Revenue and Top-Line
Q1 revenue of $354.5 million, coming in above the midpoint of guidance.
Corsair Gaming
· CRSR
May 7th, 2026
Summary
- Earnings Call Date:
- 2026-05-07
- Change Since:
- +22.14%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
PositiveThe call presented strong operational and financial progress: record gross margin, double-digit adjusted EBITDA margin, EPS turnaround, cash generation, reduced net debt, share repurchases, and clear product/market momentum (Stream Deck/Elgato, Wave Next, Fanatec). Offsetting these positives are durable industry headwinds — semiconductor shortages, memory pricing dynamics, tariff impacts and a near-term revenue guide that implies modest year-over-year decline. Overall, the company demonstrated meaningful margin and profitability improvements while acknowledging external constraints that could temper near-term top-line growth.
Company Guidance
Corsair guided Q2 2026 net revenue of $295M–$320M, adjusted EBITDA of $12.5M–$15.5M and non‑GAAP EPS of $0.05–$0.07 (implying roughly a ~4% YoY revenue decline at the midpoint), with expected low‑teens YoY growth in Gamer & Creator Peripherals offset by continued weakness in Gaming Components & Systems due to semiconductor shortages and a normal seasonal sequential revenue decline; management expects adjusted EBITDA to grow >70% YoY at the midpoint, reaffirmed full‑year guidance, and framed this outlook against Q1 results of $354.5M revenue (above guidance midpoint), $116M gross profit and a record 32.7% gross margin, $35.8M adjusted EBITDA (10.1% margin), $0.27 non‑GAAP EPS ($0.11 GAAP), Gamer & Creator mix at 35% (up from 30%), DTC at 20% of revenue (up from 17%), segment gross profits of $50.3M (40.8% margin) and $65.7M (28.4% margin, +670 bps), $29.7M cash from operations, $119.7M cash and restricted cash, near‑zero net debt, and ~$5M of share repurchases under a $50M authorization.
Record Gross Margin and Gross Profit Growth
Blended gross margin reached a Q1 record of 32.7%; gross profit increased 13% year-over-year to $116.0 million.
Segment Margin Expansion (Gaming Components & Systems)
Gaming Components & Systems gross profit grew 18% YoY to $65.7 million and segment gross margin expanded from 21.7% to 28.4% (670 basis points improvement).
Gamer & Creator Peripherals Growth and Margin
Gamer and Creator Peripherals revenue grew 10% year-over-year; segment gross profit grew 8% to $50.3 million with segment gross margin of 40.8%.
Adjusted EBITDA and EPS Improvement
Adjusted EBITDA was $35.8 million, up 58% year-over-year and 10.1% of revenue; GAAP EPS $0.11 and non-GAAP EPS $0.27 versus a loss in the prior-year period.
Cash Generation, Leverage and Capital Return
Operating cash flow of $29.7 million in Q1; cash and restricted cash rose to $119.7 million (+$20.9 million sequential); net debt reduced to near zero; repurchased ~$5 million of stock under a $50 million authorization.
Mix Shift to Higher-Margin Channels
Direct-to-consumer channel grew to 20% of revenue from 17% a year ago (3 percentage-point mix improvement); Gamer & Creator Peripheral mix rose to 35% of revenue from 30% a year ago, contributing to margin lift.
Product & Ecosystem Momentum
Elgato Marketplace showed double-digit sequential growth in new accounts and digital products; Stream Deck integration expanded across Corsair keyboards, mice and peripherals; new Wave Next audio ecosystem and Fanatec F1 partnership broaden brand reach.
Operator
Good afternoon, and welcome to Corsair Gaming's First Quarter 2026 Earnings Conference Call. As a reminder, today's call is being recorded, and your participation implies consent to such recordings. With that, I would like to turn over to David Pasquale with Investor Relations. Please proceed.
David Pasquale
Thank you, operator. Good afternoon, everyone, and thank you for joining us today. With me on the call are Thi La, our Chief Executive Officer; and Gordon Mattingly, our Chief Financial Officer. Before we begin, I'd like to remind you that today's discussion contains forward-looking statements, including, but not limited to, our guidance for the second quarter of 2026 and other statements that are not historical in nature, are predictive in nature or depend upon or refer to future events or conditions. These forward-looking statements are based on our current assumptions and expectations. Actual results could differ materially. Please refer to the risk factors in our most recent annual report on Form 10-K filed with the SEC as well as today's earnings press release for a full discussion of the factors that could cause our actual results to differ. We undertake no obligation to update these forward-looking statements.
Additionally, we will discuss certain non-GAAP financial measures today. Definitions and reconciliations to the most comparable GAAP measures are included in our earnings press release and the investor presentation posted to our Investor Relations website at ir.corsair.com. With that, I'd like to turn the call over to our CEO, Thi La. Please go ahead, Thi.
Thi La
Thank you, David...
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