Executive Summary

Q2 2025 delivered broad-based strength with revenue up 23% year over year to $320.1M and total gross margin expanding 270 bps to 26.8%; revenue exceeded consensus while adjusted EBITDA improved to $8.1M from a loss in Q2 2024 .
Results were driven by next‑gen GPU upgrades (NVIDIA 5000 series, AMD 9000 series), favorable product mix, and efficiency gains; management highlighted strong momentum in Asia and early traction from Fanatec channel rollout .
Guidance: revenue reaffirmed at $1.4–$1.6B for FY2025; adjusted operating income and adjusted EBITDA outlook deferred pending tariff visibility—implying revenue confidence, but prudence on profitability targets .
Key watch items: tariff mitigation (CFO sees small net impact), a $1.4M bad debt expense, and continued debt reduction ($24M term loan repayment and proactive refinancing), supporting liquidity and margin trajectory catalysts .

What Went Well and What Went Wrong

What Went Well

Strong top-line and margin expansion: revenue +23% YoY to $320.1M; gross profit +36% to $85.9M; total gross margin up to 26.8% on mix and operational efficiency .
Components & Systems +30% YoY led by next-gen GPU cycle and graphically intensive game launches, reinforcing Corsair’s enthusiast ecosystem positioning .
Early Fanatec channel rollout traction and Elgato leadership sustained; CEO: “disciplined execution…across product development, business operations, and go-to-market strategy,” with notable Asia momentum .

What Went Wrong

GAAP profitability remains a headwind: operating loss of $(16.9)M and GAAP diluted EPS of $(0.16), missing EPS consensus, partly reflecting $1.4M bad debt expense .
Sequential revenue decline vs Q1 (seasonality/mix): $320.1M in Q2 vs $369.8M in Q1; peripherals revenue also down sequentially (Q2 $102.6M vs Q1 $112.0M) despite YoY growth .
Tariff uncertainty persists—management reaffirmed revenue but deferred adjusted OI/EBITDA guidance; pricing may need adjustment to preserve margins if semiconductor tariffs evolve .

Financial Results

Consolidated KPIs and Profitability

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$413.6	$369.8	$320.1
Gross Profit ($USD Millions)	$108.2	$102.4	$85.9
Total Gross Margin (%)	26.2%	27.7%	26.8%
Operating Income (Loss) ($USD Millions, GAAP)	$5.9	$(2.3)	$(16.9)
Adjusted Operating Income ($USD Millions)	$31.7	$20.6	$6.6
Diluted EPS (GAAP)	$0.01	$(0.10)	$(0.16)
Adjusted Diluted EPS (Non-GAAP)	$0.23	$0.11	$0.01
Adjusted EBITDA ($USD Millions)	$33.1	$22.6	$8.1
Cash from Operations ($USD Millions)	$55.6	$18.8	$30.2
Cash & Restricted Cash ($USD Millions, end-period)	$109.6	$102.5	$107.4
Inventories ($USD Millions, end-period)	$260.0	$276.8	$295.6
Long-term Debt, net ($USD Millions)	$161.3	$136.4	$118.3

Segment Breakdown

Segment	Q4 2024 Revenue ($M)	Q1 2025 Revenue ($M)	Q2 2025 Revenue ($M)	Q4 2024 GM (%)	Q1 2025 GM (%)	Q2 2025 GM (%)
Gamer & Creator Peripherals	$169.6	$112.0	$102.6	37.7%	41.5%	40.0%
Gaming Components & Systems	$244.1	$257.8	$217.5	18.1%	21.7%	20.6%
Total	$413.6	$369.8	$320.1	26.2%	27.7%	26.8%

Estimate vs Actual (Wall Street consensus – S&P Global)

Metric	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($USD Millions)	$305.7*	$320.1
Primary EPS ($USD)	$0.022*	$0.01
EBITDA ($USD Millions)	$6.51*	$8.14

Values retrieved from S&P Global.*

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue	FY 2025	$1.4–$1.6B (2/12/25)	$1.4–$1.6B (reaffirmed)	Maintained
Adjusted Operating Income	FY 2025	$67–$87M (2/12/25)	TBD later in year	Deferred
Adjusted EBITDA	FY 2025	$80–$100M (2/12/25)	TBD later in year	Deferred

Earnings Call Themes & Trends

Note: The Q2 2025 earnings call transcript could not be retrieved due to a document database inconsistency. Themes below reflect prepared remarks (press release) for Q2 and transcripts/press releases for Q1 and Q4.

