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    CRSR
    Earnings call· Jun 2026(Q2 FY26)

    Corsair Gaming Q2 FY26 earnings call CRSR

    Aug 6, 2026 Source

    Executive summary

    Corsair Gaming Q2 FY26 — Record Gross Margin and Raised Outlook

    Corsair Gaming delivered strong Q2 FY26 results, driven by record gross margins and robust performance in its Gamer and Creator Peripherals segment, which saw significant growth and margin expansion. Despite headwinds in the Gaming Components and Systems segment from elevated memory pricing, the company successfully diversified its revenue streams and improved cash generation, leading to a raised full-year outlook. Strategic M&A and partnerships are extending platforms and diversifying the business for future growth.

    Highlights

    5

    • Gross profit grew 21% year-over-year to $104.3 million.

    • Gross margin hit a company record of 33.2%, expanding 640 basis points year-over-year.

    • Gamer and Creator Peripherals revenue grew 13% year-over-year to $115.9 million, with gross profit up 27% and margin at 44.9%.

    • Operating cash flow increased 148% year-over-year to $74.8 million, generating more in H1 FY26 than all of FY25 and FY24 combined.

    • Full-year 2026 net revenue guidance raised by $35 million at the midpoint, and Adjusted EBITDA guidance raised by $19 million at the midpoint.

    Concerns

    3

    • Gaming Components and Systems segment revenue declined 9% year-over-year to $198.5 million due to elevated memory pricing delaying DIY PC builds.

    • GPU allocation for AI workstations is tight, limiting revenue contribution until late 2027 and beyond.

    • Memory gross margin is expected to moderate in Q4 2026 to high teens from 23.4% in Q2.

    Guidance & targets

    7
    CategoryTargetConfidence
    Net Revenue
    $320 million to $350 million
    high materiality
    High
    Adjusted EBITDA
    $18 million to $21 million
    high materiality
    High
    Non-GAAP Diluted EPS
    $0.09 to $0.12
    high materiality
    High
    Net Revenue
    $1.4 billion to $1.47 billion
    high materiality
    High
    Adjusted EBITDA
    $121 million to $131 million
    high materiality
    High
    Non-GAAP Diluted EPS
    $0.85 to $0.94
    high materiality
    High
    AI Workstation Revenue Contribution
    Pick up in latter part of 2027 and beyond
    medium materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Gamer and Creator Peripherals
    Strong performance driven by mixed shift to higher margin categories, including sim racing (Fanatec) and continued momentum in gaming peripherals and streaming products. Tariff refund also contributed.
    Gross profit: $52 millionGross profit growth YoY: 27%
    		$115.9 million13%—44.9%
    Gaming Components and Systems
    Revenue declined due to market-wide pressure from elevated memory pricing on DIY builds. Strong performance in memory (due to demand, share gains, supply chain management) and AI workstation demand helped drive gross profit improvement and margin expansion, along with tariff refund benefits.
    Gross profit: $52.2 millionGross profit growth YoY: 17%Prior year gross margin: 20.6%
    		$198.5 million-9%—26.3%

    Operational metrics

    21
    Gross Profit
    $104.3 million21% YoY growth
    Q2 FY26

    Strong conversion of gross profit improvement into earnings and cash generation.

    Gross Margin
    33.2%640 bps YoY expansion, 50 bps QoQ expansion
    Q2 FY26

    Company record.

    Adjusted EBITDA
    $30.8 millionfrom $8.1 million a year ago
    Q2 FY26

    Increased significantly year-over-year.

    Adjusted EBITDA Margin
    9.8%from 2.5%
    Q2 FY26

    Expanded year-over-year.

    Non-GAAP Diluted EPS
    $0.23from $0.01
    Q2 FY26

    Increased significantly year-over-year.

    Operating Expenses
    $96.7 milliondeclined $6.1 million YoY
    Q2 FY26

    Discipline allowed more gross profit improvement to reach operating income and adjusted EBITDA.

