Executive Summary

Q4 2024 delivered solid top-line and profitability recovery: revenue $413.6M (-0.9% YoY, +36.0% QoQ), gross margin 26.2% (+160 bps YoY, +330 bps QoQ), adjusted EPS $0.23 (vs $0.22 in Q4’23; vs $(0.29) in Q3) and adjusted EBITDA $33.1M (vs $33.7M in Q4’23; vs $4.8M in Q3) .
Mix shift toward higher-margin Gamer & Creator Peripherals (revenue +24% YoY to $169.6M) and early contribution from Fanatec offset expected softness in components ahead of NVIDIA’s new GPU cycle; Peripherals gross profit now exceeds Components .
FY2025 outlook introduced: revenue $1.4–$1.6B, adjusted operating income $67–$87M, adjusted EBITDA $80–$100M; CFO also guided to 15–17% ETR, ~$2.2M quarterly net interest, and 106–110M diluted shares, with biggest YoY improvement in Q2 given GPU cadence .
Stock narrative catalysts: CEO transition to Thi La on July 1, 2025, strong 2025 guide implying >60% EBITDA growth at midpoint, Apple retail partnership for K65/M75, and Fanatec integration momentum .

What Went Well and What Went Wrong

What Went Well
- Peripherals strength and mix: “Our higher margin Gamer and Creator Peripherals segment grew by 20% for the full year… The gross profit from our Gamer and Creator Peripherals segment now exceeds the margins from our Gaming Components and Systems segment.” .
- Fanatec progress: “The integration of our latest acquisition, Fanatec, is going well… Sales there have rebounded led by our commitment to product performance and customer support.” .
- Product and channel wins: K65 keyboard recognized by Wirecutter; K65 and M75 selected by Apple; Stream Deck momentum; Elgato increasingly viewed as standard desktop gear for younger users .
What Went Wrong
- Components softness ahead of GPU launch: Q4 Components & Systems revenue fell to $244.1M (vs $280.5M in Q4’23) as consumers delayed purchases awaiting NVIDIA’s new GPUs .
- GAAP profitability still subdued: GAAP operating income of $5.9M in Q4 (down from $12.1M in Q4’23) amid higher SG&A; Q4 SG&A $85.3M (vs $73.8M in Q4’23) .
- Non-GAAP adjustments and acquisition accounting: $4.2M fair value inventory step-up from Fanatec depressed Q4 gross profit; without it, Peripherals gross margin would have been 40.2% vs reported 37.7% .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($USD Millions)	$417.3	$304.2	$413.6
Gross Margin %	24.6%	22.9%	26.2%
GAAP Diluted EPS ($)	$0.06	$(0.56)	$0.01
Adjusted Diluted EPS ($)	$0.22	$(0.29)	$0.23
Operating Income (GAAP, $M)	$12.1	$(20.9)	$5.9
Adjusted Operating Income ($M)	$31.8	$2.4	$31.7
Adjusted EBITDA ($M)	$33.7	$4.8	$33.1

Segment mix and margins:

Segment Metric	Q4 2023	Q3 2024	Q4 2024
Gamer & Creator Peripherals Revenue ($M)	$136.8	$102.0	$169.6
Gaming Components & Systems Revenue ($M)	$280.5	$202.2	$244.1
Peripherals Gross Margin %	37.2%	38.3%	37.7% (40.2% ex FV step-up)
Components & Systems Gross Margin %	18.5%	15.1%	18.1%

Key performance indicators:

KPI	Q3 2024	Q4 2024
Cash & Restricted Cash ($M)	$61.6	$109.6
Inventories ($M)	$293.0	$260.0
Europe % of Revenue	38.4%	38.0%
APAC % of Revenue	10.3%	9.1%
Cash from Operations ($M)	$25.1	$55.6

Notes: Q4 gross profit included a $4.2M fair value step-up on Fanatec inventory, reducing reported margins; Peripherals gross margin would have been ~40.2% excluding this item .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Revenue	FY2025	N/A	$1.4B – $1.6B	New
Adjusted Operating Income	FY2025	N/A	$67M – $87M	New
Adjusted EBITDA	FY2025	N/A	$80M – $100M	New
Effective Tax Rate	FY2025	N/A	~15% – 17%	New
Net Interest Expense	FY2025	N/A	~$(2.2)M per quarter	New
Diluted Shares	FY2025	N/A	~106M – 110M	New
Net Revenue	FY2024 (as of Nov 6, 2024)	$1.25B – $1.35B	$1.25B – $1.35B	Maintained
Adjusted Operating Income	FY2024 (as of Nov 6, 2024)	$48M – $63M	$28M – $43M	Lowered
Adjusted EBITDA	FY2024 (as of Nov 6, 2024)	$60M – $75M	$40M – $55M	Lowered

Management also expects every quarter in 2025 to be better than 2024, with the biggest YoY improvement in Q2 due to GPU launch timing; tariff impacts are reflected post-mitigation .

