speaking. The increase in the guidance of about $19 million. If we look at the midpoints, the Q2, the beat was roughly $17 million, of which $14 million was attributable to the tariff, so roughly about $2.5 million from Q2. And then for the rest of the year, the updated guidance is a reflection of the combination of the improved business performance we're seeing with our organic business, a small amount from the Trak Racer acquisition, but pretty immaterial there. But it's those things really combining that make up the $19 million increase at the midpoint. Aaron Lee: Okay, got you, that's helpful. And then with regard to the Trak Racer acquisition, can you just talk a bit about the growth potential, the integration timeline, and any synergy benefits with Fanatec or the broader organization? Thi La: Yes, so with regards to -- Aaron, good to hear from you. With regards to the integration phase, it should be a pretty quick one. We think it's going to take about three to six months to integrate our system infrastructure. What's going to be really meaningful is just really getting the roadmap alignments between the two business units. We folded Sim Racing into one entity, if you want to call it that way. And the Trak Racer products will fold underneath the Fanatec brand umbrella. Fanatec is known for all of the electronics, like wheel, wheelbase, pedals, anything that requires software. And Trak Racer is all mechanicals, cockpit, and accessories. So it's rare that we are able to find two very complementary product lines and combine together into a very meaningful range for us. And we're looking forward to basically drive that ecosystem and really increase our presence in the market. The TAM continues to be growing very nicely, and this is a very good acceleration for us. Aaron Lee: Okay, awesome. Thank you very much and really nice quarter. Thi La: Thank you. Operator: [Operator Instructions] The next question we have is from Drew Crum of B. Riley Securities. Please go ahead. Andrew Crum: I want to ask another question on the guidance, but specific to revenue. I'm just going off the midpoint of the ranges. It looks like you beat the first half by $11 million and raised by $35 million. So curious as to what the source of the $24 million raise for 3Q, 4Q, what that's, what's driving the more optimistic view on the second half. Gordon Mattingly: Drew, Gordon here. I'll take that question. You're right with the analysis and it really is a combination of a few things. Mostly the increase in the guide for the second half is just from the organic business. There's quite a lot that's driving that. If you look ahead, we've got GTA 6 launching in Q4, which is a tailwind for our console and peripherals business into the holiday, Fanatec, new products, wider distribution, and the Nissan partnership. Elgato Marketplace has more than doubled in the first half, and memory continues to gain share in North America. Those really are the catalysts from an organic perspective. And then we have relatively small amount from the Trak Racer acquisition. I would look at Trak Racer for Q3 as Q3 revenue being purely organic, just given the fact that it's already a month in from close and we're going through the integration process. Modest contribution in Q4, but really it's 2027 where we're looking to see greater contribution from that. So that's really where that increase is coming from in the second half. Andrew Crum: Okay, that's helpful. And then if I heard correctly, you're expecting Gaming Components and Systems to be down low double digits, the balance of the year. Can you parse performance memory and what your expectations are for gross margin for that business? Thanks. Gordon Mattingly: I won't break memory out specifically, but you're absolutely right, low double-digit growth as we've been projecting all the way this year. Initial guidance for the year reflected that. Q1, Q2 guidance reflected that. Remainder of the year, we're still looking at the same outlook from a gross margin perspective. I would guide you for memory. It's in our Q, 23.4% gross margin in Q2. I would guide Q3, roughly similar. Some moderation of that in Q4. I would expect high teens probably for Q4 for memory. Just some abatement in the margin profile there. For the overall Components segment, I would say roughly in the low 20-ish percentage range is reasonable for the rest of the year. Thi La: Yes, I just wanted to add to that, Drew, the way that we look at the Gaming Components and Systems segment. While the gaming component DIY portion of that segment is seeing pressure due to high price point from semiconductor and DRAM specifically, we actually were able to diversify that segment with memory business and system business. And both of those categories are experiencing good growth. And in a way, it minimized the impact of DIY. So we're pretty pleased that we're in a position where we're not seeing a bigger impact than others in the market. Andrew Crum: Got it. Okay. Thanks so much. Gordon Mattingly: Thanks, Drew. Operator: [Operator Instructions] The next question we have is from Colin Sebastian of Baird. Please go ahead. Colin Loyet: This is Colin Loyet on for Colin Sebastian. So you talked about for the DIY that the demand there is more deferred, not lost, kind of as elevated memory pricing delays the build. What are you seeing in terms of whether or other through the sell-through or the channel inventory that kind of supports that deferral rather than maybe permanent substitution or kind of lost on that subject? And then what will kind of happen on pricing for that to return to growth? Thi La: Hi, this is Thi. I'm going to take this question. So with regards to the DIY segment, let's just talk about the channel inventory first. So we came into the year with a bit of an elevated inventory in Q1, and that pretty much normalized through Q2 sales as we were able to successfully calibrate the run rate with what's available in the channel. And we do see a little bit more promotional activities just due to the price point being fairly high. But on the other hand, we see that people are just more calibrating the situation with pricing, waiting for a change whether or not that's going to go back down. Because a lot of people, when they buy into PC components, especially around memory, it goes up and down all the time. And towards the end of Q2, we see a lot of settle down in terms of accepting the fact that the price is actually not going to go down, but it's going to start to move up again based on forecast. And I think that we see steady run rates started to pick up and the demand for AI computing is also started to come in. People are using more larger language models to do a lot more, now with capability of AI continue to expand. And so this is a tailwind. This is something that we're looking forward to 2027, where the demand started to pick up again. And in terms of ASP, I mean, it's gone up quite a bit, as you all know. And I think that it will continue to rise a little bit more toward the end of the year. So the longer you wait to build your machine, the more expensive it's going to get. So people are also going to start to realize that as well. Colin Loyet: Thank you very much and great work. Thi La: Thank you. Operator: [Operator Instructions] It seems we have no further questions. And with that, we have reached the end of the question-and-answer session. I will now hand back to Corsair CEO, Thi La, for closing remarks. Thi La: Thank you all for joining us today. We are pleased with the progress we delivered in the first half of 2026 and remain focused on carrying that momentum through the balance of the year. We look forward to updating you again when we report our third quarter results. And have a good evening. Operator: Thank you. This concludes today's conference call. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is intentionally shifting the revenue mix toward the Gamer and Creator Peripherals segment, which achieved record gross margins of 44.9% this quarter. The Sim Racing category, led by Fanatec, is a primary growth engine benefiting from new product launches, expanded distribution, and high-margin direct-to-consumer sales. The Elgato Marketplace is evolving into a workflow platform, with revenue and transactions more than doubling year-over-year, creating a flywheel effect between hardware and recurring digital revenue. Gaming Components and Systems revenue declined 9% as elevated memory pricing continues to cause consumers to defer DIY PC builds, though management believes this demand is delayed rather than lost. The company is diversifying its systems business into the $22 billion desktop AI PC market, targeting prosumers and SMBs who require local compute and data security. Operational efficiency improved significantly, with a $6.1 million year-over-year reduction in operating expenses allowing more gross profit to flow to the bottom line. Strategic M&A, including Trak Racer and a minority investment in Bitfocus, aims to extend the company's reach into professional broadcast and mechanical Sim Racing hardware. Full-year 2026 guidance was raised based on organic business strength, a small contribution from the Trak Racer acquisition, and improved operational performance. Management anticipates a meaningful tailwind for console-related products in Q4 2026 driven by the highly anticipated launch of Grand Theft Auto 6. The Gaming Components segment is expected to remain pressured by low double-digit declines through the end of the year as memory pricing remains elevated. Revenue contribution from the AI workstation initiative is expected to pick up more significantly in the latter part of 2027 and beyond as GPU allocations normalize. The company plans to prioritize capital allocation toward M&A and strategic partnerships that offer clear paths to durable, higher-margin growth and recurring revenue. The quarter included a $15.6 million benefit to GAAP gross profit from one-time tariff refunds, contributing approximately 500 basis points to the consolidated gross margin. Management noted that the tariff refund process is now materially complete, with only immaterial adjustments expected in future periods. GPU allocation remains tight, which may limit the immediate scaling of the new AI workstation product lines. Operating cash flow for the first half of 2026 exceeded the combined totals of 2024 and 2025, driven by disciplined working capital management and stronger earnings. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The raise reflects a $14 million tariff benefit plus approximately $2.5 million in Q2 organic outperformance and improved expectations for the second half. Management cited organic catalysts including the GTA 6 launch, Fanatec's Nissan partnership, and Elgato Marketplace momentum as key drivers. Integration of system infrastructure is expected to take three to six months, with Trak Racer products folding under the Fanatec brand umbrella. The acquisition is highly complementary, combining Fanatec's electronic components (wheels/pedals) with Trak Racer's mechanical hardware (cockpits). Channel inventory has normalized, but consumers are currently calibrating their builds against high price points for DRAM. Management believes demand will eventually return because memory prices are forecasted to rise further, potentially forcing builders to stop waiting for price drops. Memory gross margins reached 23.4% in Q2 but are expected to moderate to the high teens by Q4 2026. The overall Components segment is expected to maintain gross margins in the low 20% range for the remainder of the year.