    Cash and Restricted Cash Balance
    $193.9 millionincreased $74.1 million sequentially
    Q2 FY26

    At the end of the second quarter.

    Total Debt Balance
    $118.7 million
    Q2 FY26
    Net Cash Position
    $75.1 million
    Q2 FY26

    Calculated as cash and restricted cash minus total debt.

    D2C Revenue
    20%
    Q2 FY26

    D2C is a priority due to better unit economics, richer end-user data, and deeper customer relationships.

    Elgato Marketplace Revenue Growth
    more than doubledYoY
    H1 FY26

    Part of the evolving Stream Deck platform.

    Elgato Marketplace Transactions Growth
    more than doubledYoY
    H1 FY26

    Part of the evolving Stream Deck platform.

    Elgato Marketplace Submissions Growth
    more than 300%YoY
    H1 FY26

    Part of the evolving Stream Deck platform.

    Elgato Marketplace New Accounts
    500,000+
    H1 FY26

    Impressive growth on all metrics for the Stream Deck platform.

    Memory Net Revenue Growth
    17%YoY
    Q2 FY26

    Driven by strong supply chain execution and share gains in North America.

    Memory Gross Margin
    23.4%
    Q2 FY26

    Stated in Q&A.

    Tariff Refund Benefit to GAAP Gross Profit
    $15.6 million
    Q2 FY26

    From refunds of tariffs previously paid under the International Emergency Economic Powers Act.

    Tariff Refund Benefit to Gross Margin
    500 bps
    Q2 FY26

    Approximately 500 basis points of benefit.

    Tariff Refund Benefit to Net Income
    $14.9 million
    Q2 FY26

    Benefit to net income.

    Tariff Refund Benefit to Adjusted EBITDA
    $14.3 million
    Q2 FY26

    Benefit to Adjusted EBITDA.

    Tariff Refund Benefit to Non-GAAP Diluted EPS
    $0.13
    Q2 FY26

    Benefit to non-GAAP diluted earnings per share.

    Industry KPIs

    5
    MetricValueDetails
    Capital return FCF$74.8 millionUSD
    Gross margin drivers33.2%%
    Services peripheral attach13%%
    Component supply constraintsTight GPU allocation
    Revenue mix by end market segment$115.9 million; $198.5 millionUSD

    Product announcements

    1
    ProductTypeDetails
    Stream Deck Studioexpansion

    Deals & partnerships

    3
    TrackRacerAcquisition of a complementary sim racing hardware brand with a strong direct-to-consumer model.

    TrackRacer's mechanical products (cockpit, accessories) complement Fanatec's electronics. Integration expected to take 3-6 months for system infrastructure.

    NissanLicensing partnership for Fanatec, adding a global automotive brand.

    Adds to existing motorsport relationships.

    BitfocusMinority investment in a professional show control software company already integrated with Stream Deck, coupled with a partnership.

    Stream Deck Studio and broader Stream Deck range will serve as preferred and primary control services across BitFocus customer deployments.

    Risks & headwinds

    3
    Elevated Memory PricingQ2 FY26, expected to continue impacting Q3 FY26.

    Caused Gaming Components and Systems revenue to decline 9% YoY to $198.5 million.

    Mitigation: Diversification of the Gaming Components and Systems segment into memory business and system business, which are experiencing growth. Expectation that demand is deferred, not lost, and will return as pricing normalizes or customers accept higher prices.

    Tight GPU Allocation for AI WorkstationsEarly stages, expected to pick up in latter part of 2027 and beyond.

    Limits revenue contribution from AI workstations.

    Mitigation: Targeting the $22 billion desktop AI PC market, focusing on prosumers and SMBs. Leveraging existing capabilities in high-performance system design.

    Memory Gross Margin ModerationQ4 FY26

    Expected to be high teens in Q4 FY26, down from 23.4% in Q2 FY26.

