Corsair Gaming, Inc.

What they do

Corsair designs and sells gaming peripherals (keyboards, mice, headsets, controllers), streaming products (capture cards, Stream Decks, microphones, cameras), and PC components (PSUs, cooling, cases, DRAM) as well as prebuilt gaming PCs and laptops. Products are sold through retail channels (Amazon, Best Buy) and direct-to-consumer. The company operates two segments: Gamer and Creator Peripherals and Gaming Components and Systems. Proprietary software platforms iCUE and the Elgato suite enhance its ecosystem.

Revenue drivers

• Gamer and Creator Peripherals — Includes gaming peripherals, streaming products, and sim racing; Q2 2026 revenue $115.9M, up 13% YoY, with strong demand and market share gains.
• Gaming Components and Systems — Includes PSUs, cooling, cases, DRAM, and prebuilt PCs; performance varies with DIY PC market cycle, but remains a core revenue segment.
• Sim Racing (Fanatec) — Acquired in September 2024, now fully integrated; a key growth driver with continued momentum and channel expansion.
• Direct-to-consumer channel — Represented 20% of total net revenue in Q2 2026, providing higher margins and direct customer relationships.

Recent performance

In Q2 2026, net revenue was $314.3M, down 2% YoY, but gross profit rose 21% to $104.3M with record gross margin of 33.2%. GAAP operating income improved to $7.6M from a loss of $16.9M, and net income was $9.1M versus a loss of $20.3M. Adjusted EBITDA increased 279% to $30.8M, and GAAP diluted EPS was $0.06. Results included a $15.6M tariff refund benefit; excluding it, net loss would have been $5.7M. Operating cash flow rose 148% to $74.8M, ending cash at $193.9M.

Strategy

Corsair focuses on expanding its product ecosystem across gaming, streaming, and sim racing, leveraging its iCUE and Elgato software platforms. The company is investing in new product introductions and channel expansion, particularly in sim racing and professional broadcast workflows. It is also pursuing selective accretive acquisitions and partnerships, such as the minority investment in Bitfocus AS to deepen Stream Deck integration. Management emphasizes market share gains and margin improvement through a favorable product mix shift toward higher-margin categories.

Risks

• Tariff exposure — Tariffs have negatively impacted costs; although the Company received refunds and is 'materially complete' with the process, future tariff changes could affect margins.
• Market cyclicality — Demand for gaming components and systems is tied to the DIY PC build cycle and consumer discretionary spending, which can fluctuate.
• Integration risks — Recent acquisitions, including Fanatec, carry integration and execution risks that could divert management attention or fail to deliver expected synergies.
• Competition — The high-performance gaming hardware market is competitive, with larger rivals and rapid innovation pressuring pricing and market share.

Outlook

Management expects continued profit growth and cash generation, with Q2 2026 exceeding profit guidance. The company provided Q3 2026 guidance and updated full-year 2026 guidance, though specific numbers are not in the excerpts. They anticipate ongoing strength in sim racing and streaming products, and are expanding the Stream Deck ecosystem into professional applications. Tariff refunds are considered mostly complete, with only immaterial future adjustments possible.