Interested in Corsair Gaming, Inc.? Here are five stocks we like better. Profitability and cash flow improved sharply: Q2 revenue fell 2% to $314.3 million, but record gross margin reached 33.2%, GAAP net income was $9.1 million, and operating cash flow rose 148% to $74.8 million. Results included a $15.6 million gross-profit benefit from tariff refunds. Peripherals drove growth while components remained pressured: Gamer and Creator Peripherals revenue increased 13%, led by Fanatec and Elgato, while Components and Systems revenue declined 9% as high memory prices delayed DIY PC builds. Corsair expects Trak Racer and emerging AI workstation demand to support longer-term growth. Corsair raised its 2026 outlook: The company now expects revenue of $1.4 billion-$1.47 billion, adjusted EBITDA of $121 million-$131 million, and non-GAAP EPS of $0.85-$0.94, citing improving organic performance and potential support from new product launches and the expected release of Grand Theft Auto VI. Does Logitech’s EPS Beat Signal the Rebound of Video Gaming? Corsair Gaming (NASDAQ:CRSR) reported second-quarter results marked by higher gross margins, improved profitability and substantially stronger operating cash flow, while raising its full-year 2026 outlook. The company said growth in Gamer and Creator Peripherals, including sim racing and creator products, helped offset continued pressure on DIY PC component demand tied to elevated memory prices. Second-quarter revenue totaled $314.3 million, down 2% from a year earlier but above the assumed midpoint of the company’s guidance range. Gross profit rose 21% year-over-year to $104.3 million, while gross margin expanded 640 basis points to a company-record 33.2%. → 3 Drone Stocks That Should Soar After the Summer Slump What Does Logitech CEO’s Abrupt Departure Mean? GAAP operating income was $7.6 million, compared with an operating loss of $16.9 million in the prior-year quarter. GAAP net income was $9.1 million, or $0.06 per diluted share, compared with a net loss of $20.3 million, or $0.16 per share, a year earlier. Adjusted EBITDA increased to $30.8 million from $8.1 million, and non-GAAP diluted earnings per share rose to $0.23 from $0.01. Chief Financial Officer Gordon Mattingly said the company recognized approximately $15.6 million in benefits to GAAP gross profit from refunds of tariffs previously paid under the International Emergency Economic Powers Act. The refunds contributed about 500 basis points to gross margin. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Corsair Gaming Stock Looks Good Here The tariff-related benefit added roughly $14.9 million to net income, $14.3 million to adjusted EBITDA and $0.13 to non-GAAP diluted EPS, Mattingly said. Excluding the benefit, Corsair would have reported a GAAP net loss of $5.7 million and a GAAP loss per share of $0.07. Adjusted EBITDA would have been $16.6 million and non-GAAP EPS would have been $0.09, both above the high end of the company’s prior guidance ranges. Mattingly said Corsair is materially complete with the tariff refund process, though immaterial administrative adjustments or interest could be received in future periods. → Jersey Mike's Serves Fresh Gains After IPO Stumble Gamer and Creator Peripherals revenue increased 13% year-over-year to $115.9 million. Segment gross profit climbed 27% to $52 million, and gross margin reached 44.9%, up from 40% in the prior-year period. Chief Executive Officer Thi La said Fanatec remained a key growth driver, supported by new products, broader distribution and direct-to-consumer sales. The sim racing brand’s margins were above the segment average, helping improve both growth and profitability, she said. Corsair also acquired sim racing hardware brand Trak Racer during the quarter. La said the company expects the infrastructure integration to take roughly three to six months. Trak Racer’s mechanical products, including cockpits and accessories, will be folded under the Fanatec brand umbrella, complementing Fanatec’s electronic products such as wheel bases and pedals. Management said Trak Racer is expected to provide little contribution in the third quarter because the acquisition closed partway through the period, with a modest contribution anticipated in the fourth quarter and a greater impact expected in 2027. Corsair also announced a Fanatec licensing partnership with Nissan Motor, adding to its existing motorsport relationships. La said the partnership supports Fanatec’s position as a premium sim racing platform. Within Elgato, management said Marketplace revenue and transactions each more than doubled in the first half of 2026, while product submissions rose more than 300%. The marketplace added more than 500,000 accounts during the period. Corsair also made a minority investment in Bitfocus, a professional show-control software company integrated with Stream Deck, to expand Elgato’s reach into broadcast, live-event and control-room applications. Gaming Components and Systems revenue declined 9% year-over-year to $198.5 million, reflecting delayed DIY PC builds amid higher memory prices. However, segment gross profit increased 17% to $52.2 million, while gross margin expanded 570 basis points to 26.3%. La said Corsair views DIY demand as deferred rather than lost, noting that the company saw channel inventories normalize through second-quarter sales after entering the year with elevated inventory. She said customers appeared to be adjusting to pricing conditions and that run rates began to improve near the end of the second quarter. Memory net revenue grew 17% year-over-year, driven by supply-chain execution and market-share gains in North America. Mattingly said memory gross margin was 23.4% in the second quarter and is expected to be roughly similar in the third quarter before moderating into the high teens in the fourth quarter. He said the overall Components and Systems segment is expected to produce gross margins in the low-20% range for the remainder of the year. Systems sales also benefited from year-over-year growth in AI workstations. Corsair is targeting the estimated $22 billion desktop AI PC market, focusing initially on prosumers and small and medium-sized businesses seeking local computing capacity, data security and reduced cloud costs. La said the opportunity remains early, with tight GPU allocation, and the company expects revenue contribution to build in the latter part of 2027 and beyond. Operating expenses declined $6.1 million year-over-year to $96.7 million. Cash provided by operating activities increased 148% to $74.8 million, supported by earnings and working-capital management. Mattingly said Corsair generated more operating cash flow in the first six months of 2026 than it did in all of 2025 and 2024 combined. Cash and restricted cash rose $74.1 million sequentially to $193.9 million at quarter-end. With total debt of $118.7 million, Corsair ended the quarter with net cash of about $75.1 million. For the third quarter, Corsair expects: Revenue of $320 million to $350 million. Adjusted EBITDA of $18 million to $21 million. Non-GAAP diluted EPS of $0.09 to $0.12. The company expects Gamer and Creator Peripherals to post continued low-double-digit revenue growth, led by Fanatec, Elgato and Stream Deck. Components and Systems revenue is expected to decline by a low-double-digit percentage year-over-year as elevated memory prices continue to affect DIY demand. For full-year 2026, Corsair raised its outlook to revenue of $1.4 billion to $1.47 billion, adjusted EBITDA of $121 million to $131 million, and non-GAAP diluted EPS of $0.85 to $0.94. At the midpoint, the revenue outlook increased by about $35 million and the adjusted EBITDA outlook increased by about $19 million from prior guidance. Mattingly said the higher second-half outlook reflects improving organic business performance, with a relatively small contribution from Trak Racer. Management cited the expected fourth-quarter launch of Grand Theft Auto VI as a potential holiday-season tailwind for Corsair’s console and peripherals business, alongside Fanatec product launches and distribution expansion, Elgato Marketplace growth and continued memory share gains in North America. Corsair Gaming, Inc, headquartered in Fremont, California, is a leading manufacturer of high-performance gaming peripherals and PC components. Since its founding in 1994 by Andy Paul, Don Lieberman and John Beekley as Corsair Microsystems, the company has evolved from producing memory modules to a broad portfolio of gaming hardware. Its product range includes gaming keyboards, mice, headsets, PC chassis, power supplies, cooling solutions, memory modules, solid-state drives and streaming accessories under brands such as Corsair, Elgato and SCUF Gaming. The company's solutions cater to PC enthusiasts, competitive gamers and content creators, offering hardware and integrated software designed to optimize performance and user experience. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Corsair Gaming Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Exceeds Profit Expectations with and without Tariff Refund MILPITAS, Calif., August 06, 2026--(BUSINESS WIRE)--Corsair Gaming, Inc. (Nasdaq: CRSR) ("Corsair" or the "Company"), a leading global provider and innovator of high-performance products for gamers, streamers, content-creators, performance PC builders, and Sim Racing enthusiasts, today announced financial results for the second quarter 2026, guidance for the third quarter 2026, and updated guidance for full year 2026. Second Quarter 2026 Select Financial Highlights (compared to second quarter 2025 unless otherwise stated) Gross profit increased 21% year-over-year to $104.3 million. Gross margin expanded by 635 basis points year-over-year and 45 basis points sequentially to 33.2%, a company record. GAAP operating income improved to $7.6 million from an operating loss of $16.9 million, while net income improved to $9.1 million from a net loss of $20.3 million. Adjusted EBITDA increased 279% year-over-year to $30.8 million, nearly double the high end of the Company’s guidance of $15.5 million. Adjusted EBITDA margin expanded by 730 basis points to 9.8%. GAAP diluted earnings per share was $0.06, compared with a loss of $0.16 a year ago; non-GAAP diluted earnings per share was $0.23, compared with $0.01 a year ago, which was more than three times the high end of the Company’s guided range of $0.05 to $0.07. Net revenue was $314.3 million, down 2% year-over-year, above the assumed midpoint of the Company’s guided range of $295 million to $320 million. Direct-to-consumer business was 20% of total net revenue. Net cash provided by operating activities increased 148% year-over-year to $74.8 million. Cash and restricted cash