Corsair Gaming, Inc.

Corsair reported second-quarter revenue of $314.3 million, down 2% year over year. Gross profit increased 21% year over year to $104.3 million, and gross margin expanded 640 basis points to a company record of 33.2%. GAAP operating income was $7.6 million versus an operating loss of $16.9 million a year ago; GAAP net income was $9.1 million versus a net loss of $20.3 million; and GAAP diluted EPS was $0.06 versus a loss of $0.16. Adjusted EBITDA was $30.8 million, up from $8.1 million, and non-GAAP diluted EPS was $0.23 versus $0.01. The quarter included about $15.6 million of tariff refund benefit to GAAP gross profit, which management said added about 500 basis points to gross margin. For guidance, Corsair expects third-quarter 2026 revenue of $320 million to $350 million, adjusted EBITDA of $18 million to $21 million, and non-GAAP diluted EPS of $0.09 to $0.12. For full-year 2026, the company raised guidance 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. Management said the updated outlook reflects stronger organic business performance, a small contribution from Trak Racer, continued low double-digit growth in Gamer and Creator Peripherals, and pressure in Gaming Components and Systems from elevated memory pricing and delayed DIY demand.

Thi La framed the quarter as evidence that Corsair is shifting toward higher-quality, higher-margin revenue and better cash generation. He emphasized mix improvement in categories like Sim Racing and Elgato, plus ecosystem expansion through Fanatec, Trak Racer, Marketplace, and the Bitfocus investment. His tone was upbeat and strategic, with a focus on building platforms beyond the traditional PC cycle and targeting the desktop AI PC opportunity later in 2027 and beyond.

Gordon Mattingly focused on the conversion of gross profit into earnings and cash. He highlighted Q2 revenue of $314.3 million, gross margin of 33.2%, adjusted EBITDA of $30.8 million, and operating cash flow of $74.8 million, which was up 148% year over year. He said cash and restricted cash rose to $193.9 million, debt was $118.7 million, and the company ended with about $75.1 million in net cash. He also noted operating expenses fell $6.1 million year over year to $96.7 million and said the company has more flexibility to invest, buy back shares when attractive, and pursue disciplined acquisitions.

Analysts focused on why the full-year EBITDA and revenue guidance was raised more than the apparent Q2 beat and tariff refund would suggest. Management said the increase mainly reflects improved organic performance, with only a small contribution from Trak Racer and more support from the second half organic catalysts such as GTA 6, Fanatec, Elgato Marketplace, memory share gains, and the Nissan partnership. Questions also centered on Trak Racer integration and the weakness in DIY PC builds; management said Trak Racer integration should take about three to six months, while DIY demand is being deferred by high memory prices rather than lost, with channel inventory normalizing and some return in demand expected as pricing dynamics evolve.