Corsair Reports Robust Profit Growth for First Quarter 2026

Record First Quarter Gross Margin of 32.7%

$23.4 Million YoY enhance 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.–(BUSINESS WIRE)–May 7, 2026–
Corsair Gaming, Inc. (Nasdaq: CRSR) (“Corsair” or the “Company”), a number one international supplier and innovator of high-performance merchandise for avid gamers, streamers, content-creators, gaming PC builders, and sim racing fanatics, at present introduced monetary outcomes for the primary quarter 2026, and steering for the second quarter 2026.

First Quarter 2026 Select Financial Highlights (in comparison with first quarter 2025 except in any other case said)

• Gross revenue elevated 13% YoY to $116.0 million, with progress pushed by each segments, regardless of tariff-related headwinds in Gamer and Creator Peripherals.
• Gross margin expanded 500 foundation factors YoY to 32.7%, reflecting continued shift towards higher-margin merchandise and disciplined value administration.
• Net earnings elevated $23.4 million YoY.
• Adjusted EBITDA elevated 58% YoY to $35.8 million, above the excessive finish of steering, representing our second consecutive quarter of double-digit adjusted EBITDA margin.
• GAAP diluted earnings per share elevated 210% YoY to $0.11, whereas non-GAAP diluted earnings per share elevated 145% YoY to $0.27.
• Revenue of $354.5 million, above the midpoint of our guided vary, reflecting sturdy progress in Gamer and Creator Peripherals, partially offset by softer demand in Gaming Components and Systems pushed by ongoing semiconductor provide constraints and elevated pricing.
• Cash and restricted money elevated sequentially by $20.9 million to $119.7 million, offering flexibility for continued funding and capital returns.
• Approximately $5 million repurchased underneath our $50 million share repurchase program.

Definitions of the non-GAAP monetary measures used on this press launch and reconciliations of such measures to their nearest GAAP equivalents are included beneath underneath the heading “Use and Reconciliation of Non-GAAP Financial Measures.”

Business Segment Highlights:

Gamer and Creator Peripherals Segment

Revenue grew 10% 12 months over 12 months to $123.3 million, with sturdy demand throughout gaming peripherals, streaming elements, and Sim Racing options. Growth displays market share positive factors, profitable new product introductions, and continued ecosystem enlargement.

Gross revenue elevated 8% 12 months over 12 months to $50.3 million, regardless of tariff-related headwinds, with the section persevering with to learn from a good shift towards higher-margin classes.

Elgato continued to construct momentum throughout each {hardware} and software program. The Elgato Marketplace delivered double-digit sequential progress in new accounts and digital merchandise, pushed by growing engagement from creators and builders. The rise of AI-assisted growth has meaningfully lowered the barrier to constructing and distributing instruments inside the Stream Deck ecosystem, accelerating platform adoption and reinforcing Elgato Marketplace because the hub for content material creation.

During the quarter, we launched Wave Next, probably the most formidable evolution of our Elgato audio platform to this point. Wave Next unifies fragmented audio workflows right into a single, scalable ecosystem, integrating professional-grade software program, purpose-built {hardware} with the brand new Wave FX engine, onboard digital sign processing for diminished latency, and intuitive tactile management. This built-in method simplifies the creator’s expertise whereas delivering meaningfully larger efficiency and extensibility.

Sim Racing additionally had a powerful quarter with double digit 12 months over 12 months income progress supported by group engagement, channel enlargement, and continued product innovation throughout the Fanatec portfolio. We not too long ago signed a strategic partnership with Formula 1®, naming Fanatec as each a licensed companion of the F1® model and F1® Esports Official Partner. This helps to open doorways, by way of product authenticity, model attain, and group engagement, that we intend to capitalize on. Combined with continued channel enlargement and product innovation throughout the Fanatec portfolio, Sim Racing is a class the place we see sustained momentum forward.