increased $74.1 million sequentially to $193.9 million at quarter-end. During the second quarter of 2026, the Company recognized a benefit of approximately $15.6 million to GAAP gross profit from refunds of tariffs previously paid under the International Emergency Economic Powers Act. This delivered approximately 500 basis points of benefit to gross margin. Net income benefited by approximately $14.9 million, adjusted EBITDA by approximately $14.3 million and non-GAAP diluted earnings per share by $0.14. Excluding this benefit, net loss would have been $5.7 million and GAAP diluted loss per share would have been $(0.07), adjusted EBITDA would have been $16.6 million, and non-GAAP diluted earnings per share would have been $0.09, both above the high end of the Company’s guided ranges of $15.5 million and $0.07 respectively. Following receipt of these amounts, the Company is materially complete with the tariff-refund process, although it may receive immaterial administrative adjustments or interest in future periods. Definitions of the non-GAAP financial measures used in this press release and reconciliations of such measures to their nearest GAAP equivalents are included below under the heading "Use and Reconciliation of Non-GAAP Financial Measures." Business Segment Highlights: Gamer and Creator Peripherals Segment Revenue grew 13% year over year to $115.9 million, with continued strong demand across gaming peripherals, streaming components, and Sim Racing solutions. Growth reflects market share gains, successful new product introductions, and continued ecosystem expansion. Gross profit increased 27% year-over-year to $52.0 million, with the segment continuing to benefit from a favorable shift toward higher-margin categories. Elgato and Stream Deck continued to expand beyond content creation into broader workflow automation and professional broadcast applications. In the first half of 2026, the Elgato Marketplace delivered strong first half year-over-year growth, with gross revenue and transaction volume each up over 100% and product submissions up more than 300%, alongside more than 500,000 new accounts added. AI-assisted development is making it easier for creators and developers to build new profiles and plug-ins, increasing the utility of the Stream Deck ecosystem and supporting future recurring-revenue opportunities. During the quarter, Corsair also made a minority investment in Bitfocus AS, a Norway-based software company, to deepen integration between Stream Deck and Bitfocus's professional show-control software, further extending the Stream Deck ecosystem into live production and broadcast workflows. As part of the agreement, Corsair and Bitfocus also established a partnership under which Stream Deck Studio and the broader Stream Deck range will serve as the preferred and primary control surfaces across Bitfocus customer deployments. Sim Racing remained a key growth driver, with continued momentum at Fanatec supported by new products, expanded distribution and direct-to-consumer engagement. Fanatec’s momentum was one of the key contributors to the segment’s double-digit revenue growth, while it also carries gross margins above the segment average. Fanatec’s direct-to-consumer orientation also provides stronger unit economics, richer customer data and deeper customer relationships, while complementing Corsair’s channel partnerships. Recent Developments:On August 3, 2026, Corsair completed the acquisition of Trak Racer, a complementary Sim Racing hardware brand sold primarily through direct-to-consumer channels, extending Fanatec’s product range and distribution reach within the Company's Sim Racing platform. As part of the transaction, Trak Racer founder Matt Sten has joined as Chief Technology Officer of the Company's Sim Solutions group, and Pete Hosking will continue to lead Trak Racer with ongoing P&L responsibility. Gaming Components and Systems Segment Revenue declined 9% year-over-year to $198.5 million. Higher memory pricing continued to weigh on the market for DIY PC builds and standalone components, which shrank year-over-year during the quarter. Elsewhere within the segment, memory revenue grew 17% year-over-year, supported by continued excellence in supply chain management, robust demand and sequential market share gains in North America. The Company’s memory supply availability remained adequate as its strategically built memory inventory was substantially right-sized during the first half of 2026. Within Systems, demand remained strong, with continued AI compute momentum driving solid year-over-year revenue growth. Corsair is building its AI workstation offering as a natural extension of its existing capabilities in high-performance systems, customization, memory, thermal management and power delivery, initially targeting the approximately $22 billion desktop AI PC opportunity and prosumer and small- and medium-sized business customers who value local compute, data security and lower cloud-token consumption. The significance of this opportunity to the Company’s operations remains early, with a more impactful contribution expected in the latter part of 2027 and beyond. Despite the market headwinds in components, gross profit increased 17% year-over-year to $52.2 million and gross margin expanded 570 basis points to 26.3% year-over-year. Management Commentary: Thi La, Chief Executive Officer of Corsair, stated, "We delivered another quarter of significant profitability improvement, with gross margin reaching a record for the Company at 33.2%, gross profit increasing 21% year-over-year, net loss of $5.7 million excluding the tariff refund and adjusted EBITDA, excluding the tariff refund, of $16.6 million, above the high end of our guidance. These results demonstrate the strength of our improving product mix, disciplined execution and continued shift toward higher-margin categories. Gamer and Creator Peripherals was a standout, delivering 13% revenue growth, 27% gross profit growth and a gross margin of 44.9%, supported by continued momentum at Fanatec and the expanding Elgato and Stream Deck ecosystem." "Looking ahead, our investments remain focused on margin potential, ecosystem value and our ability to win. We see meaningful opportunities to further expand Stream Deck into workflow automation and professional broadcasting, accelerate Marketplace development through AI, deepen our direct-to-consumer relationships and build on Fanatec’s momentum in Sim Racing. Adding to this, our acquisition of Trak Racer has the potential to deliver strong synergies from product range to channel reach. While elevated memory pricing continues to delay DIY PC builds, we believe that demand has been deferred, not lost, and that Corsair is well positioned to benefit as market conditions normalize." Gordon Mattingly, Chief Financial Officer of Corsair, stated, "The quarter showed strong conversion of gross-profit improvement into earnings and cash generation. We moved from a $16.9 million GAAP operating loss a year ago to $7.6 million of operating income, generated $74.8 million of operating cash flow, and ended the quarter with $193.9 million of cash and restricted cash against approximately $118.7 million of debt. We also reduced operating expenses by $6.1 million year-over-year, allowing more of the gross-profit improvement from mix and execution to reach the bottom line. The tariff refund further strengthened our financial results and cash position during the quarter. With the related refund process now materially complete, our focus remains on executing against the underlying operating priorities of the business as we continue to drive growth." Third Quarter and Updated Full Year 2026 Financial Outlook: For the third quarter of 2026, we expect: Net revenue to be in the range of $320 million to $350 million. Adjusted EBITDA to be in the range of $18 million to $21 million. Non-GAAP EPS to be in the range of $0.09 to $0.12. For the full year 2026, we expect: Net revenue to be in the range of $1.40 billion to $1.47 billion. Adjusted EBITDA to be in the range of $121 to $131 million. Non-GAAP EPS to be in the range of $0.85 to $0.94. The third quarter and full year 2026 outlook assumes continued double-digit growth in Gamer and Creator Peripherals, led by Fanatec, Elgato and Stream Deck, with the higher-margin mix and continued direct-to-consumer progress supporting consolidated gross margin. Gaming Components and Systems is expected to remain pressured by elevated memory pricing delaying DIY demand, although supply availability is expected to remain adequate. Our full year 2026 outlook for net revenue represents an increase of approximately $35 million at the assumed midpoint of our updated guidance range, compared to our prior guidance. The assumed midpoint of our adjusted EBITDA range is also up approximately $19 million compared to the assumed midpoint of our prior guidance range of $100 million to $115 million. Conference Call and Webcast InformationCorsair will host a conference call to discuss the second quarter of 2026 financial results today at 2:00 p.m. Pacific Time. The conference call will be accessible on Corsair’s Investor Relations website at https://ir.corsair.com, or by dialing 1-877-407-0784 (USA) or 1-201-689-8560 (International) with conference ID 13761177. A replay will be available approximately 3 hours after the live call ends on Corsair’s Investor Relations website, or through August 13, 2026 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International), with passcode 13761177. About Corsair GamingCorsair (Nasdaq: CRSR) is a leading global developer and manufacturer of high-performance products and technology for gamers, content creators, and PC enthusiasts. From award-winning PC components and peripherals to premium streaming equipment and smart ambient lighting, Corsair delivers a full ecosystem of products that work together to enable everyone, from casual gamers to committed professionals, to perform at their very best. Corsair also sells products under its Fanatec brand, the leading end-to-end premium Sim Racing product line; Trak Racer brand, which provides premium racing and flight-simulation cockpits, frames, seats, monitor stands, motion systems and accessories; Elgato brand, which provides premium studio equipment and accessories for content creators; SCUF Gaming brand, which builds custom-designed controllers for competitive gamers; and ORIGIN PC brand, a builder of custom gaming and workstation desktop PCs. Forward-Looking StatementsThis press release contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the Company’s financial outlook for the third quarter 2026 and the full year 2026; potential future growth in certain product categories; future headwinds and tailwinds that may impact the Company’s sales and results of operations including semiconductor supply constraints and demand for AI-focused workstations; the potential growth and the long-term trajectory of our segments; expected synergies from the acquisition of Trak Racer; the potential market opportunity for desktop AI PCs; the anticipated timeline for a more meaningful contribution from the Company's AI workstation initiative; statements regarding the status of the tariff refund process and the possibility of future administrative adjustments; and the Company's view that elevated DIY PC demand has been deferred rather than lost and its positioning to benefit as market conditions normalize. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s limited operating history, which makes it difficult to forecast the Company’s future results of operations; current macroeconomic conditions, including the impacts of high inflation and risk of recession, on demand for our products, consumer confidence and financial markets generally; changes in trade regulations, policies, and agreements and the imposition of tariffs that affect our products or operations, including potential new tariffs that may be imposed on U.S. imports and our ability to mitigate; the Company’s ability to build and maintain the strength of the Company’s brand among gaming, streaming and content creator enthusiasts and ability to continuously develop and successfully market new products and improvements to existing products; the introduction and success of new third-party high-performance computer hardware, particularly graphics processing units and central processing units as well as sophisticated new video games; fluctuations in operating results; the loss or inability to attract and retain key management; the impacts from geopolitical events and unrest; delays or disruptions at the Company or third-parties’ manufacturing and distribution facilities; and the other factors described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC") and our subsequent filings with the SEC. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Our results for the quarter ended June 30, 2026 are also not necessarily indicative of our operating results for any future periods. Use and Reconciliation of Non-GAAP Financial MeasuresTo supplement the financial results presented in accordance with GAAP, this earnings release presents certain non-GAAP financial information, including adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA. These are important financial performance measures for us but are not financial measures as defined by GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per share and adjusted EBITDA to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in such non-GAAP measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making. We also present these non-GAAP financial measures because we believe investors, analysts and rating agencies consider it useful in measuring our ability to meet our debt service obligations. Our use of these terms may vary from that of others in our industry. These non-GAAP financial measures should not be considered as an alternative to net revenue, operating income (loss), net income (loss), cash provided by operating activities, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these measures to the most directly comparable GAAP financial measures are presented in the attached schedules. We calculate these non-GAAP financial measures as follows: Adjusted operating income (loss), non-GAAP, is determined by adding back to GAAP operating income (loss), the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, legal and due diligence costs related to strategic investments, and acquisition accounting impact related to recognizing acquired inventory at fair value. Adjusted net income (loss), non-GAAP, excludes the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, acquisition accounting impact related to recognizing acquired inventory at fair value, legal and due diligence costs related to strategic investments, and the bargain purchase gain on business acquisition, as well as the related tax effects of each of these adjustments. Adjusted net income (loss) per diluted share, non-GAAP, is determined by dividing adjusted net income (loss), non-GAAP by the respective weighted average shares outstanding, inclusive of the impact of other dilutive securities. Adjusted EBITDA excludes the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, acquisition accounting impact related to recognizing acquired inventory at fair value, legal and due diligence costs related to strategic investments, and the bargain purchase gain on business acquisition, depreciation, interest expense, net, and tax expense (benefit). We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806457257/en/ Contacts Investor Relations Contact: David [email protected] 914-337-8801 Media Contact: [email protected] 510-657-8747

It's been a pretty great week for Corsair Gaming, Inc. (NASDAQ:CRSR) shareholders, with its shares surging 14% to US$7.88 in the week since its latest first-quarter results. It looks like a credible result overall - although revenues of US$355m were what the analysts expected, Corsair Gaming surprised by delivering a (statutory) profit of US$0.11 per share, an impressive 267% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. After the latest results, the consensus from Corsair Gaming's seven analysts is for revenues of US$1.43b in 2026, which would reflect a small 2.2% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to leap 46% to US$0.13. Before this earnings report, the analysts had been forecasting revenues of US$1.42b and earnings per share (EPS) of US$0.20 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates. Check out our latest analysis for Corsair Gaming Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 10% to US$8.81, suggesting the revised estimates are not indicative of a weaker long-term future for the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Corsair Gaming at US$11.00 per share, while the most bearish prices it at US$7.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 7.1% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 10% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Corsair Gaming to suffer worse than the wider industry. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Corsair Gaming's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving. With that in mind, we wouldn't be too quick to come to a conclusion on Corsair Gaming. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Corsair Gaming analysts - going out to 2028, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 2 warning signs for Corsair Gaming (1 is concerning!) that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Image source: The Motley Fool. May 7, 2026, 5 p.m. ET Chief Executive Officer — Thi La Chief Financial Officer — Gordon Mattingly Need a quote from a Motley Fool analyst? Email [email protected] Thi La: Thank you, David, and good afternoon, everyone. We delivered a strong start to 2026. This quarter reflects real progress in the transformation of this business, and I will frame what the results show before Gordon takes you through the details. The headline is this: first quarter record gross margin, both adjusted EBITDA and EPS well above the high end of our guidance and a meaningful improvement in profitability versus a year ago. We also generated strong cash flow, reduced net debt to near 0 and returned capital to shareholders via our share repurchase. What I want to convey is that this is more than one strong metric. It is the whole company moving in the right direction at the same time. In Gamer and Creator Peripherals, we had another excellent quarter. Revenue grew 10% year-over-year, and we absorbed real tariff headwinds in the process. The growth is structural, not cyclical, and I want to explain why. Stream Deck, our solution that combines workflow control software with a hardware innovative interface puts powerful automation literally at your fingertips. What we have built on top of that is the flywheel, a marketplace for plug-ins and digital products that connects developers with users, and it is working. underscoring our success and momentum, our Elgato Marketplace delivered double-digit sequential growth in new accounts and digital products this quarter. We are also excited to see the rise of AI-assisted development, accelerating that flywheel further, lowering the barrier for a new generation of builders. Critically, Stream Deck is no longer just a stand-alone device. We have deployed the ecosystem across our product lines with keyboards, mice and other Corsair peripherals now integrating directly with Stream Deck, turning the software layer into a connected tissue across our hardware portfolio. This integration alongside the Elgato marketplace provides unique benefits to our customers and the results show in our Q1 2026 market share gain. Wave Next is our most ambitious hardware and software integration to date, unifying audio workflows into a single ecosystem with onboard DSP and intuitive tactile control. Sim Racing also had a strong quarter. We recently signed a strategic partnership with Formula 1, naming Fanatec as a licensed F1 brand partner and F1 Esports Official Partner for the F1 Sim Racing World Championship. Fanatec was showcased at the Miami [ Grands Prix ] recently. This validates our position at the top of the market and opens meaningful doors for brand reach and product authenticity going forward. In gaming components and systems, revenue declined 10% year-over-year, and I want to be direct about why we are in a non-GPU upgrade cycle compounded by challenging memory pricing dynamics. Semiconductor supply constraints have added further headwinds on both availability and consumer demand. These are industry-wide dynamics, not Corsair specific, and we expect them to persist through near term. What I want you to focus on is how we managed through it. Despite the revenue decline, we grew gross profit 18% year-over-year to $65.7 million and expanded gross margin 670 basis points from 21.7% to 28.4%. Gordon will give you the specifics, but the point is that our team delivered real margin improvement under dynamic pressure. That reflects operational discipline and a deliberate shift toward higher-margin products. Within the segment, we're also seeing early but real demand for AI-focused workstations, particularly from prosumers and SMB customers who need high-performance locally run AI compute. This is a large and growing market, and it plays to Corsair's and ORIGIN PC's strengths. We are encouraged by the early signals and believe this has the potential to become a more meaningful contributor