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Corsair Gaming, Inc. (CRSR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered double-digit revenue growth but missed Street on the top line and EPS: revenue $345.8M vs consensus $354.0M and adjusted EPS $0.06 vs $0.0856; adjusted EBITDA was a notable beat at $16.2M, reflecting operating leverage (consensus values from S&P Global)*.
  • Guidance narrowed and effectively lowered the FY25 revenue midpoint to $1.425–$1.475B (from $1.4–$1.6B), with new ranges for adjusted operating income ($76–$81M) and adjusted EBITDA ($85–$90M), citing DDR5 tightness and cautious consumer spending patterns into Q4 .
  • Mix and margins improved: total gross margin up 400 bps YoY to 26.9% on product mix and execution; components/systems revenue grew 15%+ YoY and peripherals >10% YoY, supported by new launches and Fanatec traction .
  • Management highlighted a $12M tariff headwind since May largely mitigated, and flagged regional divergence (Europe/APAC double-digit growth vs North America single-digit) as a near-term narrative driver .

What Went Well and What Went Wrong

What Went Well

  • Strong profitability and margin expansion: gross profit +34% YoY to $93.1M and gross margin +400 bps to 26.9%; adjusted EBITDA +236% YoY to $16.2M, with CFO noting profitability grew faster than revenue .
  • Product momentum across the ecosystem: CEO cited “great traction” from Vanguard 96 keyboard, Saber Pro mouse, Valor Pro controller, plus Elgato Facecam 4K and Stream Deck marketplace flywheel; Fanatec partnerships and new Podium products underscore sim racing execution .
  • Operational discipline: SG&A and R&D down sequentially vs Q2, continued OpEx control; inventory built ahead of holiday season with sufficient liquidity and available revolver .

What Went Wrong

  • Revenue and EPS missed Street: $345.8M vs $354.0M and $0.06 vs $0.0856; management framed a conservative stance for Q4 given DDR5 supply tightness and consumer spend patterns, which weighed on the outlook (consensus values from S&P Global)*.
  • Regional softness in North America: Europe and Asia grew double-digit while North America was single-digit, tempering peripherals cadence vs earlier-year expectations .
  • Tariffs and memory tightness: $12M in tariff costs since May (largely mitigated) and emerging DDR5 tightness into 1H 2026; management is stockpiling inventory but is not assuming upside from mitigation yet .

Financial Results

Quarterly Trend

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$369.750 $320.112 $345.763
GAAP Diluted EPS ($)-$0.10 -$0.16 -$0.09
Adjusted EPS ($)$0.11 $0.01 $0.06
Total Gross Margin (%)27.7% 26.8% 26.9%
Adjusted EBITDA ($USD Millions)$22.643 $8.138 $16.187

YoY Comparison (Q3)

MetricQ3 2024Q3 2025
Revenue ($USD Millions)$304.199 $345.763
GAAP Diluted EPS ($)-$0.56 -$0.09
Adjusted EPS ($)-$0.29 $0.06
Total Gross Margin (%)22.9% 26.9%
Adjusted EBITDA ($USD Millions)$4.825 $16.187

Consensus vs Actual (Q3 2025)

MetricConsensus (S&P)*Actual
Revenue ($USD Millions)$354.041*$345.763
Primary EPS ($)$0.0856*$0.06
EBITDA ($USD Millions)$14.592*$16.187
# of Estimates (Revenue / EPS)7* / 8*—

Values retrieved from S&P Global*.

Segment Breakdown

Segment MetricQ3 2024Q2 2025Q3 2025
Gamer & Creator Peripherals Revenue ($USD Millions)$101.966 $102.642 $112.660
Gamer & Creator Peripherals Gross Margin (%)38.3% 40.0% 39.3%
Gaming Components & Systems Revenue ($USD Millions)$202.233 $217.470 $233.103
Gaming Components & Systems Gross Margin (%)15.1% 20.6% 20.9%

KPIs

KPIQ2 2025Q3 2025
Memory Revenue ($USD Millions)—$117.2
Memory Gross Margin (%)—16.8%
Regional Mix – Europe (%)34% 40%
Regional Mix – APAC (%)14% 13%
Cash & Restricted Cash ($USD Millions)$107.449 $66.053
Inventories ($USD Millions)$295.627 $314.455
Debt at Face Value ($USD Millions)—$123.4

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Revenue ($USD Billions)FY 2025$1.4–$1.6 $1.425–$1.475 Lowered midpoint (from $1.50B to ~$1.45B)
Adjusted Operating Income ($USD Millions)FY 2025N/A $76–$81 Initiated range
Adjusted EBITDA ($USD Millions)FY 2025N/A $85–$90 Initiated range

Management rationale: conservative Q4 view due to DDR5 memory tightness and observed consumer spending patterns; tariff costs of ~$12M since May were largely mitigated .