Gaming Components and Systems Segment

Revenue declined 10% 12 months over 12 months to $231.2 million, reflecting softer demand within the DIY PC market. Ongoing international semiconductor provide constraints have diminished part availability, whereas elevated pricing has weighed on client demand, each dynamics we count on to persist by the close to time period.

Despite the income decline, the section delivered significant margin enlargement, with gross margin bettering 12 months over 12 months to twenty-eight.4% from 21.7%, a rise of 670 foundation factors. Gross revenue grew 18% 12 months over 12 months to $65.7 million, reflecting disciplined operational execution and a good product combine.

Within the section, reminiscence income grew 6% 12 months over 12 months, supported by prior stock investments, sturdy provide chain execution, and sequential market share positive factors in North America.

Within the pre-build PC section, we’re seeing early demand start to ramp for AI-focused workstations, significantly amongst prosumer and SMB clients requiring high-performance, domestically run AI compute. This represents an estimated $22 billion international annual market alternative that continues to develop and aligns immediately with Corsair’s and ORIGIN PC’s strengths in {custom}, high-performance desktop options roadmap. We are inspired by these early alerts and imagine this class will turn into an more and more significant contributor as adoption continues to mature.

Management Commentary:

Thi La, Chief Executive Officer of Corsair, said, “We delivered a powerful begin to 2026, with file first quarter gross margin and adjusted EBITDA and EPS nicely above the excessive finish of our steering. The revenue story this quarter displays the standard of our enterprise transformation, our continued shift towards higher-margin merchandise, ecosystem progress with our Stream Deck know-how increasing to extra product strains, and the operational self-discipline our groups have demonstrated throughout each segments.

In Gamer and Creator Peripherals, we imagine the flywheel is accelerating, as AI-assisted growth is bringing a brand new technology of creators and builders into our Stream Deck ecosystem, increasing our platform attain in thrilling ways in which weren’t attainable even two years in the past. Wave Next is our most formidable hardware-software integration to this point, and we imagine it units the stage for the subsequent chapter of Elgato’s audio platform progress.

In Gaming Components and Systems, we’re navigating an industry-wide constrained provide surroundings with self-discipline. The vital margin enlargement this quarter displays that self-discipline. And whereas near-term demand headwinds in DIY elements are actual, we’re inspired by the early traction in our AI workstations and stay assured within the long-term trajectory of that section.”

Gordon Mattingly, Chief Financial Officer of Corsair, said, “Our first quarter outcomes exhibit the progress we now have made in constructing a extra worthwhile, extra resilient enterprise. We delivered a file first quarter gross margin of 32.7%, internet earnings progress of $23.4 million, adjusted EBITDA considerably above expectations, and generated almost $21 million in money, enabling us to scale back internet debt to close zero and return $5 million to shareholders by buybacks, all in the identical quarter.

Looking forward, we stay centered on disciplined value and dealing capital administration, and we’re well-positioned to deploy our elevated monetary flexibility effectively throughout the enterprise because the 12 months progresses.”

Second Quarter and Full Year 2026 Financial Outlook:

For the second quarter of 2026, we count on:

• Net income to be within the vary of $295 million to $320 million.
• Adjusted EBITDA to be within the vary of $12.5 million to $15.5 million.
• Non-GAAP EPS to be within the vary of 5 to 7 cents.

We count on income to be down by about 4% year-over-year on the assumed midpoint of our guided vary, with anticipated low-teens year-over-year progress in our Gamer and Creator Peripherals section, offset by a extra cautious outlook for our Gaming Components and Systems section, pushed by the continued international semiconductor shortages. Adjusted EBITDA is predicted to develop greater than 70% year-over-year on the assumed midpoint of our guided vary, as we proceed to concentrate on margin enlargement and working expense administration. The sequential decline in our income from Q1 displays the traditional seasonal sample of our enterprise.

Our full-year steering stays unchanged.