as adoption matures, though we want to be measured in our expectations until semiconductor availability is more established. Stepping back, the strategy we've been executing against is that Corsair's profitability improves as we continue to grow our higher-margin gaming and creator segment, leveraging our platform ecosystem and continue to exercise operational discipline. This quarter is a proof point that our strategy is working. Our 2026 priorities are clear. First, improve the quality of growth, leaning into higher-margin categories and scaling our ecosystem where we see strong momentum. Second, grow the Elgato marketplace and recurring revenue to drive lifetime value engagement and margin enhancement. Third, scale direct-to-consumer because higher-margin channels and better customer data make other parts of the business smarter. With that, I will turn it over to Gordon to take you through the financials. Gordon? Gordon Mattingly: Thank you, Thi, and good afternoon, everyone. Before I get into the numbers, I want to frame what this quarter's results represent. We are working to transform Corsair into a consistently profitable cash-generative business, underpinned by our diversified portfolio of market-leading brands. This quarter, we saw several benefits of that transformation and diversification simultaneously contributing to our strong results. These include consistent market leadership in memory products, an accelerating pace of innovation in higher-margin peripherals, platform growth in Elgato, direct-consumer expansion and disciplined expense and working capital management. Our team will continue to prioritize progress and improvements across all these areas. Now turning to our results. Revenue for the first quarter was $354.5 million, above the midpoint of our guidance. Gross profit increased 13% year-over-year to $116 million, reflecting strong execution within both our segments, while gross margin expanded to a first quarter record of 32.7%. Our Gamer and Creator Peripheral segment gross profit grew 8% to $50.3 million despite year-over-year tariff-related headwinds with segment gross margin of 40.8%. Our Gaming Components and Systems segment gross profit grew 18% to $65.7 million, with segment gross margin expanded significantly from 21.7% to 28.4%. This is an increase of 670 basis points, which was driven by our strong supply chain execution, favorable memory pricing and sequential market share gains. Though we do expect margin normalization over time, we are very pleased with the expansion we delivered in Q1. Our higher-margin Gamer and Creator Peripheral segment also grew to 35% of our Q1 revenue mix, up from 30% a year ago, which helped lift our blended company gross margin, a trend that we expect to continue. I want to call out one additional driver of margin quality. Our direct-to-consumer channel grew to 20% of Q1 revenue, up from 17% a year ago. That 3-point mix shift matters. Direct-to-consumer carries structurally higher margins than our wholesale and retail channels. As a result, this growth flowed directly into gross profit. It's a deliberate part of our strategy, and we continue to make good progress on it. Disciplined operating expense management with flat year-over-year expenses enabled gross profit growth to flow entirely through to adjusted EBITDA. As a result, adjusted EBITDA grew to $35.8 million, up 58% year-over-year and above the high end of our guidance at 10.1% of revenue. This marks our second consecutive quarter of double-digit adjusted EBITDA margin. Earnings per share improved significantly, coming in at $0.11 on a GAAP basis and $0.27 on a non-GAAP basis compared to a loss in the prior year period. Turning to the balance sheet and cash flow. We generated $29.7 million in cash from operations in Q1, driven by strong earnings with balanced working capital management. This translated into good progress on the balance sheet with our cash and restricted cash increasing sequentially by $20.9 million to $119.7 million. Importantly, we ended the first quarter with a near 0 net debt position. This will give us even greater flexibility to deploy our capital across the business and maximize future shareholder returns. In line with that, during the first quarter, we repurchased approximately $5 million of stock under our recent $50 million authorization. This reflects our view that our shares represent a highly compelling investment opportunity. We intend to continue to deploy our capital optimally, whether investing in organic growth, executing M&A, deleveraging the business or returning capital to shareholders. Now turning to our guidance. For the second quarter of 2026, we expect net revenue to be in the range of $295 million to $320 million, adjusted EBITDA to be in the range of $12.5 million to $15.5 million and non-GAAP EPS to be in the range of $0.05 to $0.07 per share. We expect revenue to be down by about 4% year-over-year at the midpoint of our guided range with expected low teens year-over-year growth in our Gamer and Creator Peripheral segment, offset by a more cautious outlook for gaming components and systems, driven by the ongoing global semiconductor shortages and related demand dynamics. The sequential decline in our revenue from Q1 reflects the normal seasonal pattern of our business. Adjusted EBITDA is expected to grow more than 70% year-over-year at the assumed midpoint of our guided range as we continue to focus on margin expansion and operating expense management. We also reaffirm our previously issued full year guidance, reflecting continued confidence in our outlook. To close, we delivered a strong first quarter with solid top line performance relative to expectations, significant profit growth together with meaningful balance sheet improvement and cash generation. As we look ahead, our priorities remain clear: continued optimization of our product mix towards higher-margin categories and sales channels, disciplined cost management and driving consistent profitable growth across our diversified portfolio of market-leading brands. We believe the progress we've made positions us well to build on this momentum through the remainder of 2026, and we remain confident in our ability to execute against our strategy as we deploy our capital optimally to deliver long-term value for our shareholders. Operator, that concludes our formal remarks. You can now open the call for Q&A. Operator: [Operator Instructions] Your first question today comes from Aaron Lee from Macquarie. Aaron Lee: Nice job on the quarter. I wanted to talk about -- maybe to start with guidance. So obviously, you beat the high end of EBITDA guidance in the first quarter. So can you just talk a bit about the decision to keep the full year outlook the same? Does that just kind of reflect -- it's early in the year, so no reason to kind of move that around? Or any other puts and takes that we should be mindful of? Gordon Mattingly: You got it absolutely right. If you look at revenue for Q1, we're a little bit above the midpoint of guidance. But from a revenue perspective, no reason to change the annual guide, we're on track. From a profit perspective, you're absolutely right. It's pretty pleasing for us to have already banked 33% of the annual guide, 25% of the way through the year. But we just back to what you said at the outset, we're pretty early on through the year. The macro situation is a little bit uncertain. So we just feel that it's right to maintain the guide that we issued before, and we remain confident in that guidance. Aaron Lee: Okay. Perfect. And then I wanted to ask about AI. You made some pretty interesting comments about the opportunity there. Can you just talk about your strategy to penetrate this TAM? And is this something that would require significant time or investment to unlock? Or can you be pretty nimble? Thi La: Aaron, on AI workstation, this is a product line that we launched about 2 quarters ago. And at the beginning, the category was still pretty new. There were a lot of education that needs to be done. Since then, a lot more LLM models became available to the market and people are a lot more familiar with using AI to do the work, to establish very complex business model. And alongside with that, we started to see a much stronger awareness of the benefit of AI computing. And then furthermore, the concern around security and the ability to just do local computing with AI, it's a lot higher and the demand started to surface for our particular solution. So a lot of the performance that we see in Q1 for the systems side is really stemming from the awareness and the need of these new consumers, we call them prosumers as well as SMB wanting to invest in the category. The category itself, we shared the TAM data in our earnings. It's a big market. It's just a question is, number one, the acceleration time line and the availability of semiconductor. Operator: Your next question comes from Drew Crum from Stifel. Andrew Crum: I just wanted to get your additional thoughts on updated expectations for when you think semiconductor supply will improve for your business. I think the language that you used was it would be constrained near term. But just any more detail there and how you're thinking about it beyond '26? And then I have a follow-up. Thi La: At this point, the data that we use is pretty much very consistent with what the market is saying is sometime in '27. Although in terms of availability, for us, we will continue to be able to have access to memory, especially DRAM. The big question is around pricing because you do see demand basically track ASP memory, for example. So for us, when we talk about availability of semiconductor, it just means that the supply-demand picture is more balanced, and you will see ASP normalize, and that's going to bring in, we believe, at this point, a much bigger acceleration in computing. And for our business, that's very beneficial to see people coming back into the market. I think we just see right now just this pent-up demand on waiting for the ASP to normalize. Andrew Crum: Got it. Okay. And then my follow-up is pertaining to the improvement in mix from DTC at 20% of revenue. I think this has been a key initiative for the company for several years now. Are there specific drivers to move that percentage higher? And do you have an intermediate or longer-term target in terms of what it can represent as a percentage of your total revenue? Thi La: Yes. We had made a deliberate goal to get the DTC business to 25%, and we communicated this a few quarters ago. And since then, we've grown from 18% now to 20% for exiting this Q1. That came from a number of activities or investments. The first one is M&A, right? A lot of our M&A companies are very strong in