Corsair Gaming, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for Q3 2026 was $367.0 million, a 6% increase year-over-year, exceeding the guided range high of $350 million by $17.0 million.
• Gross profit increased 5% year-over-year to $97.8 million in Q3 and 13% to $318.1 million for the first nine months of 2026.
• Gross margin was 26.7% in Q3 2026 compared to 26.9% in Q3 2025; for the first nine months, margin was 30.7% compared to 27.2%.
• GAAP operating loss narrowed to $1.6 million in Q3 2026 from $5.6 million in Q3 2025.
• Consolidated GAAP net loss narrowed to $2.4 million in Q3 2026 from $10.4 million in Q3 2025.
• Adjusted EBITDA increased 38% year-over-year to $22.4 million in Q3, surpassing the guided high of $21.0 million, with an Adjusted EBITDA margin of 6.1% (up 140 basis points).
• GAAP diluted loss per share was $0.02 in Q3 2026 versus $0.09 in Q3 2025; non-GAAP diluted EPS was $0.13 versus $0.06, exceeding the guided high of $0.12.
• Cash and restricted cash totaled $136.2 million at quarter-end, up $70.2 million year-over-year but down $57.6 million quarter-on-quarter.
• Debt maturing within one year was $6.1 million; long-term debt, net was $110.6 million as of September 30, 2026.

Guidance and Future Outlook:

• Q4 2026 net revenue is guided to $420 million to $450 million.
• Q4 2026 Adjusted EBITDA is guided to $38 million to $42 million.
• Q4 2026 Non-GAAP EPS is guided to $0.26 to $0.31.
• Full-year 2026 net revenue guidance raised to $1.456 billion to $1.486 billion (previously $1.40 billion to $1.47 billion).
• Full-year 2026 Adjusted EBITDA guidance raised to $127 million to $131 million (previously $121 million to $131 million).
• Full-year 2026 Non-GAAP EPS guidance raised to $0.89 to $0.94 (previously $0.85 to $0.94).
• Management expects Q4 Adjusted EBITDA to be below the prior year primarily due to memory gross margin normalizing to approximately 18% to 20% from an unusually high 35% in Q4 2025.
• Gaming Components and Systems is expected to remain pressured by soft DIY PC demand due to elevated memory pricing, though memory supply is expected to remain adequate.
• The AI workstation initiative is in an early stage, with meaningful revenue contribution expected in late 2027 and beyond pending semiconductor availability normalization.

Business Segments and Product Lines:

• Gaming Components and Systems: Q3 revenue grew 7% year-over-year to $250.5 million. Memory revenue grew 43% to $167.3 million, driven by supply chain execution, robust demand, ASP expansion, and market share gains. Systems demand was strong across all categories. Segment gross margin expanded 20 basis points to 21.1%.
• Gamer and Creator Peripherals: Q3 revenue grew 3% year-over-year to $116.5 million. Revenue growth was impacted by timing shifts of new product introductions to Q4, logistics delays, and a hub transition, resulting in a higher-than-planned backlog. Segment gross margin was 38.7%.
• New Products and Acquisitions:
  • SCUF Omega licensed controller added to PlayStation 5 and PS5 Pro premium offerings.
  • Acquisition of Trak Racer completed, complementing Fanatec's electronics with simulation cockpits and accessories.
  • Elgato launched Wave Go, its first noise-cancelling wireless microphone.
  • PureVector technology launched in SABRE v3 PRO mouse series, personalizing sensitivity based on biomechanics.
  • Fanatec launched Podium Pedals Sport; Trak Racer showcased a SIM motorbike expected to ship in Q1 2027.
  • VOXARA launched, pairing a CORSAIR USB RGB gaming microphone with Elgato Wave Link software.
• Elgato Ecosystem: Elgato Marketplace added over 1 million new accounts year-over-year.

Market and Competitive Landscape:

• Memory market saw sequential market share gains and ASP expansion.
• DIY PC builds and standalone components shrank year-over-year due to higher memory pricing.
• Console gaming hardware demand is rising ahead of the GTA 6 launch on November 19, 2026, benefiting SCUF controllers and Elgato products.
• Sim Racing category is expanding with new product launches and the introduction of the SIM motorbike.
• The Company is expanding its direct-to-consumer relationships and ecosystem.

Risks and Challenges:

• Elevated memory pricing continues to delay system builds across the industry, pressuring the DIY PC market.
• Semiconductor availability constraints could impact the timing of the AI workstation initiative.
• Memory gross margins are expected to decline to historical averages (18-20%) from the elevated levels seen in Q4 2025.
• Forward-looking statements note risks including macroeconomic conditions, inflation, recession risks, trade regulations, tariffs, brand strength, new third-party hardware introductions, and geopolitical events.

Management Commentary and Tone:

• CEO Thi La highlighted that memory led the quarter with 43% growth, offsetting softness in DIY components, and noted strong operational know-how and supply chain execution.
• Management expressed confidence in the diversified portfolio providing multiple paths to growth, with priorities including accelerating the Sim Racing roadmap, extending the Elgato and Stream Deck ecosystem, and expanding Corsair Pro product lines.
• CFO Gordon Mattingly emphasized operating leverage, noting that higher revenue and gross profit flowed through to earnings, resulting in a 38% increase in Adjusted EBITDA.
• Management stated the Trak Racer integration is well underway and expected to contribute in Q4.
• The tone is confident regarding the raised full-year outlook and the strategic positioning for the seasonally strongest fourth quarter.

Other Key Points:

• Approximately $37 million was used for M&A transactions during the quarter, specifically the Trak Racer acquisition.
• Inventory was built up by $37 million sequentially, primarily in memory, to capitalize on expected strong Q4 seasonal demand.
• The hub transition for the Gamer and Creator Peripherals segment has been completed.
• The Company utilized its strong cash position to strategically build inventory and execute M&A deals.
• The full-year 2026 outlook assumes approximately 112 million fully diluted shares outstanding.
• Elgato's Wave Go microphone and PureVector mouse technology were launched in Q3 2026.
• The Trak Racer SIM motorbike is a new category for Corsair, expected to ship in Q1 2027.