Conference Call and Webcast Information

Corsair will host a convention name to debate the primary quarter of 2026 monetary outcomes at present at 2:00 p.m. Pacific Time. The convention name will probably be accessible on Corsair’s Investor Relations web site at or by dialing 1-844-676-2245 (USA) or 1-412-634-6652 (International) with convention ID 10207948. A replay will probably be out there roughly 3 hours after the reside name ends on Corsair’s Investor Relations web site, or by 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 number one international developer and producer of high-performance merchandise and know-how for avid gamers, content material creators, and PC fanatics. From award-winning PC elements and peripherals to premium streaming gear and sensible ambient lighting, Corsair delivers a full ecosystem of merchandise that work collectively to allow everybody, from informal avid gamers to dedicated professionals, to carry out at their best possible. Corsair additionally sells merchandise underneath its Fanatec model, the main end-to-end premium sim racing product line; Elgato model, which offers premium studio gear and equipment for content material creators; SCUF Gaming model, which builds custom-designed controllers for aggressive avid gamers; Drop, the main community-driven mechanical keyboard model; and ORIGIN PC model, a builder of {custom} gaming and workstation desktop PCs.

Forward-Looking Statements

This press launch accommodates specific and implied forward-looking statements inside the which means of the Private Securities Litigation Reform Act of 1995, together with, however not restricted to, statements concerning the Company’s monetary outlook for the second quarter 2026 and the complete 12 months 2026; potential future progress in sure product classes; future headwinds and tailwinds which will influence the Company’s gross sales and outcomes of operations together with semiconductor provide constraints and demand for AI-focused workstations; and the potential progress and the long-term trajectory of our segments. Forward-looking statements are primarily based on our administration’s beliefs, in addition to assumptions made by, and knowledge at present out there to them. Because such statements are primarily based on expectations as to future monetary and working outcomes and will not be statements of reality, precise outcomes could differ materially from these projected. Factors which can trigger precise outcomes to vary materially from present expectations embrace, however will not be restricted to: the Company’s restricted working historical past, which makes it troublesome to forecast the Company’s future outcomes of operations; present macroeconomic circumstances, together with the impacts of excessive inflation and threat of recession, on demand for our merchandise, client confidence and monetary markets typically; modifications in commerce rules, insurance policies, and agreements and the imposition of tariffs that have an effect on our merchandise or operations, together with potential new tariffs which may be imposed on U.S. imports and our capability to mitigate; the Company’s capability to construct and keep the energy of the Company’s model amongst gaming, streaming and content material creator fanatics and skill to constantly develop and efficiently market new merchandise and enhancements to current merchandise; the introduction and success of latest third-party high-performance laptop {hardware}, significantly graphics processing items and central processing items in addition to refined new video video games; fluctuations in working outcomes; the loss or incapacity to draw and retain key administration; the impacts from geopolitical occasions and unrest; delays or disruptions on the Company or third-parties’ manufacturing and distribution amenities; and the opposite components described underneath the heading “Risk Factors” in our Annual Report on Form 10-Okay for the 12 months ended December 31, 2025 filed with the Securities and Exchange Commission (“SEC”) and our subsequent filings with the SEC. All forward-looking statements replicate our beliefs and assumptions solely as of the date of this press launch. We undertake no obligation to replace forward-looking statements to replicate future occasions or circumstances. Our outcomes for the quarter ended March 31, 2026 are additionally not essentially indicative of our working outcomes for any future durations.

Use and Reconciliation of Non-GAAP Financial Measures

To complement the monetary outcomes offered in accordance with GAAP, this earnings launch presents sure non-GAAP monetary info, together with adjusted working earnings (loss), adjusted internet earnings (loss), adjusted internet earnings (loss) per diluted share and adjusted EBITDA. These are essential monetary efficiency measures for us however will not be monetary measures as outlined by GAAP. The presentation of this non-GAAP monetary info just isn’t supposed to be thought of in isolation of or as an alternative to, or superior to, the monetary info ready and offered in accordance with GAAP.