DTC. Number two is product strategy, where we put products on DTC versus the broader channel. And we increased marketing investment for our DTC business. The store that we opened in the Bay Area is the first retail format that we have for Corsair and all of our brands, and that's shown to be very successful. And we also kicked off AI commerce or AI e-commerce investment to basically adopt to consumers' shopping behavior with the most recent change, and that's also been paying off. Operator: [Operator Instructions] Your next question comes from Colin Sebastian from Baird. Zachary Witaszek: This is Zach on for Colin. So you disclosed the double-digit sequential growth in a few KPIs for the Elgato Marketplace. So just stepping back, what type of applications are gaining the most traction with users? And how are you thinking about the longer-term opportunity there? Thi La: Yes. We actually see a pretty broad range of products that are being submitted recently, and it's ranging from content creation, extensive use of Adobe Photoshop, for example, to gaming applications, so different kind of profiles to help you game better and even broadcasting, voice, video control and including streaming software. And because the use case is so diverse and the Stream Deck platform is very flexible, I think people are very active in terms of adding content all the time. And the bottleneck is almost to where we can curate the content and make it published fast enough. So there's -- this is the beauty of the solution is it can be anything. I think we lost Zach? Are we still on? Zachary Witaszek: Yes, that was my only question. Operator: [Operator Instructions] There are no other questions at this time. This does conclude our question-and-answer session. I would now like to turn the conference back over to CEO, Thi La, for any closing remarks. Thi La: Thank you all for joining us today. We're proud of the start that we make in 2026 and look forward to updating you on our continued progress when we report Q2 results. Have a good evening. Before you buy stock in Corsair Gaming, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Corsair Gaming wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 8, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Corsair (CRSR) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Record First Quarter Gross Margin of 32.7% $23.4 Million YoY increase in Net Income 58% YoY Increase in Adjusted EBITDA to $35.8 Million, Above Guidance $0.11 / $0.27 GAAP / Non-GAAP EPS, Above Guidance MILPITAS, Calif., May 07, 2026--(BUSINESS WIRE)--Corsair Gaming, Inc. (Nasdaq: CRSR) ("Corsair" or the "Company"), a leading global provider and innovator of high-performance products for gamers, streamers, content-creators, gaming PC builders, and sim racing enthusiasts, today announced financial results for the first quarter 2026, and guidance for the second quarter 2026. First Quarter 2026 Select Financial Highlights (compared to first quarter 2025 unless otherwise stated) Gross profit increased 13% YoY to $116.0 million, with growth driven by both segments, despite tariff-related headwinds in Gamer and Creator Peripherals. Gross margin expanded 500 basis points YoY to 32.7%, reflecting continued shift toward higher-margin products and disciplined cost management. Net income increased $23.4 million YoY. Adjusted EBITDA increased 58% YoY to $35.8 million, above the high end of guidance, representing our second consecutive quarter of double-digit adjusted EBITDA margin. GAAP diluted earnings per share increased 210% YoY to $0.11, while non-GAAP diluted earnings per share increased 145% YoY to $0.27. Revenue of $354.5 million, above the midpoint of our guided range, reflecting strong growth in Gamer and Creator Peripherals, partially offset by softer demand in Gaming Components and Systems driven by ongoing semiconductor supply constraints and elevated pricing. Cash and restricted cash increased sequentially by $20.9 million to $119.7 million, providing flexibility for continued investment and capital returns. Approximately $5 million repurchased under our $50 million share repurchase program. Definitions of the non-GAAP financial measures used in this press release and reconciliations of such measures to their nearest GAAP equivalents are included below under the heading "Use and Reconciliation of Non-GAAP Financial Measures." Business Segment Highlights: Gamer and Creator Peripherals Segment Revenue grew 10% year over year to $123.3 million, with strong demand across gaming peripherals, streaming components, and Sim Racing solutions. Growth reflects market share gains, successful new product introductions, and continued ecosystem expansion. Gross profit increased 8% year over year to $50.3 million, despite tariff-related headwinds, with the segment continuing to benefit from a favorable shift toward higher-margin categories. Elgato continued to build momentum across both hardware and software. The Elgato Marketplace delivered double-digit sequential growth in new accounts and digital products, driven by increasing engagement from creators and developers. The rise of AI-assisted development has meaningfully lowered the barrier to building and distributing tools within the Stream Deck ecosystem, accelerating platform adoption and reinforcing Elgato Marketplace as the hub for content creation. During the quarter, we launched Wave Next, the most ambitious evolution of our Elgato audio platform to date. Wave Next unifies fragmented audio workflows into a single, scalable ecosystem, integrating professional-grade software, purpose-built hardware with the new Wave FX engine, onboard digital signal processing for reduced latency, and intuitive tactile control. This integrated approach simplifies the creator’s experience while delivering meaningfully higher performance and extensibility. Sim Racing also had a strong quarter with double digit year over year revenue growth supported by community engagement, channel expansion, and continued product innovation across the Fanatec portfolio. We recently signed a strategic partnership with Formula 1®, naming Fanatec as both a licensed partner of the F1® brand and F1® Esports Official Partner. This helps to open doors, in terms of product authenticity, brand reach, and community engagement, that we intend to capitalize on. Combined with continued channel expansion and product innovation across the Fanatec portfolio, Sim Racing is a category where we see sustained momentum ahead. Gaming Components and Systems Segment Revenue declined 10% year over year to $231.2 million, reflecting softer demand in the DIY PC market. Ongoing global semiconductor supply constraints have reduced component availability, while elevated pricing has weighed on consumer demand, both dynamics we expect to persist through the near term. Despite the revenue decline, the segment delivered meaningful margin expansion, with gross margin improving year over year to 28.4% from 21.7%, an increase of 670 basis points. Gross profit grew 18% year over year to $65.7 million, reflecting disciplined operational execution and a favorable product mix. Within the segment, memory revenue grew 6% year over year, supported by prior inventory investments, strong supply chain execution, and sequential market share gains in North America. Within the pre-build PC segment, we are seeing early demand begin to ramp for AI-focused workstations, particularly among prosumer and SMB customers requiring high-performance, locally run AI compute. This represents an estimated $22 billion global annual market opportunity that continues to grow and aligns directly with Corsair’s and ORIGIN PC’s strengths in custom, high-performance desktop solutions roadmap. We are encouraged by these early signals and believe this category will become an increasingly meaningful contributor as adoption continues to mature. Management Commentary: Thi La, Chief Executive Officer of Corsair, stated, "We delivered a strong start to 2026, with record first quarter gross margin and adjusted EBITDA and EPS well above the high end of our guidance. The profit story this quarter reflects the quality of our business transformation, our continued shift toward higher-margin products, ecosystem growth with our Stream Deck technology expanding to more product lines, and the operational discipline our teams have demonstrated across both segments. In Gamer and Creator Peripherals, we believe the flywheel is accelerating, as AI-assisted development is bringing a new generation of creators and builders into our Stream Deck ecosystem, expanding our platform reach in exciting ways that weren’t possible even two years ago. Wave Next is our most ambitious hardware-software integration to date, and we believe it sets the stage for the next chapter of Elgato’s audio platform growth. In Gaming Components and Systems, we are navigating an industry-wide constrained supply environment with discipline. The significant margin expansion this quarter reflects that discipline. And while near-term demand headwinds in DIY components are real, we are encouraged by the early traction in our AI workstations and remain confident in the long-term trajectory of that segment." Gordon Mattingly, Chief Financial Officer of Corsair, stated, "Our first quarter results demonstrate the progress we have made in building a more profitable, more resilient business. We delivered a record first quarter gross margin of 32.7%, net income growth of $23.4 million, adjusted EBITDA significantly above expectations, and generated nearly $21 million in cash, enabling us to reduce net debt to near zero and return $5 million to shareholders through buybacks, all in the same quarter. Looking ahead, we remain focused on disciplined cost and working capital management, and we are well-positioned to deploy our increased financial flexibility efficiently across the business as the year progresses." Second Quarter and Full Year 2026 Financial Outlook: For the second quarter of 2026, we expect: Net revenue to be in the range of $295 million to $320 million. Adjusted EBITDA to be in the range of $12.5 million to $15.5 million. Non-GAAP EPS to be in the range of 5 to 7 cents. We expect revenue to be down by about 4% year-over-year at the assumed midpoint of our guided range, with expected low-teens year-over-year growth in our Gamer and Creator Peripherals segment, offset by a more cautious outlook for our Gaming Components and Systems segment, driven by the ongoing global semiconductor shortages. Adjusted EBITDA is expected to grow more than 70% year-over-year at the assumed midpoint of our guided range, as we continue to focus on margin expansion and operating expense management. The sequential decline in our revenue from Q1 reflects the normal