    Mitigation: Not explicitly stated, but overall segment gross margin for Gaming Components and Systems is expected to remain in the low 20s.

    What to watch in Q3 FY26

    5

    DIY PC demand

    2027
    CurrentDelayed due to elevated memory pricing; channel inventory normalized in Q2.
    TargetSteady run rates picking up, demand for AI computing increasing.

    Why it matters

    Indicates a return to growth for the Gaming Components and Systems segment, which is currently under pressure.

    at the end of Q2, we see a lot of settled down in terms of accepting the fact that the price is actually not going to go down, but it's going to start to move up again based on forecast. And I think that we see steady run rates started to pick up and the demand for AI computing is also started to come in.

    Q&A highlights

    5

    Asked for clarification on the full-year 2026 EBITDA guidance raise of $19 million, noting it was more than the tariff benefit and Q2 beat, implying a stronger H2 outlook.

    Gordon confirmed the analysis, stating the raise reflects improved organic business performance, with a small, immaterial contribution from the TrackRacer acquisition.

    “the guidance of about $90 million. If we look at the midpoints, the Q2, the beat was roughly $17 million, of which $14 million was attributable to the tariff, so roughly about $2.5 million from Q2. And then for the rest of the year, the updated guidance is a reflection of the combination of the improved business performance we're seeing with our organic business.”

    asked by Aaron Lee · answered by Gordon Mattingly

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Growth and Profitability Focus

    Corsair is actively shifting its business mix towards higher-margin categories and recurring revenue streams. This strategy is evidenced by the strong performance of the Gamer and Creator Peripherals segment and strategic acquisitions like TrackRacer, which complement existing offerings and expand direct-to-consumer channels. The company is prioritizing opportunities with clear paths to durable, higher-margin growth while maintaining discipline on pricing and integration risks.

    02

    Elgato Ecosystem Expansion

    The Elgato Stream Deck platform is evolving into a broader workflow solution, with its Marketplace revenue and transactions more than doubling year-over-year in the first half of 2026. Submissions grew over 300%, and the marketplace added more than 500,000 new accounts. A minority investment in Bitfocus, a professional show control software company, extends Elgato's reach from creator desktops into higher-value professional environments like broadcast and live events, leveraging AI-assisted development for faster plug-in creation.

    03

    Gaming Components and Systems Diversification

    Despite a 9% year-over-year revenue decline in the Gaming Components and Systems segment due to elevated memory pricing impacting DIY PC builds, the segment's gross profit grew 17%. This resilience is attributed to diversification into memory business and system business, both experiencing growth. The company is targeting the $22 billion desktop AI PC market, focusing on prosumers and SMBs seeking local compute and data security, leveraging its expertise in high-performance system design.

    04

    Cash Flow and Balance Sheet Strength

    Corsair demonstrated significant improvement in cash generation, with operating cash flow increasing 148% year-over-year to $74.8 million in Q2. The company generated more operating cash flow in the first half of 2026 than in all of 2025 and 2024 combined. This strong cash performance, coupled with a net cash position of $75.1 million at quarter-end, enhances financial flexibility for organic growth, strategic acquisitions, share repurchases, and debt management.

    05

    Impact of Tariff Refunds

    The company recognized a one-time📎 benefit of approximately $15.6 million to GAAP gross profit from tariff refunds, contributing 500 basis points to gross margin. This benefit also positively impacted net income by $14.9 million, Adjusted EBITDA by $14.3 million, and non-GAAP diluted EPS by $0.13. Excluding this, Adjusted EBITDA and non-GAAP diluted EPS still exceeded the high end of guidance, indicating strong underlying business performance.

    06

    GTA 6 Tailwinds

    Management anticipates a meaningful tailwind for console products with the expected launch of Grand Theft Auto 6 in Q4 2026. The company is strategically positioned to capture demand around this highly anticipated industry release, which is expected to contribute to the organic business growth in the second half of the year.

    AI-generated summary of the company’s earnings call. Not investment advice.