We use adjusted working earnings (loss), adjusted internet earnings (loss), adjusted internet earnings (loss) per share and adjusted EBITDA to guage our working efficiency and developments and make planning selections. We imagine that these non-GAAP monetary measures assist determine underlying developments in our enterprise that would in any other case be masked by the impact of the bills and different gadgets that we exclude in such non-GAAP measures. Accordingly, we imagine that these non-GAAP monetary measures present helpful info to traders and others in understanding and evaluating our working outcomes, enhancing the general understanding of our previous efficiency and future prospects, and permitting for better transparency with respect to the important thing monetary metrics utilized by our administration in our monetary and operational decision-making. We additionally current these non-GAAP monetary measures as a result of we imagine traders, analysts and score businesses contemplate it helpful in measuring our capability to fulfill our debt service obligations.

Our use of those phrases could fluctuate from that of others in our {industry}. These non-GAAP monetary measures shouldn’t be thought of as a substitute for internet income, working earnings (loss), internet earnings (loss), money supplied by working actions, or every other measures derived in accordance with GAAP as measures of working efficiency or liquidity. Reconciliations of those measures to probably the most immediately comparable GAAP monetary measures are offered within the connected schedules.

We calculate these non-GAAP monetary measures as follows:

• Adjusted working earnings (loss), non-GAAP, is decided by including again to GAAP working earnings (loss), the influence from amortization, stock-based compensation, one-time prices associated to authorized and different issues, acquisition and associated integration prices, restructuring and different fees, and acquisition accounting influence associated to recognizing acquired stock at honest worth.
• Adjusted internet earnings (loss), non-GAAP, excludes the influence from amortization, stock-based compensation, one-time prices associated to authorized and different issues, acquisition and associated integration prices, restructuring and different fees, acquisition accounting influence associated to recognizing acquired stock at honest worth and the discount buy achieve on enterprise acquisition, in addition to the associated tax results of every of those changes.
• Adjusted internet earnings (loss) per diluted share, non-GAAP, is decided by dividing adjusted internet earnings (loss), non-GAAP by the respective weighted common shares excellent, inclusive of the influence of different dilutive securities.
• Adjusted EBITDA excludes the influence from amortization, stock-based compensation, one-time prices associated to authorized and different issues, acquisition and associated integration prices, restructuring and different fees, acquisition accounting influence associated to recognizing acquired stock at honest worth, and the discount buy achieve on enterprise acquisition, depreciation, curiosity expense, internet, and tax expense (profit).

We encourage traders and others to evaluation our monetary info in its entirety, to not depend on any single monetary measure and to view these non-GAAP monetary measures along side the associated GAAP monetary measures.

Corsair Gaming, Inc. Condensed Consolidated Statements of Operations (Unaudited, in 1000’s, besides per share quantities)
		Three Months Ended March 31,
		2026				2025
Net income		$	354,512			$	369,750
Cost of income			238,483				267,388
Gross revenue			116,029				102,362
Operating bills:
Sales, common and administrative			84,988				86,992
Product growth			17,245				17,633
Total working bills			102,233				104,625
Operating earnings (loss)			13,796				(2,263	)
Other (expense) earnings:
Interest expense			(1,691	)			(2,676	)
Interest earnings			421				630
Other (expense) earnings, internet			374				(3,947	)
Total different expense, internet			(896	)			(5,993	)
Income (loss) earlier than earnings taxes			12,900				(8,256	)
Income tax profit (expense)			157				(2,061	)
Net earnings (loss)			13,057				(10,317	)
Less: Net earnings attributable to noncontrolling curiosity			273				142
Net earnings (loss) attributable to Corsair Gaming, Inc.		$	12,784			$	(10,459	)
Calculation of internet earnings (loss) per share attributable to frequent stockholders of Corsair Gaming, Inc.:
Net earnings (loss) attributable to Corsair Gaming, Inc.		$	12,784			$	(10,459	)
Change in redemption worth of redeemable noncontrolling curiosity			(920	)			392
Net earnings (loss) attributable to frequent stockholders of Corsair Gaming, Inc.		$	11,864			$	(10,067	)
Net earnings (loss) per share attributable to frequent stockholders of Corsair Gaming, Inc.:
Basic		$	0.11			$	(0.10	)
Diluted		$	0.11			$	(0.10	)
Weighted-average frequent shares excellent:
Basic			106,867				105,240
Diluted			107,774				105,240

