Corsair Gaming (CRSR) Q1 2026 earnings summary

Executive summary

• Achieved record first quarter gross margin of 32.7% and strong profit growth, with net income up $23.4 million year-over-year and adjusted EBITDA rising 58%, exceeding guidance.

• Revenue reached $354.5 million, above guidance midpoint, driven by 10% growth in Gamer and Creator Peripherals, partially offset by a 10% decline in Gaming Components and Systems due to industry-wide semiconductor constraints.

• Cash and restricted cash increased to $119.7 million, with $29.7 million generated from operations, supporting investment and capital returns.

• Repurchased $5 million in shares under a $50 million buyback program, reducing net debt to near zero.

• Maintained market leadership in gaming components, peripherals, and performance PC ecosystem, with products sold in over 70 countries.

Financial highlights

• Q1 2026 revenue was $354.5 million, down 4% year-over-year; gross profit rose 13% to $116.0 million, and gross margin reached a record 32.7%.

• Adjusted EBITDA grew 58% year-over-year to $35.8 million (10.1% of revenue), with GAAP EPS at $0.11 and non-GAAP EPS at $0.27, up from a loss in the prior year.

• Operating income improved to $13.8 million from a loss of $2.3 million in Q1 2025.

• SG&A expenses decreased by 2.3% to $85.0 million, and product development expenses decreased by 2.2% to $17.2 million.

• Interest expense fell by 36.8% due to lower debt and interest rates.

Outlook and guidance

• Q2 2026 net revenue expected between $295 million and $320 million; adjusted EBITDA between $12.5 million and $15.5 million; non-GAAP EPS between $0.05 and $0.07.

• Q2 revenue expected to decline ~4% year-over-year at midpoint, with low-teens growth in Peripherals, offset by cautious outlook for Components and Systems.

• Full-year 2026 guidance: net revenue of $1.33–$1.47 billion, adjusted EBITDA of $100–$115 million, non-GAAP EPS of $0.58–$0.74; guidance reaffirmed despite macro uncertainty.

• Management expects mid-cycle demand conditions in 2026, with hardware refreshes and major software titles anticipated for late 2026 and 2027.

• Ongoing macroeconomic and geopolitical uncertainties, including tariffs and supply chain constraints, may impact future results.