seasonal pattern of our business. Our full-year guidance remains unchanged. Conference Call and Webcast Information Corsair will host a conference call to discuss the first quarter of 2026 financial results today at 2:00 p.m. Pacific Time. The conference call will be accessible on Corsair’s Investor Relations website at https://ir.corsair.com, or by dialing 1-844-676-2245 (USA) or 1-412-634-6652 (International) with conference ID 10207948. A replay will be available approximately 3 hours after the live call ends on Corsair’s Investor Relations website, or through May 14, 2026 by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International), with passcode 10207948. About Corsair Gaming Corsair (Nasdaq: CRSR) is a leading global developer and manufacturer of high-performance products and technology for gamers, content creators, and PC enthusiasts. From award-winning PC components and peripherals to premium streaming equipment and smart ambient lighting, Corsair delivers a full ecosystem of products that work together to enable everyone, from casual gamers to committed professionals, to perform at their very best. Corsair also sells products under its Fanatec brand, the leading end-to-end premium sim racing product line; Elgato brand, which provides premium studio equipment and accessories for content creators; SCUF Gaming brand, which builds custom-designed controllers for competitive gamers; Drop, the leading community-driven mechanical keyboard brand; and ORIGIN PC brand, a builder of custom gaming and workstation desktop PCs. Forward-Looking Statements This press release contains express and implied forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the Company’s financial outlook for the second quarter 2026 and the full year 2026; potential future growth in certain product categories; future headwinds and tailwinds that may impact the Company’s sales and results of operations including semiconductor supply constraints and demand for AI-focused workstations; and the potential growth and the long-term trajectory of our segments. Forward-looking statements are based on our management’s beliefs, as well as assumptions made by, and information currently available to them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s limited operating history, which makes it difficult to forecast the Company’s future results of operations; current macroeconomic conditions, including the impacts of high inflation and risk of recession, on demand for our products, consumer confidence and financial markets generally; changes in trade regulations, policies, and agreements and the imposition of tariffs that affect our products or operations, including potential new tariffs that may be imposed on U.S. imports and our ability to mitigate; the Company’s ability to build and maintain the strength of the Company’s brand among gaming, streaming and content creator enthusiasts and ability to continuously develop and successfully market new products and improvements to existing products; the introduction and success of new third-party high-performance computer hardware, particularly graphics processing units and central processing units as well as sophisticated new video games; fluctuations in operating results; the loss or inability to attract and retain key management; the impacts from geopolitical events and unrest; delays or disruptions at the Company or third-parties’ manufacturing and distribution facilities; and the other factors described under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC") and our subsequent filings with the SEC. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Our results for the quarter ended March 31, 2026 are also not necessarily indicative of our operating results for any future periods. Use and Reconciliation of Non-GAAP Financial Measures To supplement the financial results presented in accordance with GAAP, this earnings release presents certain non-GAAP financial information, including adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA. These are important financial performance measures for us but are not financial measures as defined by GAAP. The presentation of this non-GAAP financial information is not intended to be considered in isolation of or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. We use adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per share and adjusted EBITDA to evaluate our operating performance and trends and make planning decisions. We believe that these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the expenses and other items that we exclude in such non-GAAP measures. Accordingly, we believe that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to the key financial metrics used by our management in our financial and operational decision-making. We also present these non-GAAP financial measures because we believe investors, analysts and rating agencies consider it useful in measuring our ability to meet our debt service obligations. Our use of these terms may vary from that of others in our industry. These non-GAAP financial measures should not be considered as an alternative to net revenue, operating income (loss), net income (loss), cash provided by operating activities, or any other measures derived in accordance with GAAP as measures of operating performance or liquidity. Reconciliations of these measures to the most directly comparable GAAP financial measures are presented in the attached schedules. We calculate these non-GAAP financial measures as follows: Adjusted operating income (loss), non-GAAP, is determined by adding back to GAAP operating income (loss), the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, and acquisition accounting impact related to recognizing acquired inventory at fair value. Adjusted net income (loss), non-GAAP, excludes the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, acquisition accounting impact related to recognizing acquired inventory at fair value and the bargain purchase gain on business acquisition, as well as the related tax effects of each of these adjustments. Adjusted net income (loss) per diluted share, non-GAAP, is determined by dividing adjusted net income (loss), non-GAAP by the respective weighted average shares outstanding, inclusive of the impact of other dilutive securities. Adjusted EBITDA excludes the impact from amortization, stock-based compensation, one-time costs related to legal and other matters, acquisition and related integration costs, restructuring and other charges, acquisition accounting impact related to recognizing acquired inventory at fair value, and the bargain purchase gain on business acquisition, depreciation, interest expense, net, and tax expense (benefit). We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507920597/en/ Contacts Investor Relations Contact: David Pasquale [email protected] 914-337-8801 Media Contact: [email protected] 510-657-8747

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record first-quarter gross margins driven by a structural shift toward the higher-margin Gamer and Creator Peripheral segment, which now represents 35% of total revenue. Management attributes peripheral growth to the 'flywheel' effect of the Elgato Marketplace, where software integration across hardware lines is driving market share gains and user engagement. The Gaming Components and Systems segment faced a 10% revenue decline due to a non-GPU upgrade cycle and semiconductor supply constraints, yet grew gross profit by 18% through disciplined pricing and a shift to premium products. Operational discipline and flat year-over-year operating expenses allowed gross profit improvements to flow directly to adjusted EBITDA, resulting in a second consecutive quarter of double-digit margins. Direct-to-Consumer (DTC) revenue reached 20% of the total mix, a 3-point increase year-over-year, which management identifies as a key driver of margin quality due to structurally higher profitability than wholesale channels. Strategic focus is pivoting toward 'quality of growth' by prioritizing categories with high lifetime value and recurring revenue potential through digital products and plugins. Reaffirmed full-year 2026 guidance despite a strong Q1 beat, citing early-year macro uncertainty and a desire to remain measured until semiconductor availability stabilizes. Q2 2026 guidance assumes a 4% year-over-year revenue decline at the midpoint, reflecting normal seasonal patterns and continued caution regarding global semiconductor shortages. Management expects the trend of Gamer and Creator Peripherals becoming a larger portion of the revenue mix to continue, further lifting blended company gross margins. Anticipates that semiconductor supply-demand imbalances and elevated memory pricing will persist through the near term, with normalization not expected until 2027. Identified AI-focused workstations for prosumers and SMBs as a significant growth opportunity, though management is maintaining a conservative outlook until component supply is more established. Reduced net debt to near zero, providing increased capital flexibility for potential M&A, organic growth, or further shareholder returns. Repurchased approximately $5 million in stock during Q1 under a new $50 million authorization, signaling management's confidence in the company's valuation. Absorbed significant year-over-year tariff headwinds while still expanding peripheral segment gross margins to 40.8%. Signed a strategic partnership with Formula 1 for the Fanatec brand, intended to drive brand authenticity and reach within the growing Sim Racing market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while they have already 'banked' 33% of the annual EBITDA guide, it is too early in the year to adjust the outlook given macro uncertainties. Confirmed that revenue remains on track with the original annual plan despite the strong start in profitability. The category is seeing increased demand from prosumers and SMBs due to concerns over data security and the need for local AI compute power. Management believes they can be nimble in this space without significant new investment, as the primary bottleneck is semiconductor availability rather than internal capability. Reiterated a long-term goal of reaching 25% DTC revenue mix, up from the current 20%. Growth is being driven by a three-pronged strategy: M&A of DTC-heavy brands, exclusive product launches on the Corsair webstore, and new investments in AI-driven e-commerce tools. Seeing double-digit sequential growth in new accounts and digital products, with diverse use cases ranging from Adobe Photoshop workflows to gaming and broadcasting. The current challenge is scaling the curation and publishing process to keep up with high developer submission volumes.