Corsair Gaming, Inc. Segment Information (Unaudited, in 1000’s, besides percentages)
		Three Months Ended March 31,
		2026				2025
Net income:
Gamer and Creator Peripherals		$	123,310			$	111,973
Gaming Components and Systems			231,202				257,777
Total Net income		$	354,512			$	369,750
Gross Profit:
Gamer and Creator Peripherals		$	50,290			$	46,414
Gaming Components and Systems			65,739				55,948
Total Gross Profit		$	116,029			$	102,362
Gross Margin:
Gamer and Creator Peripherals			40.8	%			41.5	%
Gaming Components and Systems			28.4	%			21.7	%
Total Gross Margin			32.7	%			27.7	%

Corsair Gaming, Inc. Condensed Consolidated Balance Sheets (Unaudited, in 1000’s)
		March 31, 2026				December 31, 2025
Assets
Current belongings:
Cash and restricted money		$	119,497			$	98,583
Accounts receivable, internet			178,375				233,900
Inventories			273,466				303,336
Prepaid bills and different present belongings			28,021				29,639
Total present belongings			599,359				665,458
Restricted money, noncurrent			251				250
Property and gear, internet			31,165				31,514
Goodwill			357,399				357,765
Intangible belongings, internet			115,269				125,210
Other belongings			73,897				73,587
Total belongings		$	1,177,340			$	1,253,784
Liabilities
Current liabilities:
Debt maturing inside one 12 months, internet		$	6,121			$	6,120
Accounts payable			157,628				212,547
Other liabilities and accrued bills			180,348				212,275
Total present liabilities			344,097				430,942
Long-term debt, internet			113,691				115,222
Deferred tax liabilities			4,977				6,071
Other liabilities, noncurrent			53,766				55,795
Total liabilities			516,531				608,030
Temporary fairness
Redeemable noncontrolling curiosity			13,167				12,197
Stockholders’ fairness
Common inventory and extra paid-in capital			708,529				705,372
Accumulated deficit			(59,366	)			(71,230	)
Accumulated different complete loss			(1,521	)			(585	)
Total stockholders’ fairness			647,642				633,557
Total liabilities, non permanent fairness and stockholders’ fairness		$	1,177,340			$	1,253,784

Corsair Gaming, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited, in 1000’s)
		Three Months Ended March 31,
		2026				2025
Cash flows from working actions:
Net earnings (loss)		$	13,057			$	(10,317	)
Adjustments to reconcile internet loss to internet money supplied by (utilized in) working actions:
Stock-based compensation			6,694				9,322
Depreciation			3,551				3,373
Amortization			9,806				9,782
Reversal of cut price buy achieve on enterprise acquisition			—				2,581
Deferred earnings taxes, internet of valuation allowance			(2,769	)			(1,016	)
Other			737				3,031
Changes in working belongings and liabilities:
Accounts receivable			54,214				201
Inventories			30,180				(22,237	)
Prepaid bills and different belongings			1,024				2,247
Accounts payable			(54,583	)			34,253
Other liabilities and accrued bills			(32,183	)			(12,470	)
Net money supplied by working actions			29,728				18,750
Cash flows from investing actions:
Purchase of property and gear			(3,669	)			(3,072	)
Net money utilized in investing actions			(3,669	)			(3,072	)
Cash flows from financing actions:
Repayment of debt			(1,563	)			(25,000	)
Repurchases of frequent inventory			(5,011	)			—
Proceeds from issuance of shares by worker fairness incentive plans			2,055				3,440
Payment of taxes associated to internet share settlement of fairness awards			(630	)			(390	)
Dividend paid to noncontrolling curiosity			(175	)			(304	)
Net money utilized in financing actions			(5,324	)			(22,254	)
Effect of change price modifications on money			180				(526	)
Net enhance (lower) in money and restricted money			20,915				(7,102	)
Cash and restricted money initially of the interval			98,833				109,631
Cash and restricted money on the finish of the interval		$	119,748			$	102,529