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
AI/Technology initiatives	Emphasis on ecosystem products; Elgato/Stream Deck adoption	AI Prompter, AI Wavelink (AiCoustic); AI used in support; expected to become meaningful growth driver	Virtual Stream Deck integrated into Scimitar Elite and Xeneon Edge; ORIGIN PC AI Workstation 300 unveiled	Expanding scope and product integration
Supply chain & tariffs	Prepared for GPU cycle; Fanatec integration progress	Flexible sourcing; 80% of U.S. sales excluded or ≤10% tariffs; 19% sourced from China; agile shifting 2–4 quarters	Tariffs largely mitigated; small net impact in Q2; may adjust pricing to preserve margins	Risk manageable; mitigation effective
Product performance (GPU-led cycle)	Anticipated rebound with NVIDIA RTX 50 launch	Strong demand for components & memory tied to GPU upgrades	Components & Systems +30% YoY; mix and operational efficiency widened margins	Upgrade cycle fueling growth
Regional trends	Balanced inventory; positioning for demand	Non‑China Asia growth (Japan, Korea, etc.)	CEO notes momentum in Asia delivering measurable returns	Improving in APAC
Sim racing (Fanatec)	Integration going well; first meaningful revenue in Q4	Integration into systems; supply changes mostly behind	Global rollout via channel partners; strong early adoption; F1 popularity tailwind	Scaling channels; strengthening traction
R&D/innovation	Award-winning peripherals; Apple store selection	Continued investment in higher ROI innovations	New platform launches at Computex; ecosystem synergy expected	Elevated pace of launches

Management Commentary

CEO (Thi La): “Q2 2025 marked another solid quarter… innovative products… expanding operational efficiency… scaling underserved channels… momentum in Asia reinforcing long‑term growth potential.”
CEO on product innovation: “Virtual Stream Deck technology… integrated into the Corsair Scimitar Elite MMO mouse and Xeneon Edge… ORIGIN PC AI Workstation 300… supports local LLMs, creative workloads, and AI development straight out of the box.”
CFO (Michael G. Potter): “Double‑digit revenue growth and EBITDA expansion… included a $1.4M bad debt expense… mitigated new country‑specific tariffs; net impact in Q2 was small… made an additional $24M term loan repayment and proactively refinanced facilities on favorable terms.”

Q&A Highlights

The Q2 2025 earnings call transcript could not be accessed due to a document database inconsistency; Q&A highlights are therefore unavailable for this period. Prepared remarks and press materials emphasize tariff mitigation, GPU-cycle demand, Fanatec channel rollout, and Asia momentum .

Estimates Context

Q2 2025: Revenue beat consensus (~$305.7M*) with $320.1M; Primary EPS missed ($0.022* vs $0.01 actual). Adjusted EBITDA exceeded company-cited “consensus” per press release; S&P Global EBITDA consensus ~$6.5M* vs $8.1M actual .
Prior quarters: Q1 2025 revenue slightly beat ($369.8M vs ~$366.2M*), EPS slightly below ($0.11 vs ~$0.122*); Q4 2024 beat on both revenue and EPS ($413.6M vs ~$387.9M*; $0.23 adj EPS vs ~$0.164* primary EPS) .
Values retrieved from S&P Global.*

Key Takeaways for Investors

Revenue momentum and margin expansion are tracking the GPU upgrade cycle and stronger mix; Components & Systems posted +30% YoY revenue and margin lift, indicating durable enthusiast demand catalysts .
Profitability inflection depends on sustained mix and tariff mitigation; Q2 showed small net tariff impact and ongoing opex discipline, but GAAP losses persisted—watch pricing actions and opex control to protect margins .
Fanatec integration/channel scaling is becoming an incremental growth vector with early adoption signals; continued retail rollout should support peripherals monetization into FY2026 .
Elgato and creator hardware remain strategic assets; Virtual Stream Deck and ecosystem integrations (mice/displays) should deepen attachment rates and software‑driven differentiation .
Balance sheet improving (debt down, cash generation positive in Q2); refinancing at favorable terms plus $24M repayment reduces financial risk and enhances flexibility for inventory positioning and launches .
FY2025 guidance posture: revenue reaffirmed ($1.4–$1.6B) while adjusted profitability metrics deferred—expect updates as tariff visibility improves; this stance is conservative but underscores revenue confidence .
Near-term trading lens: expect the stock to react to revenue beat and tariff commentary; medium-term thesis hinges on execution in Fanatec rollout, AI‑adjacent products (ORIGIN AI workstation, Virtual Stream Deck), and margin expansion from mix and efficiency .

Additional Context: Relevant Q2‑period Press Releases

Elgato product launches (video capture, streaming) in July provide catalysts for creator ecosystem adoption .
XENEON EDGE 14.5″ touchscreen expansion supports customization and integration with Virtual Stream Deck, enhancing ecosystem lock‑in .

References:

Q2 2025 8‑K and Exhibits (press release, financials, reconciliations) .
Q2 2025 press release version .
Q1 2025 press release and 8‑K (metrics and narrative) ; –.
Q4 2024 8‑K and Exhibits (metrics and guidance) .
Computex product ecosystem update –.
S&P Global consensus estimates (values retrieved from S&P Global): Q2 2025 revenue, EPS, EBITDA and prior quarters.

Corsair Gaming, Inc. (CRSR)·Q2 2025 Earnings Summary