Interested in Corsair Gaming, Inc.? Here are five stocks we like better. Corsair reported a "strong start" to 2026 with Q1 revenue of $354.5M, a record first‑quarter gross margin of 32.7%, adjusted EBITDA of $35.8M (up 58% YoY) and moved to a near‑0 net debt position while repurchasing ~$5M of stock. Business mix diverged: gamer/creator peripherals grew ~10% YoY (benefiting from Elgato/Stream Deck and rising DTC mix to 20% of revenue), while components/systems revenue fell ~10% YoY despite an 18% increase in segment gross profit and a 670‑bp margin expansion; management expects semiconductor supply normalization around 2027. For Q2 the company guided revenue of $295M–$320M, adjusted EBITDA of $12.5M–$15.5M and non‑GAAP EPS of $0.05–$0.07, and reaffirmed its full‑year outlook despite the Q1 beat. Does Logitech’s EPS Beat Signal the Rebound of Video Gaming? Corsair Gaming (NASDAQ:CRSR) reported what management called a “strong start” to 2026, highlighted by record first-quarter gross margin, results above the company’s guidance ranges for profitability, and improved balance sheet flexibility. On the company’s first-quarter 2026 earnings call, CEO Thi La said the quarter reflected “real progress in the transformation of this business,” pointing to “first quarter record gross margin,” adjusted EBITDA and EPS “well above the high end of our guidance,” and “a meaningful improvement in profitability versus a year ago.” La also said Corsair generated strong cash flow, reduced net debt to “near 0,” and returned capital to shareholders through share repurchases. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% What Does Logitech CEO’s Abrupt Departure Mean? CFO Gordon Mattingly said first-quarter revenue was $354.5 million, which he noted was above the midpoint of the company’s guidance. Gross profit increased 13% year-over-year to $116 million, while gross margin expanded to a first-quarter record of 32.7%. Mattingly attributed the quarter’s performance to multiple factors tied to Corsair’s broader strategy, including “an accelerating pace of innovation in higher margin peripherals, platform growth in Elgato, direct consumer expansion, and disciplined expense and working capital management.” → Years in the Making, AMD’s Upside Movement Has Just Begun Corsair Gaming Stock Looks Good Here Operating expense discipline also played a role. Mattingly said flat year-over-year expenses allowed gross profit growth to flow through to profitability metrics. Adjusted EBITDA came in at $35.8 million, up 58% year-over-year and representing 10.1% of revenue. Mattingly said it was the company’s second consecutive quarter of double-digit adjusted EBITDA margin. Earnings per share were $0.11 on a GAAP basis and $0.27 on a non-GAAP basis, compared to a loss in the prior-year period. La said Corsair’s gamer and creative peripherals business delivered “another excellent quarter,” with revenue up 10% year-over-year despite “real tariff headwinds.” She characterized the growth as “structural, not cyclical,” and described how the company is working to extend its Stream Deck ecosystem beyond a single device into a broader software layer that integrates across Corsair peripherals. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Mattingly reported that the gamer and creator peripherals segment gross profit grew 8% to $50.3 million despite tariff-related pressure. He said segment gross margin was 14.8%. In contrast, La said gaming components and systems revenue declined 10% year-over-year, citing an industry backdrop that includes a “non-GPU upgrade cycle,” “challenging memory pricing dynamics,” and “semiconductor supply constraints” that have affected both availability and consumer demand. She said the dynamics are “industry-wide” and expected to persist in the near term. Even with the revenue decline, La emphasized profitability improvement in the segment. Mattingly said gaming components and systems segment gross profit grew 18% year-over-year to $65.7 million, and segment gross margin expanded 670 basis points from 21.7% to 28.4%. He attributed the improvement to “strong supply chain execution, favorable memory pricing, and sequential market share gains,” while adding that the company expects “margin normalization over time.” La highlighted continued momentum in Corsair’s ecosystem strategy, particularly within Elgato and Stream Deck. She said the Elgato marketplace posted “double-digit sequential growth” in new accounts and digital products during the quarter, and added that AI-assisted development is helping accelerate new content creation by lowering barriers for “a new generation of builders.” On the Q&A portion of the call, La said applications and products being submitted to the marketplace span a “pretty broad range,” including content creation workflows such as “extensive use of Adobe Photoshop,” gaming profiles, and streaming-related controls. She described the platform’s range of use cases as diverse, and said the “bottleneck” is increasingly in curation and publishing speed. Mattingly also pointed to channel mix as a contributor to margin quality. He said Corsair’s direct-to-consumer (DTC) channel grew to 20% of Q1 revenue from 17% a year ago, calling DTC “structurally higher margins” than wholesale and retail. La later said the company has a “deliberate goal” to reach 25% of revenue from its B2C business. La cited several drivers behind that push, including M&A that added companies “very strong in B2C,” product strategy decisions around which products are emphasized online, increased marketing investment, and a retail store in the Bay Area that she said has been “very successful.” She also noted the company has started investing in “AI commerce” or “AI e-commerce” to adapt to changes in consumer shopping behavior. La also discussed early demand signals for AI-focused workstations, particularly among “prosumers” and small and mid-sized businesses that want local AI compute. She said the market is “large and growing” and aligns with “Corsair’s and ORIGIN PC strengths,” while also urging measured expectations until semiconductor availability improves. In response to a question about timing for improved semiconductor supply conditions, La said the information Corsair is using is consistent with broader market expectations, pointing to “sometime in 2027.” She added that availability for Corsair includes having access to memory—particularly DRAM—but that pricing remains a major variable because demand tracks average selling prices. In her view, a more balanced supply-demand picture and normalized pricing could lead to “a much bigger accelerations in computing.” Mattingly said Corsair generated $29.7 million in cash from operations during Q1, driven by “strong earnings with balanced working capital management.” Cash and restricted cash rose $20.9 million sequentially to $119.7 million. He said the company ended the quarter with a “near 0 net debt position,” which he described as increasing flexibility for capital deployment. During the quarter, Corsair repurchased approximately $5 million of stock under its $50 million authorization. Mattingly said the repurchase reflected the company’s view that its shares represent “a highly compelling investment opportunity,” and said Corsair intends to deploy capital across organic investment, M&A, deleveraging, and shareholder returns. For the second quarter of 2026, Mattingly guided for: Net revenue of $295 million to $320 million Adjusted EBITDA of $12.5 million to $15.5 million Non-GAAP EPS of $0.05 to $0.07 He said revenue at the midpoint implies a roughly 4% year-over-year decline, with “low teens” growth in gamer and creative peripherals expected to be offset by a cautious outlook in gaming components and systems amid ongoing semiconductor shortages and related demand dynamics. Mattingly added that the expected sequential decline from Q1 reflects normal seasonality, and said adjusted EBITDA is expected to grow more than 70% year-over-year at the midpoint as the company focuses on margin expansion and operating expense management. Mattingly also said Corsair reaffirmed its previously issued full-year guidance. On the Q&A, management said it chose to keep the full-year outlook unchanged despite the Q1 beat, citing the early point in the year and uncertainty in the macro environment. La closed the call by saying the company was “proud of the start” to 2026 and looked forward to updating investors when it reports second-quarter results. Corsair Gaming, Inc, headquartered in Fremont, California, is a leading manufacturer of high-performance gaming peripherals and PC components. Since its founding in 1994 by Andy Paul, Don Lieberman and John Beekley as Corsair Microsystems, the company has evolved from producing memory modules to a broad portfolio of gaming hardware. Its product range includes gaming keyboards, mice, headsets, PC chassis, power supplies, cooling solutions, memory modules, solid-state drives and streaming accessories under brands such as Corsair, Elgato and SCUF Gaming. The company's solutions cater to PC enthusiasts, competitive gamers and content creators, offering hardware and integrated software designed to optimize performance and user experience. The article "Corsair Gaming Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.