Earnings Call Themes & Trends

TopicQ1 2025 (Prior)Q2 2025 (Prior)Q3 2025 (Current)Trend
AI/technology initiativesEarly AI features (AI Prompter, AIcoustic) and support tooling; AI expected to be a growth driver Virtual Stream Deck showcase; ORIGIN PC AI Workstation launch at Computex “AI roadmap opens exciting opportunities” across computing/content creation/tuning Building momentum
Supply chain & tariffsFlexible multi-location manufacturing; limited China sourcing for U.S.; agility to shift in 2–4 quarters Net tariff impact “small” in Q2; refinancing and debt repayment progress ~$12M tariff costs since May; largely mitigated via sourcing/pricing; outlook cautious Headwind mitigated
Product performanceComponents & systems rebound; Fanatec integration progress Components +30% YoY; peripherals +9% YoY; Elgato leadership; Fanatec rollout Components & systems +15% YoY; peripherals >10% YoY; strong new product traction Broad-based strength
Regional trendsEurope 37%, APAC 11% of revenue in Q1 Commentary on Asia momentum and investment Europe/APAC double-digit; North America single-digit growth EMEA/APAC > NA
Sim racing (Fanatec)Integration into Corsair systems; retail expansion planned Early sell-through; expanding distribution Strong partner traction; new Podium products; community response at SimRacing Expo Accelerating
Memory marketHealthy DDR5 demand; memory margins improved Strong DDR5 demand and growth DDR5 tightness into 1H 2026; inventory built; conservative outlook Tightening supply

Management Commentary

  • “We delivered strong results in Q3 with double-digit revenue growth and even stronger profit expansion, supported by disciplined execution and operational focus.” — CEO Thi La .
  • “We grew profitability faster than revenue in the quarter, underscoring the significant operating leverage within our business model.” — CFO Michael Potter .
  • “DDR5 memory is going to be tight toward the end of this year and probably the first half of next year… we have already taken action… investing in inventory… we feel pretty good about our position… [but] we’re being conservative.” — CEO Thi La .
  • “Despite $12 million in unforeseen tariff costs since May, Corsair delivered meaningful margin progress through agile supply chain management, proactive sourcing, pricing actions, and disciplined spending.” — CFO Michael Potter .
  • “Both Europe as well as Asia market is growing double digit, and North America specifically grew single digit.” — CEO Thi La .

Q&A Highlights

  • DDR5 supply tightness and mitigation: Management expects tightness through at least 1H 2026; actions taken since early Q3 include inventory investment and mitigation planning, but guidance does not assume upside from mitigation .
  • Tariff exposure: ~$12M 2025 tariff costs cited as the unmitigated amount; company mitigated “almost all” through supply chain and pricing; no large net impact expected through year-end per Q3 commentary .
  • Regional demand: EMEA/APAC double-digit; North America single-digit; management still sees Corsair gaining share despite slower NA consumer backdrop .
  • Elgato/Nintendo Switch 2 tailwind: Elgato capture cards (4K) and Stream Deck seeing double-digit to triple-digit growth related to Switch 2; marketplace engagement growing .
  • Sim racing scope: Post-acquisition roadmap refresh; incremental opportunities (coaching/performance tracking with AI, flight/farm sims) broaden TAM and revenue vectors .

Estimates Context

  • Revenue and EPS missed Street, while EBITDA beat: $345.8M vs $354.0M; $0.06 vs $0.0856; adjusted EBITDA $16.2M vs $14.6M (definitions may vary between company-adjusted and S&P standard EBITDA) (consensus values from S&P Global)*.
  • Forward estimates likely to adjust lower on revenue/EPS given narrowed FY25 revenue range and conservative Q4 posture due to DDR5 tightness; EBITDA estimates may lift modestly given margin progress and AOI/EBITDA guidance initiation .

Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Mixed print: headline revenue/EPS miss but margin/EBITDA outperformance; narrative pivot to profitability and mix quality may support multiple if sustained into Q4 .
  • Guidance reset: FY25 revenue midpoint lower; new AOI/EBITDA ranges add visibility; expect near-term estimate revisions to reflect DDR5 constraints and cautious Q4 .
  • Product and segment momentum: Components/systems +15% YoY and peripherals >10% YoY, aided by high-end GPU cycle and new launches (Vanguard 96, Saber Pro, Valor Pro) .
  • DDR5 supply risk: Tight market into 1H 2026 is the primary headwind; Corsair has prebuilt inventory and mitigation plans, but management is not modeling upside yet .
  • Tariff headwinds largely mitigated: ~$12M year-to-date costs addressed via sourcing/pricing; balance sheet flexibility and revolver availability support seasonal build and growth initiatives .
  • Regional mix supportive: Europe/APAC double-digit growth vs NA single-digit; watch NA demand and peripherals cadence normalization into 2026 .
  • Sim racing and creator ecosystem are structural growth levers: Fanatec roadmap refresh and Elgato marketplace flywheel provide durable non-GPU-cycle demand drivers .