Corsair Gaming (CRSR -0.56%) designs and sells high-performance hardware and gear for gamers, content creators, and PC enthusiasts. On August 7, 2025, it released its quarterly results. The most important news was the company’s top-line growth: revenue (GAAP) reached $320.1 million, surpassing the analyst consensus of $311.1 million (GAAP). While adjusted profit metrics improved versus the prior year, Non-GAAP earnings per share (EPS) landed at $0.01, falling short of the expected $0.03 non-GAAP EPS. Still, results reflected progress in product launches and growth across core business lines. Management maintained full-year revenue guidance, with the quarter showing continued revenue momentum but leaving room for improvement on bottom-line performance.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.01 | $0.03 | $(0.07) | $0.08 |
| Revenue (GAAP) | $320.1 million | N/A | $261.3 million | 22.5 % |
| Adjusted EBITDA (Non-GAAP) | $8.1 million | $(1.2 million) | N/A | |
| Gross Profit | $85.9 million | $63.1 million | 36.2% | |
| Operating Income (Non-GAAP) | $6.6 million | N/A | $(3.8 million) | — |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
Corsair Gaming is best known for its performance-driven PC components, gaming peripherals, and niche equipment for content creators. Its range covers everything from memory modules and computer cases to mechanical keyboards, headsets, and video production devices. Over recent years it has grown its ecosystem, acquiring brands like Elgato for video capture and Fanatec for simulation racing hardware.
The company’s growth strategy centers on a few core themes: constant product innovation, expanding its hardware and software integration, strengthening its global distribution, and entering new product categories. Success factors include bringing new, advanced products to market, maintaining a strong brand, keeping a leading position with integrated software platforms, and executing on strategic acquisitions. Its performance depends on both hardware quality and the ability to offer cohesive solutions to gamers and creators worldwide.
Quarter Highlights: Growth Drivers and Segment Results
During the quarter, Corsair delivered solid sales growth and improved profitability metrics compared to the prior year. The main revenue gain came from the Gaming Components & Systems segment, which includes computer components such as power supplies, memory (RAM), and cooling products. This segment’s sales rose 30% (GAAP), from $167.1 million to $217.47 million. Growth was driven by new product launches, notably upgraded graphics cards from Nvidia (5000 series) and AMD (9000 series), which spurred consumer demand for compatible or higher-performance components.
The Gamer & Creator Peripherals segment also grew, increasing 9% to $102.6 million (GAAP). This business unit produces gaming accessories including keyboards, mice, headsets, and the Elgato line of video capture tools and stream decks—control panels for managing live broadcasts. Key drivers included the launch of new and updated products, as well as successful expansion into additional markets. The Elgato division benefited from higher sales connected to the release of Nintendo’s Switch 2 gaming console, which prompted more content creators to upgrade their video and streaming setups.
Gross profit, which measures the profit after subtracting the cost to produce and deliver goods, rose 36% to $85.9 million, reflecting both improved segment results and greater operational efficiency. The company’s gross margin (gross profit as a percent of sales) improved to 26.8%, up from 24.1% in Q2 2024 (GAAP). Segment margins also rose. For peripherals, gross margin (GAAP) was 40.0%, up from 37.9% in Q2 2024, aided by premium offerings and strong product mix. For components and systems, gross margin (GAAP) climbed to 20.6% from 16.4% in Q2 2024, as new higher-end products became a larger share of sales.
Operationally, Corsair managed to generate positive cash flow from operations, at $30.2 million (GAAP), compared to a negative $18.5 million in Q2 2024. However, total operating expenses (GAAP) also grew to $102.8 million, up from $87.8 million in Q2 2024. Sales, general and administrative expenses (GAAP) were $85.3 million. The company also reported $1.4 million in bad debt expense, which represents customer accounts unlikely to be collected. Despite these rising costs, adjusted operating income (non-GAAP) turned positive, and adjusted EBITDA (non-GAAP) was $8.1 million, reflecting clear improvement over the prior period.
No dividends were paid to common shareholders during the quarter.
Innovation, Ecosystem Integration, and Market Expansion
Innovation remained a top focus. Major product launches included the new Virtual Stream Deck technology, which allows users to set up customizable on-screen controls—a significant software and hardware integration. New hardware launches included the Scimitar Elite MMO mouse and the Xeneon Edge display, both designed for advanced gaming and content creation. The company also rolled out the ORIGIN PC AI Workstation 300, which uses AMD’s new AI-enabled processors for resource-intensive creative and artificial intelligence (AI) workflows.
Corsair reported market share gains in several core categories, particularly keyboards and headsets, citing third-party market data. The Fanatec brand, now part of Corsair’s offering following a recent acquisition, made its global debut with sim racing products—high-end simulation hardware designed for realistic racing experiences—through expanded channel partners late in the quarter. Early sales and engagement metrics for these Fanatec products were positive, benefiting from the broader popularity of motorsports like Formula 1.
Integration of hardware and software continued to be a key differentiator. The Elgato division’s Stream Deck and video capture solutions are intended to form a unified ecosystem that helps both new and experienced creators manage complex workflows. According to management, Elgato is well-positioned to benefit from trends in gaming and streaming, though no specific usage data was provided in the release.
Geographically, Asia was a stand-out region, with company leadership noting “measurable returns” from targeted investments in that market. The company also outlined progress on integrating acquisitions, expanding its product pipeline, and paying down $24 million in term loan debt during the second quarter to improve financial flexibility.
Outlook and What to Watch
Looking ahead, management reaffirmed full-year GAAP revenue guidance, projecting a range between $1.4 billion and $1.6 billion. However, no updated guidance was provided for adjusted operating income or adjusted EBITDA for the full year, with leadership citing uncertainty on global trade policy and potential impacts from tariffs, especially related to semiconductor components. The impact of tariffs during the quarter was described as small, but management noted that depending on how new tariff rules play out, it may need to adjust product pricing to protect margins.
Operating costs, especially general and administrative expenses, have risen, which has limited the ability to fully convert higher sales and gross profit into improved net income. The company continues to report recurring differences between GAAP and Non-GAAP earnings due to items such as stock-based compensation, amortization of intangibles, and integration expenses from recent acquisitions, as defined in its earnings releases and reconciliations. Cash generation and debt reduction were positive highlights, but cash and restricted cash balances stayed level as ongoing investments and debt service used available funds. CRSR does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