Corsair Gaming, Inc. GAAP to Non-GAAP Reconciliations   Non-GAAP Operating Income (Loss) Reconciliations (Unaudited, in 1000’s, besides percentages)
		Three Months Ended March 31,
		2026				2025
Operating earnings (loss) – GAAP		$	13,796			$	(2,263	)
Amortization			9,806				9,782
Stock-based compensation			6,694				9,322
Restructuring and different fees			1,580				1,095
Acquisition and associated integration prices			—				2,185
Acquisition accounting influence associated to recognizing acquired stock at honest worth			—				515
Adjusted Operating Income – Non-GAAP		$	31,876			$	20,636
As a % of internet income – GAAP			3.9	%			-0.6	%
As a % of internet income – Non-GAAP			9.0	%			5.6	%

Corsair Gaming, Inc. GAAP to Non-GAAP Reconciliations   Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share Reconciliations (Unaudited, in 1000’s, besides per share quantities)
		Three Months Ended March 31,
		2026				2025
Net earnings (loss) attributable to frequent stockholders of Corsair Gaming, Inc. (1)		$	11,864			$	(10,067	)
Less: Change in redemption worth of redeemable noncontrolling curiosity			(920	)			392
Net earnings (loss) attributable to Corsair Gaming, Inc.			12,784				(10,459	)
Add: Net earnings attributable to noncontrolling curiosity			273				142
Net earnings (loss) – GAAP			13,057				(10,317	)
Adjustments:
Amortization			9,806				9,782
Stock-based compensation			6,694				9,322
Restructuring and different fees			1,580				1,095
Acquisition and associated integration prices			—				2,185
Reversal of cut price buy achieve on enterprise acquisition			—				2,581
Acquisition accounting influence associated to recognizing acquired stock at honest worth			—				515
Non-GAAP earnings tax adjustment			(1,983	)			(2,844	)
Adjusted internet earnings – Non-GAAP		$	29,154			$	12,319
Diluted internet earnings (loss) per share:
GAAP		$	0.11			$	(0.10	)
Adjusted, Non-GAAP		$	0.27			$	0.11
Weighted-average frequent shares excellent – Diluted:
GAAP			107,774				105,240
Adjusted, Non-GAAP			107,774				107,367
(1) Numerator for calculating internet earnings (loss) per share-GAAP

Corsair Gaming, Inc. GAAP to Non-GAAP Reconciliations   Adjusted EBITDA Reconciliations (Unaudited, in 1000’s, besides percentages)
		Three Months Ended March 31,
		2026				2025
Net earnings (loss) – GAAP		$	13,057			$	(10,317	)
Amortization			9,806				9,782
Stock-based compensation			6,694				9,322
Restructuring and different fees			1,580				1,095
Acquisition and associated integration prices			—				2,185
Reversal of cut price buy achieve on enterprise acquisition			—				2,581
Acquisition accounting influence associated to recognizing acquired stock at honest worth			—				515
Depreciation			3,551				3,373
Interest expense, internet of curiosity earnings			1,270				2,046
Income tax (profit) expense			(157	)			2,061
Adjusted EBITDA – Non-GAAP		$	35,801			$	22,643
Adjusted EBITDA margin – Non-GAAP			10.1	%			6.1	%

 

View supply model on businesswire.com:

Investor Relations Contact:
David Pasquale
ir@corsair.com

914-337-8801

Media Contact:

media@corsair.com

510-657-8747

Source: Corsair Gaming, Inc.