Earnings Call Themes & Trends

Topic	Q2 2024 (Prior-2)	Q3 2024 (Prior-1)	Q4 2024 (Current)	Trend
GPU Refresh Cycle	Refresh expected to start later (late 2024 into 2025); market softer pre-launch	Rebound anticipated in 2025 with new NVIDIA GPUs	50-series GPUs now shipping; strongest volume expected as 5070-class ramps; multi-quarter tailwind	Improving visibility; ramp building
Peripherals Growth	Peripherals +19.6% YoY; expanding categories (teleprompters/controllers)	Peripherals margin 38.3%; continued growth	Peripherals revenue +24% YoY; gross profit exceeds Components; Stream Deck momentum	Structural mix shift up
Sim Racing/Fanatec	Exploring Fanatec acquisition	Closed acquisition; integration targeted by Q2’25	Integration “going well”; early revenue contribution; retail/integrator channel expansion planned	Integration → growth
Tariffs/Supply Chain	Cost controls; inventory management focus	Cost savings actions; margin rebuild pathway	FY25 outlook includes tariff impact after mitigation; diversified production; comfortable with supply chain	Managed risk
Regional Trends	—	—	Europe 38% of Q4 revenue; APAC 9.1% (down from Q3 10.3%)	Stable Europe; softer APAC
Partnerships/Channels	K65 #1 revenue in US gaming keyboards Q2; customization/Labs	Activision multi-year collaboration; Apple partnership for custom peripherals	K65 and M75 selected by Apple; awards and brand strength reiterated	Brand/channel tailwinds
AI/Technology	—	—	Elgato incorporating AI features; workstation AI DIY demand possible; not targeting data centers	Emerging use-cases

Management Commentary

CEO outlook and mix: “We closed on a strong note, exceeding Q4 expectations for revenue and adjusted EBITDA… The gross profit from our Gamer and Creator Peripherals segment now exceeds the margins from our Gaming Components and Systems segment.” .
GPU cycle catalyst: “50 Series… are out and shipping… we have immediately seen a rush for high-end components… I’d expect… a gradual pickup through the year… not… a 1-quarter blip.” .
Fanatec integration: “Fanatec is widely recognized… Sales there have rebounded… we see this category as high growth and expect to be shipping components and kits this year into retailers and integrators.” .
2025 guide confidence: “I’m confident that 2025 will mark the start of a new sustained growth phase… reflected in our outlook, which includes an over 60% increase in EBITDA at the midpoint.” .
CFO margin context: “Gross profit in the Gamer and Creator Peripheral segment… Without the impact of the $4.2 million fair value adjustment… gross margin would have been 40.2%.” .

Q&A Highlights

Fanatec: Integration largely complete on customer service and progressing on systems/logistics; re-engaging retail and rig builders seen as key expansion vectors .
GPU cadence: Biggest volumes expected as more affordable 5070-class ships; component ASPs supported by higher-power GPUs driving PSUs/cooling demand; expect multi-year refresh tailwind .
Margins: Target mid-20s gross margin for components as market normalizes; 2025 EBITDA improvement driven as much by margin rebuild as by revenue .
Tariffs: Prior China tariff mitigation experience; diversified production footprint; comfortable with FY25 guidance assumptions incorporating mitigation .
AI demand: Not pursuing data centers; seeing workstation/enthusiast builds with one or two GPUs for model experimentation .
Partnerships: Multi-year COD collaboration boosted site traffic; Apple holiday results “happy” for both sides .

Estimates Context

We attempted to retrieve S&P Global consensus (Primary EPS Consensus Mean, Revenue Consensus Mean) for Q4 2024 but were unable to due to an SPGI daily request limit error. As a result, we cannot definitively state a Street beat/miss for revenue or EPS this quarter. Values were unavailable from S&P Global at the time of this analysis.
Company stated it exceeded its internal Q4 expectations for revenue and adjusted EBITDA, but this is not a proxy for Street consensus .

Key Takeaways for Investors

Mix shift toward higher-margin Peripherals is structurally improving profitability; Peripherals gross profit now leads the portfolio, with Elgato/Stream Deck and Apple channel wins reinforcing brand strength .
Components headwinds tied to GPU launch timing appear to be turning: 50-series GPUs are shipping, with larger volumes expected as mid-tier SKUs ramp—supporting PSUs, cooling, and memory ASPs through 2025 .
FY2025 guide implies a meaningful profitability rebound (adjusted EBITDA $80–$100M), with management signaling the largest YoY delta in Q2; tariff impacts are embedded post-mitigation .
Fanatec provides a new growth vector in Sim Racing with improving customer sentiment and channel expansion plans; early revenue contribution already visible .
Balance sheet/liquidity improved into Q1’25 seasonality: Q4 cash from ops $55.6M; cash and restricted cash $109.6M; revolver undrawn; debt paydown continues .
Watch for execution on margin rebuild (components to mid-20s GM target) and opex discipline as the cycle turns; note non-GAAP adjustments and inventory FV step-up that influenced Q4 margins .
CEO transition to Thi La is planned and orderly; continuity should support strategy across peripherals expansion, Fanatec integration, and GPU-cycle capture .

Corsair Gaming, Inc. (CRSR)·Q4 2024 Earnings Summary